AirAsia will make its fares available in the Galileo GDS through Galileo Flight Integrator, a Web-based service. The agreement also covers Thai AirAsia and Indonesia AirAsia. It marks the first time the Kuala Lumpur-based LCC has participated in a GDS.
China Eastern Airlines Wuhan's board approved the purchase of five ERJ-145LRs from Harbin Embraer, the joint venture between Embraer and AVIC II. China Airlines Jiangsu previously ordered five ERJ-145s ( ATWOnline, March 25, 2005).
CSA Czech Airlines named former power company executive Radomir Lasak as its new president. He replaces Jaroslav Tvrdik, who resigned earlier this month to enter politics ( ATWOnline, Jan. 5).
Despite $700 million in cost reductions achieved last year, AMR Corp. could not overcome the impact of record nominal fuel prices that cost it an additional $1.7 billion over what it spent in 2004, plus a handful of special items. The parent of American Airlines reported a net loss of $604 million in the fourth quarter and $861 million for the full year, compared to losses of $387 million and $761 million in the fourth quarter and full year of 2004 respectively.
SN Brussels Airlines launched what it called "a completely new pricing strategy which rewards early bookers." Fares will be reduced by up to 45% for tickets booked at least two months prior to departure date. The lower fares will be available to each of its 32 destinations for both one-way and return travel. The carrier said it will offer about 800,000 of its 5.5 million seats at the new discounted early booking fares this year.
On the heels of a chaotic year featuring surging fuel costs, perilous weather, the bankruptcy of two legacy carriers and the failure of a low-cost competitor, Southwest Airlines once again demonstrated a "record unmatched in this bruising commercial airline business," reporting net earnings of $548 million for 2005, a remarkable 75.1% increase over a 2004 profit of $313 million as its extensive hedges cushioned the impact of high fuel prices.
Boeing identified the suppliers that will provide propulsion systems for the 747-8, which is scheduled to enter service in September 2009 with Cargolux. In addition to the GEnx-2B67 powerplant, GE's Middle River Aircraft Systems unit will contribute the all-composite thrust-reverser system and Spirit AeroSystems, Boeing's former Wichita unit, will supply the engine struts and nacelles. The internal supplier team includes Boeing Winnipeg (aft pylon fairing), Boeing Portland (engine mounts) and Boeing Propulsion Systems (engine and strut build-up).
Thai low-fare airline Nok Air is eyeing an IPO by mid-2007 to help fund fleet renewal and expansion. "Currently we are looking at 737NGs and the A320 family," CEO Patee Sarasin told ATWOnline in Singapore. He noted, however, that owing to the unfavorable exchange rate of the Thai baht, the carrier will stay with 737-400s for the time being. Nok will add a fourth 737-400 by Feb. 1 and plans to add three more aircraft this year, supporting the addition of three new cities in Thailand that will boost its network to eight.
United Airlines reached an agreement with the Assn. of Flight Attendants on the terms of a new defined contribution pension plan that includes a 3% company match and a 2% direct contribution effective Jan. 1, escalating to a 2.5% direct contribution effective Jan. 1, 2007, and a 3% direct contribution effective the following year, for a total of a 6%, double the amount of the company's original proposal. The agreement also includes $20 million in convertible notes and immediate vesting for all flight attendants currently employed by United.
Rockwell Collins' eFlight initiative made sales to two key airline players, giving the program a big boost after years of development. EasyJet plans to go live in April with a fleetwide EFB for its 54 737s, according to Aircraft Operations Cost Manager Taylor Bradbury. This will allow electronic posting of technical and journey logs via Panasonic CF-18 laptops linked by cellphone wireless during base airport turnarounds while providing automated weight and balance computations.
Efforts by Richard Branson's Virgin Group to regain control of Virgin Blue may have suffered a fatal setback when Australia's Competition and Consumer Commission said it was opposed to Toll Holdings' proposed takeover of Patrick Corp., which holds 62.4% of the Australian low-fare airline. Toll launched a A$4.6 billion ($3.5 billion) hostile takeover of Patrick last August. Assuming the takeover had been successful, Toll would have sold enough Virgin Blue shares to raise Virgin Group's holding from 25% to 40.6%, making it the largest shareholder in the carrier ( ATWOnline, Aug.
