Air Transport World

SkyEurope completed a €10 million ($13 million) equity fund-raising, the proceeds of which will be used for fleet development. The investment was provided by funds managed by East Capital Asset Management AB, an independent asset manager specializing in Eastern European financial markets. Last year the airline laid out a target of achieving €50 million in new funding.

Thales announced that LFV Group has deployed its new air traffic management system, Eurocat, at the Stockholm and Malmo control centers and has connected 13 control towers to the centers. The new System 2000 is part of the LFV Group MATS program and will equip Sweden with a state-of-the-art en route and approach ATM system to improve operational efficiency and safety. It includes a fully integrated training system with standby capabilities that allows "real situation" testing.
Airports & Networks

IAE and SilkAir signed a 10-year fleet hour agreement covering maintenance and repairs on V2500 engines that power SilkAir's fleet of seven A320s and four A319s.
Safety, Ops & Regulation

Air France and KLM will merge their respective frequent-flier programs into one new program, Flying Blue, in June. Frequence Plus and Flying Dutchman cardholders automatically will become members of the new program and will retain all the miles they have accrued without any drop in value. The new FFP contains four membership levels--Ivory, Silver, Gold and Platinum--and has some 10 million members in a first stage. Together with more than 30 partner airlines, Flying Blue will enable customers to earn miles and use them on 18,000 daily flights to 900 destinations.
Safety, Ops & Regulation

Perry Flint
Citing "a growing trend towards the outsourcing of maintenance," Airbus yesterday unveiled a Maintenance Repair & Overhaul Network consisting of 11 service providers around the world.
Safety, Ops & Regulation

Qatar Airways will increase its flights between Doha and Frankfurt from six a week to daily in the summer season, which begins March 27. The flights will be operated using A300s in a three-class configuration. In addition, the Doha-Munich-Vienna route, currently operated five times per week, will be de-linked and replaced by dedicated nonstop services to both cities. Munich will be served fives times per week with an A300 in a three-class configuration, while Vienna will have four flights a week using an A319 in a two-class configuration.
Airports & Networks

Loren Farrar
UAL Corp., reported that its February loss widened to $291 million from $259 million in February 2004, but the parent of United Airlines said it met the monthly requirements of its debtor-in-possession financing. In its Monthly Operating Report filed with the US Bankruptcy Court, UAL said the current-period loss was net of $92 million of largely noncash reorganization expenses. This compares to $119 million in reorganization expenses last year (UAL did not provide a comparison with the prior year but ATWOnline previously reported its February 2004 MOR).

Loren Farrar
China Eastern Airlines Jiangsu Ltd. yesterday placed an order with Embraer Harbin for five ERJ-145s, marking the second order the company has secured with a Chinese airline. "We are very pleased to welcome the ERJ-145 to our fleet," China Eastern President and CEO Su Guoxin said. "It is a very attractive aircraft that will fit in very well with our existing fleet and route structure."
Aircraft & Propulsion

Northwest Airlines continues to turn up the pressure on struggling Midwest Airlines with seven new services from the latter's Milwaukee base including two flights to Denver and additional flights to Boston, Detroit, Kansas City and New York. With these services, NWA will offer up to 38 daily flights to 13 nonstop destinations by mid-year. Under its new schedule, on June 9 it will begin twice-daily service from MKE to Denver, increase daily flights to Boston from two to three and add another flight to Detroit.
Airports & Networks

FAA finalized its previously announced proposal to extend the voluntary schedule caps at Chicago O'Hare through Oct. 29 and also proposed to extend the rule, which limits arrivals at ORD to 88 per hour between 7 a.m. and 8 p.m. local time, through April 2008, "when additional airport capacity should be realized." Under the proposed rule, FAA will review the restrictions every six months.
Safety, Ops & Regulation

Perry Flint
The tax burden on US airlines and passengers continues to rise, but not to the level regularly cited by airlines themselves as well as industry trade groups, according to the Ticket Tax Project, a joint effort of MIT's Global Airline Industry Program and Daniel Webster College.
Safety, Ops & Regulation

Perry Flint
A day after announcing the takeover of Swiss International Air Lines ( ATWOnline , March 23), Lufthansa Chairman and CEO Wolfgang Mayrhuber declared that Lufthansa Group is "leaner and stronger" as he confirmed final results showing it earned €404 million ($524.3 million) last year, reversing a loss of €984 million in 2003. Operating result was €383 million compared to €36 million in the prior year. Commenting on the outlook for 2005, "taking into account the integration of Swiss," the company expects an operating result on par with 2004.

