LAN Airlines (formerly LanChile) said it began negotiations to acquire an unidentified Argentine airline in partnership with Argentine investors. The airline will use the name LAN Argentina and will be part of the LAN airline group. LAN's efforts to establish a foothold in Argentina have been eased by an evolving drug trafficking investigation involving employees of Southern Winds, who are alleged to have used the airline to smuggle cocaine from Ezeiza International Airport in Buenos Aires. Reportedly, one of the employees is the son of the former air force security chief at Ezeiza.
Air Canada, in light of the recent shutdown of Jetsgo ( ATWOnline, March 14), will add new daily flights between Toronto and Vancouver, Calgary, Winnipeg and Halifax for the peak summer travel season. The carrier said the flights will be implemented in stages as plans are finalized. Additionally, beginning this month AC will boost Rapidair shuttle service between Toronto and Ottawa with an additional 10 one-way flights per week for a total of up to 38 one-way flights per day.
European Commission, stating that "a return flight for two persons from London to New York produces about as much carbon dioxide as an average passenger car in the EU does in a whole year," has launched an "Internet consultation" on how to reduce "the climate change impact of aviation" in the EU. Interested parties may respond to an online questionnaire regarding airlines and climate change at http://Europa.eu.int/yourvoice.
Bombardier reached an agreement with GoJet Airlines, a subsidiary of Trans States Holdings, for an order for 10 CRJ700s valued at $317 million. The deal includes options for an additional 40 CRJ700s, which if exercised would be valued at up to $1.6 billion. GoJet's CRJ700s will be configured with 66 seats in three classes and will be operated as United Express on behalf of United Airlines. Trans States, based in St. Louis, operates a fleet of 48 ERJs and 25 Jetstream 41s as American Connection, US Airways Express and United Express.
Navitaire's Open Skies host reservation system and revenue management system were selected by new Indian low-cost carrier SpiceJet. Terms of the deal were not released.
Cathay Pacific Airways will expand service to several cities in the upcoming summer schedule. It plans to add seven more weekly flights from Hong Kong to Beijing and a third daily nonstop to Los Angeles. Also, service from Hong Kong to Amsterdam and Johannesburg, now at five and six flights a week respectively, will become daily, and flights to Ho Chi Minh City will rise from daily to double-daily. In addition, the carrier will boost flights to Nagoya from double-daily to thrice-daily while service to Perth will jump from three to four weekly flights.
TAP Air Portugal yesterday officially joined the Star Alliance as its 16th member. TAP, which was approved for membership last June ( ATWOnline, June 8), currently operates an average of 160-180 daily flights to 42 destinations using a fleet of 40 aircraft. "We at TAP are extremely happy that we have joined Star Alliance today, which coincides with our 60th anniversary," CEO Fernando Pinto said.
Blended Winglet-equipped 757-200 made its first flight last week. The aircraft, operated by Continental Airlines, flew from Everett, Wash., to Los Angeles with a brief stop at Boeing Field in Seattle. FAA certification of 757-200 winglets is expected in May with first customer installations beginning in July. Launch customers include Continental and Icelandair.
Lufthansa will expand service to Washington with a daily A340-300 flight from Munich scheduled to begin May 2. The new service will feature LH's new business class product, which includes its FlyNet inflight wireless Internet service. The flight will complement its twice-daily flights to Washington from Frankfurt and daily service to Munich provided by Star Alliance partner United Airlines.
Shenzhen Airlines signed a 10-year maintenance cost per hour agreement with GE Engine Services under which GEES will maintain the airline's fleet of 24 CFM56-7Bs powering its fleet of 737-700s/-900s. The contract is valued at $68 million.
EzRez Software announced that JetBlue Airways has signed a five-year contract to use its packaging technology. The agreement will enable JetBlue to provide its customers with one-stop shopping at its website for all travel needs including airfare, hotel, car rental and destination-specific activities.
