If this were a typical tale of a North American airline financial restructuring, Air Canada probably would be readying its employees and lenders for another trip through the corporate steam room to sweat out some more savings in addition to the C$2 billion shed during its year-and-a-half reorganization. Instead, 18 months after emerging from Canada's Companies' Creditors Arrangement Act on Sept. 30, 2004, it is writing a new script and going where no legacy carrier has gone before.
The final Asian Aerospace show in Singapore (Feb. 21-26) had the familiar focus on the Asia/Pacific's booming economies and limitless aviation possibilities, but most conversations drifted to debate over the future of the region's air shows. Will Reed Exhibitions be successful in transplanting a more limited Asian Aerospace to Hong Kong in September 2007, or will the newly established Singapore Air Show triumph in its continuation of the biennial meeting in February 2008 at a new facility adjacent to a new runway here at Changi Airport?
Aer Lingus appointed Niall Walsh deputy chief executive, Greg O'Sullivan finance dir., Enda Corneille commercial dir., Stephen Kavanagh planning dir., Liz White human resources dir. and Dick Butler ground operations dir. AeroMexico promoted Kristian C. Anderson to national accounts mgr.-US. AirAsia welcomed Timothy Ross as executive VP-corporate affairs & strategy. Alaska Air Group named Karen Gruen MD-corporate affairs & asst. corporate secretary. Alteon Training elevated Marsha Bell to VP-first officer programs. American Airlines tapped Lynda Johnson as GM-Dallas Love Field.
At Flight Level 350 over Canada's Northwest Territories, Delta Flight 55, a 777-200ER, is bound for Tokyo Narita. All is quiet when the call goes out: "Is there a doctor onboard?" A couple of minutes later, a second announcement, but with added emphasis: "Is there anyone onboard with medical training?"
Last year, ExxonMobil earned $36 billion, the largest profit in US corporate history and, one reasonably may assume, the world. Other oil companies, US and non-US, did nearly as well, benefiting, ironically, from the very storms that caused so much damage to their refining capacity. Perhaps if Hurricanes Katrina and Rita somehow had swamped 500 transports on the tarmac, rendering them unflyable for several months, the concomitant reduction in airline capacity would have led to record airline profits in the fourth quarter.
With the number of regional jets in the world airline fleet now numbering in the thousands, some of them with more than a decade in service, the demand to support them is rising. Surprisingly, few third-party providers have shown much interest in participating in this segment of the maintenance, repair and overhaul market, which still rests largely with the airframe and engine OEMs and the component and system suppliers. Industry analysts suggest this could change as the fleet continues to age and aircraft come out of warranty.
For centuries, explorers and traders have searched the oceans for the strongest winds, like the Southern Ocean's Roaring Forties. Now, with the help of Airservices Australia, several airlines are pursuing those same winds on their routes to Australia, reducing flight times, saving increasingly valuable fuel and lowering emissions. Dubai-based Emirates is one of the first to take advantage of Airservices' latest Flex Track initiative, cutting flight times on a typical journey by 25 min. and saving up to 8,000 kg. of fuel.
Sabre Travel Network is rolling out Upsell, a program that displays amenities and upgrades that are available at a hotel that is about to be booked. The program is part of its drive to move more into a merchandising mode, rather than simply processing transactions. Hotels that agree to participate in the program will share a portion of the incremental revenue they receive with Sabre. "After an agent makes a sell, we display an offer of an amenity or upgrade and show the incremental amount it will cost," Brian Sullivan, director of hotel product marketing, said.
The looming shortage of commercial pilots has pushed the training solutions business into hyperdrive. Based on estimated growth of the world jet fleet to more than 5,000 aircraft by 2024, Boeing's Alteon Training subsidiary calculates that the world's airlines will need 17,000 additional pilots each year simply to handle new aircraft arriving over the next 20 years.
It was not so long ago that India's skies were tightly controlled by a government that viewed air travel as an elitist business. Now they are opening up fast. Apart from the consumer, probably the biggest beneficiary of liberalization is Jet Airways. The Mumbai-based airline has chipped its way through a system in which everything from the choice of routes to the fares charged had to be cleared by the government. Following the acquisition of rival Air Sahara in January, Jet is in a dominant position and now controls about 50% of the domestic market.
Qantas finalized its commitment for up to 115 787s with a firm order for 45 worth $5.8 billion, options for 20 and purchase rights for another 50. The signing ceremony confirming a Dec. 14 announcement was a highlight of celebrations marking inauguration of the airline's Sydney-San Francisco service. The first four 787s will be delivered to Jetstar International in July 2008, with another 28 to follow for Jetstar and Qantas by 2011. Qantas will get its first Dreamliner in mid-2009. The 787s will replace a fleet of A330s and 767s.
