Pressure increased for insolvent aircraft manufacturer Fairchild Dornier after a group of former U.S.-based employees filed petitions for involuntary bankruptcy of two fully owned U.S. based subsidiaries, Fairchild Dornier Corp. and Dornier North America. The move comes after Fairchild Dornier laid off basically its entire U.S.-based staff early this month. At the time, the Germany-based company filed for insolvency under German law. To save money, the court-appointed administrator Eberhard Braun laid off all U.S.
US Airways likely will seek DOT certification allowing currently inactive subsidiary Potomac Air to fly up to 70 regional jets. Under an agreement to expand regional jet flying reached with pilots last Thursday, furloughed mainline pilots would receive 100% of the RJ flying if the aircraft are placed with Potomac Air, US Airways Air Line Pilots Association spokesman Roy Freundlich said yesterday.
All Nippon Airways and Asiana yesterday expanded their partnership to include reciprocal frequent flyer mileage accrual and award redemption. Starting May 13, members of ANA's Mileage Club will be able to earn miles of ANA code-share flights operated by Asiana and vice versa. The partnership will cover 91 code-share flights a week on five routes. Asiana is close to an agreement with Star Alliance, sources said, of which ANA is a member (DAILY, April 5).
Delta wants an exemption for U.S.-Algeria service so that it can launch code-share service with SkyTeam alliance partner Alitalia in the market while its certificate application in Docket OST-99-6246 is pending. While Delta plans to use the exemption initially to operate code-share service to Algiers "on flights operated by Alitalia's wet-lease subsidiaries via Rome," it would expect to use the authority via other gateways with other code-share partners. (Docket OST-02-12161) -AL
British Airways regional subsidiary BA CitiExpress will cut 12 unprofitable routes and 500 jobs, and will reduce capacity by 8% in an effort to improve results. The decisions are the outcome of the future size and shape review that BA concluded earlier this year but was also initiated for its subsidiaries.
DOT may be stepping back from consideration of the full range of aviation ownership and control issues that were raised last week by DOT Assistant Secretary Read Van de Water as policy issues DOT should review. DOT Secretary Norman Mineta, speaking yesterday to the German-American Business Council, responded negatively to the concept, according to attendees. The event was closed to the press.
Judge Ruiter Oliva's decision this week in a Sao Paulo court has nullified a motion by GE Capital Aviation Services to declare Transbrasil bankrupt (DAILY, April 11.) The carrier has been grounded for several months but is technically not bankrupt. The lengthy court battle in Brazil's courts makes it less likely that aviation companies will want to do business in Brazil, since the country has not allowed equipment owners to recover their property.
Brazil's international traffic fell 6.1% in the first quarter, while domestic traffic dropped 1.5%. TAM Brazil lost 4% market share after curtailing international service by almost 40%, including flights to Frankfurt, Zurich and Montevideo. Varig's international load factor fell to 73% from 77% despite a gain in market share to 88.2%. No-frills Gol Airlines maintained an 8.2% domestic market share, although its load factors dropped to 51% from 57%.
Brazil's international traffic fell 6.1% in the first quarter, while domestic traffic dropped 1.5%. TAM Brazil lost 4% market share after curtailing international service by almost 40%, including flights to Frankfurt, Zurich and Montevideo. Varig's international load factor fell to 73% from 77% despite a gain in market share to 88.2%. No-frills Gol Airlines maintained an 8.2% domestic market share, although its load factors dropped to 51% from 57%.
The Chinese airline merger plan, which was completed in May last year, is under threat of being rescheduled because of disputes recently came to the surface. Topping the list is a disagreement between the Civil Aviation Administration of China (CAAC) and the State Planning Development Commission (SPDC) about the specifics of the merger.
Aeropuertos Argentina 2000, which holds the concession contracts for 33 airports, received good news last week from the fledgling Duhalde administration, which decided to charge international departure taxes in U.S. dollars. AA2000 CEO Ernesto Gutierrez said, "This was the only way out of a deadlock. As in previous years, we'll be collecting $50 million, which would have been only $16 million if charged in devalued pesos."
