News from Travel Technology Update: British Airways dropped its three-year battle to shift the burden of credit card fees for certain negotiated net fares in the U.K. The carrier told its corporate clients that it will begin accepting credit card payments for the fares beginning Oct. 1. It said some clients had complained that its policy had made payment processing too complicated.
Pratt & Whitney was awarded an exclusive five-year, $20 million service contract from Blue Panorama Airlines covering engine maintenance and overhaul of the carrier's fleet of PW-powered aircraft. Blue Panorama operates five 737-400s and four 767-300ERs and plans to take delivery of two 757s this year. Under the contract, Pratt will be responsible for maintenance of the PW4000s and PW2000s that respectively power the 767s and 757s. OCS Transport Services was awarded a contract to undertake aircraft grooming for the entire British Airways fleet at London Gatwick.
American Airlines awarded a three-year pan-European security contract to ICTS Europe Holdings, a wholly owned subsidiary of Fraport AG Frankfurt Airport Services Worldwide. Running until August 2008, the comprehensive contract extends ICTS Europe's current services to AA and adds new locations.
Adria Airways will begin four weekly flights between Ljubljana and Warsaw in early September in partnership with LOT. Adria will operate two of the flights while LOT will offer the other two. KLM will launch thrice-weekly service between Amsterdam and Hyderabad using MD-11s on Oct. 30. The airline said the new flights represent its first initiative in response to the recently expanded rights obtained for operations to and from India, along with a further expansion of its global network from its Schiphol hub.
Singapore Airlines became the first carrier to introduce live TV on international flights. The infotainment option was enabled by SIA's installation of Connexion by Boeing and TV is free for passengers paying for Connexion for their laptops. The airline is proceeding with plans to bring TV to seat-back IFE by 2006. The four international channels to be beamed live are BBC World, EuroNews, Eurosportnews and CNBC.
Dauair, a new German Regional, will start a five-times-weekly service from Zurich to Pozen via Dortmund using a former Crossair Saab 340B on Sept. 5. Austrian Airlines will add five extra frequencies from Vienna to Gothenburg on Sept. 26 for a total of 12 weekly flights on the route. Austrian offers 150 weekly flights from Vienna to Scandinavian cities.
Island Air selected Avexus to "enhance the management of its aircraft maintenance operations." Component Control said Wizz Air selected its Quantum Control aviation ERP software to replace a third-party parts inventory and maintenance system to support maintenance functions for its fleet of six A320s.
AirTran Airways pilots, represented by the National Pilots Assn., applied to the National Mediation Board for mediation services in their negotiations with management. According to the union, the two sides have been in "Section-six contract negotiations" since December and management only has made it to the bargaining table for a total of six and one-half days of talks. "We are calling on the NMB to step in and play its time-honored role of honest broker.
In order to facilitate further its expansion in Brazil and elsewhere in South America, Gol announced that it increased the size of its total order for 737-800s from 63 to 101. The revised deal doubles the airline's firm orders to 60 and increases purchase options to 41. The aircraft included in the firm order are scheduled for delivery from 2006 to 2012 and the purchase options can be exercised between 2007 and 2012.
Air New Zealand released details of the new three-year agreement reached with its long-haul cabin crew ( ATWOnline, July 25), represented by FARSA. According to the carrier, the deal calls for a 3.3% pay increase over the next three years, increased allowances including one additional inflight meal on certain services, and an agreement to use 10 cabin crew on each 777 flight with the provision to review the size of the crew complement at seven monthly intervals for a period of 21 months from the introduction of the first aircraft.
Emirates signed a $119 million financing agreement with China Construction Bank Corp. for an A340-500, which will be delivered to the airline in August. This represents the first-ever leasing agreement Emirates has signed with a Chinese bank.
American Airlines Cargo will open a new airside export facility at London Heathrow Aug. 8. Its current facility at Heathrow Estate will continue to handle its import operations into Heathrow.
Malaysia Airlines will lease five 737-800s for India and China operations, according to Bloomberg. The carrier will use the aircraft to open new routes to secondary airports and their selection may be an indication of its choice of a replacement for its 737-400 fleet, which is due by year end.
St. George, Utah-based Regional SkyWest reported net income of $24.8 million for the second quarter ended June 30, a 23.5% increase over net income of $20.1 million in the year-ago period. Operating revenues rose 43.6% to $384 million, primarily as a result of a 44.5% increase in ASMs, while operating expenses climbed 46.2% to $339.4 million. This resulted in a 26.8% growth in operating income to $44.6 million from $35.2 million.
Northwest Airlines flight attendants, represented by the Professional Flight Attendants Assn., last week filed suit against the carrier for what the union claims is a violation of the "status quo" between the cabin staff and the airline. The group is seeking injunctive relief against management's decision to pursue the training of replacement flight attendants onboard its flights. According to the union, on June 5 Northwest placed job postings in newspapers and on websites seeking replacement flight attendants in the event of a labor dispute or strike.
In a deal that may lead to a mega low-cost airline group in Asia, Qantas agreed to pay S$60 million ($36 million) for Singapore-based Valuair, which is to be merged into Qantas's 49%-controlled Jetstar Asia. The deal was confirmed yesterday by Jetstar CEO Ken Ryan, who will take control of Valuair. The new entity will see Qantas's stake reduced to 45.5%. The Australian airline also is holding talks with Kuala Lumpur-based AirAsia, which had been prepared to inject S$20 million into Valuair.
The world's airlines continued to operate at a very high level of safety during the second quarter and first half of 2005, Airclaims reported. Five total losses were recorded in the March-June period, including one fatal accident that killed three passengers. Nine total losses to Western-built jets occurred during the first half of the year, including two fatal accidents resulting in 99 passenger and eight crew deaths.
Air New Zealand reached agreement with its long-haul cabin crew, represented by FARSA, on a new three-year contract, staving off a third walkout that was set to begin yesterday. Terms of the deal were not released but the airline previously had offered a 3.3% wage increase in each of the next three years while the union was demanding 3.8%. Other issues included crewing levels for the carrier's new 777-300ERs. The earlier 48-hr. strikes led ANZ to cancel 85 flights, causing widespread disruption to passengers.
Frontier Airlines flight attendants voted against union representation by the Assn. of Flight Attendants/Communications Workers of America. According to the airline, of the 744 eligible voters, 320 votes were cast for AFA representation and eight for other representation. A total of 373 votes were needed to organize. The carrier said that this is the fourth time its flight attendants have voted against union representation.
ExpressJet, which operates in the Continental Express feeder network, reported a 17.9% drop in net income to $24.3 million for the second quarter ended June 30 compared to net income of $29.7 million in the prior-year period. Operating revenue in the quarter rose 4.8% to $388.7 million while operating expenses jumped 8.7% to $348.7 million on a 13.3% increase in fuel expense. However, operating CASM actually decreased 6.5% to 11.52 cents. Operating income was down 20.3% to $40 million from $50.2 million in the prior-year period.
