Lockheed Martin and Covenant Aviation Security have teamed in hopes of winning contracts to provide private security screening services at US airports as part of the US Transportation Security Administration-developed Screening Partnership Program. Following 9/11, TSA was given responsibility for handling all screening at US airports, but under the new program airport operators may apply to have security screening carried out by a qualified private company.
America West Airlines will boost frequencies in June from Las Vegas to Monterey, Colorado Springs, Denver, Houston, Ontario, Sacramento, Salt Lake City and Tucson. With the additions, the carrier will operate 154 daily departures and serve 62 nonstop destinations from Las Vegas.
Northwest Airlines must repurchase roughly $226 million of its preferred shares from employees, a judge ruled late last week. The shares were issued about 10 years ago in exchange for concessions, and Northwest had agreed to buy them back in 2003. However, that year it said it would not do so and subsequently the unions representing ground workers and flight attendants filed a lawsuit over the matter.
US scheduled passenger airlines employed 456,841 workers in January, 0.8% fewer than in January 2004, according to US Dept. of Transportation statistics. The seven network carriers employed 310,791 workers in January 2005, 4.1% fewer than in the year-ago period. American Airlines with 76,047 employees was tops among the network airlines, with United Airlines and Delta Air Lines rounding out the top three. Low-cost carriers reported 75,110 total employees, 0.7% more than a year earlier, with Southwest Airlines with 31,011 ranking first.
BMED, an independent franchise partner of British Airways, has contracted with SD Shepherd Systems for use of its Market Information Data Transfer product, Clarity.
OAG Worldwide launched Inforwarding, an Internet-based service that provides "operational information and rates distribution services to the airline cargo and freight forwarder community."
Midwest Airlines redesigned its inflight dining program, which it now calls Best Care cuisine, and will operate its own dining services center and manage all components of its inflight food and beverage service. The dining services and food preparation kitchen will be located in a remodeled space on the Milwaukee airport grounds and Midwest expects to open a similar operation in Kansas City later this year.
Aloha Airgroup and subsidiary Aloha Airlines received US Bankruptcy Court approval last week for $65 million in debtor-in-possession financing it will use to pay off outstanding loans, including its Air Transportation Stabilization Board loan and commercial bank loans, and supply working capital. According to President and CEO David Banmiller, the DIP financing gives the company the funding it needs to implement its financial restructuring and "go-forward" business plan for a "quick exit" from Chapter 11. Aloha has been operating under bankruptcy protection since December.
Air Canada plans to increase its cargo service to China and boost its freight capacity within Canada. The carrier signed a two-year agreement with World Airways for an MD-11 freighter and will use it to launch thrice-weekly service between Canada and Shanghai in May. In addition, the airline has extended by two years a lease agreement with Gemini Air Cargo through which AC offers five-times-weekly all-cargo service between Toronto and Frankfurt. It also boosted capacity on its four weekly Toronto-Calgary-Vancouver cargo flights by using a 727F on the route.
Air France could be a launch customer for Boeing's proposed 777 freighter and is considering placing an order for seven of the new aircraft. The airline did not comment on a report in French financial daily La Tribune but confirmed that the 777F is its preferred option to replace part of its aging fleet of 747Fs. AF currently has eight 747-200Fs and four dash 400ERFs in operation, with one 747-200F due to leave the fleet shortly.
Delta Air Lines faces another possible downgrade of its debt obligations after Standard & Poor's on Friday "revised the implications of its CreditWatch review of ratings on Delta to 'developing' from 'positive,'" citing liquidity concerns. According to S&P analyst Philip Baggaley, the change "reflects renewed pressure on Delta's liquidity from sharply higher fuel prices" that could add up to $1 billion to operating costs this year.
Ameco Beijing Engineering Services started construction on a four-bay hangar and new docking system at Beijing Capital International Airport and has begun to rebuild the existing docking system. The upgraded systems will allow the company to perform heavy checks on widebody aircraft. Total investment in the facilities is more than 10 million yuan ($1.2 million) and construction will be completed in June. Separately, Ameco Beijing said it added capability for PW4000 fan case anti-wear strip repair.
AirAsia, winner of ATW's 2005 Market Leadership Award, signed a purchase contract for up to 100 A320s including 60 firm orders and 40 options. This is an increase of 20 aircraft over the carrier's original order placed late last year for 40 firm A320s and 40 options ( ATWOnline, Dec. 17), underscoring its aggressive market growth plans.
US Transportation Security Administration will deploy explosives detection trace portal machines by the end of May at Miami International, San Francisco International, Phoenix Sky Harbor International, Boston Logan International and Los Angeles International airports as part of its pilot program to test the machines. During Phase I of the program, TSA began field testing GE trace portals at five other US airports. The agency also said it will purchase nine explosives detection trace portal machines, four of which have been on loan, from GE Ion Trak for $1.5 million.
SilkAir will increase network capacity by 14% for its summer season that runs from March 27 to Oct. 29. Frequencies to Phuket will increase from 14 to 21 per week while flights to Davao will jump from four weekly to daily. Flights to Kochi will climb from four to five weekly and to Manado from three to four weekly. From July 1, SilkAir will add another weekly flight to Yangon for a total of 11 and its twice-weekly services to Padang will resume from May 3. In total, the airline will operate 127 weekly flights to 25 regional destinations this summer.
Although it was another tough year as Virgin Express faced more competition from full-service low-fare charter operators, the airline reduced its net loss to €7.3 million ($9.5 million) in 2004 from €19.6 million in the previous year. Operating loss narrowed to €3.9 million from €16.1 million in 2003. Total revenue fell 13% to €179.8 million, mainly owing to a reduction in the carrier's fleet from 13 to 11. "A further reduction is planned for 2005," Executive Chairman David Hoare said.
Centralwings, the low-cost subsidiary of LOT Polish Airlines, will start a thrice-weekly service to Cologne/Bonn from Katowice today. During the summer, the carrier will offer direct flights from Katowice to Hanover and Cologne/Bonn and from Warsaw to Nuremberg, Hanover, London Gatwick, Prague, Lisbon, Bologna, Barcelona Girona, Rome Ciampino and Catania. From Krakow, routes will include London Gatwick and Ciampino.
