Star Alliance member TAP Air Portugal is hoping to speed up its privatization through a merger with private carrier Portugalia, TAP President Fernando Pinto said this week. "There is interest in the deal on the part of TAP, I would say there is interest also on the part of Portugalia, we have talked a lot," he told Portuguese radio TSF. "I would like to see the process finished as soon as possible, I think the two companies have much to gain with that."
Despite a significant capacity increase, Lufthansa managed to improve its load factor in December backed by strong growth in demand. Traffic was up 8.5% on 7% more capacity, leading to a 70.6% load factor, which was up a percentage point. The airline continued to benefit particularly from strong demand on its Asian network. Lufthansa expanded Asia capacity 17.6%, but even that was outpaced by a 19.2% demand increase. Traffic within Europe was up 5.6% and 3.2% to the Americas.
The twin forces of nature and Christmas combined to create major headaches for the big three U.S. air express carriers in December, with a winter storm hitting just as the carriers were dealing with what early indicators suggest was higher-than-expected peak holiday volume.
Air freight traffic "rebounded sharply" in 2004, growing 10% to 14% in most major markets, a new study by Air Cargo Management Group (ACMG) says. Combination carriers and all-cargo airlines -- working in conjunction with freight forwarders -- continue to dominate the international market, the study reports. Large combination carriers earn more than 30% of their revenue from cargo, compared with 15% for European carriers and 5% for U.S. carriers. Integrated express carriers are gaining a larger market share, the study finds.
The parent company of Airbus plans to set up a second North American engineering facility dedicated to the airframer's long-range planes as part of its efforts to win a contract from the U.S. Air Force to replace KC-135 aerial refueling tankers. EADS North America this week released a request for information to start the process of picking a site for a Military Modification and Assembly Line (MMAL) for KC-330 tankers, and an "Airbus Long-Range Aircraft Engineering Center" for A330s, A340s and the new A350.
Low-fare Air India Express (AIE), set to launch on March 27 with four Boeing 737-800s, asked Malaysia for approval to operate flights to Kuala Lumpur from Cheenai and New Delhi later this year. An Air-India official in Kuala Lumpur expects approval soon. Air India Express would join Malaysia Airlines and Indian Airlines on the Cheenai route. A wholly owned subsidiary of Indian flag carrier Air-India, AIE will operate from Kerala, initially offering flights to Abu Dhabi and Muscat and later expanding its Gulf coverage to include Doha and Menama. -WD
A delegation of Italian government officials, including Transport Minister Pietro Lunardi, was expected to meet with EU Transport Commissioner Jacques Barrot earlier this week in Brussels in an attempt to push through a fast-track review of Alitalia's rescue plan.
U.S. Transportation Secretary Norman Mineta is optimistic that an open-skies agreement between the U.S. and India could be reached as soon as next month, and points to the two countries' strong commitment to a quick update of the commercially restrictive air transport agreement that dates to 1956.
The new U.S. subsidiary of German airport company Fraport this month took over terminal baggage handling at Jacksonville airport, and is looking to expand its role at the airport. Fraport Ground Services USA, Inc., said it is holding discussions with airlines to take over all ground handling services at Jacksonville, on the ramp and in the terminal. The company was created last fall as a wholly owned subsidiary of Fraport AG Frankfurt Airport Services Worldwide.
World Airways has created a new holding company so it can have its air carrier and its new insurance operation as separate subsidiaries. World Air Holdings, Inc., will have two subsidiaries -- World Airways, Inc., and World Risk Solutions, Ltd. The new structure allows World Risk Solutions "to provide certain insurance cost savings and financial benefits for both World Airways and World Air Holdings," the company said.
The tsunami that ravaged parts of the Asia/Pacific region last month and sent arrival rates skidding in the affected countries (DAILY, Jan. 4), also is expected to impinge on forward bookings for the Lunar New Year holidays.