Kurt Hofmann
CSA Czech Airlines management and pilots union CZ ALPA reached agreement yesterday on a new three-year contract that among other things calls for wage increases of 12.5% in 2005 and 15.5% in both 2006 and 2007 in exchange for increased productivity. As a result of the agreement, CSA expects to move up to No. 7 among AEA member airlines in terms of average number of flown hours. The accord was reached after five months of negotiations. Its technical and legal aspects will be fine-tuned over the following days.
Safety, Ops & Regulation

Magic Software Enterprises announced that TAP Servicos Portugueses de Handling has implemented its Hermes cargo handling system in a deal valued at $1.4 million over a four-year period.
Safety, Ops & Regulation

Finnair President and CEO Keijo Suila announced his retirement effective at the end of 2005. A search for a successor has begun. Suila has been with the carrier since 1998. Separately, the Assn. of Support Service Industries representing Finnair and the Assn. of Finnish Flight Attendants reached an agreement on the attendants' terms of employment. Thus a strike scheduled to start on Easter Saturday has been avoided and the carrier's flights will continue to operate normally.
Safety, Ops & Regulation

Loren Farrar
Delta Air Lines CEO Gerald Grinstein yesterday said the company is prepared to take whatever steps are necessary to avoid a Chapter 11 filing, but cautioned that it will "constantly bump up against" liquidity issues in 2005 and 2006 and must find more ways to cut costs.

IBM's Workplace for Business Controls and Reporting was selected by WestJet to "address their internal audit controls requirements."
Safety, Ops & Regulation

Ian Thomas
Virgin Blue , Australia's largest low-cost operator, warned that it faces a further significant decline in net earnings of A$89.2 million ($70 million) for the next financial year if fuel prices remain at current levels. Acting Chairman David Ryan announced that the airline is considering "a range of initiatives" to address the impact of extra costs imposed by the fuel price hike, including introduction of an additional ticket surcharge. Fuel prices have risen 28% in recent months and the carrier has no hedging in place beyond March 31.

ARINC's MUSE Link network service was selected by China Eastern Airlines to connect the carrier's host computer system in Shanghai with its passenger operations at a dozen international airports. According to ARINC, the airline expects to save as much as 15 million yuan ($1.9 million) in operating costs each year by leveraging its existing infrastructure in combination with the AviNet MUSE Link connection.
Safety, Ops & Regulation

Sabre Airline Solutions announced that Aeroflot has migrated to the SabreSonic new-generation reservations and passenger management solution along with a customized version of the Sabre distribution system for Aeroflot affiliated travel agents.
Safety, Ops & Regulation

Ultimate Software , a provider of Web-based payroll and workforce management solutions, announced that Spirit Airlines has chosen its UltiPro, which will be delivered through its hosted service model Intersourcing.
Safety, Ops & Regulation

Cathy Buyck
British Airways said it will "strengthen its position as Britain's leading short-haul airline" and is adding 13 new European services to its summer schedule. This will lift total daily BA flights between Britain and the continent to an average of 631, "well in excess of any other operator," the carrier said in a statement, noting that according to published website timetables, Ryanair operates about 300 flights a day on the routes and easyJet 410. In addition, BA will schedule an average of 372 daily flights within the UK and across the Irish Sea covering 60 routes.
Airports & Networks

Air New Zealand reached agreement with Boeing to install the Boeing Electronic Flight Bag on its 777s and 787s. ANZ will have an EFB system installed, certified and delivered on the eight 777-200ERs it has on order, and also will receive EFBs on the two 787s it has ordered.
Aircraft & Propulsion

Loren Farrar
The Latin American Airline Assn., supported by IATA, called on the US government to end efforts by the Internal Revenue Service to impose US federal withholding requirements and related taxes on Latin American carriers and their non-US-based crewmembers. AITAL also warned that there could be retaliation by affected Latin American countries against US airlines if the tax probe is not halted immediately.
Safety, Ops & Regulation

First new IL-76 freighter designed to meet ICAO noise and emissions standards will begin flight testing in June before entering service with Volga-Dnepr Group in September, the company announced. Designated the IL-76TD-90VD, the aircraft is fitted with Perm PS-90A-76 engines at a cost of $4.3 million each. It is being built at Tashkent's TAPO aircraft plant under a joint program involving Volga-Dnepr, Ilyushin Aviation Corp., Perm and TAPO.
Aircraft & Propulsion