Farelogix appointed David Cerino as its chief marketing and product officer. Farelogix provides independent fare and multisource distribution technology to the global travel industry. Prior to joining Farelogix, Cerino spent four years with Orbitz as VP and GM and also served in senior positions with Amadeus.
Astar Air Cargo said the US Air Force Air Mobility Command recently presented awards to 102 of its employees who operated and provided support for missions during Operation Enduring Freedom and Operation Iraqi Freedom at a ceremony at Andrews AFB near Washington.
Ryanair announced that it has implemented a 3% pay increase for its staff following a round of direct negotiations in April. The increase, which will be retroactive to April 1, will apply to all of the carrier's employees except its pilots, who chose not to negotiate directly with the company. However, Ryanair said it remains willing to enter discussions with that group.
Rolls-Royce and Dragonair signed an 11-year TotalCare maintenance contract covering the Trent 700s that will power 11 A330s the airline has leased from ILFC. Dragonair has placed seven of the A330s into service and expects to take delivery of the remaining four soon. The agreement is in addition to the existing TotalCare contract that covers Dragonair's five purchased A330s.
American Airlines yesterday said it reached an agreement in principle on a multimillion-dollar contract with Synergy Aerospace to perform heavy maintenance on 29 F100s formerly leased by American. The aircraft, which have been in storage, recently were sold to Brazil's Synergy Group, which holds controlling interest in Avianca of Colombia, OceanAir of Brazil and Wayra Peru.
Airbus Chief Commercial Officer John Leahy is confident he will be able to announce "triple digit" orders for the A350 at the Paris Air Show next month. "We are in final talks with several companies. We'll have more than 100 firm orders in the order book for the A350. I don't want to say 200, because I don't want to be like somebody else and not be able to commit to it," he said in a reference to claims made by Boeing ahead of the 2004 Farnborough Air Show that it would have 200 787 commitments by year end, a target it missed by a few months.
Flight Explorer said Hawaiian Airlines has opted to use Flight Explorer Professional within its operations center to monitor its flights from Hawaii. According to the company, by using the system the carrier can "more effectively manage its flight operations, apply its staff and aircraft more effectively, and reduce its operating and fuel costs." Hawaiian also is able to "display NEXRAD weather on Flight Explorer Professional for a common operating picture that will enhance safety and efficiency."
International Air Carrier Assn., representing 35 European leisure and discount airlines, expressed "dismay" at the decision by the meeting of EU Finance Ministers to introduce a levy on air passengers to fund development aid ( ATWOnline, May 17). IACA DG Sylviane Lust commented: "The imposition of a development tax on airline passengers unfairly discriminates against passengers who choose to fly.
Alitalia flight attendants and ground staff members of the SULT union called a 24-hr. strike for May 28. SULT previously called a strike for May 18, but it was blocked by Transport Minister Pietro Lunardi.
ACE Aviation Holdings, parent of Air Canada, reported a C$77 million ($60.5 million) net loss for the first quarter ended March 31, improved over a net loss of C$304 million in the year-ago period, which included C$132 million in special items related to the company's recent bankruptcy reorganization. Operating loss before one-time items for the quarter also improved year-over-year, moving from C$145 million to C$10 million.
Boeing announced that beginning this summer it will add four channels of television to its Connexion by Boeing inflight Internet service that will be accessible through passenger laptops connected to the service. Initially, the TV service will be available on Singapore Airlines flights; it will be expanded later this year to include other airlines that are offering Connexion. The company also said it is working with its airline customers and inflight entertainment service providers to deliver television content to the seatback. Separately, Boeing selected Astronautics Corp.
Virgin Blue abandoned negotiations over a planned low-cost joint venture based in Macau, switching its focus to prospects for an international operation linking Australia with the US. The airline confirmed that it has pulled out of long-running talks with gaming magnate Stanley Ho's Shun Tak Holdings and Air Macau concerning establishment of an airline to service the rapidly growing South China Delta region. While Shun Tak continues to hold discussions with Air Macau, Virgin Blue said it now is exploring options for a transpacific operation.
