International Air Transport Assn. expressed outrage at Aeroports de Paris' plan to raise charges at Paris CDG 5% per year for the next five years, calling ADP "greedy." According to IATA, the French government ignored airline pleas and the report of an independent consultant to approve "the ridiculously high increase" in airport charges. "This is yet another demonstration of how airlines are caught between a rock and a hard place in their relationship with airport monopolies," DG and CEO Giovanni Bisignani said. "ADP clearly does not understand the need for efficiency.
Delta Air Lines is moving forward with previously announced plans to cut its workforce ( ATWOnline, Sept. 23). According to media reports, 800-1,000 MRO jobs at Atlanta Hartsfield-Jackson International Airport will be eliminated. The cuts go into effect April 1 when the airline will close a hangar at Hartsfield.
ACE Aviation Holdings, parent of Air Canada and Jazz, moved forward Tuesday with previously announced plans for a partial sale of its Regional airline subsidiary ( ATWOnline, Nov. 29). Under an agreement between Jazz Air Income Fund and a group of underwriters, 23.5 million units of the fund will be sold at a price of $10 per unit, representing 19.1% of the airline. Based on the unit price, gross proceeds to ACE will total C$235 million before overallotments.
FAA yesterday said it has saved $1.4 million in overtime expenses and achieved a 75% reduction in operational errors at the troubled New York Terminal Radar Approach Control facility since reasserting authority over scheduling practices and taking a more hands-on management approach there ( ATWOnline, June 3, 2005).
Garuda Indonesia told a parliamentary commission it lost IDR672 billion ($70.7 million) in 2005, a narrowing of 17.1% from its 2004 losses, according to AFP. The carrier said the slight improvement came as cost cuts were offset by rising fuel prices and continued fallout from the Bali terrorist bombings, which ate into earnings by an estimated $14.7 million, according to an airline spokesperson cited by AFP. Garuda reportedly missed a $55 million debt repayment in December and remains $1.2 billion in the red.
SAS Scandinavian Airlines announced on its website yesterday afternoon the conclusion of the pilots strike and sickout that had grounded hundreds of flights in Copenhagen and at its Braathens division in Norway since Monday ( ATWOnline, Jan. 24). The pilots, who were protesting potential labor issues connected to SAS Group's split into national airline divisions, were expected back at work this morning. SAS estimated the strike cost it approximately DKK30 million ($4.9 million) per day, according to media reports.
AirTran Airways posted a narrow fourth-quarter loss of $0.4 million but managed to stay in the black for the seventh consecutive year, earning $2.7 million in 2005 in spite of a 91% rise in fuel expenses. The carrier earned $1.13 million in the fourth quarter of 2004 and posted full-year earnings of $12.3 million.
United Airlines parent UAL Corp. will list its new stock issue on Nasdaq under the ticker symbol UAUA beginning in early February. The company will begin issuing up to 125 million shares of common stock as part of its reorganization plan, most of which will go to creditors.
EADS Revima said the first 777 landing gear shipset arrived at its workshop in Caudebec-en-Caux, France, for scheduled overhaul, with completion scheduled for the beginning of next month. The landing gear belongs to Cathay Pacific, which recently signed a long-term contract with EADS Revima for gear exchanges and MRO of its fleet of 777-200s/-300s. PSA Airlines renewed its avionics MRO contract with Rockwell Collins, which will provide support and maintenance of avionics on CRJ200s and CRJ700s for the next 10 years.
Evans & Sutherland Computer Corp. said Malaysia Airlines will equip its Thales A380 simulators with E&S's EP-1000CT visual system. Emirates, Qantas and Singapore Airlines also recently placed orders for the system. E&S signed a deal with CAE to produce an EP-1000CT/ESCP-2000 system for an Embraer 170 simulator ordered by Saudi Arabian Airlines.
Fatal crash of a Corporate Airlines Jetstream 32 on Oct. 19, 2004, outside Kirksville, Mo., was owing to "the pilots' failure to follow established procedures and properly conduct a nonprecision instrument approach at night in instrument meteorological conditions," the US National Transportation Safety Board said yesterday.
