Brazilian public sector development bank BNDES may become a shareholder in the new airline to be formed from the Varig/TAM merger, bank President Carlos Lessa said, although not as a majority stakeholder. In a letter to Banco Fator, which helped prepare the merger business plan recently approved by Varig holding company The Rubem Berta Foundation (DAILY, May 2), Lessa reiterated the bank's intention to support the expected merger. Lessa also strongly discarded the possibility that the airline may be controlled and managed by the state.
Bombardier is tapping union leaders at its Montreal and Belfast production centers for concessions as the airframer attempts to win a huge regional jet order from US Airways. A spokesman for the Quebec International Association of Machinists and Aerospace Workers (IAM) said Bombardier had asked the union to reopen its collective bargaining agreement, but the union refused and said it proposed alternative ways to help the airframer slash costs.
Debis AirFinance secured $840 million in financing from a European Export Credit Agency facility for up to 20 Airbus A320s. Terms of the financing are up to 12 years, and Export Credit Agencies of Germany, France and the U.K. are supporters of the credit facility. The first aircraft financed under the facility was delivered to an operator for active service late last month. -LR
Japan Airlines has taken delivery of its 149th and 150th Boeing twin-aisle aircraft -- one 777-200 and a 777-200ER. JAL flies 737s, 747s, 767s, DC-10s, MD-11s and Airbus A300s to about 173 destinations.
Oneworld Managing Partner Peter Buecking will leave the alliance in July to become president of SITA, one of the largest providers of technology and communications services to the aviation industry. Buecking headed the alliance since its creation in April 2000, reporting to a board comprising the CEOs of the eight member airlines. Buecking, a Canadian national, previously spent 17 years in senior positions at Cathay Pacific. In his new role he will report to the SITA Group Foundation Board.
Miami International Airport plans to open its new fourth runway to revenue service in September, says Aviation Director Angela Gittens. The 8,600-foot North Runway will boost capacity by 25% and will be used mostly for arrivals due to noise constraints, she told the International Airline CEO Conference this week.
The National Transportation Safety Board (NTSB) this week called for a 30-day review of its safety advocacy programs as three new board members -- Chairman Ellen Engleman, Vice Chairman Mark Rosenker and Richard Healing -- made their public debut. Engleman called for the review at the end of a meeting to approve the board's 13-year old "Most Wanted" list of safety recommendations. The board opted to table voting on additions to the list until the review is complete.
US Airways Express carrier Chautauqua Airlines has started 50-seat Embraer ERJ-145 regional jet service from Chattanooga, Tenn., and Wilmington, N.C., to New York LaGuardia Airport.
Spirit Airlines posted a profit in the first quarter and is on track to report results in the black for the second quarter, as well, despite the fact that it has no fuel hedges in place.
Goodrich Corp. has inked a deal with easyJet to provide wheels, brakes and services for the 120 Airbus narrowbodies the airline ordered last year. EasyJet plans to take delivery of its first A319 in September (DAILY, Oct. 15, 2002).
ICAO's efforts to prepare for the commercial air traffic spike expected during the Athens Olympic Games next year could help resolve long-standing airspace headaches in Southeastern Europe. Since last year, ICAO has been holding meetings with officials from Eurocontrol, Greece and surrounding nations to prepare for the air travel demand the Olympics will generate, ICAO Regional Director-Europe Christian Eigl said at the Civil-Military Air Traffic Management conference in Prague yesterday.
One year after starting integration, Colombia's Alianza Summa, comprising Avianca and subsidiary SAM and Aces Airlines, faces tough decisions during the next month, including the possibility of job cuts. In an analysis published last week by Bogota's daily El Tiempo, Summa President Juan Emilio Posada said the group's immediate goal is to "lighten" the alliance in the wake of a global aviation crisis.
