Bombardier CEO Paul Tellier abruptly left the company yesterday, one year before his contract was scheduled to end, leaving the Beaudoin family to craft the beleaguered transportation company's future. Tellier's departure comes shortly after Bombardier posted dismal third-quarter results and downgrades by two major ratings agencies (DAILY, Dec. 2). The company said the human resources committee of its board recommended Tellier's exit as a result of his desire to leave the company when his contract ended.
Embraer said engine improvements and enhancements in production that reduce drag on the wing of its 70-seat EMB-170 aircraft have resulted in a 2% better fuel burn than the airframer previously predicted. Based on 2,600 flight hours per year, Embraer said, the reduced fuel burn would save operators about $30,000 per aircraft annually.
Midwest Airlines' November load factor climbed 2.9 points to its highest level in 17 years, helping to boost unit revenues. Traffic grew 5.5%, outpacing the 1.2% scheduled capacity increase and making the 70.1% load factor the highest of any November since 1987. Yield grew 1.8 points to 12.38 cents, leading to a 6.6% increase in unit revenues. Still, Midwest faces extremely high fuel costs, paying $1.61 a gallon in November -- nearly 60% more than last year. -SL
Avianca and its U.S. subsidiary Avianca Inc. on Friday completed financial restructuring to emerge from Chapter 11, one day after Avianca pilots withdrew their own last-minute proposal submitted with Italian investor Salvador Frieri (DAILY, Dec. 13), for equity in the airline. The exit marks the end of a 21-month case in a New York federal bankruptcy court. Three weeks ago, Judge Allan Gropper approved and confirmed the restructuring plan, which creditors approved by an overwhelming majority.
The Mexican Association of Travel Agents (Amav) asked Mexico's antitrust regulator (CFC) and the attorney general for consumer affairs (Profeco) to investigate Cintra, the public sector holding company that controls Aeromexico and Mexicana, for monopolistic practices and false advertising.
Frontier plans to begin St. Louis-Cancun flights in February and will close down its Austin-Cancun nonstop flights a month later. The airline was recently awarded St. Louis-Cancun frequencies by the U.S. Transportation Dept., and it plans to operate three flights a week (DAILY, Dec. 8). The new flights will give Frontier 51 weekly flights to Mexico during the peak winter season. The carrier already has flights to Cancun and four other Mexican destinations from Denver. -AS
Oman chose the U.K.'s Drake Electronics to provide an air traffic control voice communication system (VCS) for Salalah Airport. The VCS will have four operator positions, two for the tower and two for approach control, and will control eight frequencies and 16 telephone interfaces. Drake won the contract in partnership with Bahwan Trading Company, a long-established communication equipment supplier to Oman's Directorate General of Civil Aviation and Meteorology. -AS
LOT Polish Airlines as early as today is expected to unveil its route plans and branding for a new low-cost subsidiary. CEO Marek Grabarek told The DAILY at a Bangkok Star Alliance meeting that the operation would initially fly with five Boeing 737s, starting in the first quarter next year. The LOT announcement comes only days after Polish low-cost carrier Air Polonia suspended operations when an investor refused to inject new capital into the company (DAILY, Dec. 7).
United is on track to emerge from Chapter 11 bankruptcy protection in mid-2005, CEO Glenn Tilton reported yesterday, in the same week the airline observed the second anniversary of starting its reorganization, even though it will likely be a rough six months to reach the finish line.
Fort Myers is set to become the fourth Airbus A319 destination to Florida for Independence Air out of Washington Dulles. The carrier plans to start three daily nonstop flights Feb. 17. Indy Air currently flies the narrowbodies to Tampa and Orlando. Flights to West Palm Beach start Feb. 1.
Southwest last week submitted a $100 million bid for ATA assets, which, if accepted by the bankruptcy court, will give it six more gates at Chicago Midway and a limited code-share deal with ATA at Chicago. The Southwest offer came a day after America West said it would not bid for ATA assets (DAILY, Dec. 10), leaving Southwest and AirTran as the main competitors. The deadline for bids was Friday, and the Indianapolis bankruptcy court is expected to decide on ATA's fate by Dec. 16.
Brazil plans to play a trump card to overcome the deadlock in the country's airline crisis by creating a process for out-of-court liquidation of airlines in deep financial trouble.
Delta named Gail Grimmett, formerly managing director-investor relations, managing director and assistant treasurer-Business Analytics and Treasury Development; Laura Fuselier will succeed Grimmett.
Singapore Airlines (SIA) finalized a deal with Boeing for 18 777-300ERs. The carrier plans to deploy the 365 passenger planes on long- and medium-haul routes. SIA currently flies 46 777-200ERs and nine 777-300s.
Chile's Sky Airlines, though unhappy with the civil aviation department decision to award startup Aerolineas del Sur an operating license, is building up its fleet and seeking alliances with other carriers to prepare for competition from its new rival. Sky holds 17% domestic market share, second to the 82% market share held by the LAN Group. Regarding new competition from the Aerolineas Argentinas subsidiary, Sky Director Jose Manuel Rebolledo said, "While we might drop a couple of points in market share, we'll make it up by extending to Punta Arenas."
Two of United's recent projects to boost traffic and revenues -- Ted and the p.s. service -- are hitting the initial, internal targets that executives were hoping for, and the airline is preparing to unveil new Ted routes.
The parent company of Trans States Airlines is pushing hard to launch operations for its new airline -- GoJet -- next summer, flying with 70-seat Bombardier CRJ-700s under the United Express banner. Trans States Holdings unveiled its plans to start another airline in October (DAILY, Oct. 29) after American agreed to secure promises from its regional partners that they wouldn't fly jets that violate the 50-seat cap in American's pilot contract.
Velocity Group, the Washington, D.C. -based consulting firm, has acquired Stanford Transportation Group (STG), a veteran consulting company specializing in the Asia/Pacific market. STG President Gerald Bernstein will join Douglas Abbey and Michael Miller as a Velocity partner, and STG Senior Economist Claire Starry will be Velocity's senior economist. Velocity was formed in January after the merger of two consulting firms.