Swiss International Air Lines would be acquired by Lufthansa but retain its independence "to the extent possible" under a plan being discussed by the companies. In a joint statement issued Sunday confirming media reports in Germany last week ( ATWOnline, March 14), the two carriers said they are developing a business model that "aims at providing a concentration of the strengths of both airlines." The "cornerstones" of the acquisition include "maintaining the air traffic infrastructure within Switzerland" and "the Swiss brand."
SriLankan Airlines, which was impacted heavily by the Indian Ocean tsunami in late December, believes it is on the road to recovery. "The tsunami disaster will cost us around $30 million in revenue. I hope that we can finish the current business year, which will end March 31, with a breakeven result. Last year we made a profit of $50 million," CEO Peter Hill told ATWOnline.
SAS Group sold a 25% shareholding in its Rezidor SAS hotels company to Carlson Hotels Worldwide in exchange for which Rezidor SAS Hospitality Group achieves improved commercial terms and extension options until 2052 of its Master Franchise Agreements. The MFA is the agreement between Rezidor SAS and Carlson by which Rezidor manages the Carlson Hotel brands operated by Rezidor SAS under the brand names Radisson SAS, Park Inn and Regent throughout Europe, the Middle East and Africa.
Israel Aircraft Industries' commercial aircraft group received a multiyear contract valued at approximately $500 million from Vought Aircraft Industries to manufacture assemblies for the door surrounds and passenger and cargo floors for the 787.
The European Commission on Monday recommended that the Council of Transport Ministers authorize it to negotiate "ambitious" air agreements with China and Russia "without further ado."
The US Pension Benefit Guaranty Corp. announced Friday that it has moved to assume responsibility for the pensions of United Airlines' 36,000 active and retired ground employees. According to PBGC, the pensions are only 30% funded and the company has missed $363 million in legally required contributions. In addition, management previously has declared its intention to terminate the plan.
United Airlines will recall 500 more flight attendants from voluntary furlough this year in response to increased flying for the remainder of the year and to offset attrition. According to a taped message to staff, 300 will be recalled June 1 and the remaining 200 will return July 1. The recalls are in addition to the 244 flight attendants that will return to the carrier March 31 and the 175 that will come back Oct. 31. As of July 1, the company said it will have approximately 2,150 flight attendants on voluntary furlough and none on involuntary furlough.
Martinair signed a three-year cooperation agreement with Thomas Cook Belgium to provide lift for long-haul flights from Brussels to Cuba, Mexico, the Dominican Republic, Kenya and Zanzibar. Thomas Cook Belgium, a subsidiary of German travel group Thomas Cook AG, in February dropped its collaboration with BelgiumExcel as the troubled Excel Aviation Group neared collapse ( ATWOnline, Feb. 8). The contract starts May 1 and will see a 15% increase in Martinair's long-haul capacity.
Swiss International Air Lines on Friday announced that it will need to slash an additional 800-1,000 jobs by mid-2006 as it reported a net loss of CHF140 million ($121.5 million) for 2004, narrowed from CHF687 million in 2003. The layoffs are necessary in order to shed another CHF300 million in annual costs by 2007. Swiss warned that if they are not in place "swiftly," it will be unable to post a positive result for 2005.
Germanwings plans to set up its third base at Berlin Schoenefeld and initially will base two aircraft at the airport. It will launch direct service from Berlin to Ankara, Istanbul, Moscow, Split, Stockholm and Zagreb June 5.
Hawaiian Airlines, which has been operating under Chapter 11 bankruptcy protection for two years, Friday received bankruptcy court approval for its plan of reorganization, which was developed jointly by its creditors committee and investor group Ranch Capital. The airline said after its two remaining open labor contracts with its pilots and flight attendant unions are ratified and a formal order is entered by the court, it should emerge from Chapter 11 in early April.
Rockwell Collins reported that a Lufthansa CityLine CRJ200 last week performed its first low-visibility takeoff using the Rockwell Collins Flight Dynamics Head-up Guidance System at Milan Malpensa.
