Cendant Corp., less than six weeks after it announced it was breaking itself up into its component businesses ( ATWOnline, Oct. 26), warned that fourth-quarter earnings will not meet expectations owing to "continuing challenges at its Travel Distribution Services division," which includes Orbitz and the Galileo GDS.
Air France and TAM signed an agreement this week to develop jointly Sao Paulo and Rio de Janeiro as connecting hubs to Brazilian and Latin American destinations on TAM's network. The accord covers an increase in frequencies from seven to 10 per week from Paris CDG to Sao Paulo and daily flights to Rio de Janeiro, with onward connections to 10 Brazilian destinations via Sao Paulo and seven through Rio. TAM will offer passengers departing from Brazil flights to eight French cities via AF's CDG hub.
Royal Jordanian said yesterday it expects 2005 and 2006 net earnings "similar" to the JOD17.5 million ($24.6 million) achieved last year. Revenues for 2005 are expected to be JOD389 million, increasing 20.6% to JOD469 million in 2006. Expenses are expected to climb 20.7% from JOD 377 million this year to JOD455 million.
Dallas/Ft. Worth International Airport will lose service to five US cities and one international market and see flights to several additional cities pared as American Airlines reapportions assets at its principal hub following this month's action to open Missouri to flights from Dallas Love Field. Southwest Airlines launched service to Kansas City and St. Louis yesterday and American countered with the announcement of its schedule from Love Field to the Missouri cities, San Antonio and Austin beginning March 2 ( ATWOnline, Dec. 13).
Detroit Metro Airport will return $11 million to airlines after beating budget forecasts in FY05. Nearly 70% of the surplus will go to Northwest Airlines, the Detroit Free Press reported. The airport said it hoped the gesture would entice carriers to increase service.
International Federation of Airline Pilots said the Chicago Midway runway overrun accident last Thursday "demonstrates once again the need for Runway End Safety Areas to be established at airports with airline operations." IFALPA favors a RESA 300 m. in length by at least twice the runway width. At airports where no space is available for an overrun area, such as Midway, the organization advocates that Engineered Materials Arrester Systems be installed.
SR Technics and Chinese startup Okay Airways signed an MOU calling for the creation of a maintenance joint venture in Tianjin. The facility will provide "full technical solutions" for Airbus and Boeing types including aircraft services, fleet technical management and component support.
UK residents traveling abroad for leisure have been by far the fastest-growing component of total international traffic at UK airports since the European aviation market was liberalized in 1993, according to a new report by the UK CAA. Self-evidently, the study also concludes that the spread of no-frills airlines has been by far "the most striking development" following liberalization.
Nigerian President Olusegun Obasanjo ordered the grounding of Chanchangi Airlines and Sosoliso Airlines during a meeting broadcast on national television yesterday, three days after a 32-year-old Sosoliso DC-9 crashed in Port Harcourt, killing 107 people ( ATWOnline, Dec. 12). It was the fifth Nigerian accident since 1992 to claim more than 100 lives, according to the BBC. Obasanjo fired Tommy Oyelade, secretary of the national aviation ministry, and said that all Nigerian aircraft will undergo safety checks within the week with the help of ICAO officials.
Continental Airlines launches daily nonstop service between Houston and Buenos Aires today. Flights originate and terminate at CO's Newark hub. It is using a 767-200ER on the route. MAXJet Airways will expand its all-business-class 767-200ER service to Washington Dulles in late February. The startup, which also will add a Saturday frequency to its original six-times-weekly New York JFK-London Stansted service, will operate its Dulles-Stansted route five-times-weekly using a second 102-seat 767 that it will acquire this month.
A short time after Southwest Airlines launched its first flights to St. Louis and Kansas City from Dallas Love Field yesterday, American Airlines announced its own schedule from the airport, where it owns the rights to three gates. Daily flights to St. Louis, Kansas City, San Antonio and Austin will begin March 2. Regional affiliate American Eagle will operate the flights within Texas. The airlines will require two gates for the current schedule and said they are working with airport officials to arrange for ticket counters and other facilities.
El Al Israel Airlines signed an agreement for the purchase of two 777-200ERs, the parties announced yesterday. The aircraft, valued at $362 million and powered by Trent 892s, will be delivered in 2007. "The purchase of the 777s is in accordance with El Al's business strategy to acquire widebody long-range aircraft," President Haim Romano said. The carrier currently operates four 777s on routes between Tel Aviv and New York and the Far East.
