Iberia said yesterday that it expects to book a pre-tax gain of €600 million ($775 million) through the sale of its Class A shares in Amadeus Global Travel Distribution. After the offer, Iberia will maintain an "indirect stake" in Amadeus representing a maximum of 11.44% through its investment in WAM Acquisitions, a newly incorporated company created as the vehicle for the Amadeus offering. Its investment in WAM will be €102 million.
Frontier Airlines announced yesterday that it has completed its four-year transition to an all-Airbus fleet. It estimated cost savings, primarily from efficiencies in maintenance and training activities, at approximately $11 million on an annual basis. It began the transition from a fleet of 737-300s and dash 200s when it signed a letter of intent in October 1999 to purchase 11 new Airbus aircraft with options for an additional nine. Shortly thereafter, it signed an LOI for an additional 15 leased A319s and in August 2003 it placed an order for 29 A319s and A318s.
Air New Zealand Engineering Services signed a three-year maintenance contract with Virgin Blue, effective immediately. Under the deal, ANZES will perform heavy maintenance support for the carrier's fleet of 48 737NGs. It previously supported Virgin Blue's maintenance needs on an annual basis.
Japan Airlines, responding to four safety incidents and a rebuke in March from the Civil Aviation Bureau of the Ministry of Land, Infrastructure and Transport that resulted in a major shakeup in the airline's management, announced a series of measures to improve safety monitoring and reporting within the organization. JAL established a new Safety Measures Committee comprising the president, executive VP, executive directors for safety and executives from the flight operations, maintenance, cabin attendants, airport operations and cargo departments.
IAE and Spirit Airlines signed a 15-year fleet hour agreement covering the V2500s powering the airline's A320s. The deal also covers the 15 aircraft Spirit will purchase and the 20 it will take on lease in the future.
Finnair flew 1.59 billion RPKs in March, up 12.1% over the year-ago period. Capacity climbed 8.5% to 2.15 billion ASKs and load factor gained 2.3 points to 74.1%. For the three months ended March 31, RPKs increased 7.4% to 4.32 billion, ASKs rose 5.3% to 5.89 billion and load factor grew 2 points to 73.4%.
KLM and Portugalia Airlines will start codesharing next week. Under the agreement, KLM will add its code to PGA's daily service between Amsterdam and Oporto and PGA will codeshare on KLM's scheduled service between Lisbon and Amsterdam. The Portuguese carrier already operates under codeshare agreements with Air France and Air Europa.
PACE Aerospace Engineering and Information Technology announced that Air France Industries purchased its standard cabin configuration solution, Pacelab Cabin, which will support the AF division in "streamlining its cabin interior design process for commercial aircraft and in improving its customization services."
Northwest Airlines will begin one daily nonstop flight between Minneapolis/St. Paul and Marquette, Mich., June 8. The new flight will be operated by Northwest Airlink partner Mesaba Airlines using a Saab 340.
America West Airlines and Royal Jordanian expanded their codeshare agreement for the summer season. The new accord includes twice-weekly nonstop service between Amman and Detroit, which will operate from May 23 to Sept. 28; five weekly flights from Amman to New York JFK, which will operate from June 1 to Oct. 26, and four weekly flights between Amman and Chicago O'Hare, which will begin May 24 and run through Sept. 27. All flights will be operated by Royal Jordanian.
BAE Systems will provide actuator control electronics units for 777s through 2012 under an agreement with Boeing. BAE has supplied this type of equipment to Boeing since 1990 under a contract that was set to expire at year end.
South African Airways subleased three A340-300s to Jet Airways for the Indian carrier's new service to London. The two-year agreement includes a strategic alliance with SAA using Jet services within India, and has the potential for a reciprocal frequent-flier accord and an extensive codeshare.
Global Aircraft Solutions through its wholly owned subsidiary Hamilton Aerospace Technologies negotiated a maintenance contract with BCI Aircraft Leasing. GACF will perform heavy maintenance and fleet integration work on a 737-200 owned by BCI.
Qantas said it will install CCTV surveillance equipment in baggage handling areas at terminals throughout Australia that are either owned or solely leased by the airline. CEO Geoff Dixon said the carrier also will place surveillance equipment in the holds of some of its aircraft and at other airport locations and increase "loss prevention measures," including increased inspections of staff entering and leaving the workplace. He said the decision to upgrade security measures was a result of "heightened public concern around security of baggage."
Alaska Air Group flew 1.46 billion RPMs in March, up 10% over the year-ago period. Capacity climbed 1.9% to 1.88 billion ASMs and load factor gained 5.8 points to 77.9%. For the three months ended March 31, RPMs increased 8.9% to 3.9 billion, ASMs rose 3.7% to 5.37 billion and load factor jumped 3.5 points to 72.6%.
A war of words has erupted between United Airlines management and the union representing its cabin staff and it appears as though relations only will get worse.
Phoenix Sky Harbor received an explosives detection trace portal to screen passengers at its new Terminal 4A security checkpoint, the US Transportation Security Administration announced. The equipment is part of a pilot program to test and evaluate the trace portal. Several other US airports are participating in the program.
Telair International announced a firm acceptance from China Southern Airlines for 18 sliding carpet loading systems for its fleet of nine 737-800s, which China Southern will take over in mid-2005 from ATA Airlines.
Bilateral air services talks between the UK and Indian governments in Delhi have yielded a further opening of the market between the two countries, including an additional 28 services per week for airlines on each side between London Heathrow and Delhi/Mumbai phased in over the next 18 months. Separately, China and India agreed to additional services under an MOU that took effect earlier this week (see item below).
Continental Airlines will begin daily nonstop flights between Los Angeles and Queretaro June 9 and will launch four weekly nonstop flights between Los Angeles and Durango June 9, increasing to daily July 2. Continental Express will operate both routes with ERJ-145s.
WestJet took delivery of its first 737-800 last week. The airline will acquire five 737-800s, seven 737-700s and three 737-600s during 2005. It has exercised options for an additional three 737-600s for delivery in 2006.
