Hungary apparently will not be able to sell national airline Malev because the three parties that submitted bids all offered too little for the carrier, according to Reuters, which quoted a story in business daily Napi Gazdasag. It was the government's second attempt in less than six months to sell the airline. All three bids offered between 150 million forints ($780,200) and 200 million forints and the parties also agreed to assume some of Malev's 35 billion forint debt, the report said.
Navtech signed a long-term contract with Delta Air Lines to provide crew management solutions. The agreement includes the use of Navtech's preferential bidding system, Class, by Delta's pilots.
CSA Czech Airlines and Airbus, after almost five months of negotiations, have agreed on the final text of an agreement for 12 A320s ( ATWOnline, Oct. 19). In addition to specific purchase and delivery conditions for the 2006-08 period, the agreement outlines a range of special forms of cooperation such as delivery of a simulator, technical background support, free pilot and technical personnel training, technical assistance and consultancy for aircraft maintenance and servicing.
GB Airways placed an order for five Airbus single-aisle family aircraft, comprising one A320 and four A321s. Deliveries are scheduled from 2007 onward, "while three extra A321s are expected to join the GB fleet by spring 2007," Airbus said in a statement, noting that this is the first time the airline is acquiring aircraft directly from the manufacturer. They will be powered by IAE V2500s.
FKI Logsitex won a $14.5 million contract from American Airlines to integrate an inline 100% hold baggage screening system at the carrier's hub at Chicago O'Hare. The project includes the integration of 10 CTX 9000 DSi explosives detection machines as well as relocation and installation of three existing eXaminer 3DX 3000 EDS machines from L-3 Communications.
In light of record high fuel costs, revenue-negative domestic fare restructuring initiatives undertaken by other airlines and labor cost reductions at its primary competitors, including United Airlines, Northwest Airlines yesterday announced that it is increasing its annual labor cost savings target from $950 million to $1.1 billion. In addition, the airline said it will ask its unions to agree to a freeze of the current defined benefit pension programs and has proposed a new defined contribution pension program to replace them.
El Al Israel Airlines reported a net profit of $33.1 million for 2004, its best annual financial result in five years and a significant increase over a net profit of $6.4 million in 2003.
Delta Air Lines yesterday announced that it will make several changes to its Technical Operations division in moves it said will result in savings of roughly $240 million over five years. However, the changes also will result in 1,600-2,000 TechOp job cuts, which are part of the 6,000-7,000 positions the company said it would eliminate in its previously announced Transformation Plan.
Lufthansa and Aegean Airlines will begin a strategic cooperation on Oct. 30. As a first step, both carriers will codeshare on all flights between Germany and Greece as well on some Greek domestic routes and selected Lufthansa international flights. Further cooperation such as reciprocal airport lounge access will follow. Aegean posted growth rates of about 20% over the last five years and currently operates a fleet of 19 RJ100s and 737s. Most of the 18 destinations it serves are in Greece.
TUI confirmed a report in the Sunday Times that it plans to reduce its workforce in the UK from 13,500 to 11,500 within the next 18 months in response to tough competition in the air travel and package holiday sectors. "We will have 2,000 fewer people, and we are hoping to do it without making redundancies," Peter Rothwell, head of Northern Europe for TUI, told the newspaper. "We are doing this because of increasingly tough competition from the likes of Ryanair and easyJet and the fact that so much more holiday business in the UK is going online.
Aerospace Technologies Group was selected to partner with Airbus for "future definition, customization, development, manufacture and support" of electromechanical shades for the A380. The new partnership builds on the contract ATG finalized with Airbus in February to develop electromechanical window shade systems for A330s and A340s. "This announcement affirms Airbus's confidence in both ATG and the Powertech NG Shade," ATG Chairman Raymond Caldiero said.
