Lufthansa Systems signed a contract with Austrian Airlines, which will use the NetLine/Sched modules Slot Manager and Slot Monitor with implementation set to be completed by summer.
Republic Airways Holdings late Thursday placed a bid to purchase Shuttle America, which if accepted will enable it to fly additional Embraer 170s while remaining in compliance with the pilot contracts of the mainline carriers it currently serves.
The commercialization of air navigation services in Australia, Canada, Germany, New Zealand and the UK has "generally resulted in lower fees for major carriers," while "safety has not eroded," according to a study by the US General Accountability Office, an investigative arm of Congress. As of March 2005, 38 nations worldwide had commercialized their ANS providers, according to GAO. The US is one of the few remaining holdouts among major westernized nations. FAA remains responsible for operating the air traffic control system as well as for regulatory oversight.
Legislation to give US airlines more time to make payments to underfunded employee pension plans was proposed by US Sens. Johnny Isakson (R-Ga.) and John Rockefeller IV (D-W.Va.) earlier this week. The Employee Pension Preservation Act of 2005 would allow carriers to spread their deferred pension funding obligations over 25 years instead of the current four years. In return, unions would have to agree to freeze their benefits at the current level.
Swiss International Air Lines said Thursday it will reintroduce complimentary food and drinks in Swiss Economy class on its European network effective "as early as May 25."
Air France-KLM Group Chairman and CEO Jean-Cyril Spinetta said Air France will not participate in Alitalia's planned €1.2 billion ($1.57 billion) capital increase, Reuters reported. "The question has not been put [to us]. The subject is not on the table at all," Spinetta told the Anglo-American Press Assn. in Paris. AF has about 2% of Alitalia and Spinetta sits on the board of the Italian airline.
JetBlue became only the third US Major (and the third low-cost airline) to report a profit for the first quarter as it posted earnings of $7 million, slightly ahead of Wall Street expectations but a 54.1% decline compared to earnings of $15.2 million last year.
Hawaiian Airlines reported a net loss of $2 million for March in its Monthly Operating Report filed with the US Bankruptcy Court. This compares to net income of $3.3 million in the year-ago period. Revenue rose 9.4% to $69.7 million while operating expenses climbed 17% to $65.3 million, resulting in an operating profit of $4.4 million, a 43.6% decrease from an operating profit of $7.8 million in March 2004. During the month, Hawaiian improved its RASM by 8.9% but its CASM jumped 16.3% year-over-year. Excluding fuel, CASM climbed just 11%.
Boeing named four suppliers of key interior elements for the 787. Diehl Luftfahrt Elektronik will provide the main cabin lighting, while lavatories will be supplied by Jamco. In addition, Northwest Composites, an affiliate of C&D Aerospace, will supply sidewalls, window reveals, cargo linings, door linings and door surrounds and Securaplane will furnish the wireless emergency lighting system.
"Record high fuel prices and increasingly noncompetitive labor costs," excess industry capacity and the impact of Delta's SimpliFares were cited by Northwest Airlines President and CEO Doug Steenland as he reported that the carrier lost $458 million in the first quarter ended March 31. Excluding a special $18 million charge related to a loan prepayment by former subsidiary Pinnacle Airlines, the loss dropped to $440 million. In the year-ago period, NWA lost $223 million.
Several Chinese airlines formalized agreements with Airbus for 30 aircraft. As previously announced, China Southern Airlines completed a deal to buy five A380s ( ATWOnline, Jan. 31). China Eastern placed an order for five A319s, 11 A321s and four A320s, while Shenzhen Airlines signed with China Aviation Supplies Import & Export Group Corp. and Airbus for three A320s and two A319s.
Delta Air Lines reported a staggering $1.08 billion net loss for the first quarter ended March 31, nearly three times higher than the $387 million net loss it posted last year, although hefty special items in both periods make comparisons difficult.
