U.K. airport operator BAA saw its share price jump by about 2% on the London Stock Exchange yesterday after a fresh wave of rumors of a potential takeover by overseas-based investors.
Low-fare carrier Germanwings and leisure airline Condor will soon launch cooperative efforts for the web, a decision that industry observers believe is only the first step toward a deeper integration. Passengers will be able to see the other carrier's flight offering on the partner's web site and will be connected to the booking engine, the airlines said at the International Tourism Exchange in Berlin.
The Greater Toronto Airports Authority (GTAA) has signed an agreement with Verified Identity Pass Canada to develop a registered traveler program for Canada's busiest airport, Verified Canada announced yesterday. The program would allow enrolled passengers at Toronto Pearson International Airport to use a dedicated security lane at passenger screening checkpoints. It would be the first private-sector registered traveler program in Canada.
Southwest raised fares for the second time this year as its fuel bill for the first quarter continues to rise despite even though the airline has one of the strongest hedging programs among U.S. carriers. The carrier estimates spending $1.45 per gallon for fuel during the first three months of the year, compared with $1.22 in the fourth quarter 2005.
Ecuador's TAME received a government guarantee for a $61 million loan from Brazil's Development Bank to buy three Embraer regional jets to expand its fleet to 10 aircraft. Delivery is expected next week for early operation on TAME's routes from Quito and Guayaquil to Cuenca, Tulcan, Manta, Portoviejo, San Cristobal and the Amazon Basin. -LZ
Embraer Director of Market Intelligence Orlando Jose Ferreira Neto was promoted to the airframer's VP of Airline Marketing and Sales for Latin America. The company is realigning its marketing and sales department for the airline market to cover Mexico, Central and South America, due the "growing importance" and sales potential those areas offer, and predicts 465 aircraft deliveries of planes in the 30- to 120-seat range in the next 20 years. -LR
United and Shanghai Airlines expect to begin code sharing next month, under an agreement inked last December, and the carriers have applied to the U.S. Transportation Dept. for authority and exemptions needed for the code share. The code share with United will enable Shanghai to begin operating to the U.S. Shanghai already interlines with Star members Lufthansa, United and ANA, as well as Virgin Atlantic, Eva Airways and Trans Asia Airways.
SR Technics last week finalized a component support deal with Air Europa for its new Airbus A330 fleet. Under the agreement, SR Technics assumes overall components management responsibility for the six to eight A330s which will soon be operated by the Spanish-based airline. The business covered by the seven-year contract is estimated to be worth more than CHF20 million. Air Europa is already a long-standing customer of SR Technics for its Boeing 737 and 767 fleets.
EASA last week proposed mandating inspections of Airbus A300-600s and A310s with composite rudders after a recent incident in which "debonding" was discovered during a post-maintenance inspection.
Nav Canada last week reached a tentative contract deal with its 850 flight services specialists. The four-year deal begins May 1 and expires April 30, 2010. Ratification voting is expected to be held in the next 30 days, and Nav Canada said it will not unveil details of the deal until after the vote.
Named Ted Mallory to replace Landon Harmon as director-safety as Harmon returns to line flying this month. Also, Senior VP and Chief Administrative Officer Raymond Lutz retired from the company; his responsibilities will be restructured and assigned to current executives.
Embattled Lloyd Aereo Boliviano President and majority equity holder Ernesto Asbun came under heavy fire last week, with Bolivian President Evo Morales calling for his prosecution under penal law, so "he either pays his debts or goes to jail."
Delta thinks its summer boost of regional feed to New York Kennedy and the new JFK international flights will not take traffic away from its Cincinnati hub. Chief Operating Officer Jim Whitehurst reports that the small number of international flights to Cincinnati is already profitable and that the hub pulls traffic from the Midwest, while JFK will pull from the Northeast and mid-Atlantic cities.
Elected Julie Ellis, partner at Butler, Snow, O'Mara, Stevens & Cannada, as president and Debra Fowler, senior aviation attorney at the U.S. Dept. of Justice, as president-elect.
Named Rudolpho Dominguez president and chief operations officer and Robert Scott CEO and CFO. Former CEO and President Syed Hasan left the company and was removed from the board of directors.
Elected Louis Chenevert as president and chief operating officer and a director of the company, while Sikorsky Aircraft President Steve Finger was named to replace Chenevert as president of Pratt & Whitney.
With six low-cost carriers taking off this year, industry watchers in Mexico are debating the survival odds for the new entities, and most are worried about overcapacity in the market (DAILY, Feb. 24).
Airlines Reporting Corp. said the 142 participating airlines in February are an increase of 12 carriers from a year ago and a nine-year high for the group. Average weekly sales per ARC accredited location set a new record by surpassing $70,000 for the first time. Total carrier sales reported and settled by travel agents and corporate travel departments were nearly $6.3 billion for the four-week month.