FedEx Express signed an agreement to acquire Tianjin Datian W. Group's 50% stake in the FedEx-DTW International Priority express joint venture plus DTW's Chinese express network comprising 89 locations for $400 million. The JV, launched in 1999, now will be a wholly owned FedEx subsidiary. The deal also includes DTW assets used to perform IP services. DTW will continue to operate international freight forwarding, general cargo transport and merchandise distribution businesses.
ITA Software, which provides software solutions to the airline and travel industries and is also a GDS new entrant, announced $100 million in equity financing. Led by Battery Ventures, the round includes participation from General Catalyst Partners, PAR Investment Partners, Sequoia Capital and Spectrum Equity.
Unionized employees at Mesaba Airlines, including pilots, flight attendants and mechanics, are protesting the bankrupt company's proposal to reward its management team with some $2.2 million in bonuses. The carrier filed a motion in bankruptcy court seeking permission to pay bonuses worth up to 60% of executive base pay and to issue stock appreciation rights to top officers and directors. Mesaba, which filed for Chapter 11 protection in October, operates as a Regional codeshare partner of Northwest Airlines.
KLM will launch a twice-weekly Amsterdam-Chengdu service from May 28 using 777 200ERs in cooperation with China Southern Airlines. Chengdu is KLM's fourth Chinese destination. United Airlines will launch weekly Chicago-Puerto Vallarta service from March 4. Service will become daily Dec. 15. Weekly Los Angeles-Cancun service also will begin March 4, increasing to daily service on Ted from June 8. All flights will be aboard A320s. UA is awaiting approval to begin Chicago-Cancun service and flights from LAX to San Jose del Cabo and Puerto Vallarta.
Qantas took delivery of the first of seven Q400s, which will enter service Feb. 26. The 72-seat turboprop will operate twice-daily service between Brisbane and Mackay replacing a single daily flight currently operated with a 737.
Volga-Dnepr Group said its first new-build IL-76TD-90VD freighter received Chapter 4 noise certification from ICAO. The company has ordered two of the 50-tonne freighters, which are equipped with PS-90a-76 engines and new avionics.
Sabre Holdings and Northwest Airlines signed a five-year, full content agreement to make available through the Sabre GDS all Northwest published fares and inventory, including special Web fares. Concurrent with the announcement, the companies said they agreed to settle all current litigation.
Scandinavian Airlines Group said recently discovered financial reporting errors at its Spanair subsidiary related to improper accounting of certain revenues and costs will result in a charge against earnings at Spanair of SEK80 million ($10.6 million) for the 2005 fourth quarter. The SAS subsidiary still is expected to show a profit for the quarter and the corrections will not affect SAS Group's full-year outlook, the company stated. SAS also will restate results for the 2002-04 period with a negative impact of SEK340 million.
ExpressJet Holdings, a Regional partner of Continental Airlines, reported yesterday a 20.2% drop in annual net profit from $122.8 million in 2004 to $98 million in 2005, a year that concluded with CO's unexpected December decision to eliminate 44 ERJ-145XRs and 25 ERJ-145LRs--25% of the ExpressJet fleet--from its capacity purchase agreement ( ATWOnline, Jan. 4).
Eos, a New York-based all-premium airline, is participating in the Sabre GDS. Eos operates 757s configured for 48 seats on services between New York JFK and London Stansted.
China Airlines will retrofit Aviation Partners Boeing Blended Winglets to 11 737-800s. Work at the carrier's MRO facility in Taipei will commence in March and be completed by year end.
News from Travel Technology Update: AirTran, which dropped out of Worldspan in November because the two companies could not come to terms on the cost of participation, is back in the GDS with a new multiyear, full content agreement, effect Jan. 24. The carrier is distributing inventory, availability and fares through Worldspan at a level of participation called Limited Connect, which is below Worldspan's Full Service level. Worldspan said Limited Connect is designed to meet the distribution needs of carriers that require limited functionality
Indonesian government, as expected, is seeking foreign capital to rescue debt-ridden Garuda. However, the government's desire to retain 51% control is expected to restrict interest significantly, analysts say. According to the Centre for Asia Pacific Aviation, Garuda has asked Malaysia Airlines to reduce its thrice-daily 777 service between Kuala Lumpur and Jakarta to increase yields--Garuda operates 737s on the route. The carrier's problems are wide-ranging, with traffic to Indonesia down 5.9% due to the recent Bali bombings.
