The public-private committee that advises the Transportation Security Administration on aviation security matters yesterday agreed to create a baggage screening working group to examine money-saving ways to install explosives screening technology at airports.
Air Berlin gave mandates to Commerzbank and Morgan Stanley to prepare an initial public offering in the spring, industry sources say. The airline could sell a significant, yet undetermined, stake to investors in an effort to fund its ambitious expansion. The airline did not confirm the information, saying only that it continues to evaluate an IPO.
The SkyTeam alliance airlines yesterday decided not to fight a tentative rejection by the U.S. Transportation Dept. of the carriers' antitrust immunity application. The airlines told DOT they will withdraw their application. DOT late last month issued a show cause order tentatively approving expanded code sharing but denying antitrust immunity (DAILY, Dec. 23). "Upon reviewing the order and concluding it is unlikely DOT could be persuaded to reach a different conclusion at this time, the carriers decided to withdraw the application," Northwest said.
LAN Airlines tapped Air France Industries and KLM Engineering and Support for a 10-year component support deal for the airline's 24 Boeing 767-300ERs. Air France Industries affiliate Aero Maintenance Group, based in Miami, is responsible for logistics and the component pool for LAN. KLM Engineering, AMG or AFI will repair LAN's 767 components.
GCW Consulting this week hired former Atlas Air CEO Rick Shuyler as a senior consultant. Shuyler will help with airline industry projects for clients in the U.S., Europe and China. He became CEO of Atlas Air in 2001 and presided over the acquisition of rival Polar Air Cargo.
Northwest and KLM will expand their code share to cover KLM Cityhopper's new service between Amsterdam and Billund, Denmark. The charter carrier will launch the flights on March 26 with Fokker 100s
Jetstar plans to start three weekly flights between Melbourne and Ballina/Byron Bay March 28. The airline is also adding three weekly flights from Sydney to Ballina Byron following the launch of the route last July, nearly doubling its flights between the two destinations. The airline, which plans to have an all-Airbus fleet by mid-year, is using A320s on the routes. -LR
Construction of the new budget terminal at Singapore Changi Airport is finished, paving the way for an on-time debut on March 26. The S$45 million (US$27 million) facility is expected to handle 2.7 million passengers per year initially, which should rise to 5 million after future expansion. The 25,000-square-meter facility includes seven departure gates, three baggage claim belts and 10 aircraft parking bays.
British Airways is introducing sweeping changes in its regional flying program to return the European network to profitability. The airline will relaunch regional subsidiary BA CitiExpress as BA Connect by the end of March. BA Connect Managing Director David Evans says the unit is on track to reduce annual costs by GBP35 million (US$62 million), or 10%, and return to profitability in two years.
Star Alliance yesterday launched a campaign targeted at U.S. travel agents and corporate planners. The "Explore the World with Star Alliance" project will last for about two months and revolve around a contest for agents. "Travel agents and corporate travel planners/bookers have always been strong supporters of Star Alliance carriers, and we would like to invite them to learn more about our global product offerings through this interactive tool," said Nanci Cheberenchick, director sales & market development-Americas.
Air Canada this week set June 16 as the start date for its previously announced nonstop service between Toronto and Shanghai. Air Canada will operate three nonstop flights per week on the route, complementing its Toronto-Beijing nonstop service, launched in June, and its daily nonstop flights to both Shanghai and Beijing from Vancouver. Air Canada will operate the new Toronto-Shanghai route with 286-seat A340-300s. -SL
Croatia is set to become the newest market for Wizz Air when the airline starts four weekly flights between the capital of Zagreb and London March 27. Separately, Swiss carrier Helvetic plans to start three weekly flights to Pisa April 12 and two weekly flights to Rimni May 18. Citing intense competition, the carrier said it's cutting flights to Nice.
The dual nature of airline functions emerged as one of the key concerns that airlines want the U.S. Transportation Dept. to spell out as it proceeds with its proposed rule to ease restrictions on foreign investment in U.S. airlines (DAILY, Nov. 4).
Contract negotiations between FAA and its systems technicians are scheduled to begin next month, following an arbitrator's ruling in FAA's favor that set a timeframe for the contract talks. The current contract between FAA and the Professional Airways Systems Specialists union expired last July, but no new negotiations have occurred because the agency and the union have been arguing over the timetable. While FAA wanted an advance schedule and "a reasonable timeframe to complete negotiations," it said PASS argued for an open-ended timeframe.
By Steve Lott Eclat Analyst: Aaron Taylor The end of the deficit tunnel may be closer for some U.S. airlines than many think, as the recent, small improvement in yields and moderate drop in fuel prices make operating profits in 2006 more likely.
Mexican airport operator ASUR this week reported that passenger traffic across its nine airports sank 28.4% in December largely due to a drop in Cancun and Cozumel traffic following Hurricane Wilma. Transit and general aviation passengers are excluded from the report. International traffic to Cancun and Cozumel was down 46% and 85.5%, respectively, in December.
Precision Conversions won nods from U.S. and Chinese authorities for conversion of Boeing 757-200s powered by Pratt & Whitney engines. The company converted an aircraft owned by International Lease Finance Corp. that Shanghai Airlines will fly, and plans to convert another plane for ILFC-Shanghai. The 757-200PCF offered by Precision Conversions includes 15 full pallets, payloads of 62,000-72,000 pounds and 6,600 cubic feet of cargo space on the main deck. -LR
The European Court of Justice yesterday rejected the airlines' complaint against the European Union's new rules on compensation payments for denied boarding, delays and flight cancellations. The court confirmed the opinion voiced last year by the advocate general (DAILY, Sept. 9, 2005) in reaction to the legal challenges presented by IATA and the European Low Fares Airline Association.
Pemco this week started maintenance work on its first Southwest Boeing 737 as part of a deal the companies reached late last year. The maintenance, repair and overhaul company also reached a major agreement last year with Alaska Airlines to convert seven 737-400s from passenger to freighter and combo aircraft.
