Japan Airlines and Hainan Airlines this week decided to expand their code-share agreement to cover two more domestic China routes. The two airlines have code shared since June 1, 2005, on daily flights operated by Hainan Airlines between Beijing and Chengdu. Starting April 10, the new agreement allows JAL to place its code also on Hainan's flights from Beijing to Kunming and Xian.
Varig President Marcelo Bottini addressed an appeal to the Brazilian President Luz Luiz da Silva and asked for the government to help pay for fuel, airport fees, maintenance and other short-term costs to avert a shutdown of operations that could come "at any time," according to local reports. The carrier's critical cash flow situation was aggravated by, among other things, diminished revenues as the summer and Carnival vacation seasons came to an end.
Air Europa yesterday announced an order for 16 Boeing 737-800s, to be delivered between 2010 and 2014. The carrier will use the new 737s on Spanish domestic routes, including flights to the Balearic and Canary Islands, and on European and North African flights. Air Europa now has orders for 34 737s, and already has 30 in its fleet. The list value of the order is about $1 billion. -AS
House and Senate lawmakers are beginning their examination of a the controller contract dispute that FAA dumped in their laps this week, and although the National Air Traffic Controllers Association is promising a fierce fight, sources say the union will face an uphill struggle persuading Republican leaders to overturn FAA's contract proposal.
Dallas/Fort Worth Airport expects new industrial development leases approved this week by the airport's board will bring in more than $1.5 million a year in new non-aviation revenue. DFW and the Trammell Crow Co. will develop nearly 2 million square feet of additional industrial space in the airport's International Commerce Park, doubling the size of the park.
The U.S. airlines' on-time arrival rate sank in February compared with the month before and February 2005, while the number of flight cancellations rose as the carriers battled winter weather.
Taca Peru and Brazilian carrier TAM last Friday initiated code sharing on their daily frequencies between Lima and Sao Paulo aimed at helping connect business and leisure travelers to destinations like Rio de Janeiro in Brazil and Cusco/Machu Picchu in Peru.
Delta yesterday started transitioning its fleet of 48 Song Boeing 757s into the mainline domestic system and will reconfigure the interiors and exteriors into a new two-class, long-haul product.
The European Commission sent the Greek government a so-called "reasoned opinion" asking it to recover EUR61 million paid to Olympic Airways between 1998 and 2002. This final written warning gives the Greek government two months to comply. "If the Greek response proves unsatisfactory, the Commission will refer the case to the Court of Justice and request financial penalties," the EC said.
FAA yesterday declared it has reached stalemate with the controllers union after nine months of contract talks, meaning that only congressional action can prevent the agency from imposing its latest contract offer without union agreement.
Fourteen civilian airports in South Korea have been insured against terrorist attacks amidst growing concerns about terrorist attacks on public facilities worldwide.
BMI managed to increase its profit in 2005, as mainline yields improved and cost cuts took effect. Revenues were up 4.7% at GBP869 million (US$1.5 billion) and the airline managed to turn a GBP3.2 million operating loss into a GBP5.5 million profit (US$9.7 million). BMI expanded capacity 7.5%, and traffic was up 6.3%.
EADS' main shareholders DaimlerChrysler and Lagardere yesterday each decided to sell 7.5% of its stakes in the European aerospace company. The transaction will be completed in 2007 to take advantage of tax benefits.
Stakes in various airlines by Icelandic conglomerate FL Group are in flux as the company sells off its piece of EasyJet, ups its stake in Finnair and orders additional Boeing planes for Icelandair. FL Group's sell-off of its 16.9% holding of EasyJet ends speculation that the company was eyeing a takeover of the low-cost carrier. The sale generated a EUR140 million (US$172 million) profit for FL Group, translating into a 70% return on its investment. FL valued the transaction at EUR325 million (US$400 million).
British Airways said yesterday that capacity and traffic both rose in March, although load factor dropped slightly. Traffic grew 1.8% on a 2.5% capacity hike, and load factor dropped 0.5 points to 75.2%. The carrier said the traffic increase resulted from a 15% boost in premium traffic and a 0.4% decrease in non-premium traffic. The fact that the Easter holiday will fall in April instead of March this year boosted March premium traffic but hurt non-premium traffic. "This effect will reverse next month," BA said.
Negotiations between workers and management at Aerolineas Argentinas (DAILY, March 23) have reached a deadlock, and the possibility remains that they might strike during the Easter season. Pilots and others insist on their demands. Management says the unions want to destabilize the company and the government refuses -- or is unable -- to break the deadlock. "While not claiming to be clairvoyants, some kind of resort to force for Easter cannot be discarded," pilots union (APLA) President Jorge Perez Tamayo said.
Air New Zealand plans to offer a second daily service between Auckland and London, starting Oct. 28. The flight, to be operated via Hong Kong, will use a 393-seat Boeing 747-400 aircraft. The airline will be the fifth carrier to operate the nonstop Hong Kong-London flight. The others are Cathay Pacific, Virgin Atlantic, British Airways and Qantas. ANZ will also be the only Star Alliance member airline to operate the route.
LAN President Jorge Awad said Lan Peru would continue operations despite presidential elections on April 9 that could put an airline detractor in office. Presidential candidate Ollanta Humala previously accused Lan Peru of having "an airline monopoly" and proposed setting up a national carrier with public and private capital to "break that monopoly." Humala is running neck and neck in the polls with centrist/left candidate Lourdes Flores, and analysts are predicting a run-off.