Hawaiian Airlines' plan to emerge from Chapter 11 next month was dealt a blow late last week when its pilots failed to ratify a new agreement by a vote of 55% to 45%. As a result, the airline said it may be forced to turn to the bankruptcy court to achieve a new contract. "It's disappointing, but unfortunately not quite enough pilots voted for the contract their union negotiated, a contract that was better than any proposal made by any airline to its pilots in the last two years," Hawaiian Trustee Joshua Gotbaum said.
Dauair.com, a new German carrier, will take off April 18. The airline was founded by Hans-Jorg Dau, who will act as CEO. It will be headquartered in Luebeck and its first operational base will be at Dortmund. According to the airline, its main focus will be business travelers. Initially it will operate three daily flights between Dortmund and Berlin Tempelhof using a single Saab 340B. It will expand service with daily flights between Dortmund and Poznan a week later. It will not operate scheduled service on Saturdays but will be available for charter flights.
Northwest Airlines will begin daily nonstop service between Minneapolis/St. Paul and Lexington June 9. The new flights will be operated by Northwest Airlink partner Pinnacle Airlines with 50-seat CRJs.
AirTran Airways will add one new daily nonstop flight from Atlanta to both Los Angeles and Las Vegas May 4 and one new daily nonstop from Dallas/Ft. Worth to both Los Angeles and Las Vegas June 7.
Swiss International Air Lines' new hub system at Zurich went into operation with the start of the carrier's summer season Sunday. Swiss said the hub enhancements aim to "further improve the product for the customer, making Swiss at Zurich Airport a swift, smooth and comfortable air travel experience." According to the airline, one of the cornerstones of the new arrangement is a clearer assignment of flights to the airport's various areas.
Skyways Aviation arranged the long-term lease of an MD-83 on behalf of Sky Wings Airlines of Greece. The aircraft will enter service in April with the startup, which will specialize in European charter and ACMI contracts.
Air France Cargo increased 747-400ERF flights to Mexico from three to four per week, with the fourth flight making a stop in Guadalajara on its return to Paris, as part of its new 2005 summer schedule. In addition, AF Cargo began new service to Algiers using an A300-600F and opened Guangzhou, which currently is served by passenger flights, as a cargo destination with two weekly 747-400ERF services. However, cargo flights to Doha, Karachi and Bombay were suspended.
China Airlines will start three weekly services from Taipei to Vienna via Bangkok May 4. It also will increase weekly frequencies from Taipei to Frankfurt to six from May 8.
Hamilton Aerospace Technologies, a wholly owned subsidiary of Global Aircraft Solutions, negotiated maintenance contracts with two new customers, debis AirFinance and Air Malawi. GACF will perform fleet integration maintenance and modification on an MD-82 that will be operated by an undisclosed customer of debis AirFinance, which acts as manager of the aircraft. The company also will perform heavy maintenance and fleet integration services on a 737-500 that Air Malawi is adding to its fleet. Combined, GACF said the two contracts represent roughly $1 million in new maintenance work.
Gol and shareholder BSSF Air Holdings, an affiliate of AIG Capital Partners, filed a registration statement with the Securities and Exchange Commission to sell 20.4 million of the airline's preferred shares. The carrier said the shares will be offered in the form of American Depositary Shares in an international offering and preferred shares in a concurrent Brazilian offering. Each ADS represents two preferred shares. Gol said none of its other shareholders will sell their preferred shares in the proposed offering.
Wizz Air, the Hungarian low-cost airline, will end its Warsaw-Dortmund service by March 31. The carrier, which had planned to add two more A320s to its fleet early this year, has not taken up the aircraft.
Korean Airlines is close to placing an order for the 787, with insiders suggesting to ATWOnline an order and options package "for at least 20 aircraft."
Emirates launched a seventh weekly flight from Dubai to Casablanca using an A330-200 in a three-class configuration. Separately, Emirates took delivery of a new 777-300ER as part of its $30 billion fleet expansion. The carrier has 30 777-300ERs on firm order and will receive 10 of them by year end. It also has 45 A380s, 20 A340-600HGWs, two A340-500s and three A310-300 freighters on order.
