Several international airlines, through their SITA membership, sold shares in telecommunications firm Equant this week for $90.91 a share in a secondary public offering. British Airways sold approximately 1.1 million shares in Equant for 58 million pounds (US$93 million), which will be included in the airline's third quarter results. SAS sold approximately 265,000 shares and will book a gain of approximately US$23 million during the quarter. Cathay Pacific also sold a further 0.1% stake in Equant for a net profit of HK$154.5 million (US$20 million).
U.S. Major Carriers Atlantic Share of Service Third Quarter 1999 DEPARTURE DATA Total Revenue Departures American 6,785 Continental 4,288 Delta 7,839 Northwest 2,902 TWA 1,953 United 5,662 US Airways 2,017 Total 31,446 AIRCRAFT SEATING DATA
Alitalia and Palestinian Airlines signed a framework agreement yesterday to cooperate on direct flights between Rome and Gaza City. According to the Associated Press, Alitalia expects to launch service next year after the civil aviation authorities of both governments ratify the agreements and determine the routes. Alitalia said it was the first European airline to enter talks with Palestinian Airlines following "positive developments" in the Middle East peace process. Gaza International Airport was opened in November following a round of peace talks.
U.S. Major Carriers Latin Share of Service Third Quarter 1999 DEPARTURE DATA Total Revenue Departures Alaska 1,687 America West 667 American 26,893 Continental 11,084 Delta 3,811 United 4,121 US Airways 1,686 Total 49,949 AIRCRAFT SEATING DATA
A U.S. District Court Judge issued a preliminary injunction against Comair's 1,100 pilots, ordering them to fly. The Air Line Pilots Association International issued a notice to Comair pilots warning that the order "places ALPA, the Comair MEC [Master Executive Council] and individual Comair pilots in extreme jeopardy should there be any violation." The warning emphasizes that the judge will hold individual Comair pilots liable if they cause any disruption to service over the holidays.
A $40 million Gulfstream V was purchased over the Internet in the second consecutive record-breaking e-commerce transaction.Mark Cuban, VP of Yahoo and co-founder of Broadcast.com bought the aircraft using IPIX images. Gulfstream in October sold a used $23 million G-IV using IPIX, which allows prospective customers to visually inspect an aircraft inside and out online.
Lufthansa's systemwide traffic rose 11.5% in November, falling short of the 12.5% capacity increase. Despite a load factor drop of 0.7 percentage points, the carrier was pleased with an overall "high" load factor of 70.5%. The Middle East/Africa region was the only area where traffic outpaced capacity, with a 9.8% passenger increase and a 75.8% load factor.
A new wave of press reports out of Brazil are leading to more speculation about possible mergers among at least two of Brazil's Big Four - Varig, Vasp, Transbrasil and TAM. An interview in O Estado do Sao Paulo by Transbrasil CEO Paulo Enrique Coco included the declaration that in March the carrier will have an operational agreement with TAM, which includes codesharing and joint marketing. The pact will start with domestic code sharing, then expand internationally. Coco also mentioned a possible "equity swap".
The CNN News Group will purchase a $20 million equity stake in the growing Internet travel company Leisureplanet.com. As part of a strategic agreement, the Brussels-based Leisureplanet.com will become the exclusive travel services provider for almost all CNN web sites. Leisureplanet, launched last January, is an international Internet travel services provider that is majority-owned by Leisureplanet Holdings, Ltd., a subsidiary of First South Africa Holdings.
Iberia in January will replace its DC-9s with MD-87's on the route linking Panama with its hub in Miami and for connections to and from Spain and the rest of Europe.
Genesis, which started as a not-for-profit computer reservation system alternative, will move its operational and functional headquarters to Vienna, Austria. ESTAR, the European Standard Travel Agent Registry, will have oversight and project management of Genesis' technical and systems developments. Genesis' administrative headuarr will remain in Toronto.
United and Air New Zealand told DOT that antitrust immunity for their proposed alliance expansion would permit them to "compete more aggressively with Qantas" and its oneworld alliance partners. The competition between United/ANZ and Qantas and its partners "will drive the complete liberalization of the U.S.-Australian air services agreement," the applicants said. The U.S. and Australia agreed to drop restrictions on all-cargo services and to discuss open skies for passenger service early next year (DAILY, Dec. 16).