Kitty Hawk Aircargo has contracted with Florida-based AvAero for modification kits for its new fleet of seven Boeing 737-300SF aircraft, with options for another 13 aircraft. The new fleet is scheduled to be delivered through this year. The FuelMizer enhances aerodynamic effectiveness and fuel efficiency, and will be installed at KittyHawk's Dallas/Fort Worth maintenance facility.
Aer Lingus' top executive trio -- CEO Willie Walsh, CFO Brian Dunne and Chief Operations Officer Seamus Kearney -- will leave the airline on Jan. 28, a company spokeswoman said, months ahead of their previously announced May departure.
US Airways this week named a new deputy general counsel and treasurer, as part of a larger reshuffle of senior officers (DAILY, Jan. 13). Janet Dhillon, US Airways' managing director and associate general counsel, will take over as VP and deputy general counsel from Kathleen Harris, who left the airline in December. VP-Financial Planning and Analysis Stephen Morrell was named VP-finance and treasurer, replacing Eilif Serck-Hanssen, who also left the airline.
The majority shareholders of Amadeus Global Travel Solutions have picked private equity firms Cinven and BC Partners to become investors in the company. Cinven and BC Partners were selected over Carlyle Group and Citigroup Venture Capital (CVC), who also submitted bids and were thought to have joined forces, too (DAILY, Jan. 11).
U.S. Homeland Security Secretary Tom Ridge and Dutch Minister of Immigration Rita Verdonk are expected to reveal details today about an international traveler pilot program in Amsterdam, reflecting increased EU-U.S. cooperation on security. Ridge will start today in Brussels by updating the European Policy Center on U.S.-EU collaboration.
The first Alaska Airlines jetliner retrofitted with winglets has made its first revenue flight, and the airline hopes to cut fuel burn by nearly 4% on average thanks to the modification. Goodrich Aviation Technical Services recently installed the winglets on a Boeing 737-700 (AS619) during a scheduled heavy maintenance check and the aircraft was the first of at least 17 737s Alaska plans to retrofit with winglets.
Red tape may force Austral Airlines today to suspend its operations to major destinations temporarily because it may have never formally received the authority from the Argentine government to operate to those cities. The disputed authority is the product of a bureaucratic dispute going back four years. At issue is whether Argentina's transportation department (ST) handed down a resolution extending Austral's authority to operate to Mar del Plata, Tucuman, Salta, Jujuy, Corrientes/Resistencia, Cordoba, Rosario and Iguazu.
El Al CEO Amos Shapira resigned from the airline after three years at the helm, only days after Knafaim-Arkia Holdings took control of the airline. Shapira told new Chairman Izzy Borovich during the weekend, catching him by surprise. Borovich told local press that he tried to persuade Shapira to stay, but Shapira said his decision was personal and unrelated to the airline's privatization and change of leadership.
Air traffic controllers and pilots must step up reporting of lasers being directed toward aircraft after several apparent incidents of lasers being directed near or into cockpits during the past few months. FAA released formal guidance earlier this week for controllers and pilots to use when they encounter lasers during flight, and U.S. Transportation Secretary Norman Mineta officially unveiled the guidance yesterday at an event in Oklahoma City.
United's flight attendant union leaders endorsed a tentative concession deal late Tuesday night that includes 9.5% wage cuts but no pension plan changes. The United Master Executive Council of the Association of Flight Attendants (AFA) voted to send the deal to its members for a ratification vote. Balloting will begin Jan. 18 and close Jan. 31. The union told members it "unanimously recommends a 'for' vote on this tentative agreement [but] the recommendation should not be construed as an endorsement of current management."
Gulf Air carried the most passengers in its history in 2004, breaking the 2003 record by 24% and predicting this week it would likely break even financially for the year. The airline carried nearly 7.5 million passengers for the year and passenger revenue grew 27.5%, thanks to a jump in the number of premium passengers flying on the airline. Traffic for the year grew 32%, outpacing the 26.1% capacity growth. Load factor rose 3.2 points to a record 71.4%. Gulf Air enjoyed similar growth in cargo, where revenue was up 18.1%.