Group of airline and airport trade groups called for establishment of a formal Industry Consultation Body in Europe to advise the European Commission and EU member states on security measures and "to facilitate dialogue in the development of new security measures." The associations behind the statement are Airports Council International Europe, Assn. of European Airlines, European Cockpit Assn., European Regions Airline Assn., International Air Carriers Assn. and IATA.
Connexion by Boeing signed a three-year deal with Korean Air making it the first authorized modification center for retrofit installation of the Connexion product. Korean intends to retrofit third-party aircraft. By mid-2007, all of its own mid/long-range aircraft will be equipped with Connexion. Separately, Japan Airlines will offer Connexion's four channels of live television ( ATWOnline, Jan. 12) to passengers equipped with compatible personal computers beginning Jan. 23. Programming will be available on aircraft equipped with JAL Inflight Internet Service.
Northwest Airlines yesterday asked the bankruptcy court overseeing its Chapter 11 reorganization to permit it to reject the collective bargaining agreements covering its pilot and flight attendant workforces and allow it to make changes to retiree medical benefits.
Israir Airlines received permission yesterday from the Israeli government to compete with El Al on the Tel Aviv-New York JFK route, according to media reports. El Al reportedly intends to seek a legal remedy, claiming the government promised it exclusivity. Israir currently operates charter services to JFK.
United Airlines and South African Airways, a future Star Alliance member, announced a codeshare and booking agreement covering SAA flights from Washington Dulles to Johannesburg. UA customers also will be able to connect from Johannesburg to other South African markets or onto SAA flights from London, Frankfurt and Paris to South Africa. SAA customers will be able to connect and book United flights from Washington Dulles to Chicago, Las Vegas, Los Angeles, San Diego, San Francisco and Seattle.
A flurry of December activity, highlighted by an order for 150 A320 family aircraft from China Aviation Supply Corp., raised Airbus's 2005 sales total to 1,111 gross orders and 1,055 net orders, propelling it past Boeing in terms of new orders for a fifth consecutive year.
SAS was criticized by Sweden's Civil Aviation Authority for failing to carry out mandated inspections on 10 Airbus aircraft last year. CAA DG Nils Gunnar Billinger told Swedish daily Svenska Dagbladet that "SAS has taken liberties with the safety margins. These airplanes should not have been in traffic," according to Reuters.
Worldspan and KLM signed a multiyear agreement making the carrier's complete content, including that offered through its website and reservations agents, available to Worldspan with no surcharges.
Qantas said Monday it signed a nonbinding MOU with SR Technics to establish a joint venture providing component management services for the A380. The new company will compete with Spairliners, formed last summer by Lufthansa Technik and Air France Industries ( ATWOnline, June 13). Qantas said it is filling a similar need in the Asia/Pacific region.
Middle East Airlines took the "first steps" toward joining SkyTeam, signing an MOU Monday with Air France, which will serve as its sponsor. MEA joins Air Europa, Copa Airlines, Kenya Airways and Tarom as Associate Airline candidates and is on course to become SkyTeam's first carrier from the Middle East. Rival alliance oneworld is set to admit Royal Jordanian. MEA operates a fleet of three A330-200s and six A321-200s to 26 destinations in 17 countries, expanding SkyTeam's reach to new destinations like Dhahran and Sharm el Sheikh. It is expected to meet SkyTeam standards in 2007.
Shanghai Airlines said it has entered negotiations to join Star Alliance, according to media reports citing board secretary Xu Junmin. The carrier currently codeshares with alliance members Lufthansa and ANA.
Emirates said it will launch six-times-weekly Dubai-Kolkata service from March 26 aboard A330-200s. Helios Airways added weekly flights from Larnaca to Manchester and from Paphos to London Gatwick, Manchester and Newcastle from Jan. 14. Southwest Airlines said it will add 18 roundtrip flights between New Orleans and Houston Hobby, Dallas Love Field and Orlando International from Feb. 24 to March 4 to support the rebuilding city's Mardi Gras celebration. Kingfisher Airlines will launch daily Mumbai-Mangalore service Jan. 20.
