United and Delta on Friday raised fares in many markets and, which, if matched by competitors, would represent the industry's second broad increase in 2006 and the largest walk-up fare hike in more than five years.
World Airways last week prepaid the remaining $24 million outstanding balance of a term loan guaranteed primarily by the Air Transportation Stabilization Board (ATSB). The company used available cash to fund the prepayment. World had paid the first $6 million installment of the $30 million term loan on schedule in December, leaving a balance of $24 million. There were no financial penalties applicable to today's prepayment, the carrier said.
LOT Polish Airlines last week named Krzysztof Kapis as its new president and CEO after a three-month search for a new leader. Marek Grabarek was forced out late last year after a new government took over in November (DAILY, Dec. 21). Kapis has been president of the Polish Civil Aviation Office and belonged to many international civil aviation organizations. He represents Poland at ICAO's general assembly. Kapis is returning to the airline after serving more than 25 years in various executive positions, including commercial director.
Named Michel Coumans to succeed Elfrieke van Galen as managing director-KLM cityhopper and CEO-KLM cityhopper U.K. Van Galen will soon be appointed to another position within the KLM Group.
Named Zachary Grasley, a civil engineering doctoral student at the University of Illinois at Urbana-Champaign, the recipient of its Outstanding Student of the Year award.
AMR's board on Friday approved changes to the American's management compensation program after the current plan was blasted by union leaders and employees. The change gives a combination of stock and cash distributions for compensation granted under the 2003-2005 Performance Share Plan, previously known as the Performance Unit Plan. Cash payments will be consistent with American's annual incentive plan. No further details were released. The AMR board also decided to make similar changes to the 2004-2006 Plan. -SL
Tapped Charles Brewer, manager of the company's country operations in Malaysia, to become executive VP-U.S. Air Products and Services and join DHL's U.S. Management Board.
Singapore TEchnologies Aerospace signed a five-year, US$12.5 million deal with an unnamed full-service Asian carrier for component maintenance and management of 13 Airbus A320 planes.
You can now register online for Aviation Week events. Go to www.AviationNow.com/conferences or contact Lydia Janow, 212-904-3225 or 800-240-7645 ext. 5 (U.S. and Canada only) APRIL 5-6 -- U.S. Defense Budgets and Programs Conference, Arlington, Va. APRIL 25-26 -- MRO Military Conference, Phoenix APRIL 25-26 -- MRO USA Conference & Exhibition 2006, Phoenix MAY 17-18 -- MRO Military Europe, Berlin SEPT. 19-21 -- MRO Asia, Xiamen, China OCT. 24-26 -- MRO Europe, Amsterdam
By George W. Hamlin Recently there has again been discussion of mergers in the U.S. airline industry. Since it's likely that there will be consolidation eventually, whether by merger, carrier failure or both, it's worth considering whether the urge to merge is desirable. The answer, of course, is that perspective is everything.
Workers at Lloyd Aereo Boliviano staged several protests last weekend in a bid to spur the government to save the troubled carrier; the protests reportedly resulted in the suspension of LAB's operating license.
To list an event, please send information in calendar format to Ingrid Lee at [email protected] APRIL 3-7 -- ACI-NA/NTSB Media Relations & Crisis Communications Seminar, NTSB Academy, Ashburn, Va., 202-293-3032, email [email protected] APRIL 4-10 -- Experimental Aircraft Association Sun 'n' Fun Fly-In, Lakeland Linder Regional Airport, Lakeland, Fla., 920-426-4800
International Aero Engines won new business from Indian carrier Air Deccan after finalizing a deal to supply its V2500 engines for 30 Airbus A320s the airline has on order. IAE said the value of the agreement was $500 million. The airline also opted for IAE's V2500Select service package and upgrade program.
American says it will retrofit its entire fleet of Boeing 737-800s with blended winglets between May 2006 and September 2007, requiring an order for 76 winglets sets. The carrier outfitted a single 737-800 with winglets last year, and its evaluation showed the devices produced the expected fuel savings. The retrofits will be carried out at American's Tulsa maintenance facility.
Hooters Air plans to cease scheduled service next month after two years in operation, during which it struggled to battle high fuel prices and boost traffic.
AirTran CEO Joe Leonard sees a "very, very strong revenue environment," but reports that fuel costs are higher than expected. He told The DAILY in Orlando that "costs are on plan," with the exception of fuel. With the shift of the Easter and Passover holidays to April, he sees "great" results this month.
Lufthansa and Northwest could be forced to stop their international flights from Portland Airport, Ore. The airport may have to shut down its 11,000-foot south runway by 2011 for repairs. "We're looking at the feasibility of extending the 8,000-foot north runway to accommodate large aircraft," said Mary Maxwell, Port of Portland aviation director. "This would give us the flexibility to shut down the south runway...and still have dual operational capability on the north runway."
Flybe swung from a GBP3.2 million loss in 2004 to a profit of GBP6.6 million in 2005. The airline launched 29 new routes last year and boosted passenger numbers by 19%, flying more than 4 million customers.
Named Frank Huelsmann head of investor relations to succeed Ulrike Schlosser, who is taking up the post of managing director at LSG Sky Chefs subsidiary In-Flight Management Solutions GmbH.
Aer Lingus workers voted massively in favor of industrial action to oppose any unilateral decision on the privatization of the carrier, in a ballot organized last week by the Services, Industrial, Professional and Technical Union. The stoppage will take place if the carrier's management proceeds with privatization plans without agreement from the unions, announced SIPTU National Industrial Secretary Michael Halpenny. "This result is clear evidence of our members' concern for job security, pensions and conditions of employment," he said.
