Qantas is evaluating the possibility of relocating some jobs, products and services overseas, said CEO Geoff Dixon, but the company stressed that the decision to move jobs would not result in layoffs. Dixon, while noting that a plan to shift some jobs to other locations has been in the pipeline for three years, said Qantas has to compete effectively and that moving to more overseas-based services has always been the airline's consideration.
The JAL Group unveiled plans to participate in "e-Passport Tests" containing passengers' biometric data in cooperation with Japan's government during February and March. The Ministry of Land, Infrastructure and Transport and the JAL Group will carry out tests of "secure and smooth flight airport procedures" at Tokyo Narita.
The Bush Administration's recent proposal to overhaul the Pension Benefit Guaranty Corp. (PBGC) and the way it is funded will do little to help U.S. airlines and its unions and may even make it more expensive for some carriers to keep its current pension plans, says the head of United's pilot union.
Emirates plans to fly its Airbus A380 in three different configurations, President Tim Clark told The DAILY at the of the A380 rollout in Toulouse this week. The carrier will put 644 seats on the aircraft in a two-class layout, and the denser three-class configuration for longer services to Europe will have 517 seats. The long-haul three-class variant will have space for 489 passengers, Clark said.
Northwest yesterday posted a deep $420 million fourth quarter loss, including one-time items, largely due to high fuel costs and aggressive low-cost carrier pricing. The loss was in line with analysts' expectations but was in sharp contrast from the $363 million profit the airline reported in 2003. Excluding unusual items, Northwest still reported a $359 million loss, nearly triple the $129 million loss in the year before. The significant loss in the fourth quarter put the airline's full-year deficit at nearly $900 million, including special items.
Southwest yesterday eked out a $56 million fourth quarter profit, down 15% from the year before, but the positive result is still impressive considering most of the carrier's competitors are drowning in red ink.
Aerolineas Argentina, now controlled by Spain's Marsans/Air Plus Comet group, plans to go public in the Buenos Aires Stock Market in the third quarter, says carrier President Antonio Mata. The move represents the first time that an airline will trade its shares publicly in Argentina. The carrier will sell 45% of its shares, in two stages.
Oneworld alliance recently named Ken Gilbert, an American Airlines managing director who oversaw the integration of TWA into American, as VP-customer experience and airports. He will lead development of the alliance's customer services, including the final stages of its interline e-ticketing program, which is on track to be finished in the "coming weeks," the alliance said.
Air Canada today plans to add its code to United's new service from Hong Kong to Ho Chi Minh City, Vietnam, further boosting the airlines' Asia partnership. Air Canada's code will be added to the United daily Boeing 747-400 flight, which United launched on Dec. 10. Air Canada operates twice daily non-stop flights from Toronto and Vancouver to Hong Kong, and both flights will be timed to make connections with the code-share flight.
Virgin America within the next three months plans to unveil its equity sources, Virgin Chairman Richard Branson told The DAILY on the sidelines of the Airbus A380 rollout in Toulouse. The airline does not plan to start the U.S. certification process until it finalizes its financing, so the launch will likely slip into 2006 (DAILY, Nov. 12, 2004).
Qantas, the first Airbus A380 operator at Los Angeles Airport, remains confident the airport will be ready for the giant plane when it starts flights to LAX in late 2006. Qantas plans to launch flights from Sydney and Melbourne to Los Angeles around December 2006 configured with 501 seats in a three-class arrangement. With its first 12 A380s, Qantas expects to fly about 17 weekly services between Australia and Los Angeles and 14 weekly services from Australia to London via Bangkok, Hong Kong and Singapore (DAILY, Jan. 19).
Republic Airways yesterday boosted its orderbook for Embraer 170s, after placing a firm order for 16 planes with another 34 options. Republic is planning to fly the 170s in the Delta Connection network. The latest deal brings Republic's 170 order book to 39 firm orders and 61 options. Of the 16 new firm orders, Embraer said two were "already accounted for" in its fourth quarter results. Delivery on the new order will begin in June and continue through mid-2006, Embraer said.
TAP Air Portugal carried a record 6.47 million passengers in 2004, up by 11% compared with the previous year, and the load factor rose one percentage point to 70.4%. Traffic in Europe grew 14% to 3.54 million, while passenger numbers on Brazilian routes jumped 16.5% to 635,825. TAP contends that the growth stems from its "constant flexibility and capacity to adapt to an increasingly demanding market." The Portuguese airline, nevertheless, will find it difficult to stick to its profit forecast -- and even to stay in the black.
Polar Air Cargo says appointing general sales agents (GSAs) in Israel, Turkey and Poland responds to strong opportunities in all three markets, and continues the restructuring of the carrier's European and Middle Eastern operations. Israel and Turkey, and to a lesser extend Poland, are "strong export markets, with a high affinity for export by air," Polar's VP-Sales for Europe, Middle East, India and Africa Hendrik Falk told The DAILY.
With fuel costs showing little sign of abating, U.S. airlines should start saving some money after FAA flips the switch today on new reduced vertical separation minimum (RVSM) standards.
Colombia's civil aviation department, Aerocivil, ordered an investigation of airport managers Aerocali and AeroRepublica for their response to an incident in which an aircraft veered off the runway at Cali's Alfonso Bonilla Aragon International Airport. In the Jan. 8 incident, an AeroRepublica aircraft from Cartagena veered off the runway on landing and several passengers complained about inadequate reaction by airport personnel in charge of such emergencies.
ATA's Gilbert Viets is returning to the executive VP and CFO post he left in October, when he became ATA's chief restructuring officer and the architect of preparations for ATA's Chapter 11 filing. Viets was CFO from June to October, and now replaces David Wing, who recently left ATA.
The U.S. Transportation Dept. last week issued a show-cause order tentatively awarding a certificate to Ameristar Air Cargo to expand its operations to passenger transport. Based in Addison, Texas, Ameristar has held a certificate for interstate and foreign charter cargo operations since 2000. It operates a cargo fleet of two Boeing 737s and one DC-9.
Munich's Bavaria International Aircraft Leasing ordered six Boeing 737-700s, and will lease two to China Southern Group member Xinjiang Airlines. Deliveries start this year and run through 2007. Boeing counted the order, which was unannounced, in its 2004 order totals.
GE Engine Services signed a deal with Mexicana Airlines to maintain 20 of the carrier's CFM International CFM56-5B/P engines powering 10 Airbus A318s. The maintenance-cost-per-hour agreement builds on GE's existing deal with Mexicana to maintain CFM56s on 15 Airbus A319s.
India and the U.S. reached an open skies agreement during the weekend -- making quick work of usually complicated negotiations -- but the symbolic significance of such an agreement may outweigh the immediate commercial value in the short term.
United plans to add three more Chicago-Hong Kong flights, effective June 7, and cites increased customer demand in the past 18 months. The new service on Tuesdays, Fridays and Sundays will bring United's total up to 10 nonstop flights per week to Hong Kong. The flights using Boeing 747-700s will combine cargo and passenger service. The extra frequencies "will add up to 50 tons of extra cargo space," United said. The aircraft will be configured with 14 first class, 73 business and 260 economy seats.
The rush to fill in the vacuum left by the departure of Nuevo Continente by many new startups in Peru may soon create excessive capacity, says one airline executive.
Pacer International appointed Andrew Clarke to its board of directors effective Jan. 31. Clarke, CFO and senior VP of Forward Air Corporation, will take over for UAL VP-sales, marketing and revenue John Tague, who is resigning from the board at the end of the month, "due to his increasing commitments at UAL Corp.," Pacer said. A former investment banker, Clarke will succeed Tague as chairman of Pacer's audit committee.
