Expedia's fourth-quarter net profit sank 43% to $25.2 million, and executives warned that 2006 will be difficult due to investments the compny is making in Europe and intense competition.
Performance of the European ATM system is "not yet optimal," Eurocontrol Director General Victor Aguado says. The fragmentation of Europe's airspace is increasing costs by up to EUR1.5 billion a year, underlining the need for the Single European Sky. The current system can handle demand for "some years to come," but a new system will be needed by 2015-2020.
The government inspector charged with turning around the troubled situation at Lloyd Aereo Boliviano said it will take at least three more weeks to normalize operations after a recent nine-day strike by pilots (DAILY, Feb. 16).
Peru's state-owned carrier Tans will soon resume operations on the Iquitos-Tarapoto-Ucayali and Piura-Tumbes routes, as well as flights to Madre de Dios via Cusco, thanks to the civil aviation department's decision to lift the airline's temporary suspension (DAILY, Feb. 15). The "flights of social integration" will serve destinations that regular commercial airlines do not serve. -LZ
AirTran and Anheuser-Busch are friends again after the brewery's CEO Patrick Stokes apologized for his company's marketing department and advertising agency, which made a radio commercial "ridiculing" low-fare airline pilots, the airline reports. AirTran negotiated a new deal with Anheuser-Busch and will now offer Michelob Ultra in addition to Budweiser and Bud Light. The carrier offers a total of six types of beer.
Work on an emergency bypass between Caracas and Maiquetia Airport will be completed by Feb. 26, reports Venezuelan Infrastructure Minister Ramon Carrizales. The bypass is another interim solution in the crisis caused by the bridge collapse that cut off transportation between the city and the airport (DAILY, Feb. 6). A 1.5-mile stretch mile of contingency road will be asphalted, enabling the roads to handle both truck and car traffic.
GOL is adding four new destinations outside Brazil to its cargo business, Gollog. The new sites are Montevideo, Uruguay; Asuncion, Paraguay, and Rosario and Cordoba, Argentina. The latest additions expand Gollog's network to 43 poins -- 38 in Brazil, three in Argentina and the latest two in Paraguay and Uruguay. -LR
Smiths Detection last week unveiled plans to introduce a slightly smaller Sentinel II explosives detection walk-through trace portal, which has the detection and compressed-air supply incorporated into a single device.
Finnair reported a modest EUR2.9 million fourth quarter loss, but the deficit could not prevent the airline from posting a strong EUR61.4 million full-year profit, up from a EUR25.6 million income in 2004.
Aloha Airlines on Friday formally exited Chapter 11 bankruptcy protection after the carrier dodged several last-minute objections that almost derailed its exit. The carrier first filed for protection on Dec. 30, 2004, and in a little more than a year, the carrier cut $75 million in operating costs. "We have secured favorable leases and with the elimination of unprofitable routes, Aloha now operates a highly efficient, customer-sensitive schedule, including daily nonstops between the U.S. West Coast and Honolulu, Maui and Kona," said CEO David Banmiller.
Mesaba says any strike by pilots would be an "academic" exercise, since the carrier couldn't survive it. VP-Finance Tom Schmidt says it's probably illegal for workers to strike now that Mesaba has asked the courts to reject labor agreements with pilots, flight attendants and mechanics, but he warns that any strike, legal or not, is "more than the carrier can bear; it would cease operations."
Cargo carrier Evergreen International Airlines asked the U.S. Transportation Dept. to waive the 90-day dormancy condition on its three U.S.-Russia cargo frequencies indefinitely, citing a downturn in the market after the Sept. 11 terrorist attacks. FedEx also asked for an indefinite waiver for its U.S.-Russia cargo frequencies, a fact that Evergreen notes in its application. Like Evergreen, FedEx suggests renewal of its two-year waiver in lieu of DOT's denial of an indefinite waiver.
Japan yesterday opened a new domestic airport in Kobe that will have a limited number of operations due to concerns over airspace congestion but will likely provide some new competition to the country's train system. The new airport in the Osaka area was proposed more than two decades ago and required the construction of an artificial island. The airport took six years to build and has a single 8,250-foot runway.
Northwest, through code shares with SkyTeam partners Delta and Continental, will add new destinations and boost service to cities in Latin America and the Caribbean. If it gets regulatory approval, Northwest will code share on Continental's flights from Houston to Buenos Aires, Cali, Colombia, and Quetaro, Mexico -- all new destinations for the Minneapolis-based carrier.
The European Commission will review the way airport charges are set in the European Union, in response to complaints from IATA. European Transport Commissioner Jacques Barrot told the Financial Times, "We need to put some order in the way fees are charged. I don't know yet what the best system would be, but it clearly needs to be a lot more transparent. It seems fees are a bit arbitrary." The commissioner is scheduled to meet representatives from major airlines and airport operators on April 6 to discuss the issue.
Thai Airways yesterday reported a 33% drop in its fiscal first quarter profit to 3.8 billion baht (US$96.6 million) due to a sharp rise in fuel prices. Total revenues rose 6.5% to 45.9 billion baht (US$1.2 billion), but expenses jumped 10.3% due to more capacity and the 25.3% increase in fuel prices. Executives noted that labor costs, marketing expenses and other costs fell from the previous year. The carrier recorded a foreign exchange gain of 1.4 billion baht thanks to a stronger Thai baht. During the quarter ended Dec.
The head of the House appropriations subcommittee that funds the Transportation Security Administration told the agency's head to come up with a Plan B if a proposed hike in passenger security fees fails to pass in Congress. The Fiscal Year 2007 Dept. of Homeland Security budget request, which includes TSA, seeks to raise an estimated $1.4 billion by doubling passenger security fees to $5 per trip (DAILY, Feb. 7). The airlines and many members of Congress oppose the plan, similar to one that failed to pass Congress last year.
Parts supplier Avio-Diepen recently signed a long-term deal to join Boeing's Integrated Materials Management (IMM) program. Through this program, Boeing and other suppliers maintain an airline's inventory of maintenance supplies, including spare parts, and provide items only as needed.
