In a move aimed at "strengthening its competitiveness" in European point-to-point markets that do not involve its hubs at Frankfurt, Munich and Zurich (Swiss International), Lufthansa is creating a new organizational unit with responsibility for "strategic and infrastructure development as well as ground processes, procurement of airport services and business processes" at the 11 German stations.
US Transportation Secretary Norman Mineta and Thai Minister of Foreign Affairs Kantathi Suphamongkhon signed an open-skies aviation agreement in Washington yesterday. The accord, which was finalized earlier this month ( ATWOnline, Sept. 14), lifts restrictions on the number of passenger services that may be operated between the countries but has a five-year phase-in period for pricing and some beyond-country services.
Austrian Airlines Group raised its fuel surcharge for long-haul flights from €37 ($45) to €52 per leg and its surcharge for short-haul flights from €9 to €12 per leg. The new charges take effect from Sept. 26.
Aer Lingus, KfW IPEX-Bank and Calyon Corporate and Investment Bank closed structured debt financings for two A320s, jointly arranged with Babcock & Brown.
News from Travel Technology Update: Cendant Travel Distribution Services is in the implementation phase of its next-generation passenger services system, dubbed airRES. WestJet, Canada's answer to Southwest Airlines, will be the launch customer. The new system will replace WestJet's current reservations, scheduling and check-in systems, provided by Navitaire.
New Orleans Aviation Director Roy Williams is looking to the US government to make up much of the estimated $300 million in damages and lost revenue to the city's principal airport from Hurricane Katrina.
Island Air began charging a flat fee--$10 or $20 depending on the ticket purchased--for changes made to a ticket as long as the route is unchanged. Changes will be accepted regardless of ticket class as long as a seat is available, and passengers will not be charged any fare differential but only the administrative fee. Ticketed passengers willing to stand by for an earlier or later flight for their scheduled departure date may do so without incurring the fee, but passengers who want to make a confirmed change to their flight time must pay the fee.
Royal Jordanian said its earnings for the first half of 2005 totaled JOD5.7 million ($8.2 million). Income for the year-ago period was not provided but the airline said current-period results represented a big increase compared to 2004. Revenue for the January-June period rose 15% to JOD187 million. Royal Jordanian carried 800,000 passengers, a 4% increase. For the full year, it expects earnings to match 2004 results of around JOD17 million. Fuel costs are expected to total $128 million this year, up from $96.5 million in 2004.
Bryan T. LaBrecque was named president and COO of Atlantic Southeast Airlines, a wholly owned subsidiary of SkyWest Inc. LaBrecque most recently served as senior VP-operations for ASA, which was purchased by SkyWest from Delta Air Lines and continues to operate as a Delta Connection carrier. US Transportation Security Administration named Robert Jamison deputy administrator. He has been deputy administrator of the Federal Transit Administration for the past three years.
Olympic Airlines will appeal to the European Court of Justice to overturn the European Commission's recent ruling that the carrier must repay to the Greek government up to €700 million ($859 million) in illegal state aid, Transport Minister Mihalis Liapis confirmed. Liapis also said negotiations to sell Olympic are in a "delicate but ongoing phase."
SriLankan Airlines Group said it had an after-tax profit of 1.37 billion rupees ($13.57 million) for the fiscal year to last March 31, down 75.6% compared to income of LKR5.64 billion in the prior fiscal year but a strong showing in light of last December's tsunami and soaring fuel prices.
Forecast International added its voice to the chorus of those who see demand for regional jets migrating to larger versions. "Demand for 50-seat jets is cooling," according to its recent study, "The World Market for Regional Transport Aircraft." The firm predicted that relaxation of scope clauses, competition and continuing financial pressures will increase demand for RJs with more than 50 seats.
