Canada and China signed a new and expanded bilateral air transport agreement this week that provides for a threefold increase in passenger and cargo flights between more city-pairs that can be operated under "more flexible operating conditions" than with the previous agreement. The accord includes possibilities for additional passenger, all-cargo and codesharing services by Canadian and Chinese airlines. It also contains "strong aviation safety and security provisions." Subsequently, Air Canada announced a range of new services to China.
Continental Airlines cited continuing weak domestic yields and historically high fuel costs as it reported that its first-quarter loss grew to $184 million from $124 million in the year-ago period. Excluding an $8 million special gain related to the company's defined benefit pension plan, the current-period loss was $192 million.
Hammered by high fuel prices, AMR Corp., parent of American Airlines, reported a $162 million net loss for the first quarter ended March 31, which included a tax credit of $69 million.
Cargolux posted a net profit of $83.5 million in 2004, up 18% on the prior year. Revenues increased 26.4% to $1.2 billion, passing the $1 billion mark for the first time in the company's history, and operating profit grew 24% to $80.7 million. The carrier's core business, the sale of lift and related transportation services, accounted for 98.4% of the total operating income and grew 26.3% during the year. Revenue from charter activities more than doubled. Operating expenses increased 28.4%, mainly owing to higher fuel prices and the strong euro.
Austrian Airlines subsidiary Lauda Air wants to base up to four 737s or A320s in the US for the coming winter season and is in talks with US tour operators, MD Thomas Suritsch told ATWOnline. The aircraft will operate from November until April on routes between the US and Caribbean. Lauda will base its own maintenance staff in the US. Although plans call for the aircraft to be dry-leased to tour operators, the airline is exploring the possibility of a wet-lease deal subject to FAA approval.
European Transport Commissioner Jacques Barrot hopes to receive support from European transport ministers today to re-start talks with the US to create a transatlantic open aviation area. EU transport, telecommunications and energy ministers are expected to discuss the issue when they meet in Luxembourg today. "Our expectation is to get a clear political signal to relaunch negotiations and get a good deal with the Americans," EC spokesperson for transport Stefaan de Rynck said.
America West Airlines CEO Doug Parker declined comment yesterday on a report in the Wall Street Journal that the carrier is near to an agreement to merge with bankrupt US Airways.
Iberia is considering taking over or setting up a low-cost airline of its own to compete on a level playing field with the ever-increasing presence of LCCs in the short- and medium-haul markets, Europa Press reported. "Either we fight with the same weapons as these airlines or we will have to stay out of these markets," MD Angel Mullor told the Spanish news agency. An Iberia spokesperson said Mullor's remarks were reported accurately. In recent months, Iberia has been vocal over what it calls unfair competition from budget airlines.
ATA Holdings Corp. said it was advised by Indianapolis-based real estate investment and management firm Okun Enterprises that it has terminated its commitment to purchase ATA's Chicago Express Airlines operation and two Saab 340Bs. Okun was selected as the winning bidder earlier this month ( ATWOnline, April 4). ATA said it will proceed with the next highest bidder but did not disclose who that is. However, media reports have identified it as CSC Investment Group.
South African Airways this week named Kyrl Acton as its first-ever COO. The newly conceived position replaces that of deputy CEO, last held by Oyama Mabandla, whose resignation became effective March 31 ( ATWOnline, April 19). SAA said Acton's duties will encompass cargo, scheduling and commercial services, which include revenue management, pricing, sales and marketing. An Irish national and former top executive at Aer Lingus and later at LanChile, Acton has worked for Unisys since 2002 as transportation VP overseeing aviation markets in Europe, the Middle East and Africa.
Malev reduced its net loss to 2.11 billion forints ($11 million) in 2004 from 4.3 billion forints in 2003. CEO James Gonci was quoted by news agency MTI as saying the carrier can remain stable until at least the end of 2006 and will not require state support. The Hungarian government has been attempting to sell the airline and launched another effort at the beginning of the month ( ATWOnline, April 6).