Northwest Airlines expects to have its new Regional carrier, now named Compass Airlines, up and running by June, based on a filing with the US Dept. of Transportation asking DOT to transfer Independence Air's operating certificate to Compass. NWA acquired defunct Independence Air's certificate earlier this month.
Gol said its wholly owned Gol Finance priced its previously announced offering of $200 million aggregate principal amount of 8.75% senior unsecured perpetual notes. The notes have no fixed final maturity date but will be callable at par after five years. Proceeds will be used to finance acquisition of 737NGs "as a complement to its US Eximbank guaranteed bank financing." The transaction is expected to close April 5.
LOT Polish Airlines supervisory board named Polish Civil Aviation Office President Krzysztof Kapis the carrier's new president and CEO. He worked at LOT from 1975 to 2001, holding a variety of positions including commercial director and product and marketing director. Separately, LOT leased a seventh 767, a dash 300ER, for the summer season to increase service to North America. It will offer 16 weekly flights to New York (Newark and JFK) and 11 to Chicago O'Hare. From Krakow, LOT operates three flights per week to New York and six to O'Hare.
Venezuela, following this week's negotiations with US aviation officials, announced late Wednesday it had agreed to postpone placing restrictions on incoming US flights until April 25, when FAA officials release the results of a safety audit that Venezuela hopes will return it to Category 1 status. The original deadline was yesterday.
Copa Holdings, parent of Panama's Copa Airlines and Colombia's AeroRepublica, concluded "an excellent year" with yesterday's announcement of a record profit of $82.7 million for 2005, an increase of 20.6% over a 2004 profit of $68.6 million, and fourth fiscal quarter net earnings of $17.4 million, a 46.3% improvement over the $11.9 million earned in the year-ago period. Copa credited high demand, improved economic conditions in Latin America and the popularity of its "Hub of the Americas" at Tocumen International Airport for its performance.
CSA Czech Airlines took delivery of a new CFM 56-5B4/P-powered A320 yesterday in Toulouse. It will continue to take delivery of its order for six A320s and six A319s (leased and purchased) through September 2008.
Finnair gave Airbus's A350 program a boost yesterday by signing a contract for nine A350-900s, three A340-300Es and four options, firming a commitment it made in December ( ATWOnline, Dec. 8, 2005). The first of the Trent 1700-powered A350s will be delivered in 2012 and seat 314 in a two-class configuration. The long-haul fleet renewal is part of Finnair's Asian growth strategy. Airbus said it now has 182 firm orders and commitments from 14 customers for the A350.
African Airlines Assn. on Wednesday criticized the European Union's publication of a list of airlines banned from operating to the EU "as damaging the African airlines business." According to AFRAA, the blacklist "paints a negative picture of all scheduled flights from the continent." In a statement, AFRAA Secretary General Christian Kossi said that "no scheduled African airline member of IATA or AFRAA is included in the blacklist," yet it "sends the wrong message to the average European passenger that all African airlines are potentially dangerous and it is safer to travel with Europea
Delta Air Lines will cut approximately 1,000 management and administrative jobs, according to an internal memo released last week cited by press reports. Last fall the bankrupt carrier targeted 7,000-9,000 positions throughout the company for elimination by next year ( ATWOnline, Sept. 23, 2005). Among the departures will be marketing head Paul Matsen. It is not clear if Matsen's departure is related to the cuts.
Austrian Airlines Group named Manfred Helldoppler as the new MD for its Tyrolean Airways subsidiary, which operates under the brand Austrian Arrows. He replaces the retiring Johann Messner.
American Airlines announced the signing of a five-year comprehensive content distribution agreement with Worldspan yesterday that will go into effect Aug. 1.
US Airways has gone retro with the dedication of an A319 painted in the white, orange and red livery of Pacific Southwest Airlines, one of the three original carriers that merged to create US Airways. It plans to dedicate other aircraft this year with the liveries of Allegheny, Piedmont and America West. The tail numbers of these so-called "throwback" aircraft will change to reflect the original two-letter designators.
VLM Airlines reported its eighth consecutive annual profit, posting net earnings of €1.35 million ($1.6 million) in 2005, a 43% increase over 2004. Revenues rose 17% to €88.5 million and operating expenses climbed 16.5% to €85.9 million. Operating profit increased 42% to €2.5 million. At the end of the financial year, the airline's cash balance stood at a healthy €6.9 million, an increase of more than 200% from the previous year. "These are positive results, but we are eager to achieve more.
Air Deccan signed a V2500Select services agreement with International Aero Engines to support its existing fleet and an order for 30 V2500-powered A320s. The latest engine order is valued at more than $500 million. The program includes engine upgrades planned for release and retrofit in 2008.