Canada and China signed a new and expanded bilateral air transport agreement this week that provides for a threefold increase in passenger and cargo flights between more city-pairs that can be operated under "more flexible operating conditions" than with the previous agreement. The accord includes possibilities for additional passenger, all-cargo and codesharing services by Canadian and Chinese airlines. It also contains "strong aviation safety and security provisions." Subsequently, Air Canada announced a range of new services to China.
Continental Airlines cited continuing weak domestic yields and historically high fuel costs as it reported that its first-quarter loss grew to $184 million from $124 million in the year-ago period. Excluding an $8 million special gain related to the company's defined benefit pension plan, the current-period loss was $192 million.
Hammered by high fuel prices, AMR Corp., parent of American Airlines, reported a $162 million net loss for the first quarter ended March 31, which included a tax credit of $69 million.
Cargolux posted a net profit of $83.5 million in 2004, up 18% on the prior year. Revenues increased 26.4% to $1.2 billion, passing the $1 billion mark for the first time in the company's history, and operating profit grew 24% to $80.7 million. The carrier's core business, the sale of lift and related transportation services, accounted for 98.4% of the total operating income and grew 26.3% during the year. Revenue from charter activities more than doubled. Operating expenses increased 28.4%, mainly owing to higher fuel prices and the strong euro.
Austrian Airlines subsidiary Lauda Air wants to base up to four 737s or A320s in the US for the coming winter season and is in talks with US tour operators, MD Thomas Suritsch told ATWOnline. The aircraft will operate from November until April on routes between the US and Caribbean. Lauda will base its own maintenance staff in the US. Although plans call for the aircraft to be dry-leased to tour operators, the airline is exploring the possibility of a wet-lease deal subject to FAA approval.
European Transport Commissioner Jacques Barrot hopes to receive support from European transport ministers today to re-start talks with the US to create a transatlantic open aviation area. EU transport, telecommunications and energy ministers are expected to discuss the issue when they meet in Luxembourg today. "Our expectation is to get a clear political signal to relaunch negotiations and get a good deal with the Americans," EC spokesperson for transport Stefaan de Rynck said.
America West Airlines CEO Doug Parker declined comment yesterday on a report in the Wall Street Journal that the carrier is near to an agreement to merge with bankrupt US Airways.
Iberia is considering taking over or setting up a low-cost airline of its own to compete on a level playing field with the ever-increasing presence of LCCs in the short- and medium-haul markets, Europa Press reported. "Either we fight with the same weapons as these airlines or we will have to stay out of these markets," MD Angel Mullor told the Spanish news agency. An Iberia spokesperson said Mullor's remarks were reported accurately. In recent months, Iberia has been vocal over what it calls unfair competition from budget airlines.
ATA Holdings Corp. said it was advised by Indianapolis-based real estate investment and management firm Okun Enterprises that it has terminated its commitment to purchase ATA's Chicago Express Airlines operation and two Saab 340Bs. Okun was selected as the winning bidder earlier this month ( ATWOnline, April 4). ATA said it will proceed with the next highest bidder but did not disclose who that is. However, media reports have identified it as CSC Investment Group.
South African Airways this week named Kyrl Acton as its first-ever COO. The newly conceived position replaces that of deputy CEO, last held by Oyama Mabandla, whose resignation became effective March 31 ( ATWOnline, April 19). SAA said Acton's duties will encompass cargo, scheduling and commercial services, which include revenue management, pricing, sales and marketing. An Irish national and former top executive at Aer Lingus and later at LanChile, Acton has worked for Unisys since 2002 as transportation VP overseeing aviation markets in Europe, the Middle East and Africa.
Global ePoint's AirWorks Division received a new FAA STC for its cockpit door surveillance system, which now spans the entire family of 737s with two configurations.
Traffic at Tel Aviv Ben Gurion came to a halt Tuesday morning, stranding thousands, after tests indicated that the fuel supplied to aircraft at the airport was polluted. However, subsequent tests showed that the fuel was okay and flights resumed, according to media reports.
