Last week's "suspension" of Thai Airways President Kanok Abhiradee from day-to-day responsibility for managing the airline ( ATWOnline, June 12), as suspected, was linked to the carrier's heavy June quarter loss.
Structural Monitoring Systems entered into a commercial license agreement with Boeing for terms and proprietary information access rights to enable SMS's Comparative Vacuum Monitoring system to be manufactured, certified, sold and distributed by the company to operators of Boeing aircraft. The agreement also establishes the terms under which Boeing will provide technical services and assistance to SMS.
Southwest Airlines said it will allow members of its Rapid Rewards frequent-flyer program 24 months to earn credits for free travel, up from 12 months today. Also, effective Feb. 10, it "will remove systemwide blackout dates and implement seat restrictions for award travel."
For the third year in a row, British Airways suffered a major operational meltdown at its biggest hub during the summer high season. After canceling more than 100 flights at London Heathrow Thursday ( ATWOnline, Aug. 12) when 1,000 baggage handlers and ramp workers walked off their jobs to protest firings at caterer Gate Gourmet, the airline suspended operations for most of Friday as well, resulting in at least 500 flight cancellations and affecting an estimated 70,000 passengers across its system.
Southwest Airlines said it will allow members of its Rapid Rewards frequent-flyer program 24 months to earn credits for free travel, up from 12 months today. Also, effective Feb. 10, it "will remove systemwide blackout dates and implement seat restrictions for award travel."
Lufthansa will close for economic reasons its cabin crew bases in Bremen, Hannover, Cologne and Nurnberg starting with the winter schedule. According to staff magazine Lufthanseat, the carrier also is looking to close Stuttgart. Affected cabin staff will be offered the opportunity to transfer to one of the other LH bases.
Pegasus Aviation Finance Co. ordered six CFM56-powered 737-800s, its first direct aircraft purchase from Boeing. The aircraft are valued at $400 million with deliveries beginning in 2006. Separately, Boeing and Jet Airways finalized the Indian carrier's order for 10 737-800s announced at the Paris Air Show. Deliveries will begin in early 2006. Jet's order for 10 777s, also announced at Le Bourget, will be finalized "at a later date," Boeing said.
As of Friday, a $5-$10 fare increase per one-way ticket on most US domestic airline tickets appeared to be holding, with American, Continental, Northwest, United and US Airways matching an earlier action by Delta Air Lines. LCCs America West and JetBlue also said they will raise fares in certain markets. This is the eleventh time this year that airlines have been able to push through a fare increase, JP Morgan analyst Jamie Baker stated.
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.
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.
