Air Cargo, Inc. is winding down all its operations this month. The company ceased all transportation services after filing for bankruptcy Dec. 7 and closed its logistics airport-to-airport product line Dec. 3.
Airline communications and IT provider SITA and cargo carrier Cargolux have created a jointly owned subsidiary dedicated to providing IT systems for the air cargo industry. SITA Cargo (U.K.), a SITA subsidiary, and Cargolux's Champ Cargosystems will merge to become a major force in air cargo automation. The company, to be 51% owned by SITA and 49% owned by Cargolux, will be headquartered in Luxembourg. Champ Cargosystems CEO John Johnston has been nominated as CEO of the merged company. The company will have a customer base of more than 50 cargo airlines.
Emirates SkyCargo signed a deal for the purchase and conversion of three Airbus A310-300F aircraft. These will be the first Airbus freighters in the Emirates fleet, with one entering service in July and two in January 2006. Emirates will be the launch customer for Airbus freighters with side-by-side loading capability of 96 x 125 inch pallets. The aircraft will have a payload capacity of 39 tons and will be equipped with auxiliary center tanks.
Southwest yesterday emerged as the victor in the battle for bankrupt ATA's Chicago Midway gates, sidelining AirTran's competing bid and grabbing a 27.5% stake in ATA for good measure. Southwest's bid totaled $117 million, comprising $40 million for six gates and a maintenance hangar at Midway, $47 million in financing, and $30 million for the stock purchase. ATA selected Southwest's bid over AirTran's in an auction for ATA assets, and the bankruptcy court is likely to approve the deal at a Dec. 21 hearing.
Tampa Cargo was granted an exemption by DOT to operate services between points in Colombia and Miami, Fla., via Peru and Ecuador. The application, submitted in August, initially met with concern from U.S. cargo carriers Atlas and Arrow. They argued the Colombian government had a policy against similar U.S.-Colombia third-country routings, termed "triangulation," for certain U.S. carriers. But DOT said Colombia recently approved requests for triangular routings from Florida West, Atlas and Arrow, providing reciprocity in the bilateral air services agreement.
SkyWest is the new owner of four Bombardier CRJ-200s Independence Air sold to bolster its cash reserves. A SkyWest spokeswoman says the carrier saw an opportunity and "took advantage of it."
Boeing selected Goodrich's cargo-handling platform for its 7E7 model, the eighth supply contract Goodrich has won for the new aircraft. Goodrich plans to use new technology in the cargo drive and control systems that will be lighter and more cost-effective. Employees at Goodrich's Jamestown, N.D., facility will build the systems, with the first delivery set for mid-2006.
A new plan to transform the aviation system over the next 25 years should help take budget pressure off FAA by leveraging research funding from other agencies, U.S. government officials said. The Integrated Plan for the Next Generation Air Transport System, issued yesterday, includes eight research strategies to achieve DOT's goal of tripling system capacity by 2025. The multi-agency approach has not been used on this scale before, DOT officials said, and will probably be a template for other government-wide efforts.
Singapore Airlines Engineering Co. (SIAEC) has signed an agreement with Parker Hannifin Corp. to establish a joint venture to maintain, repair and overhaul hydro-mechanical components produced by Parker Aerospace.
European airports will not be able to handle projected airline traffic demand by 2025 if traffic keeps growing at more than 4% a year, according to a new Eurocontrol report.
IATA has suspended the sale of VASP tickets through its BSP Brasil system, alleging the carrier is not complying with a "series of technical criteria in systemwide operations such as routes and schedules," said Filipe Reis, director-Brazil. BSP Brasil is used to make reservations and supply information as intermediary for 33 member airlines and travel agencies. The move, however, does not affect sales of VASP tickets made by agents through the Internet.
A federal court in Brazil has awarded struggling carrier Varig nearly $1 billion in compensation for damages resulting from losses accrued when the government froze airfares from 1985 to 1992 (DAILY, Nov. 22). Varig attorney Pedro Gordilho, who noted that the decision in the carrier's favor probably marks the end of the case in court, told Brazil's press that Varig plans to use its award to repay what it owes to government agencies.
European Union Trade Commissioner Peter Mandelson is hoping that EU-U.S. talks on support to aircraft manufacturers will resume in the first weeks of next year, but he warned that the EU would adopt a tough stance if negotiations were not possible. "I hope talks will be achievable in the early part of next year, sometime during January," said Mandelson on the sidelines of a fact-finding trip to the Airbus production facility in Toulouse, France.
TACA Airlines plans to acquire 26 Airbus aircraft -- five A319s, 16 A320s and five A321s -- between 2005 and 2009 as part of plans to modernize its current fleet of 32 aircraft. Airbus confirmed the order but did not reveal the amount of money involved. By the end of 2009, TACA's fleet should total 45 aircraft.
The U.S. Pension Benefit Guaranty Corp. (PBGC) recently filed a brief in bankruptcy court supporting a motion by the carrier's independent pension fiduciary to "compel" the company to make more than $800 million in required contributions to its pension plans which the airline has skipped since the summer.
Pilots at Great Lakes Aviation unanimously rejected a tentative agreement reached with management last month, prolonging negotiations that have lasted four years. One hundred percent of the 215 pilots at Great Lakes, represented by the International Brotherhood of Teamsters (IBT), voted to reject the deal, which would have increased wages 3%-5%, with an additional 1.5% increase each following year (DAILY, Nov. 15). IBT documents show Great Lakes pilots haven't had a raise since 1999.
The Taiwanese government plans to reduce its stake in flag carrier China Airlines from the current 71% to less than 50% but aims to remain the largest shareholder and retain management control of the carrier. The government's desire to continue managing the carrier is a focal part of plans going forward, says Minister for Transportation and Communications Lin Lin-san, so that the carrier will have an easier time adapting to changes in government policies.
The Hong Kong Airport Authority (HKAA) will extend through next year the New Destination Incentive Agreement for Hong Kong International Airport as a way to remain competitive with other airports in the region.