Hamilton Sundstrand's Frankfurt-based Nord-Micro business unit will supply the Airbus A380 cabin pressure control, ventilation control and avionics ventilation systems in a deal that could be worth more than $200 million. Nord-Micro supplies similar systems for other Airbus programs. The deal gives Hamilton Sundstrand three contracts on the new superjumbo. The company's Ratier-Figeac subsidiary will provide the horizontal stabilizer trim actuator, while the parent company has been tapped to supply the A380 air management system.
The House Transportation Committee sent legislation designed to speed runway construction to the House floor yesterday. The bill included an amendment that strengthens language guaranteeing that the bill will not impinge on the power of state and local authorities to review runway projects. The issue of Congress usurping local authority has been one of the major concerns with this legislation. Some observers noted that while the bill language may assuage local concerns, it also leaves a large part of the project delay problem untouched.
US Airways late this year plans to start weekend service between Philadelphia and the Caribbean island of St. Kitts. The new flights will start Dec. 7 and operate every Saturday with Airbus A319s. Located in the northern part of the Leeward Islands, St. Kitts becomes US Airways 17th Caribbean jet destination. US Airways claims to be the only airline offering jet service to St. Kitts from the U.S.
Lufthansa Technik Logistik (LTL) is providing parts logistics services to Asiana. Among the services provided by LTL are transporting components between the airline and Lufthansa Technik and keeping track of where parts are in the supply chain.
Varig has invested another $14.5 million to pay immediate obligations for Uruguayan national carrier Pluna. Varig owns 49% of Pluna, with the majority owned by the Uruguay government and several small shareholders. The money was needed for aircraft maintenance and leasing and to stave off possible bankruptcy.
Expedia yesterday reported a $5.7 million net profit for the first quarter as its revenues doubled from a year ago. The company's results easily topped analyst expectations as its profit compares with a $17.6 million loss last year. Adjusting for one-time items, Expedia posted a $28.4 million profit. Expedia's gross bookings were $1.1 billion, an increase of more than $425 million over the year-ago quarter.
American has doubled the number of self-service check in kiosks at its St. Louis ticket counter to eight and added two more check in kiosks at the customer service center at a second service center on the C concourse. AA first introduced the self-service check in to St. Louis customers last December.
AeroMexico on May 6 will add another daily nonstop from Mexico City to Dallas/Fort Worth. At that time, the carrier will offer 21 weekly frequencies using MD-87 aircraft.
Lufthansa Technik Logistik (LTL) is providing parts logistics services to Asiana. Among the services provided by LTL are transporting components between the airline and Lufthansa Technik and keeping track of where parts are in the supply chain.
Khalifa Airways has signed a five-year "total technical support" contract with Lufthansa Technik (LHT) for maintenance of two Airbus A340s and one A320. The deal calls for 13 LHT mechanics to be stationed in Algiers for logistical support. The A340s, leased from Boeing Aircraft Trading, and the A320, leased from Lufthansa, join three Khalifa A319s already under LHT's care. Lufthansa also owns the A319s.
Delta is on track to sell 15% of its total tickets through its own web site, the company predicted yesterday. Delta said that its online ticket sales on its site for the first quarter grew 11% over the fourth quarter, and jumped 64% over the same period last year. Revenue from these ticket sales totaled $330 million, more than an 11% increase over the fourth quarter.
Khalifa Airways has signed a five-year "total technical support" contract with Lufthansa Technik (LHT) for maintenance of two Airbus A340s and one A320. The deal calls for 13 LHT mechanics to be stationed in Algiers for logistical support. The A340s, leased from Boeing Aircraft Trading, and the A320, leased from Lufthansa, join three Khalifa A319s already under LHT's care. Lufthansa also owns the A319s.
Sources in Lima report that Peruvian carrier AeroContinente has joined LanChile on the list of potential bidders for a block of shares in Ecuatoriana. The Ecuador carrier is now owned by Brazil's financially troubled VASP. A letter of intent was offered last week by AeroContinente to Ricardo Noboa Bejarano, president of Conamo, Ecuador's agency in charge of privatizations. Ecuador continues to hold majority control of Ecuatoriana.