Liftoff for Jade Cargo International, an all-cargo joint venture between Lufthansa Cargo and Shenzhen Airlines founded in October 2004, apparently has been pushed back again. Jade now will receive the first of six new 747-400ERFs in June 2006, six months later than initially announced ( ATWOnline, Sept. 16), with the second and third set to join the Shenzen-based carrier in October and December next year.
Tarom Romanian Airlines announced that it expects to be named a special Alliance Associate member of SkyTeam. The carrier said it was included in the first batch of four airlines selected to start the association process, which could be finalized during 2006.
Alaska Air Group said it intends to offer 5.7 million newly issued shares. At its current share price of around $35, the airline would raise gross proceeds of almost $200 million. Citigroup Global Markets is acting as the lead managing underwriter and was granted an additional 427,500 shares to cover overallotments. Proceeds will be used for general corporate purposes including working capital, the acquisition of aircraft and other capital expenditures.
Rep. James Oberstar (D-Minn.) asked the US Dept. of Transportation to place into the public record any conversations between DOT officials and individuals and groups outside the government in which the officials have discussed DOT's proposed rule to ease how it interprets foreign control of a US airline ( ATWOnline, Nov. 9).
Aloha Airlines cleared the final hurdle on its way out of bankruptcy yesterday as its 270 pilots, represented by the Air Line Pilots Assn., ratified the labor agreement reached late last month ( ATWOnline, Dec. 1). Aloha officially will exit Chapter 11 Thursday. "I am proud and gratified that our pilots have now joined employees throughout the company in backing our Plan of Reorganization in time to meet a critical deadline," President and CEO David Banmiller said.
UPS signed a contract for 10 A380 freighters, firming a commitment it made in January. At that time, UPS cut its A300F order from 90 to 53 and committed to 10 A380s and 10 options ( ATWOnline¸ Jan. 11). Deliveries are scheduled between 2009 and 2012. No engine has been selected. The order is worth approximately $2.9 billion at list prices. UPS currently operates 47 A300Fs. The A380F will carry a freight load of 330,000 lb. on three decks with a capacity of 40,000 cu. ft.
Delta Air Lines partnered with SideStep in a deal intended to promote Delta fares and services via the travel search engine. "A combination of search results listings and geographically targeted in-product advertising will enable Delta to reach active travelers as they search for specific trips," SideStep said in a statement. Customers will earn bonus SkyMiles, avoid booking fees, and obtain the carrier's best fares by booking directly on delta.com.
Finnair implemented Lufthansa Systems' SIRAX, an accounting process matching ticket sales with concrete flight data that accounts for codesharing, alliances, taxes and fees.
Varig's bankruptcy reorganization took a new twist Tuesday after a Brazilian buyout fund reportedly took controlling interest in the airline's parent, Varig SA. According to Reuters, the fund, Docas Invertimentos, owned by Nelson Tanure, paid $112 million to the Rubem Berta Foundation for 25% of the voting shares owned by the Foundation. It agreed to "rent" a further 42% of the shares, giving it control of the airline. TAP Portugal previously agreed to participate in a restructuring of Varig that would see the Foundation lose control of the carrier ( ATWOnline, Nov. 3).
Airbus said it will not increase prices for proprietary parts in 2006, thus keeping them at the current level. This is the third consecutive price freeze, Airbus said, and follows price reduction and freeze initiatives taken by Airbus Spares Support and Services over recent years.
Air Canada took delivery of the first of 45 Embraer 190s, which will be configured for two classes. AC placed its initial order in 2003 and subsequently extended it to include 15 Embraer 175s, 13 of which are currently operating in the carrier's fleet. "Having these two E-Jet types, the 73-seat Embraer 175 and the 93-seat Embraer 190, will allow Air Canada to significantly increase its operational flexibility, tailoring aircraft size to market demand without the typical training and logistical transition costs," Embraer Executive VP Fleury Curado said.
Honeywell said it received FAA certification for its nitrogen generation system for 747s. The Honeywell inerting system is based on technology that reduces the risk of a fuel tank's flammability by injecting nitrogen-enriched air, displacing oxygen and reducing the risk of a fuel tank fire or explosion. Nitrogen inerting is one method of complying with a recent FAA NPRM ordering airlines to reduce flammability levels of fuel tank vapors in order to eliminate the risk of center wing tank explosions on commercial transports ( ATWOnline, Nov. 15).