EasyJet recorded a net loss of GBP46.9 million (US$75.5 million) for the six months to March 31, compared with a profit of GBP0.8 million a year earlier. Europe's largest low-cost carrier blamed the loss on "the normal seasonality of the business," the fact that the heavy traffic of the Easter holiday period took place in the second half this year and "external factors," such as the war in Iraq. The company's revenue was GBP373 million (US$594 million), a pro forma gain of 25% -- assuming a combined easyJet and Go Fly in 2002. -MT
Swiss International Airlines' board named Daniel Weder executive VP-product and services, succeeding Bjorn Naf, who was appointed CEO of the company's new Express regional subsidiary. Weder previously was VP-cabin crew. The board also appointed Martin Isler executive VP-strategy and network. Isler previously was head of sales and marketing for Europe. He succeeds Matthias Hanke, who is leaving the company by "mutual agreement."
American this week finished Phase 2 of its self-service check-in installation project. The final kiosks from this phase were recently introduced in Grand Rapids, Las Vegas, Chicago Midway, Omaha and San Diego. Additional machines also have been installed in Chicago O'Hare, Seattle, and St. Louis. There are now 87 U.S. airports served by American and Eagle with the kiosks, with 712 total machines installed.
United during the weekend named former ATA CEO John Tague as the airline's executive VP-customer, a new top-level job at the bankrupt airline. Tague will have responsibility for alliances, marketing, United loyalty services, advertising, sales, reservations and cargo. Tague most recently was president and CEO at ATA, the 10th largest U.S. passenger airline, prior to which he was executive VP-marketing and planning. At United, he will report directly to CEO Glenn Tilton, and he will assume his responsibilities on May 12.
Teradyne Inc. signed a licensing agreement with Boeing to develop a new automatic test system (ATS) for avionics components. The latest system replaces current ATS-182 testing for 737, 747, 757 and 767 components and the ATS-195 for 777 components. Teradyne said the new system -- NxGen ATS -- provides customers ways to tailor testing to both Boeing and non-Boeing components. -LR
AirTran yesterday closed its offering of $125 million of 7% Convertible Notes due 2023 to qualified institutional buyers. "This transaction is evidence of the confidence the market has in AirTran Airways," said CEO Joe Leonard. The notes are convertible into AirTran common stock at a conversion rate of 89.9 shares per $1,000 principal amount of notes. The carrier may redeem all or some of the notes for cash at any time on or after July 5, 2010, at a price equal to the principal amount plus accrued and unpaid interest, if any, to the redemption date. -SL
The weakness of the U.S. dollar, a slowdown in Airbus deliveries and increased development costs for the A380 widened the first quarter loss of European Aeronautic Defense & Space Co (EADS), Airbus's parent company said this week. For the first three months of the year, EADS posted a net loss of EUR93 million (US$106 million), compared with a deficit of EUR25 million in the same period of 2002. Revenue dropped 14% to EUR5.52 billion (US$6.3 billion) in 2003 from EUR6.41 billion previously.
Eclipse Aviation has applied for Joint Aviation Authorities certification for its Eclipse 500 jet, with the expectation of receiving it in 2006. Eclipse also added autothrottle and reduced vertical separation minimums (RVSM) capability to the 500's standard equipment list. Autothrottle helps a pilot maintain a selected speed by managing the aircraft's power. RVSM certification is required for aircraft in Europe flying between 29,000 and 41,000 feet. FAA's deadline for U.S. domestic RVSM compliance for the same altitude band is January 2005. -LR
Portuguese flag carrier TAP Air Portugal narrowed its net loss to EUR28.5 million (US$32 million) for the first two months of 2003, down from EUR34.9 million for the same period of 2002. The airline admitted the figure was 3% lower than planned but said the beginning of 2003 nevertheless was promising. The development of the carrier's maintenance and handling operations fueled a 3.5% increase in operating revenue to EUR164 million (US$185 million).
Alaska Airlines yesterday named Joe Sprague managing director of government affairs, responsible for opening and managing the carrier's new government affairs office in Washington.