Sources in Chicago told ATWOnline that Boeing possibly may launch the 747ADV without a passenger version at this stage. VP-Marketing VP Randy Baseler would not comment specifically on the model's launch criteria but told this website that he is "positive on a launch." He said Boeing would like to have a passenger version commitment but would not elaborate further on whether it would launch with cargo-only operators. Airlines have been pressing the manufacturer to commit to the derivative, but some are coy on committing hard cash to the project just yet.
Airclaims reported that the trend of fewer accidents that has been evident since the end of 2001 continued in the first quarter of 2005. According to a report released yesterday, Western-built jets, which carry about 90% of traffic worldwide, recorded four total losses and one fatal accident, killing 96 passengers and eight crew. The cost of hull claims (total losses and partials) currently stands at $72 million and estimates of incurred passenger liability also are very low, Airclaims said.
Finnair and Qantas, both oneworld members, began codeshare flights between Helsinki and Brisbane via Singapore. Finnair currently operates four weekly flights to Singapore and will move to daily service on the route from May 30 to Sept. 1. The carriers have an existing codeshare agreement on flights between Helsinki and Sydney via Bangkok.
CAE was awarded contracts to provide flight training to two US customers at a total value of roughly $14 million over a five-year period. Under the first, CAE will furnish training on A320s to USA3000 Airlines through the Airbus-CAE training cooperation. In the second contract, CAE SimuFlite was selected by FAA Aviation System Standards' Aviation Training Team to provide initial and recurrent training to more than 150 FAA pilots on a number of different business aircraft.
Proliferation of city-pairs has continued after a slight downturn following 9/11, according to new data from OAG. The figures were presented by VP-Marketing Randy Baseler as part of Boeing's latest market forecast, which uses the number of nonstops in OAG's August schedules on a year-over-year basis. The figures, which exclude regional jets, show that in 1985 there were just under 5,000 city-pairs and this number grew to 9,000 in 2000 and just over 10,000 in August 2004.
Blue1 VP-Finance and CFO Stefan Wentjaervi was appointed president and CEO of the Finnish SAS subsidiary. He will take up his position after the summer and is replacing current President and CEO Sveneric Persson, who is leaving to take over as head of the SAS organization in the Americas on Sept. 1.
Ryanair will launch four new European routes from its Frankfurt-Hahn base to bring the number of destinations it serves from the airport to 27. Daily flights to Bratislava, Porto and Gdansk will commence Oct. 30, while four-times-weekly service to Rzeszow will start Nov. 1. The LCC said it expects to carry in excess of 3 million passengers through Frankfurt-Hahn this year.
Global ePoint's AirWorks Division received a new FAA STC for its cockpit door surveillance system, which now spans the entire family of 737s with two configurations.
Traffic at Tel Aviv Ben Gurion came to a halt Tuesday morning, stranding thousands, after tests indicated that the fuel supplied to aircraft at the airport was polluted. However, subsequent tests showed that the fuel was okay and flights resumed, according to media reports.
Swissport International was awarded a contract from Asiana Airlines to provide air cargo handling for the carrier at Amsterdam Schiphol beginning June 1.
Austrian Airlines will boost service from Vienna to Kiev in cooperation with partner Ukraine International. Austrian will add eight more frequencies on the route in phases. It currently operates twice-daily flights between the cities and altogether serves five cities in the Ukraine with 44 flights per week from Vienna.
British Airways announced that it will increase flights to India later this year following the new air services agreement reached between the UK and Indian governments earlier this month that allows more flights between the countries ( ATWOnline, April 14).
AAR was awarded a contract by Air Midwest, a wholly owned subsidiary of Mesa Air Group, to provide supply chain services for its fleet of 24 Beech 1900Ds. Under the five-year agreement, AAR will furnish a comprehensive materials management program including logistics, line station management, repair management and scrap replacement and servicing for four primary line stations and 10 outlying repair stations.
