Air Niugini (ANG), flag carrier of Papua New Guinea, will embark on a privatization exercise, later in the year including seeking a strategic partner with the hope of ending its financial troubles. As part of the exercise, foreign carriers would be invited to bid for a 40% stake of ANG. A certain percentage would be allotted for ANG employees and Papua New Guinea companies. The bidding process for the strategic partner will start in April.
The European Commission will decide Feb. 5 whether the planned cooperation between German contractors Hochtief and IVG for the construction of Berlin's new airport conforms with the European Union's competition law, a source close to the issue confirmed yesterday. The commission may decide to approve the deal or launch an in-depth inquiry into the alliance, which was announced last November. Hochtief and IVG were the only two bidders left in the race for the construction of Berlin Brandenburg International airport (BBI).
TRAFFIC DATA FOR DECEMBER 2000 RPMs Change ASMs Change In From In From Load Airline Millions 12/99 Millions 12/99 Factor Air Wisconsin 108.4 +11.1% 167.0 +7.7% 63.8% ATA 834.7 +8.8% 1,290.0 +8.9% n/a Frontier 288.4 +49.8% 355.7 +14.2% 64.2%
Port Authority of New York and New Jersey criticized New York Mayor Rudolph Giuliani for spending $275 million on various efforts to return control of New York Kennedy and LaGuardia to the city. The port authority made its comments in response to Giuliani's remarks Monday in his annual "State of the City" address, in which he faulted snow-removal efforts and said the airports continue to get extremely low passenger service ratings.
The European Commission is expected to announce its ruling on the proposed merger of United Airlines and US Airways on Friday. The commission has set a deadline for Jan. 12 in the case. Sources in Brussels said that it will focus on the effects of the deal on competition over the AtlaAntic and may demand concessions. There were no clear indications on Wednesday as to what the commission might rule.
Airborne completed an accounts receivable-backed financing transaction totaling $200 million. Under the terms of the transaction, which closed at the end of December, Airborne will use the proceeds to pay off loans under its bank credit facilities. "Through this new credit facility, we gain additional committed liquidity above our $275 million committed bank revolving line of credit while reducing our annual borrowing costs approximately $1 million on a prospective basis," said Chief Financial Officer Lanny Michael.
British Airways said it will cut fares to reflect a new remuneration agreement it has reached with its U.K. travel agents. The airline dropped the old deal, under which travel agents received a percentage of the ticket price, and will now pay the agents for making a booking, issuing travel documents and collecting the money. Starting April 1, all fares will be adjusted by the respective difference of the current percentage payment and the new system, BA said.
AirTran will file at DOT a protest over the American-DC Air and American-TWA deals, contending that some of DC Air's slots should go to other carriers to increase competition in the region and that if the American-TWA deal goes through, two airlines will control 50% of all the flights in the nation.
House Transportation ranking Democrat James Oberstar (Minn.) has reintroduced his bill giving DOT greater authority to oversee the business and marketing practices of dominant carriers and intervene when those practices threaten to lead to reduced competition and unreasonably high ticket prices. The bill, first introduced in July, was designed to deal with last summer's situation, when the concern was that the United/US Airways merger would lead to quick consolidation and three dominant carriers.
Northwest this week settled the class action lawsuit stemming from passengers stranded on a Northwest flight in winter 1999. The incident, in which passengers were held on aircraft, some for more than 12 hours, during a fierce winter blizzard, helped spur federal hearings on passenger rights legislation. Northwest said the class will receive more than $7.1 million in payments to settle the suit, which involved 7,000 passengers affected by delays and cancellations during the New Year weekend snowstorm in Detroit. The final hearing will be April 24.
China Airlines' move to acquire 25% stake in China Cargo Airlines (CCA) has been aborted. Sources in China revealed that CAL has not filed an application with the relevant Chinese government agencies for the approval of the acquisition. The sale also is subject to the endorsement of the Civil Aviation Administration of China, currently the country's regulatory body. China Cargo is majority-owned by Shanghai-based China Eastern. It could not be determined whether CAL would proceed with the necessary applications to see the acquisition through later.
DOT's success at opening aviation markets provides a good example of opportunities for innovation and growth available to U.S. businesses and communities under international trade initiatives, Francisco Sanchez, DOT assistant secretary for aviation and international affairs, said this week at a trade adjustment and assistance forum in El Paso, Texas.
Air Transport Association Cargo Traffic November 2000 Revenue Ton Miles (000) November November % 2000 1999 Change Domestic Freight 866,067 877,809 (1.3) Mail 182,490 178,085 2.5 Total 1,048,557 1,055,894 (0.7) International
American parent AMR Corp. yesterday launched an aggressive, fast-track process to gain regulatory and court approval for three separate airline transactions that could lead to two U.S. domestic mega-carriers. At a New York news conference, CEO Don Carty revealed how American intends to acquire TWA, purchase 20% of US Airways' assets and become a 49% stakeholder of DC Air.
Eliot Brenner, FAA assistant administrator for public affairs, is leaving the agency after five years. He began in June 1996 and was FAA's spokesman after the ValuJet crash and during the TWA 800 crash investigation.
Panama's Copa Airlines has continued growing through strategic use of its Panama City hub and its alliance with Continental, which owns 49%. Copa estimates it will close 2000 with a 50% increase in revenue per available seat mile and a 53% increase in overall sales, from $163 million in 1999 to $250 million last year. Despite the upturn, high fuel prices means "it will take a miracle to close the year in the black," according to CEO Pedro Heilbron.
TRAFFIC DATA FOR DECEMBER 2000 RPMs Change ASMs Change In From In From Load Airline Millions 12/99 Millions 12/99 Factor AirTran 357.1 +31.4% 519.2 +10.5% 68.8% American Eagle 285.8 +0.1% 449.3 -1.9% 57.2% WestJet 145.2 +53.9% 199.1 +56.3% 72.9%
American Association of Professional Flight Attendants plans to hold a rally today outside a Wings Club luncheon at which American CEO Donald Carty is speaking. Carty is addressing the club at the Yale Club on South Vanderbilt Street in New York and is expected to announce American's plans to buy TWA assets. APFA is holding the rally from 10 a.m. until 1 p.m. at the Yale Club to protest stalled contract talks and American's plans for the financially strapped TWA.
Continental yesterday won a Federal District Court decision that found that United conspired with other carriers to violate federal antitrust laws by agreeing to install baggage sizing templates at shared security screening checkpoints at Washington Dulles. "Indeed, if there is any proof of failure in the market to be gleaned from the record, it is of United's failure to provide what its customers desire," the court stated in its ruling.
Austrian Airlines plans to add capacity to its Japan operation, starting in the summer timetable of 2001. The airline will increase its weekly frequencies from Vienna to Osaka from the current three to six, while Tokyo Narita will continue to be served three times a week. However in 2002, Austrian plans to fly daily to Osaka and four times weekly to Tokyo.
Travelair has started scheduled service between Uruguay's capital of Montevideo and major cities in the interior of the country. It has one Cessna Grand Caravan and expects a second in February.
American today is expected to announce its multi-faceted investment in both TWA and assets of US Airways, but already there are questions about what operations would be trimmed in a merger scenario. One of the first regional operation casualties of a potential TWA buyout most likely would be routes TWA now operates with Jetstream 31 and Jetstream 41 aircraft, predicts consultant Douglas Abbey, president of AvStat Associates in Washington.
