A Lima, Peru, court issued a verdict of not guilty in the case against Fernand Zevallos, former AeroContinente president, who had been charged with money laundering and illicit enrichment. Judicial proceedings lasted seven years.
Emirates plans to phase in a second daily frequency between Dubai and Frankfurt on Oct. 1. The service will be operated with Airbus A330-200s. Next week, Emirates will start three weekly flights from Dubai to Khartoum, Sudan.
American and Finnair yesterday applied for antitrust immunity, in an effort to create a partnership that would give AA increased access to Scandinavia and the Baltic region. The AA-Finnair link, however, will be much smaller and less lucrative than the abandoned AA-British Airways partnership. AA and Finnair have an existing code-share agreement and are partners in the oneworld alliance. Antitrust immunity would enable AA and Finnair to cooperate on scheduling and pricing.
Brazil's state-owned development bank, BNDES, implementing the government's request that it should study ways and means to assist the country's airlines in overcoming their worst crisis in history, just issued an overall report in which it recommends an infusion of capital for Varig. The funds would come through purchase by new investors of a minority equity position or debentures leading to an initial public offering. The final official decision is now subject to a business feasibility study to be submitted by the carrier to BANDES over the next few weeks.
Virgin Express has successfully managed its turn around its finances, as it posted a net profit of EUR 130,000 (US$115,000) in 2001, versus a net loss of EUR 65.2 million in 2000. "This result has been achieved in spite of the disruptions caused by the 11th September tragedy and the bankruptcy of Sabena on 7th November 2001," said Virgin. The company's agreement with Sabena accounted for 40% of revenues.
Summary of U.S. National Carriers Systemwide Traffic Third Quarter 2001 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % Carriers (000) Change (Miles) (000) Change AirTran 2,035 0.30 545 1,109,572 0.80
Embraer said yesterday it is installing special security equipment on aircraft destined for the U.S. or already operating there. Among the latter are 80 planes operated by SkyWest. The new systems include armored cockpits, bullet- and entry-proof doors, remote access systems and custom-built decompressors for regaining air pressure when the cabin becomes destabilized.
BWIA West Indies Airways plans to start nonstop flights between Port-of-Spain, Trinidad and Paramaribo, Suriname, beginning April 17. The evening flight to Suriname and subsequent morning departure will be timed for connections through the Port-of-Spain hub.
America West this week extended the sign-up period for Agency AWArds, its new travel agency commission program, through April 5. The program was implemented after the carrier eliminated base commissions and now allows travel agents the opportunity to earn commission payments in exchange for bookings that exceed the airline's "normally expected market share." Agency AWArds is structured similarly to airline frequent flyer programs, with agencies categorized and compensated based on performance.
US Airways CEO Dave Siegel yesterday unveiled his new executive team -- including a new chief financial officer -- who he hopes will guide the airline's recovery. Former Northwest executive Neal Cohen will become executive VP-finance and CFO. Cohen will replace Tom Mutryn and oversee corporate development, financial planning and analysis, controller, purchasing, treasury, information technology and corporate real estate.
Philippine Airlines and privately owned Cebu Pacific are engaged in a heated debate as to which carrier should be given the rights for the additional frequency on the lucrative Cebu-Seoul route. Both carriers have rights for three weekly flights, and PAL has rights for a fourth on loan from the local regulatory body, the Civil Aeronautics Board. The Philippines has rights for a total of seven flights a week on the route. PAL is using all its rights, operating Airbus A330-300s, while CP operates a weekly service using Boeing 757-200s.
Boeing Sales VP for Latin America Daniel Da Silva yesterday praised the region's governments and airlines for making concerted efforts to offset the short- and medium-term effects of the current industry crisis. At the FIDAE 2002 international air show in Santiago, he emphasized three areas vital for Latin and Caribbean airline competition. First, a reduction of high fees now charged by governments for airport, air navigation and related services; second, prompt tax relief comparable to levels in the U.S.
