Europe's largest online travel site, ebookers.com, signed multi-year, multi-million-dollar alliance with AOL Europe. The exclusive two-year agreement makes ebookers.com a "primary and preferred travel partner" across the AOL and CompuServe services in the U.K., Germany, France, Switzerland, The Netherlands, Belgium, Luxembourg, Austria and Sweden. Under the terms of the agreement, ebookers.com will pay $24 million in scaled payments over a two-year period. The payments are based upon the delivery of pre-agreed and guaranteed levels of advertising and promotion.
Air France's third quarter operating profit fell 48%, due to rising fuel prices and an airport refuelers strike in December. Those two factors reduced operating income by 200 million francs (US$30 million), the carrier said yesterday. Air France had an operating profit of FRF273 million (US$41 million). Operating revenues rose 12.1% to FRF16.9 billion ($2.5 billion). Other disruptions during the quarter included a damaging windstorm and a traffic drop over the New Year's holiday.
Air Canada will start daily nonstop service between Washington Dulles and Vancouver June 5 with Airbus A319 equipment. To promote the new service, Air Canada is offering an introductory roundtrip fare of $239, for travel between June 5 and July 17. Members of the frequent flyer programs of Air Canada, Canadian Airlines and United receive double bonus miles when traveling on the new route June 5-Aug. 31.
Seven more MD-11 airworthiness directives hit the streets yesterday, continuing a trend of correcting electrical system shortcomings that started soon after the crash of Swissair flight 111 18 months ago. The latest ADs give MD-11 operators up to one year from the ADs' March 23 effective dates to make several inspections and upgrades. Parts covered by the rules include battery ground cable installations, avionics compartment terminal strips, two wire bundles, circuit breakers, ramp deflector assemblies, and the 90% brake pedal position switch.
Cash-poor LIAT, the largest indigenous carrier in the eastern Caribbean, has been thrown a lifeline in the form of a $2.8 million financial package backed the government of Antigua and Barbuda. The rescue package means 200 workers will keep their jobs. LIAT directors and shareholders have embarked on a mission to persuade the governments concerned to provide the capital needed for its long-term survival.
Canada 3000 received government approval yesterday to become an international scheduled carrier on routes to Germany and the U.K., effective immediately. Transport Minister David Collenette approved the application as a result of the government's new competitive airline policy framework. Canada 3000 serves seven points in Canada that connect with London, Manchester, Glasgow, Birmingham and Belfast. Flights to London, Manchester and Glasgow are operated year-round and flights to Birmingham and Belfast only during the summer tourist season.
Starting on March 26, Spanair, Spain's No. 2 international airline, will fly three times a week nonstop between Madrid and Buenos Aires on Wednesday, Friday and Sunday with return flights on Monday, Wednesday and Friday. It now operates three flights with stop-overs in Brazil. Based on Palma de Mallorca, Spanair has 2,000 employees.
Continental has no plans to follow recent initiatives by American and United to remove rows of seats to reduce capacity and increase passenger legroom.Chief Executive Gordon Bethune said this week the changes are a "short-term fad" that is only a "guise to reduce capacity" by airlines with "mediocre service."
Following the breakup of its partnership with Swissair, Delta plans to begin daily, nonstop service between New York Kennedy and Zurich March 26. Delta will use Boeing 767-300ER equipment in a two-class configuration, featuring its BusinessElite service. The planned JFK-Zurich service will be in addition to Delta's daily, nonstop service from Atlanta and Cincinnati. The flight will depart JFK at 10 p.m., arriving in Zurich at noon the next day.
The management of national carrier Air-India has selected four out of the 52 contenders for the global adviser post to manage the sale of AI's equity stake in its subsidiary Hotel Corp of India, AI officials said. The shortlisted firms are Jardine Fleming, JM-Morgan Stanley, HSBC-HVS and DSP Merrill-SBI Caps. The final selection is expected in about a month. The sale of hospitality holdings would yield at least 11 billion Indian rupees (US$275 million), and AI sources say management wants government approval to use the funds for restructuring the airline.
An "alarming increase" in air traffic management (ATM) delays was the No. 1 topic of representatives of airlines from across the world meeting this week in Washington. Although the issue is hottest in the U.S. and Europe, associations representing airlines from Latin America, Africa, the Middle East and the Asia/Pacific region called on governments and aviation authorities to rapidly modernize ATM systems around the globe.
Mexico's Taesa "is virtually bankrupt because the authorities refuse to let it renew operations and have canceled its license," spokesman Eduardo Cacho said this week in Mexico City. The airline has been grounded since November after one of its DC-9's crashed, killing 18 people (DAILY, Feb. 7).
