Continental Airlines Cargo will install the latest application of the Manugistics Cargo Revenue Management suite, comprising upgraded versions of Capacity Management, Sales and Allocation Planning, Flight Management and Real-time Booking Evaluation. Upgrade is expected to be completed in about 17 months.
Grupo TAP, parent of TAP Portugal, reported a summary result showing a net loss of €9.9 million ($12 million) in 2005, reversing a net profit of €8.6 million in 2004, which was fueled by a €30 million extraordinary gain from the partial sale of ground handling unit Servicos Portugueses de Handling.
America West Holdings said last week that it will redeem $112.3 million in debt on April 13. It will redeem its 7.5% convertible senior notes due 2009. Noteholders may convert multiples of the notes into US Airways common stock by April 11 or may opt to receive cash.
Aer Lingus employees represented by the Services, Industrial, Professional and Technical Union voted in favor of industrial action last week by a 94% margin, anticipating the impending privatization of the carrier. The government's Joint Oireachtas Committee on Transport will hold its first hearing on the proposed sale Thursday.
Frontier Airlines shareholders approved last week a plan to establish Frontier Airlines Holdings, a Delaware corporation that will be the carrier's parent ( ATWOnline, Feb. 2). The new company will trade on Nasdaq as FRNT. Shareholders in Frontier Airlines will hold the same number and percentage of shares in the new company, which began trading yesterday.
Cathay Pacific Airways, which generates about 30% of its revenue from cargo activities, is evaluating its future freighter fleet and is studying the 747-8F, 777F and A380 freighter. "We are looking at them but we may not make a decision this year, because we are very well served with our strategy not to order [new] aircraft too early," COO Tony Tyler told ATWOnline in Hong Kong. He joked that the airline might make an exception "if Boeing gives us a killer offer."
Delta Air Lines launched five-times-daily New York LaGuardia-Chicago O'Hare service yesterday aboard Embraer 170s operated by Shuttle America. Delta also initiated daily service from Atlanta to Dusseldorf yesterday aboard a 767-300ER and to Tel Aviv on March 27 aboard a 777. Delta Connection Atlantic Southeast Airlines will operate twice-daily Atlanta-Wilmington, Del., service from June 29 aboard 40-seat CRJs and Delta said the route will make it the only carrier to operate to all 50 states. Gulf Air will launch a thrice-weekly Muscat-Paris CDG service on July 1.
SN Brussels Airlines and Virgin Express announced they will merge into a single carrier with a new name and two distinct products, a basic service for price-sensitive passengers and an upgraded service for time-sensitive customers seeking greater convenience and flexibility.
Virgin Atlantic Airways committed itself to capturing more business and premium traffic with Friday's announcement of a three-year "global growth plan" that it expects to produce a 10% increase in business travelers in the coming year. It will add services on popular business routes, including a fourth daily London Heathrow-New York JFK flight, and launch a Dubai service.
Delta Air Lines announced it will follow Northwest Airlines' lead and discontinue absorbing certain passenger facility charges, increasing one-way ticket prices $3-$4.50 on applicable connecting domestic itineraries.
SunExpress, jointly owned by Turkish Airlines and Thomas Cook Airlines, increased its turnover in 2005 by 30.5% to €197.2 million ($238.1 million). Passengers grew 30.1% to 1.76 million, with load factor at 81%. Starting with the summer schedule, SunExpress opened a new base at Izmir. It operates a fleet of nine 737-800s and four 757-200s.
Hapagfly took delivery of three 737-800s Friday. The aircraft, along with an additional dash 800 delivered the previous week, are part of an order for 10 placed by parent TUI Group in late 2004 and will replace A310s.
Swiss World Cargo and Lufthansa Cargo Charter signed a marketing and sales cooperation agreement last week enabling Swiss to sell charter capacity on Lufthansa flights.
In its first year following its transfer from the Israeli government to Knafaim Arkia Holdings, El Al reported the highest annual net earnings in its history, a $64.1 million profit that represented a 94% increase over 2004 earnings of $33.1 million. Revenues rose 17% to $1.62 billion against a 9.7% decline in operating expenses to $1.2 billion. The airline said it realized $65 million in fuel hedge gains as fuel costs climbed 44% to $388 million. Operating profit jumped 53.7% to $89 million.
AirNet Systems, which operates 125 aircraft and provides air transport services to banks and time-critical small package shippers along with passenger charter services through its Jetride subsidiary, reported a 2005 net loss of $4.2 million, narrowed from a $34.1 million loss in 2004. It posted a fourth-quarter profit of $116,000. Tampa Cargo reported revenue of $160.7 million in 2005, a year-over-year increase of 16.6%. RTKs climbed 10.1% to 492 million and load factor rose 12.3 points to 81.4%.
US Airways is shutting down what remains of Regional subsidiary MidAtlantic Airways on May 28, resulting in 368 layoffs in Philadelphia and Pittsburgh, according to press reports. MidAtlantic was established in 2002 to operate 70-seat Embraer 170s and provide jobs for furloughed mainline pilots. US Airways already had sold off most MidAtlantic assets to Republic Airways, which will continue operating the aircraft and routes on behalf of the Major following the transfer.
Thai Airways and Lao Airlines signed an MOU Thursday designed to encourage tourism and travel to Laos while promoting Thailand as the gateway to the peninsula. The carriers eventually will codeshare on the Bangkok-Vientiane and Chiang Mai-Luang Prabang routes and interline on flights from the US, Australia, France and Japan into Laos.
Flybe reversed its financial fortunes in the fiscal year ended March 31, 2005, posting a profit before tax and exchange rate gains of £6.6 million ($11.5 million) compared to an FY04 loss of £3.2 million. The result fell short of Chairman and CEO Jim French's December projection of an £8 million pre-tax surplus ( ATWOnline, Dec. 19, 2005). Passenger numbers increased 19.2% to 4.03 million as the carrier introduced 29 new routes.
AMR board of directors announced a change to the compensation program for American Airlines management. It provides for a combination of stock and cash distributions for compensation granted under the 2003-05 Performance Share Plan, previously known as the Performance Unit Plan, AMR said. Cash payments will be consistent with AA's Annual Incentive Plan. The board made similar changes to the 2004-06 plan.
SITA named MD Francesco Violante CEO effective July 1. Air Transport Assn. named Sharon Pinkerton VP-government affairs. She joins ATA on April 17. She currently is FAA assistant administrator for aviation policy, planning and environment.
China Southern Airlines will increase its Los Angeles-Guangzhou service to daily on June 22. JetBlue Airways launched four-times-daily New York JFK-Richmond service Friday aboard Embraer 190s. Shandong Airlines launched a summer schedule March 26 that includes new international services from Qingdao to Pusan (thrice-weekly) and Taegu (twice-weekly) aboard 737-700s.
Swiss International Air Lines and Spanair, Star Alliance partners as of Saturday, entered into a codesharing arrangement effective May 1 covering flights from Zurich and Geneva to Barcelona, Madrid, Palma de Mallorca and Malaga.
A Message from Tim Mahoney President, Air Transport & Regional Aviation Honeywell ATW Industry Awards Ceremony Sponsor Good evening. I'm pleased to be speaking to you tonight on behalf of Honeywell, and would like to thank ATW Publisher Bill Freeman and Air Transport World for this valued industry event.
