Delta Air Lines will begin operating MD-88s on the Delta Shuttle between New York LaGuardia, Boston Logan and Reagan Washington National airports Nov. 1, replacing 737-300s currently flying the route. The 737-300s are configured for 120 seats in a spacious single-class arrangement. Switching to the larger MD-88s means Delta can offer 134 seats in the same configuration. "Delta Shuttle customers have asked for more availability on this highly popular, hourly route and we're delivering it, along with our new comfortable cabin interiors," said Delta CMO Paul Matsen.
Air France-KLM Group reported that total turnover for the fiscal first quarter ended June 30 rose 5.5% to €5.19 billion ($6,42 million) compared to the year-ago period. The company said that excluding the impact of the consolidation of Servair in the prior year, revenues for the current period would have risen 6.4% year-over-year. Total passenger revenues grew 6.5% to €4.08 billion while cargo revenues climbed 6.8% to €660 million. Revenue from maintenance operations increased 6% to €213 million.
Atlantic Southeast Airlines President William "Skip" Barnette is leaving to assume the top job at a small Ft. Lauderdale-based airline company, increasing speculation that the Delta Air Lines Regional subsidiary soon will be sold to provide cash to its struggling parent. Barnette, a 35-year veteran of Delta, will become president and CEO of twin carriers Caribbean Star and Caribbean Sun on Sept. 1. The privately held airlines serve 17 destinations in the Caribbean.
Stating that "the US airline industry has permanently changed and Northwest Airlines has no choice but must change with it," President and CEO Doug Steenland yesterday reaffirmed the carrier's commitment to fly through a strike by its mechanics and detailed contingency plans should a job action occur. The 30-day cooling-off period expires at 12:01 a.m. Aug. 20 after which the mechanics, represented by the Aircraft Mechanics Fraternal Assn., will be free to strike. Negotiations between the two sides resume on Monday.
In a clear indication that the era of government meddling in Thai Airways International is not over, the airline's president, Kanok Abhiradee, was removed at least temporarily after being criticized by the country's prime minister for failing to react swiftly enough to a series of external crises enveloping the carrier.
Amadeus will provide its Altea technology platform to Pulkovo to replace its legacy system and support the Russian carrier's modernization and growth strategy. In what Amadeus described as a "five-year, multimillion-euro deal," Pulkovo will implement the Altea Plan inventory management system as well as the multichannel sales and reservations system Altea Sell.
A labor dispute at Gate Gourmet's London Heathrow catering operation snowballed into a major headache for British Airways and its passengers yesterday as 1,000 BA airport ground workers walked off their jobs in sympathy with some 800 catering employees who had been fired by Gate Gourmet the day before. Both the catering and airline employees--baggage handlers and ramp workers--are members of the Transport and General Workers Union. Furthermore, Gate Gourmet provides catering for BA flights at LHR.
Independence Air parent FLYi, which warned earlier this week that it might be forced to file for bankruptcy or liquidate ( ATWOnline, Aug. 11), received a reprieve from Airbus when the manufacturer agreed to defer deliveries of firm ordered aircraft and return a $31.5 million deposit. "As of Tuesday, we said our number one focus was to increase cash flow to improve liquidity," Independence spokesperson Rick DeLisi told ATWOnline. "This is a step. We are still looking at all contingencies and possibilities.
EVA Air added a third MD-11 wet-leased from World Airways and a weekly cargo service between Taipei and the US, boosting the total to 44. EVA freighters operate to Atlanta, Dallas/Fort Worth, Chicago, San Francisco, Los Angeles and New York. Load factor on flights to the US is averaging 90% or better.
Blue1, the Finnish SAS subsidiary, carried 97,000 passengers in July, up 24% compared to last year. Year-to-date through July, 804,000 passengers flew with Blue1, 30% more than in 2004. RPKs increased 29% and ASKs dipped 4% in July. Load factor rose to 76.3%.
Delta Air Lines delayed filing a routine quarterly financial report with the US Securities and Exchange Commission as it negotiates a new credit card processing agreement. The current agreement expires Aug. 29 and the carrier said that "the potential Visa/MasterCard processor has advised [Delta] that it will require a significant cash reserve," known as a holdback, for tickets purchased using Visa or MasterCard but not yet flown. Delta is trying to reduce the size of the holdback to free up cash.
