FedEx yesterday announced that it has signed a deal to buy the express business of its Chinese partner DTW Group for $400 million. Under the deal, FedEx acquired DTW's 50% stake in a FedEx/DTW joint venture to provide international express services in China. FedEx also will take over DTW's domestic express network in China, which comprises 89 locations.
IATA yesterday lambasted the French government after Transport Minister Dominique Perben approved a 5% annual increase in airport charges at Paris Charles de Gaulle for the next five years.
United parent UAL Corp. yesterday decided to list its new stock on the Nasdaq Stock Market, trading under the ticker symbol "UAUA," beginning in early February.
Kingfisher unveiled plans to launch service on several new routes next week as part of its aggressive expansion plan. Starting Jan. 30, the carrier will start daily flights from Delhi to Kolkata. It also will offer three weekly flights from Kolkata to Ahmedabad and four weekly services on the Kolkata-Jaipur route. On the same day, Kingfisher will start three weekly flights from Ahmedabad to Goa. With the launch of these new routes, Kingfisher will operate 10,000 seats across 15 key Indian destinations.
Wildcat strikes continued at SAS and Alitalia (DAILY, Jan. 24), causing the cancellation of hundreds of flights. Alitalia yesterday was forced to scrap some 250 services, like the day before, as workers continue to oppose the company's restructuring. Italian press reported the state prosecutor, whose jurisdiction includes Fiumicino Leonardo da Vinci Airport, was investigating the stoppage, with a view to possible legal action against strikers for breaching Italian legislation on the preservation of public service during protests.
Thai Airways International last week filed an exemption to operate scheduled direct or third-country passenger and cargo service, as well as charter operations, to the U.S. The carrier is taking advantage of the open-skies agreement concluded between the two countries last year (DAILY, Sept. 20, 2005). The company already possessed permits and exemptions to operate to certain points in the U.S. [OST-2006-23693]. -ARS
Northwest yesterday became the first major U.S. carrier to renew its full-content agreement with Sabre by signing a five-year deal at the same time that both companies decided to drop lawsuits filed against each other in 2004.
AirTran's profits fell 77% in 2005, and the carrier posted a small loss for the fourth quarter, but capacity reductions in 2006, coupled with robust fares, should lead to strong improvements in revenue. The airline's profits in 2005 totaled $2.7 million, compared with $12.5 million in 2004. The fourth-quarter loss was $364,000 versus a $1 million profit for the last three months of 2004.
If airline planners think they've run out of possible growth markets around the world, they clearly haven't checked Uganda, Swaziland and Belarus. While these countries may not be big tourist or business destinations, a new analysis of world markets by The DAILY and partner Eclat Consulting shows there are dozens of nations that have high potential for demand growth but limited air service.
SR Technics reached a deal with the Shanghai Foreign Aviation Service Corporation to form a joint venture -- Shanghai SR Aircraft Technics. In April, the new company plans to offer line maintenance, technical training consulting and other services at Shanghai International Airport.
Spanair parent SAS Group found accounting errors in a recent audit of the last three years' information, but the restatement should not change the airline's overall outlook. SAS's internal and external auditors have evaluated the errors, which imply that certain revenues and expenses have not been accounted correctly. "The SAS Group has not suffered any economical loss/damage as a result of the accounting errors." According to the new accounting rules, these differences must be corrected retro-
Delta plans to relaunch service from New York LaGuardia to Dallas/Fort Worth after more than a year suspension as part of its strategy to boost capacity on key business routes from New York.
British Airways franchise partner BMED last week took delivery of the first of seven Airbus A321s on order, as part of an expansion that will lead to a doubling of its fleet in five years.
Northwest reached a tentative agreement with its ground workers on a contract settlement deal that would cut wages 11.5%, but the union claims it was able to save hundreds of jobs. Officials from the International Association of Machinists and Aerospace Workers District 143 late Friday reported that it finished "the most difficult bargaining in the history of Northwest," but it praised negotiators for convincing management that it was willing to strike to protect jobs as it forced management to "back off many of their demands."
Taipei-based China Airlines sealed a deal to acquire a 25% stake in Chinese cargo carrier Yangtze River Express Airlines (DAILY, Dec. 12) after winning approval from the General Administration of Civil Aviation of China. China Airlines, which paid US$68.8 million for the stake, is the largest foreign shareholder in Yangtze. The other partners in Yangtze are Yang Ming Marine (12%), Wan Hai Lines (6%), China Container Express Lines (6%) and Hainan's municipal government (51%).
SAS was forced to cancel nearly all its European services from Copenhagen yesterday because of a wildcat strike by pilots. Late in the afternoon, some 270 flights, both inbound and outbound, were scrapped, a company spokesman said. SAS said the strike was illegal and unacceptable and would cost the company between DKK15 million-DKK20 million (US$2.5 million-US$3.3 million). Union sources said that some 150 Danish pilots went on strike.
Delta's code will appear on Air France flights to Pisa, as runway construction will temporarily close the airport at Florence. The carriers want the U.S. Transportation Dept. to waive the 30-day advance notice requirement for added code sharing because they plan to enact the code share on Feb. 2, when the construction is expected to start [OST-200-6939]. Airport operator Aeroporto di Firenze expects the runway work will be completed before the end of May, in time for the high tourist season. Air France, Alitalia and Lufthansa (DAILY, Jan.
Argentinean startup Sudamerica Air won authority to operate two daily long-haul frequencies between Buenos Aires and Ushuaia, in southern Argentina. The flights will launch in July and will be operated with 200-passenger Boeing 757s.
DOT Inspector General Kenneth Mead announced his resignation yesterday, effective Feb. 11. Mead is the longest-serving DOT IG, serving both the Clinton and Bush administrations since he was appointed in May 1997. Deputy Inspector General Todd Zinser will serve as Acting Inspector General until a successor is appointed. In his resignation letter to President Bush, Mead paid tribute to the transportation secretaries under whom has served.
Mexico City International Airport reported handling 24.1 million passengers in 2005 for 4.9% growth from 2004. Annual revenues in 2005 were $231 million, compared with $167 million in operating costs. Peruvian Tourism Minister Ramiro Salas said foreign arrivals in 2005 at Lima Jorge Chavez International Airport totaled 838,720 passengers, up 14.7% from 2004. If other international airports in Peru are included, the total number of arrivals exceeded 1 million in 2005. -LZ
Spain's Marsans group postponed plans to invest some $80 million in its Peruvian operations -- Aerolineas del Peru and the construction of several four-star hotels -- until the presidential election on April 9 is over. The move will let the company ascertain the new government's economic policies. Meanwhile, Marsans is going ahead with its new international airline, which will use the Dominican Republic (DAILY, Nov. 30) as a hub serving destinations in the Caribbean and Central America, where the group has extensive resort holdings. -LZ
Alitalia was expected to cancel up to 250 flights on Jan. 23 in its fifth consecutive day of labor unrest from protests against the airline's restructuring plan. A string of industrial action, workers' general meetings and wildcat strikes by cockpit, cabin and ground staff disrupted operations as a large number of employees are refusing to follow their unions' instruction to resume work. Italian Labor Minister Roberto Maroni warned that opposition to the company's rescue plan "will only lead Alitalia towards bankruptcy."
