ATR struck a deal with the Government of Ecuatorial Guinea for three new aircraft -- one ATR 42-500 and two ATR 72-500s -- that the airframer valued at $50 million. Aircraft deliveries are scheduled during the next three years.
Airlines offering new service from San Jose, Calif. Airport would be eligible for a year's worth of incentives, including free landing fees and reduced rents under a plan submitted to the city council. The airline air service incentive program's objective is to get nonstop service to key domestic and international destinations, wrote Airport Director William Sherry in a draft memo.
Singapore Changi this week reported double-digit passenger growth in April, the best month of the year to date. More than 2.85 million passengers passed through the airport last month, 11.3% more than in April 2005. April's passenger traffic was also slightly higher than March 2006's figure by about 3,000. The airport reported that on April 28 and 29 daily passenger numbers exceeded 100,000. In total, the first four months this year brought nearly 11.1 million passengers through Changi Airport, up 10.5% from the same period last year.
Alitalia's operating loss widened to EUR129 million (US165 million) in the first quarter of 2006, from EUR 118 million a year earlier. Alitalia shares took a dive of more than 8% this week as the airline refrained from confirming earlier claims that it would be returning to the black this year. The carrier said it would wait until after the first half of the year to issue full-year forecasts.
Pinnacle and Northwest have postponed a decision regarding a payment the regional owes it lone partner for a third time since March, pending the outcome of their future business relationship. Under the terms of its aircraft sublease deal with Pinnacle, Northwest has the right to request about $21 million in aircraft security deposits as a result of Pinnacle paying off its note to Northwest. Pinnacle bought the note in February 2005 and issued Northwest convertible notes to finance the deal.
Copa Airlines parent Copa Holdings yesterday reported a record $32.2 million first-quarter profit as strong loads and revenues more than offset high fuel prices.
Gate Gourmet's prepared food will soon appear in grocery stores and specialty retailers thanks to a new partnership with distributor FreshOne. Gate Gourmet claims to be the world's largest independent supplier of airline catering and logistics, with 22,000 employees in 109 flight kitchens in 29 countries. As part of the new partnership, Gate Gourmet will prepare and package sandwiches, salads and other ready-to-eat items, which will then be marketed and distributed in the U.S. by FreshOne to grocery, convenience and specialty retailers.
Airbus CEO Gustav Humbert tried to regain control over A350 communication yesterday in what became a public clash with EADS Co-CEO Noel Forgeard. Humbert described comments made by his colleagues in the French press as "not helpful" and indirectly accused Forgeard of breaking confidentiality agreements. Humbert insisted that a decision on the likely relaunch of the A350 long-haul jet has not yet been made.
G2 SwitchWorks this week named David Siegel non-executive chairman as the company works to enlarge its board for its next phase of expansion. Siegel remains chairman and CEO of caterer Gate Gourmet. Before joining Gate Gourmet in June 2004, Siegel was CEO of US Airways and also served as chairman and CEO of Avis Rent-a-Car. G2 also named COO Dave Menzel to the board, effective immediately.
Delta yesterday signed a seven-year content deal with Cendant subsidiary Galileo, which will make all of the airline's published fares and inventory available to all users of the Galileo GDS system, including travel agencies, corporate customers and Cendant online agencies booking through Galileo.
The U.S. Treasury Dept. yesterday reported that Congress is moving closer to a compromise on a pension reform bill that has been stuck in a conference committee for weeks, and one official is hopeful the legislation will meet the approval of the White House.
Sabre Airline Solutions in the first quarter made an aggressive push to win business with airports around the world and inked 15 contracts during the first three months of the year. The deals are with Macquarie Airports, Turin Airport, Singapore Changi and 12 French and Swiss properties. The contract with Macquarie involves market analysis products designed to help service development at Rome, Brussels, Sydney and Copenhagen airports. Air service development is also the focus of the contract with Singapore Changi.
The Transportation Security Administration yesterday issued a new cargo screening rule that will extend airport secure areas and employee background checking, as well as increase inspections. The rule makes permanent some practices already in place and creates some new ones. TSA described it as the first substantial changes to air cargo regulations since 1999, resulting from a joint government-industry effort. The new measures will be enforced by an expanded force of TSA inspectors, with an additional 300 to be hired in coming weeks.
UPS plans to speed up turnaround times at its Louisville hub by doubling the number of aircraft docking positions at the sorting facility, part of a $1 billion expansion unveiled yesterday. Three more aircraft loading wings will be added to the core sorting facility, joining the three existing wings. This will increase docking positions from 44 to 84, a UPS spokesman told The DAILY. Construction work will begin in June and is scheduled to be finished in late 2010. The three new wings will probably be opened one at a time, the spokesman said.
EVA Air this week opened its new Southern China Cargo Center in Hong Kong, which the carrier hopes will allow it to boost its efficiency in moving freight in and out of the region.
BAA's operating profit rose 8.1% to GBP710 million (US$1.3 billion) in the year ended March 31. Group revenue rose 7.4% to GBP2.2 billion (US$4.1 billion) and operating costs 7.1% to GBP1.5 billion (US$2.8 billion). The report does not include the results of Budapest Airport, since BAA only bought the facility in December 2005. Passenger traffic at U.K. airports was up 2% to 144.6 million, while Naples remained flat at 4.6 million passengers in the year. Budapest rose 9% to 1.6 million during BAA's first three months of ownership.
The Civil Air Navigation Services Organization (CANSO) has boosted its international influence through the election of FAA Chief Operating Officer Russell Chew to its executive committee. Also joining the committee is Wrennelle Stander, head of South Africa's Air Traffic and Navigation Services, and Monte Belger, a senior executive in Lockheed Martin's Transportation Systems Solutions.
Chris Chiames, former senior VP-corporate affairs at US Airways, has joined Ford & Harrison, a national employment and labor law firm. Chiames will work on building the group's recently launched subsidiary on employee communications, public relations and crisis management.
Frontier had to cut the debut of its new web site short earlier this week after glitches forced the carrier to revert to its old site for passenger bookings. The carrier unveiled the new site on Tuesday but pulled it late that evening after hitting a "couple of bumps," with load-balancing servers, a Frontier spokesman said, adding the airline made the decision to pull back the site to avoid inconsistencies in its offerings. Sabre runs Frontier's booking engine.
Alaska Airlines and the International Association of Machinists this week reached agreements in principle on basic terms for both the clerical, office and passenger service (COPS) and ramp service and stores agents (RSSA) contracts.
GOL told U.S. and Brazilian securities regulators it wants to raise $100 million through the sale of 2.5 million shares, a proposed secondary offering by controlling shareholder ASAS Investment Fund of 10 million preferred shares, and an international offering of convertible notes due in 2026. The carrier said it would grant underwriters an option to buy up to US$15 million of convertible notes to cover allotments. This follows a perpetual bond offering from GOL earlier this year priced at $200 million with a rate of 8.75% (DAILY, March 31).
BMI Regional this week unveiled plans to launch service this fall from Southampton, U.K., to Amsterdam, starting Oct. 29. The new service will operate four times daily Monday through Friday, once on Saturday and twice on Sunday, with Embraer regional jets. "As the U.K.'s premier regional carrier, we continue to build an ever stronger network of national and international routes from key U.K. regional airports," said CEO Nigel Turner. -SL
