Aviation Daily

Lori Ranson
Independence Air signed a deal with global distribution system (GDS) provider Amadeus, the fourth agreement the airline has inked with a GDS company since announcing its use of the more traditional booking systems last October. The carrier has also signed deals with Galileo, Sabre and Worldspan, and Sabre subsidiary Travelocity. -LR

Martial Tardy
Karl Wuthrich, the liquidator of bankrupt Swissair Group, confirmed he has filed criminal charges against persons unknown in Belgium in relation to the bankruptcy of Swissair's former affiliate, Sabena.

Steven Lott
Delta executives yesterday acknowledged that the carrier's massive fare restructuring will hurt revenues in the short term at a time when there is no end in sight to financial losses, but the airline also said the change was overdue and is necessary to win back the loyalty of many passengers who defected to low-cost competitors.

By Jens Flottau
Ryanair carried 2.2 million passengers in December 2004, up 9% from a year earlier. Load factor remained flat at 83%. The airline sold 97% of its tickets on line, up from 96% in December of 2003. Ryanair is the first of Europe's large airlines to report traffic results for December. -JF

Lori Ranson
Although Boeing waited until the yearend to announce plans by Vietnam Airlines to order four 7E7s, the carrier stated its intent to order the planes more than two months ago. The carrier said it planned to buy four aircraft for a 2010 delivery in October -- the same terms Boeing announced last week. Boeing said the deal wouldn't be finalized until the first quarter.

William Dennis
In a surprise move, China has expressed its readiness for talks with Taiwan for direct cross-strait flights to be operated for the Lunar New Year, which falls on Feb. 9. An estimated 300,000 Taiwanese businessmen and their families in China are expected to return to Taiwan for the traditional celebration.

Angela Kim
Washington-based startup carrier SkyLink Airways is on track for a potential launch this spring as the U.S. Transportation Dept. yesterday issued a show cause order proposing to issue a foreign certificate to the carrier. DOT is giving interested parties the usual 14 days to file any objections to its tentative findings that SkyLink is fit to provide foreign air transportation. The carrier, which is also now working to clear FAA certification hurdles, plans to provide limited scheduled and/or charter transatlantic service using Boeing 767s.

Angela Kim
Continental won a two-year exemption from the U.S. Transportation Dept. to start new service from Newark to Moscow Domodedovo in 2006. Continental originally asked to start the service May 5 but amended its application early last month, saying it needed to push its proposed start date to March 25, 2006, as it continues to work out its plans with Moscow Domodedovo Airport (DAILY, Dec. 9).

Angela Kim
In the latest of a string of applications and approvals for new U.S.-Mexico service, Mexicana asked the U.S. Transportation Dept. for permission to start flights between Guadalajara and Charlotte, N.C. The carrier plans to start the service in July using Airbus A320 or Boeing 757 aircraft [OST-2004-]. Mexicana currently serves Charlotte from Mexico City and also operates flights to Las Vegas from Guadalajara.

Staff
Schiphol Group appointed Alain Maca as chief operating officer. He fills the position left vacant when Marike van Lier Lels was forced to resign by the group's supervisory board on Jan. 2. Maca previously served as president of New York Kennedy International Air Terminal, the company that runs Terminal 4 at JFK Airport.

Martial Tardy
Nine months after setting up operations in Bratislava, the Austrian Airlines Group is scaling down its operations in the Slovakian capital. Daily AUA services from Bratislava to Paris will he halted from Jan. 17, while daily flights to London stopped last December. The Austrian carrier said, however, that starting in February it would increase its frequencies between Bratislava and Brussels from six to nine weekly.

Martial Tardy
Belgian competition authority Conseil de la Concurrence has approved a plan to place Virgin Express under the ownership of SN Brussels Airlines' holding company, paving the way for the transaction's completion. "This transaction had to get clearance from Belgian and German competition authorities. The German competition authorities have considered that they had no reason to rule on this transaction," SN Airholding said.

Martial Tardy
Virgin Express on Saturday will offer a 30-minute special Boeing 737-400 flight over Belgium whose proceeds will be donated to the victims of the tsunami disaster in Southeast Asia. Tickets will cost EUR49 (US$65.20). Belgian maintenance company Sabena Technics is also putting the text "Support Tsunami Victims" free of charge on the fuselage of Virgin Express aircraft.

Lori Ranson
The National Transportation Safety Board (NTSB) is pushing federal regulators to act on board recommendations highlighting the dangers of ice accumulation on wings as the condition becomes more prevalent in its accident investigations.

Steven Lott
Former Hawaiian Airlines CEO John Adams and his affiliated companies AIP LLC and Smith Management LLC this week agreed to pay the airline $3.6 million to settle a lawsuit brought by Trustee Joshua Gotbaum last year over funds diverted from the airline.

Seabury Airline Planning Group

Lori Ranson
Independence Air plans to scrap regional jet service on five routes by the end of the month and cut several frequencies to more than 10 other cities, The DAILY has learned, as the deadline for an $83 million lease payment approaches.

Luis Zalamea
Regional startup Wayra Peru, a $7 million joint venture between Brazil's OceanAir and Peru's Fund for Sustainable Investments (SIF), is slated to launch operations in Peru in March, local press reports.

Angela Kim
Alaska Airlines plans to start new nonstop service twice a week between Los Angeles and Loreto, Mexico, effective Feb. 17. The airline got the green light from the U.S. Transportation Dept. to start the flights, which will be "supported by a marketing partnership with The Loreto Bay Company, the primary developer of the area," Alaska said. Alaska will operate the service using MD-80 aircraft configured for 12 first-class and 128 main-cabin seats. Alaska now provides service to eight cities in Mexico. -AK

By Adrian Schofield
Continental yesterday outlined a new employee profit-sharing program to accompany its $500 million concession proposal, and the airline claims the program will be the most generous in the industry. Under the new plan, 30% of the first $250 million of pre-tax profit will be shared by employees, as well as 25% of the next $250 million and 20% of profit over $500 million. The previous program shared 15% of pre-tax profit.

Luis Zalamea
A plan for a new joint-venture regional airline in Southern Argentina's vast Patagonian area is being discussed in Argentina.

Eclat Consulting

Angela Kim
U.S. Transportation Dept. Inspector General Kenneth Mead is planning two separate investigations into airline customer service in the wake of major service interruptions at US Airways and Comair during Christmas week. As business returns to normal this week, Mead will have his hands full in the New Year as his office delves into the details of the holiday troubles and prepares for a larger assessment of airline customer service, the first major study since before the Sept. 11 terrorist attacks.

Steven Lott
Northwest yesterday asked the federal government to mediate its concession talks with the Aircraft Mechanics Fraternal Association, stressing the need to cut labor cuts in the coming months if it wants to avoid the fate of its bankrupt competitors.