Emirates signed a US$85 million financing agreement for the acquisition of the sixth of 18 Airbus A330-200s powered by Rolls Royce Trent engines, which the carrier has on firm order. The aircraft is scheduled to be delivered January 24. The financing has been structured by Credit Agricole Indosuez as a 12-year Japanese operating lease and is guaranteed by the UK's Export Credit Guarantee Department, Germany's Hermes and France's Coface. In addition to the 18 A330-200 aircraft on firm order, Emirates also has on order three Boeing 777-300s and six A340-500s.
American cancelled its 11 flights to Simon Bolivar Airport outside Caracas through at least Jan. 4 as recovery efforts continue throughout the region following massive flooding and mudslides. United extended its flight cancellations to Caracas through Jan. 18. While some air service has resumed to other secondary Venezuelan airports, United reports that Simon Bolivar Airport remains closed to all commercial traffic through at least Jan. 18.
Continental Express is adding nonstop service from Houston to Puebla and Aguascalientes, Mexico, on May 2 and June 15 respectively. The service is subject government approval. It recently announced service from Houston to San Luis Potosi on March 2.
GATX Capital yesterday ordered five Boeing 737-800s and two 757-200s. This brings its new 737 orders to 20 and its 757 orders to 10. Deliveries will begin next year.
Joint venture partners Alitalia and KLM Cargo, in what could be a harbinger of future airline moves, are adding a fuel surcharge Feb. 1 in those countries where it is permitted. The two carriers cited the "soaring price of aircraft fuel" in imposing a surcharge of .10 euros per kilogram or the equivalent in local currency, to all cargo consignments. Two years ago when fuel prices rose, several European carriers imposed fuel surcharges, but only after one airline stepped forward to be the first.
Calgary-based WestJet said it sees growth opportunity in a consolidated Canadian airline industry. WestJet Chief Executive Stephen Smith said the carrier "sees continued opportunities for our growth and expansion. It is our intent to become Canada's low-fare, short haul carrier." Smith said the remaining issue is the timeline for the embargo against Air Canada to operate a low-fare carrier and he intends to ask the government for clarification on how this relates to WestJet.
World Airways has requested authority to render long-term wetleasing services for Cielos del Peru, S.A., an all-cargo carrier based in Peru, between several South American points and Miami.
International Lease Finance Corporation unveiled an aircraft order for up to 100 Boeing 737s. The company signed an agreement for 50 firm orders and 50 options. The ILFC order was listed as being from an "unidentified customer" in cumulative order totals published by Boeing on Dec. 15.
SkyWest Airlines has placed a firm order for 20 CRJ200s valued at $470 million, its third CRJ order this year from Bombardier Aerospace. SkyWest also took 20 more options on the 50-seat jet. Bombardier now has received orders for a record 167 CRJs this year, up 35% over last year's 123 orders. SkyWest ordered 25 CRJ200LRs in January and 10 more last April and now has 55 orders for the aircraft, plus options on another 55. Alison Gemmel, marketing director of the Delta Connection airline, said the two are now deciding where to place the new equipment.
Hawaiian Airlines traffic rose 18% and traffic 16.6% in November 1999 compared to the same 1998 month, which grew load factor 0.9 percentage points to 75.9%. Passenger boardings surged 11.6%.
UniCapital Corp.'s Air Group has acquired 11 Boeing 757-200ERs from LTU International Airways in a sale-leaseback transaction of varying lease terms. UniCapital simultaneously sold three of the aircraft to an unrelated commercial aircraft operating lessor. The acquisition of the remaining eight aircraft was financed by a combination of UniCapital equity and a loan underwritten by Chase Manhattan.
Frankfurt and Amsterdam Schiphol airports plan to cooperate closely in the coming years. The two airport operators said Tuesday they would like to join forces to be prepared for the upcoming wave of airport privatizations in the next few years. Both airports want to invest together in some of the more than 100 privatization projects that are expected in the near- to medium-term future. The two parties already have signed a strategic paper that outlines the further proceedings.
