Timco is negotiating with CIT Group to resolve the violation of financial covenants as part of a deal proposed by its major shareholder -- LJH -- to set up a new financing package for the company. Greensboro, N.C.-based Timco warned yesterday it was in danger of violating credit agreements related to its senior debt held by CIT Group and Monroe Capital Advisors.
A jurisdictional conflict is emerging in the case of struggling carrier Varig, after a labor court filed an injunction to seize the assets of the company, whose restructuring is pending before Brazil's bankruptcy court.
Atlas yesterday reported a slight rise in fourth-quarter profit, although 2005 net profit increased significantly in the carrier's first full year following emergence from bankruptcy. Full-year net profit was $73.9 million. The company saw a net profit of $28.2 million for 2004 through bankruptcy emergence in July, and a further net profit of $22.7 million for the remainder of 2004. The company warned against comparing post-emergence with pre-emergence results. Revenues for 2005 were $1.6 billion, and operating profit was $193.3 million.
The European Transport Workers' Federation is threatening to "act" if the European Commission goes ahead with plans to further liberalize ground-handling services, a process that was initiated 10 years ago in the European Union. European Transport Commissioner Jacques Barrot recently discussed "the prospects for further market opening, allowing more independent ground handlers to enter the market" with industry representatives, the European Commission said.
JetBlue followed up on plans to launch Embraer 190s flights to the Carolinas (DAILY, March 9), adding Charlotte and Raleigh to the destinations served by its new fleet type. Four daily roundtrip flights to Charlotte start July 12, followed by the same number of trips to Raleigh on July 20. July schedules show US Airways is scheduled to offer 10 daily flights between Charlotte and New York LaGuardia Monday-Friday, eight on Saturdays and nine on Sundays. From Raleigh, the airline is offering nine daily flights.
The White House yesterday told top executives from the global travel and tourism industry that the U.S. will make a strong push this year to boost tourism and will work to make it easier for international visitors to enter the U.S.
Several airlines on both sides of the Atlantic yesterday increased fuel surcharges to offset rising fuel prices. American hiked fuel surcharges on fares to and from most of its transatlantic and transpacific destinations, excluding Japan. With a few exceptions, the increase is $10 one way, $20 roundtrip, and is effective immediately. KLM also said it would increase its fuel surhcarge by EUR5 each way on long-haul international flights. KLM's increase will be withdrawn as soon as the barrel price drops below $65 for 30 consecutive days.
Qantas and Air New Zealand yesterday launched a new attempt to win regulatory approval for a scaled-back code-share partnership on trans-Tasman routes to help the carriers reduce each other's capacity on the routes. The carriers have been mulling a code-share deal for nearly a year after regulators blocked a larger alliance, claiming the proposal was anti-competitive (DAILY, June 6, 2005). In the 1990s, the carriers had a code-share deal that ran for more than five years.
The air navigation service providers of Ireland, Sweden and Denmark this week signed a cooperation deal with Thales that will see the ANSPs collaborate on the purchase of upgrades to their ATC systems. The three organizations all use Thales' Eurocat air traffic management system. Other ANSPs will be able to enter the agreement, the companies said. -AS
Honeywell and ATM organization Airservices Australia this week launched a strategic partnership aimed at developing and marketing new satellite-based landing and navigation systems. Under the agreement, Airservices and Honeywell will develop software for two systems, the Ground Based Augmentation System (GBAS) and the Ground-Based Regional Augmentation System (GRAS). GBAS will be able to replace existing landing systems at major airports, and GRAS will provide regional navigation coverage for smaller commercial and general aviation aircraft.
As the deadline has passed for communities to submit applications for the DOT's Small Community Air Service Development program (SCAD), The DAILY contacted the top 10 grant recipients in the program's first year - FY 2002 -- to see how the money was spent. DOT awarded $19.9 million in grants to 40 communities in 2002. Five of the top 10 grant recipients in FY 2002 were successful in efforts to improve air service. Mason City, Iowa -- did not spend the grant money.
Boeing tapped Tod Hullin as senior VP-public policy and communications at the company's Washington, D.C., office. Hullin replaces Rudy deLeon, who will retire June 30. Thomas Downey was named VP-corporate communications and will relocate from Seattle to the company's corporate headquarters in Chicago.
The U.S. Transportation Dept. is considering pulling Air Florida Airlines' (AFA) air taxi authority, convinced AFA is a delinquent carrier masquerading as a new operation. DOT says its findings have led it to conclude the operations of AFA and defunct operator Air Florida Express (AFE) are one and the same.
Alaska's first-quarter unit costs jumped 23% because of higher fuel prices and a $135 million impairment charge associated with the decision to retire the MD-80 fleet. An April 7 story in The DAILY gave an incomplete list of reasons for the increase.
US Airways yesterday finalized a large $1.25 billion debt refinancing transaction that will boost the airline's liquidity by reducing principal payments and interest costs. The new loan, which was underwritten by GE Commercial Finance and Morgan Stanley Senior Funding, will bear interest at London Interbank Offering Rate (LIBOR) plus 3.5%. The margin over LIBOR falls as the loan is paid down and can be as low as LIBOR plus 2.5% if the loan balance is $600 million or less. The new loan will defer debt maturities and reduce the blended interest margin.
World Airways yesterday signed leases for two MD-11 passenger aircraft in its fleet, with a third lease expected to be done later this month. World Airways formerly subleased the three aircraft from Delta until the leases were rejected by the airline in bankruptcy court in September. The leases with the new owner are on staggered terms through March 2008.
British Airways aims to have 80% of all customers check in using airport kiosks or on the Internet by the time the airline moves into the new London Heathrow Terminal 5 in early 2008, reports Commercial Director Martin George. He tells The DAILY in Washington that BA will launch a redesigned web site this summer that will look "very different." Within two years, he expects 50% of the airline's sales to come through ba.com, up from about 30% today.
Ryanair yesterday announced nine new routes from its Frankfurt/Hahn base. The airline plans to launch service to Fez and Marrakech in Morocco, Grenada and Murcia in Spain, Kaunas in Lithuania, Wroclaw and Krakow in Poland, as well as to Trieste and Verona in Italy. The airline will also increase frequencies to London and Oslo. The move is part of a previously announced plan to grow Hahn by about 1 million passengers annually and eventually base 18 aircraft at the airport. To cater to the expansion, Ryanair will base two more Boeing 737-800s at Hahn. -JF
TQ3Navigant this week signed an agreement with Verified Identity Pass, a registered traveler provider that will give TQ3 Navigant customers a corporate discount on Verified membership fees.