The electronic market for aviation products is continuing to expand swiftly and to become more competitive with two more ventures announced this week by SITA and AAR Corp. and by United Technologies, Honeywell and 12 Technologies. SITA and AAR agreed to form aerospan.com and build what they called the "most comprehensive and all-inclusive e-marketplace for the $80-$100 billion air transport industry," which will expand into the broader $500 billion world aerospace market.
Ryanair has launched eight new routes from London Stansted. The carrier is offering two daily roundtrips to Hamburg Lubeck, two to Malmo, two to Nimes, one to Perpignan, two to Brescia, one to Lamezi and one to Sardinia. Ryanair also will offer one daily roundtrip from Glasgow Prestwick to Frankfurt Hahn, beginning Feb. 26. Lowest midweek economy fares start at 69 pounds, compared to a comparable low fare of 356 pounds on British Airways and other majors, Ryanair said.
Nav Canada said it will go ahead with an expansion of its Ottawa air traffic control operation, a move the Canadian Air Traffic Control Association called unsafe. The company denied the allegation, saying that it has provided "extensive classroom and simulation training to prepare for this change." The union said there was not enough training and it had concerns about the radar equipment technology used to control the airspace. It also criticized Transport Minister David Collenette for "turning a blind eye" by not requiring Nav Canada to follow legislation.
Air Canada will begin daily nonstop Denver-Montreal service April 3 and a daily Denver-Vancouver nonstop Jan. 5. Service on both routes will be operated with Airbus A319 aircraft. With the new flight, Air Canada and regional AirBC will serve five major Canadian cities from Denver -- Toronto, Montreal, Vancouver, Edmonton and Winnipeg.
United yesterday spelled out plans to swap aircraft on several city-pair markets to better match capacity with demand. United jets will replace United Express aircraft in four growing Denver markets -- Boise, Cedar Rapids, Memphis and Wichita. United Express will replace United in five other markets. The four Denver markets are growing rapidly. The changes involve four daily flights to Boise, two to Cedar Rapids, two to Memphis and three to Wichita using Boeing 737-300 and 727-200 aircraft on June 8.
Honeywell successfully flight-tested its new AS900 turbofan for the regional and business aircraft markets, "the two fastest-growing segments in the aerospace industry," the company said. The new engine is expected to be certified in the first quarter of 2001 and to enter service on the Avro RJX regional aircraft in the fall of that year. It also is expected to go into service in 2002 on the Bombardier Continental Business Jet. The engine is designed as an integrated powerplant system for aircraft manufacturers wishing to purchase a complete system from Honeywell.
Bearing Inspection Inc. (BII), the world's largest independent provider of bearing inspection and overhaul services, launched the first phase of its web site Monday. The site claims to offer instant access to information about BII and all FAA- and JAA-approved services, as well as products it offers to companies in the aviation industry. Bearing Inspection's ability "to recondition bearings at nearly 50% cost savings over new OEM part prices, and to do it quickly, has made our services increasingly popular," said VP Jim Pape.
Clinton administration has asked for $18 million for the National Transportation Safety Board to cover costs of the EgyptAir 990 crash investigation. The request was made in a fiscal 2000 supplemental package, which the House Appropriations Committee is scheduled to mark up the first week in March, congressional sources said yesterday.
The Civil Aviation Administration of China (CAAC) has denied that it has agreed to allow China's registered airlines to fix their own fares, a liberty they enjoyed previously. In responding to questions from The DAILY regarding CAAC's bowing to pressure from Chinese carriers to relax the ruling, following industry reports that discounts are about to be offered again, CAAC Deputy Director Shen Yuankang said any underselling is irrational competition and will eventually hurt the airline industry.
America West plans to begin new service from its Phoenix hub to New Orleans May 3 with Boeing 737-300 equipment. "As we continue to offer our customers more options for nonstop nationwide service, America West is moving closer to its goal of 10% growth in 2000," said Bernie Han, senior VP-planning. On March 6, America West will begin flying to Boise, Idaho, followed by Spokane, Wash., March 7. The carrier will start Phoenix-Hartford service April 1.
Continental this week distributed profit-sharing checks for the fifth year in a row to its 51,500 employees, representing approximately 4.3% of employees' eligible annual wages. Since 1996, Continental has paid more than $447 million in profit sharing. "Profit sharing has become a tradition at Continental," said Chief Executive Gordon Bethune. Continental's profit-sharing plan pays 15% of pre-tax net income (excluding special gains and charges) and is divided among eligible employees based on their eligible wages.
British Airways plans to launch its e-commerce initiatives Feb. 23 but may disclose some details in the next few days. Commercial Director Carl Michel told The DAILY that the project will include the development of a new unit within the airline. BA also is expected to join a group of about 10 carriers, including Air France, Lufthansa and KLM, that are developing a joint European Internet travel portal.