Orient Thai Airlines, which operates regional and domestic services, is acquiring eight 172-seat MD-80s from Continental Airlines and will phase out two of its eight 747s. The MD-80s will be used by budget operation One-Two-Go. As part of the fleet revamp, two 757s flown by One-Two-Go will be transferred to Orient Thai. Bangkok Airways has decided to add 717s to its fleet despite acquiring A320s. It has sourced two more 717s, its fifth and sixth, that will be put into service next year.
World Airways Holdings appointed Jeffrey MacKinney to the board of directors. He was named president of World Airways in April. Eos Airlines, a startup that intends to offer premium service between New York and London Stansted using 757s, named David S. Pottruck nonexecutive chairman. He is MD of The Pottruck Group, a San Francisco private equity firm.
Independence Air parent FLYi issued its strongest warning yet that it may be forced into a Chapter 11 bankruptcy reorganization or Chapter 7 liquidation. In its 10-Q filing for the June quarter, the company said it has reduced its scheduled CRJ flying for September by 17% and is cutting its transcon flying with A319s in favor of operating them in East Coast markets. It also said it is not in compliance with terms of its agreement with GE Commercial Aviation Services, putting at risk up to eight CRJs. FLYi lost $98.5 million in the second quarter.
The German federal cabinet Wednesday adopted a legislative proposal paving the way for privatization of DFS Deutsche Flugsicherung, the German air traffic control authority. The action was welcomed by the Civil Air Navigation Services Organization, which stated that the decision "supports a more flexible European air traffic management system and should result in fewer air traffic delays, while airlines should also benefit from lower fuel consumption."
Cathay Pacific Airways reported a profit of HK$1.67 billion ($214.9 million) for the six months ended June 30, down 5.7% compared to a HK$1.77 billion first-half profit last year as a 27.9% rise in fuel expense dampened strong passenger demand. Passenger and cargo fuel surcharges only partially offset the additional cost. Turnover increased 21.5% to HK$23.88 billion as passengers carried rose 14.5% to 7.3 million, ahead of a 12.2% increase in passenger capacity.
Volga-Dnepr Group confirmed that the first new-build IL-76 cargo aircraft equipped with PS-90A-76 engines and "new generation avionics" completed a 30-min. test flight at an altitude of 700 m.
AirTran Airways will add daily service from Sarasota-Bradenton to New York LaGuardia and Boston. The LGA service begins Nov. 8 and will be operated with a 717. The Boston service will be served with a 737 beginning Nov. 16.
EADS Sogerma Services will lease A330 spares worth $7 million from aviation spares specialist A.J. Walter Aviation to support Sogerma customers worldwide.
Hemus Air of Bulgaria is planning a Sofia-Hannover service. MAP Jet, a proposed Austrian airline, plans to start operations from Vienna using the single former Helvetic Airways MD-83.
Lufthansa yesterday confirmed a second-quarter net profit of €116 million and an operating result of €279 million ( ATWOnline, Aug. 10). Revenues rose 4.3% to €4.55 billion. For the six months, operating profit was €253 million while net result was a breakeven €0.2 million. CEO and Chairman of the Executive Board Wolfgang Mayrhuber called the outcome "a fine feat in such a tough setting," adding that "all our business segments improved their result." LH expects full-year operating result to exceed €400 million.
Boeing is carrying out a three-week flight test program on a 777-300ER intended for ANA at its Glasgow, Mont., test facility to demonstrate lower noise features. The Quiet Technology Demonstrator 2 program is an equal cost-sharing project among Boeing, General Electric, Goodrich Corp.'s Aerostructures division and NASA. Concepts being tested include chevrons on the engine exhaust ducts and new acoustic treatment for the GE90 engine inlet. Aerodynamic fairings for the main landing gear designed by Goodrich under contract to NASA also will be tested.
Royal Air Maroc and Boeing signed an MOU July 31 covering the purchase of up to five 787s. Formal negotiations are expected to conclude next month. Engine choice and delivery dates were not disclosed.
Garuda and Singapore Airlines will be able to increase services as the result of an MOU signed yesterday between Singapore and Indonesia that formalizes an agreement in principle reached in May. SIA will be given more access to Bali and Jakarta while Garuda will get fifth freedom traffic rights from Singapore.
