Short-haul, point-to-point services from secondary destinations in China and India are set to expand dramatically in the next 12 months, according to the Centre for Asia Pacific Aviation. CAPA cited Malaysia Airlines' decision to lease five 737-800s to tap the rapid growth in demand for flights to secondary airports in the two countries ( ATWOnline, July 26). MAS will start service to Fuzhou, Cochin, Trichy, Shenzhen and Guilin. Jetstar Asia will become the first LCC to launch flights to India when it starts thrice-weekly Singapore-Kolkata service Aug. 18.
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.
The Jetstar Asia merger with Valuair ( ATWOnline, July 25) is expected to be more of a takeover that will have a significant upside for the Qantas-controlled low-cost airline. Under the S$60 million ($36.1 million) deal that was finalized Friday, the two LCCs, which both are losing money, will be merged into a single corporate structure of which Qantas will own 44.5%, down from the 49.9% it owns of Jetstar Asia.
Finnair flew 1.44 billion RPKs in June, up 10.4% over the year-ago period. Capacity climbed 5.7% to 1.91 billion ASKs and load factor grew 3.2 points to 75.2%. For the six months ended June 30, RPKs rose 7.9% to 8.28 billion, ASKs increased 6.1% to 11.52 billion and load factor gained 1.2 points to 71.9%.
EVA Air unveiled the first of its 316-seat 777-300ERs, which will begin operations on the London Heathrow-Bangkok-Taipei route from Sept. 15. The aircraft is configured with three new cabins: Premium Laurel, EVA's new business class; Elite Class, its re-launched premium economy product, and an upgraded economy class. It also features a new inflight entertainment system.
Korean Air reported an 11.9% increase in traffic to 4.36 billion RPKs last month on the back of strong international traffic, which rose 12.3%. Passengers were up 7.3% to 1.8 million. The strongest traffic growth was from China, up 28% to 209.5 million RPKs. Domestic traffic rose 6.8% year-on-year to 308.4 million RPKs. Reflecting the usual seasonal dip, freight was down 1.9% to 677.2 million FTKs. Japan and US cargo fell 3% and 5.6% respectively, while Southeast Asia dropped 21.3%.
Qatar Airways inaugurated service to Delhi July 15. It is offering daily flights to the Indian capital, its fifth destination in India. It also boosted its Mumbai service to daily from six times per week.
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.
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.
