Raytheon yesterday unveiled an agreement with the Indian government to build a ground network for a satellite navigation system similar to the wide area augmentation system (WAAS) in the U.S. The contract covers the first phase of India's GPS and Geostationary Earth Orbit Augmented Navigation (GAGAN) system, Raytheon's Program Manager Bob Jackson told The DAILY. The contract value has not yet been revealed.
Following the recent changes in top executives, South African Airways this week announced several new appointments in its Americas division. Inati Ntshanga will be the new executive VP-Americas, based in the carrier's Johannesburg headquarters. Ntshanga will take the reins of the airline's North American and South American operations from Mark Ellinger, who finished his five-year contract with the airline. Ntshanga returns to SAA from a position at Old Mutual in Johannesburg.
Correction: Mesa Airlines flies 73 aircraft under the US Airways Express banner. The DAILY incorrectly attributed the flying to another major carrier (DAILY, Nov. 15).
AirTran said it will pay ATA just under $90 million in installments, about $2.5 million than proposed earlier, for its operations in Chicago, New York and Washington. Under the deal, ATA will maintain service at Midway until Jan. 11, and will then wet-lease up to 12 Boeing 737-800 aircraft to AirTran through June 4. If the deal falls through and ATA assets are sold to another party, AirTran will receive a termination fee.
Mexicana took delivery of the first of 10 Airbus A318s it has on order, and it is preparing to become the first airline to fly the smallest member of the A320 family in Latin America. The carrier plans to lease the planes, powered by CFM International CFM56-5Bs, from GECAS and fly them in a two-class, 100-seat configuration in its domestic network and on flights to the U.S., Canada and South America. Mexicana already flies 15 A319s and 25 A320s, as well as nine Boeing 757-200s, one 767-300ER and 10 Fokker 100s. -LR
American this week removed all pillows from its fleet of more than 300 MD-80s to save money and time cleaning the aircraft during turns. A spokesman noted that the planes are used on "relatively short flights." The MD-80 seats have adjustable headrests, and the carrier will still provide blankets.
Alitalia, at a Dec. 15 meeting, will ask its shareholders to approve of a EUR1.2 billion capital increase that, if approved and accomplished, would reduce the Italian government's stake below 50% for the first time (DAILY, Nov. 4). The capital increase is part of the airline's industrial plan for 2005-2008. The airline posted a EUR29 million (US$37.6 million) pretax loss in the third quarter, up from EUR47 million a year earlier. Its revenues declined from EUR1.17 billion to EUR1.13 billion (US$1.5 billion).
Swiss posted its first quarterly profit for the period ended Sept. 30 since its reorganization three years ago. The newly set-up Swiss airline managed to squeeze out a CHF20 million (US$17 million) operating profit and a CHF16 million (US$13.6 million) net profit despite soaring fuel prices and an incomplete cost-cutting program. CEO Christoph Franz nevertheless stressed that more cost cuts and revenue enhancement are needed to turn the company around.
The Association of Flight Attendants yesterday took dramatic steps by approving a resolution calling for a nationwide strike to protest recent moves by bankrupt airlines to abrogate contracts, but it is unclear if the union can legally take any action.
Avianca yesterday won approval from a New York bankruptcy court to move ahead with the Sinergy/Oceanair proposal that drew sharp criticism from the airline's pilots but was given the green light by creditors. Hours before yesterday's bankruptcy court hearing to confirm Avianca's restructuring plan, pilots in an urgent letter asked Judge Allan Gropper to postpone the hearing until Nov. 23 "due to the emergence of a new investor ready to submit a competing bid which is better and higher."
Qualified private airport screening companies will be offered liability coverage through federal law that encourages development of anti-terrorism technology, the Transportation Security Administration (TSA) said yesterday, finalizing its procedures for airports to opt out of the federal screening program.
Spanair, SAS's Spanish affiliate, said it will drastically cut its flight schedule today and tomorrow because of a pilots strike. Spanair said it will implement Spanish legislation on minimum service requirements and operate 50% of domestic flights, all services to the Balearic Islands and the Canary Islands and one daily rotation on international routes.
Embraer more than quadrupled its earnings in the third quarter, but uncertainty about financing of some Embraer 170s at US Airways cast a shadow over the future of the company's balance sheet.
Aer Lingus CEO Willie Walsh, Chief Operating Officer Seamus Kearney and CFO Brian Dunne all resigned yesterday and will leave the airline in 2005, announced Ireland's Dept. of Transport.
The U.S. Treasury Dept. last week said it has not found enough evidence that Nuevo Continente, formerly Aero Continente, is no longer linked to alleged drug trafficker Fernando Zevallos (DAILY, July 13). After the carrier's grounding in Peru, the Zevallos family, in an effort to avert a larger aviation crisis, transferred Aero Continente's equity to employees, who relaunched the carrier as Nuevo Continente (DAILY, July 26). Employees last month transferred their equity to an aviation consulting firm (DAILY, Oct. 15)
While U.S. network and low-cost carriers (LCCs) head south for the winter, battling for market share on routes to the beaches of the Caribbean and Central America, they might want to take a moment to look over their shoulders to the north because a new low-cost battle is about to start with their Canadian neighbors.
Air France-KLM revenues were up 6.4% in the second quarter, the company said this week. The group's average yield rose 1.7%, excluding currency effects. But because of the weak U.S. dollar, actual yields improved only 0.3%. Air France-KLM Cargo yields gained 1.3%. Air France sales rose 5.6% to EUR3.36 billion (US$4.35 billion), while KLM grew faster at 8.4% to EUR1.78 billion (US$2.30 billion). Europe's largest airline group will report detailed financial figures on Nov. 24. -JF
Russian cargo airline AirBridge Cargo plans to develop a dual cargo hub network linking destinations in East Asia with the Commonwealth of Independent States (CIS) and Europe, as well as the U.S. The planned expansion focuses on Moscow and Krasnoyarsk as the two main bases from which different regions will be served. AirBridge Cargo expects revenues to total about $45 million this year and up to $100 million next year.
Bangkok-based Thai Air Asia plans to add four Chinese cities -- Xiamen, Kunming, Chengdu and Guangzhou -- to its network in the first quarter next year. The low-fare airline currently operates to seven destinations domestically and two regionally, Singapore and Macau.
Most of Avianca's foreign and Colombian creditors have approved the restructuring plan submitted by the Singery/Oceanair group (DAILY, Nov. 9), sources in Colombia report. Citing figures from a report by Smith, Gambrell & Russell, LLP (SGR), Avianca's Atlanta-based legal advisers, of all foreign creditors, who are owed some $132 million, 60% voted for approval, representing 86% of the overall debt. Of the carrier's Colombian creditors, owed some $39 million, 58% voted for approval, or 92% of the combined debt.