Philippine Airlines and privately owned Cebu Pacific are engaged in a heated debate as to which carrier should be given the rights for the additional frequency on the lucrative Cebu-Seoul route. Both carriers have rights for three weekly flights, and PAL has rights for a fourth on loan from the local regulatory body, the Civil Aeronautics Board. The Philippines has rights for a total of seven flights a week on the route. PAL is using all its rights, operating Airbus A330-300s, while CP operates a weekly service using Boeing 757-200s.
IEM Airfinance B.V. concluded sale-and-leaseback deals with Singapore Airlines for one Boeing 747-412 and one 777-212. They are the first such deals involving widebodies for the Amsterdam-based lessor, which now boasts a 23-aircraft portfolio.
Six Latin American airlines attending the FIDAE 2002 air show in Santiago met yesterday and agreed to offset their current crisis by setting up an operational and cost-cutting alliance within the next 60 days. The group would code share and conduct joint maintenance and ground services. Participating airlines so far are Aerolineas Argentinas, LanChile, Varig, TAM Paraguay, Avianca/Aces and Aeropostal Alas de Venezuela.
Delta yesterday said it would adjust capacity for its summer schedule to meet customer demand. Delta will continue to build service between Atlanta and London Gatwick by offering a fourth flight. The airline will operate three flights daily and a fourth flight three days a week. All London flights will feature BusinessElite service. As Delta introduces the additional frequencies, it will discontinue nonstop service between Boston and London June 1 but will continue to offer nonstop daily service to London from Cincinnati.
Royal Air Maroc (RAM) took delivery of another Boeing 737-800, part of a previous order for nine 737s placed by the airline in 1996. The carrier also leases two 737-800s. RAM last year purchased 20 additional 737s to develop its routes to Europe, Africa and the Middle East. The 737-800 will join the carrier's current fleet of 28 737s, nine of which are next-generation.
DOT yesterday granted antitrust immunity to a United-BMI British Midland alliance but made it conditional on the U.S. and U.K. reaching an open-skies agreement. DOT also granted the request of American and British Airways to dismiss their application for antitrust immunity. The agency already tentatively granted antitrust immunity to United-BMI and AA-BA in January on the condition of completing an open-skies pact and the divestiture by AA and BA of some slots to open the way for competition between the U.S. and Heathrow.
Shanghai-based China Eastern Airlines will sell two MD-11s to China Cargo Airlines (CCA) for US$120.8 million. China Eastern will use the cash in part to finance its acquisition of new aircraft in the second quarter of the year. CCA, the only Chinese cargo carrier currently, will convert the two aircraft into freighters. CCA is 45% owned by China Eastern, 30% by state-owned firm China Ocean Shipping Group and 25% by China Airlines.
Shanghai-based China Eastern Airlines will sell two MD-11s to China Cargo Airlines (CCA) for US$120.8 million. China Eastern will use the cash in part to finance its acquisition of new aircraft in the second quarter of the year. CCA, the only Chinese cargo carrier currently, will convert the two aircraft into freighters. CCA is 45% owned by China Eastern, 30% by state-owned firm China Ocean Shipping Group and 25% by China Airlines.
Guangzhou Aircraft Maintenance Engineering Co. (GAMECO) has signed an agreement with Aviation Partners Boeing to participate in a project involving retrofitting the winglet system on Boeing aircraft. Under the agreement APB will provide the retrofit kits and GAMECO will perform modification and installation of blended winglets on the aircraft of the manufacturer's customers. GAMECO is the first MRO company in China to be appointed by APB to perform such task.
Construction recently started on a 156,000-square foot air cargo processing and distribution center at Houston Bush Intercontinental Airport. The joint venture of AMB Property Corp. and Trammell Crow Company is the airport's first new air freight facility in eight years. The facility, which sits on 8.4 acres, is adjacent to an aircraft apron capable of accommodating 12 Boeing 747-400 freighters. The front dock of the building can process up to 50 tractor-trailer rigs. When completed in October, it will be the largest on-tarmac airfreight building at the airport.
Airlines "have powerful reasons other than noise performance" to upgrade and replace aircraft, and don't need outside pressure to add noise technology, European Regions Airline Association Director General Mike Ambrose said recently. ERA's Noise Study, due out soon, shows that members have "accomplished by their own volition" noise reductions to meet more stringent European standards.