Lufthansa will start a six-times-weekly Frankfurt--Dnipropetrowsk (Ukraine) service from Oct 30. Additionally, it will increase flights from Frankfurt to Sophia from seven to 14 per week and Capetown and Bangalore will become daily operations. From Munich, LH will offer 11 weekly services to Strasbourg. New service will be launched from Dusseldorf to Basel (11 flights), along with six weekly services to Belgrade and Sophia. Southwest Airlines will resume service to New Orleans tomorrow, offering two daily roundtrips to Houston Hobby.
American Airlines filed a motion with the US Dept. of Transportation asking the department to suspend consideration of the joint application for antitrust immunity by Northwest Airlines and Delta Air Lines and four SkyTeam partners--Alitalia, KLM, Air France and Czech Airlines--in light of the bankruptcy filings by both Delta and Northwest last week. AA believes DOT should postpone deliberation "for at least 12 months," arguing, "The simultaneous bankruptcies of two of the largest US carriers are unparalleled in US aviation history.
India's aggressive airport infrastructure program suffered a setback with Singapore Changi pulling out of a joint venture for Delhi Airport reconstruction because of what insiders term a severe performance penalty of up to $80 million. Changi was part of the Baharti-DLF Universal consortium for the project, and Baharti announced last week that it will not be able to proceed without Changi. It also stated that it had been confident of "building a world class airport and meeting all the terms of the tender."
Narita International Airport Corp. finalized a previously announced agreement with airlines on a new system that will reduce landing charges significantly at the airport ( ATWOnline, June 3). The charges, effective Oct. 1, will be based upon noise levels generated by aircraft types. Fees for the quietest aircraft (Category A) will be more than 31% lower than the present level, but even the noisiest aircraft (Category F) will see a reduction of 15%. Aircraft such as the A340 and 777 fit into Category A while the 767 is in category B and the 747-200 is in category F.
Jet Airways is betting heavily on international growth and much of its anticipated $3 billion in new investment will go toward the acquisition of a new long-haul fleet, CEO Wolfgang Prock-Schauer told ATWOnline in Mumbai last week.
US Airways' reorganization plan received bankruptcy court approval Friday, clearing the way for the carrier to emerge from Chapter 11 and merge with America West as early as Sept. 27, US Airways said. The airline filed for its second reorganization on Sept. 12, 2004, having emerged from its first go-around on March 31, 2003.
Icelandair owner FL Group said last week that it is in talks with Sterling owner Fons Eignarhaldsfelag on an investment in or purchase of Sterling and Maersk Air. Fons received regulatory clearance to move forward with the purchase of the air assets of Maersk from A.P. Moeller last week ( ATWOnline, Sept. 15). FL also owns 13.01% of easyJet.
American Airlines said it made a $74 million contribution to its defined benefit pension plans, raising its total contributions in 2005 to $287 million. AA said its plans are funded at 80%, the best in the industry. United Airlines and US Airways terminated their plans in bankruptcy, while Delta Air Lines and Northwest may do the same during their reorganizations.
Cimber Air Maintenance Group, part of Cimber Aviation Group, completed an ATR 72 cargo conversion for Irish operator Air Contractors Ltd., the third aircraft conversion for the Dublin-based carrier. The aircraft went into service in the Channel Islands on Aug. 15.
Japan Airlines announced a number of new codeshare agreements. It will expand its agreement with Cathay Pacific between Japan and Hong Kong to include a daily roundtrip between HK and Fukuoka beginning Oct. 3 that will be operated by Cathay. The flight is routed via Taipei but JAL passengers can travel only between Fukuoka and Hong Kong. Also, JAL and Korean Air will expand their codeshare to include KAL's twice-daily flights between Fukuoka and Seoul. The deal becomes effective Oct. 3, subject to government approval.
Delta Air Lines and Northwest Airlines, both of which filed for Chapter 11 protection last Wednesday, have begun shrinking their operations. Northwest told its pilots union it intends to cut flying hours by 13% over the next eight months, which will result in furloughs for 400 of the 5,200 pilots currently flying, according to the Air Line Pilots Assn.
