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.
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.
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.
