Boeing is offering a business version of its 717-200 aircraft, dubbed the 717 Business Express. Configurations range from 40 to 80 seats in first and/or business class. Boeing is offering workstations, meeting spaces and videoconferencing on the 717s. Broadband connectivity is also available though Connexion by Boeing.
Varig, having won approval from parent holding company Rubem Berta Foundation (FRB) on its merger with TAM Brazil (DAILY, May 2), is running against time in order to keep operating until the merger takes effect, as creditors are closing in.
Health authorities in Colombia this week confirmed the first case of the SARS pneumonia. The victim is a 20-year-old native Colombian who presented SARS-ascribed symptoms upon her return from Hong Kong. Health and civil aviation agencies are going to begin screening incoming flights from SARS-infected areas identified by the World Health Organization at all international airports in Colombia. -LZ
Northwest and KLM yesterday unveiled plans to launch a service that allows passengers to use transatlantic interline e-ticketing. The carriers will introduce the service during the first half of June, enabling customers with itineraries involving travel on both Northwest and KLM to use a single e-ticket. Previously, customers were required to obtain a separate e-ticket for each carrier or obtain a paper ticket.
DOT decided yesterday to give interested parties another three weeks to comment on the agency's proposed changes to rules governing computer reservations systems, pushing the reply date into early June as it plans to hold a hearing on the changes later this month. The previous due date for reply comments was May 15, but DOT decided to extend the reply period to June 9 "to enable the commenters to respond in their reply comments to arguments made at the hearing."
Iberia's board members are expected to discuss the imminent departure and replacement of Chairman Xabier de Irala, an industry source said this week. De Irala, who managed the impressive turnaround of the Spanish flag carrier, has been speaking with shareholders about resigning from his post, the source reported. -MT
Boeing this week released a refined exterior design for its 7E7 and announced an online marketing partnership with AOL Time Warner to boost consumer knowledge of the aircraft's development as the airframer's board of directors continues to assess the size of the market for the aircraft. Late last month, Boeing CEO Phil Condit said the board plans to scrutinize the launch criteria for the aircraft and make a decision about building the aircraft by the end of the year (DAILY, April 24).
Jet Airways of India takes delivery of its first Boeing 737-900 this week as it celebrates its 10th anniversary. Jet Airways is the first airline outside the U.S. to fly the three largest models of the 737 Next Generation family -- the -700, -800 and -900. The airline's -900 offers 32 business-class seats and 138 in economy. Jet Airways has a backlog of two -900s, based on data from AirClaims. -LR
Montreal-based Jetsgo reported an April load factor of 72.6%, down slightly from March loads of 73.6%. Jetsgo President Michel Leblanc said the consistency "gives us a solid foundation heading into our upcoming summer schedule." Jetsgo will reintroduce summer service to Sydney, N.S., and Stephenville, Nfld., beginning May 17. The rest of the summer schedule begins in June and includes six new destinations.
IATA, AITAL and ATAC have all called on Latin American and Caribbean airlines to attend meetings to formally ask governments to create the right economic environment to alleviate the region's aviation crisis.
The planned joint order of nearly 200 regional jets by four Star Alliance airlines will likely slip to later this year due to current industry crisis, but the evaluation and negotiations are on track, says CEO Jaan Albrecht. The DAILY first reported in March that Star was moving ahead on the first major joint aircraft procurement program of a global alliance (DAILY, March 18). At the time, the four airlines -- Air Canada, SAS, Lufthansa and Austrian -- hoped to make an announcement in late summer.
Shares of Swiss International Air Lines shot up 56.3% yesterday, as investors got enthusiastic about the company's possible merger. Continuing rumors about an alliance with Lufthansa were boosted by seemingly innocuous comments made at the company's annual shareholder meeting in Basel. "Aviation is a global industry that finds itself in a consolidation phase," said Swiss Chairman Pieter Bouw. "We are open to everything, are holding talks and intend to play an important role in the process," he said. -MT
Traditional network carriers should be able to "sustain some kind of revenue premium" over low-cost carriers, US Airways Senior VP-Marketing and Planning Ben Baldanza believes.
Airline stocks rallied yesterday after David Strine of Bear Stearns upgraded the sector rating on the U.S. airlines to market weight from underweight based on the premise that it is unlikely the airlines will face the simultaneous occurrence of war, SARS and high oil prices over the next 12 months as they have over the last few months.
United is boosting business-class seat pitch six inches on its Boeing 777s and plans to install United Economy Plus seating on the aircraft by early next year. Economy Plus sections offer up to five more inches of legroom. United's 258-seat 777 will offer 12 in first, 49 in business, 83 in Economy Plus and 114 in economy, while another 253-seat aircraft will opt for 10 in first class, 45 in business, 84 in Economy Plus and 114 in economy. United flies about 61 777s.
FAA is working hard to make sure its international policy goals are met during two critical conferences later this year, said agency head Marion Blakey, who is calling for negotiating major agreements even before the meetings begin.
Deep job cuts and long-term infrastructure changes are in the offing for Colombia's airlines, top airline managers and politicians were told in a closed-door meeting to search for remedies for the country's ailing aviation sector.
Singapore Airlines and Cathay Pacific, which stood above their rivals before the SARS pneumonia outbreak with strong performances and huge cash reserves, are unlikely to maintain their positions in the market once the virus is contained and controlled. Both carriers were badly hit in their home bases of Singapore and Hong Kong, ranked second and fourth on the World Health Organization's list of affected countries. As of May 6, Singapore had the third-highest number of deaths -- 26.
DOT Secretary Norman Mineta yesterday told a House Appropriations Transportation Subcommittee that the agency is looking at purchasing three airports in Maryland that have been especially hard hit by the ban on general aviation. The airports are in the district of Minority Whip Rep. Steny Hoyer (D-Md.), who questioned why the GA ban continued despite the lowered terrorist threat. He said all three airports have experienced "devastating economic losses" and asked whether any financial assistance package was being considered.
The war is over for Europeans, too, as the Association of European Airlines noted operations of its members in "Europe and North Atlantic returned to growth" in the week ending April 27 following the end of combat in Iraq. In particular, North Atlantic traffic recorded an increase of 10.9%, AEA said. However, Far Eastern routes are heavily affected by the SARS pneumonia outbreak. "The figures illustrate the volatility of the market at the present time," commented AEA Secretary General Ulrich Schulte-Strathaus. -MT
Airline passengers filed far fewer complaints with DOT in the first quarter than during the same period last year, according to the latest Air Travel Consumer Report. During the quarter, the department received 1,673 air service complaints, down 45% from 3,044 filed during the first quarter 2002. Consumers filed 539 complaints in March, 47.1% fewer than the 1,019 filed in March but 22.5% more than the 440 tallied in February.
U.S. officials yesterday in Brussels assured the European Parliament that turning over passenger data to the Department of Homeland Security posed no threat to European privacy laws. Last March, the body said it was considering court action against the U.S.-European Commission deal allowing the transfer of passenger data to seek out terrorists, arguing it "constitutes an infringement of the European directive on the protection of personal data." A parliamentary committee is currently investigating the issue.
Cathay Pacific's board yesterday decided to cut its recommended 2002 dividend in half due to the deep losses the airline is facing as a result of the SARS pneumonia outbreak. The final dividend will be HK$0.28 per share, rather than the HK$0.56 per share recommended. The 50% cut will cost HK$934 million (US$120 million) but will also save HK$934 million.