Menzies Aviation introduced Right Bags On-Board, its new secure baggage reconciliation system. RBOB uses handheld scanners equipped with wireless technology to provide ground workers with information about each bag they scan, including passenger name, flight number and destination. Following a three-month trial of the system, Cathay Pacific will be the launch customer.
US National Transportation Safety Board yesterday determined that the probable cause of the Dec. 18, 2003, crash of a FedEx MD-10F while landing at Memphis International Airport "was the first officer's failure to properly apply crosswind landing techniques to align the airplane with the runway centerline and to properly arrest the airplane's descent rate" before touchdown.
Sichuan Airlines ordered six A320s and two A319s for delivery from late 2005 to 2008. The Chengdu-based carrier first ordered A320s in 1995 and has a fleet of eight A320s, four A321s and two A319s.
Bombardier President-Regional Aircraft Steve Ridolfi said yesterday at the Regional Airline Assn. annual meeting in Cincinnati that "the 50-seat market has matured" and the focus is switching to RJs in the 70/90-seat range. "The larger RJs are a new weapon in the arsenal," he said. "The relaxation of scope clauses is accelerating this trend." Even so, 50-seat aircraft will not be replaced fully by larger RJs: "They're not dead yet. There's a decent 50-seat market out there." While the US airline industry is dominated by RJs, turboprops remain a popular choice elsewhere.
Iberia is preparing a follow-up program to its Director Plan 2003-05 that will target savings of €550-€600 million ($695.2-$758.3 million) in 2006-08 through a series of cost-cutting and productivity-boosting measures that may include creation or acquisition of an LCC to cater to the low-cost air travel segment. "There are markets where we can't compete anymore in current conditions. We either create a second brand or we convince trade unions of the need for a second salary scale for new employees," CEO Angel Mullor told Expansion.
AirTran Airways completed an aircraft pre-delivery deposit financing with BNP Paribas S.A. and separately entered into a new line of credit facility with Bank of America N.A. Under the pre-delivery deposit financing agreement, BNP Paribas provided $19.6 million for six 737-700s to be delivered in 2005 and 2006. SkyWorks Capital LLC advised the carrier on the transaction.
Baltimore/Washington International Airport and Southwest Airlines are preparing to move the airline's operations to the new Terminal A/B in a phased transition beginning tonight and running for approximately two weeks. Terminal A/B is a 510,000-sq.-ft. facility providing new food and retail concessions and 11 gates that are connected with 15 SWA gates on Concourse B to create a 26-gate concourse for the carrier, the airport's largest tenant. The all-in cost for the complex was $264 million. Supporting roadway and airfield improvements totaled approximately $95 million.
United Airlines late Monday announced that it has reached a new tentative agreement outside of bankruptcy court with its mechanics, represented by the Aircraft Mechanics Fraternal Assn. Terms of the five-year deal were not released, but it reportedly includes a 3.9% pay cut as well as reductions in sick time and holiday benefits and will save the carrier $96 million a year. United previously had sought $101 million from the group.
Rockwell Collins will provide service and support for Collins avionics on GoJet Airlines' CRJs. Under the 16-year Dispatch Plus agreement, Collins Aviation Services will supply spares ownership, MRO and technical support on a fixed-price-per-flight-hour basis. GoJet, a wholly owned subsidiary of Trans States Holdings, is expected to take delivery of the first of 10 CRJ700s in June.
Although deliveries were up year-over-year, Embraer reported a 6.6% decline in net income to $96.5 million for the first quarter ended March 31 from net income of $103.3 million in the year-ago period. Net sales rose 21.9% to $763.3 million but operating expenses climbed sharply on a steep increase in research and development costs. As a result, income from operations totaled $124.5 million, an 18.6% decline from $153 million in the 2004 quarter.
TAP Portugal and Varig confirmed Monday that they have signed an MOU to hold exclusive talks aimed at a recapitalization of Brazil's failing flag carrier. "TAP may be able to become a shareholder of. . .up to 20% of Varig's capital, which is the maximum permitted by the Brazilian legislation," the Portuguese carrier said in a statement. TAP CEO Fernando Pinto, who served as CEO of Varig prior to joining TAP, stressed that a merger is "out of the question" and that both companies will "remain independent."
