Airlines & Lessors

Northwest Airlines yesterday announced a reshuffled executive management team that it said better reflects its post-bankruptcy objectives. Among the most significant changes, which will take effect Oct. 1, were NWA Cargo President Jim Friedel's appointment to the newly created position of senior VP-strategic planning and VP-Network Planning and Revenue Management Tom Bach's promotion to president-NWA Cargo. VP-Fleet Planning Dan McDonald was named VP-strategy and fleet planning and will report to Friedel.

Air France KLM is studying a potential merger with either Alitalia or Iberia, Chairman and CEO Jean-Cyril Spinetta said. In an interview with Financial Times, Spinetta confirmed that the group is exploring merger opportunities. He said AF KLM has held "informal" talks with potential Spanish financial partners, though it is not yet in official discussions with Iberia.

US Secretary of Transportation Mary Peters yesterday named United Airlines VP-Flight Operations Henry Krakowski chief operating officer of FAA's Air Traffic Organization effective Oct. 1. Krakowski will lead the ATO's 35,000 controllers, technicians, engineers and support personnel, overseeing the operational and financial performance of the ATC system and FAA's research and acquisition programs. "Hank is the right person to help implement the next generation of aviation technology," Peters said.

Swiss Aviation Software said CSA Czech Airlines is implementing its AMOS integrated information system to help streamline MRO administration and management.

A J Walter (Leasing) Ltd. said it is taking delivery of the second of two A320s purchased from British Airways last year for parting out. The first was delivered last November.

Horizon Air, which grounded its fleet of Q400s following the collapse of landing gear on two separate SAS flights ( ATWOnline, Sept. 13), inspected 16 of its 33 affected aircraft by Friday and plans to begin placing them back in service today. The regional carrier canceled 89 flights Friday and expected additional cancellations over the weekend because of the grounding. By Tuesday it intends to introduce a "modified schedule" as aircraft are returned to service.

AeroMexico said Friday that a group of Mexican investors represented by Banamex, the Mexican arm of Citigroup, has made a formal bid valued at more than $150 million to take a controlling stake in the airline, which currently is controlled by government holding company Consorcio Aeromexico. The takeover offer, first revealed last Thursday ( ATWOnline, Sept. 14), is open through Oct. 15 with an option to extend it until Nov. 30. AM's board said it will make an initial judgment on the offer within 10 business days.

Midwest Airlines, which accepted a cash buyout offer of $17 per share from TPG Capital and Northwest Airlines last month, entered into a codeshare agreement last week with NWA for tickets purchased beginning Nov. 3 for travel starting Nov. 17.

Continental Airlines will expand capacity at its Cleveland Hopkins International Airport hub by 40% over the next two years, starting with 50 new flights operated primarily by regional jets and the addition of 20 new nonstop destinations by next summer. Cleveland is CO's No. 3 hub behind Newark and Houston Intercontinental. Many of the RJs will be reallocated to Cleveland from the Newark hub; new 70-seat Q400s operated under an agreement with Colgan Air will take over some of the Newark service.

SunExpress, the Lufthansa/Turkish Airlines joint venture, said it will operate more than 100 daily flights from 20 German airports to its bases in Antalya and Izmir starting at the end of October. The carrier operates a fleet of 10 737-800s and four 757-200s and employs 800. It said it will transport 3 million passengers this year.

Embraer opened an E-Jets training services center in the Alteon training facility at Singapore Changi. The center has the capacity to train an average of 300 pilots annually, offering both ground school and simulator training. In 2008 it will be expanded to include flight attendant training.

Babcock & Brown filed last week with the US Securities and Exchange Commission to spin off part of its commercial aircraft leasing business in an IPO that could raise more than $440 million. The newly created lessor will be known as Babcock & Brown Air. Shares are being offered at $22-$24 each and will be listed on the New York Stock Exchange under the symbol FLY, B&B said in a statement.

While Air China charted an ambitious international expansion plan that includes opening 12 new routes to the US and Europe in 2008 and 2009, China Eastern Airlines is taking a more cautious approach, with only one new international route planned in the next two years. According to the 2008-09 long-haul routes distribution program released by CAAC, CEA will start Shanghai-Los Angeles service next year but will stay away from further international expansion.

US and Japan yesterday reached an expanded air services agreement, according to UPS, which said it won authority under the deal to operate six daily freighter flights between the US and Nagoya.

KLM appointed Barbara van Koppen general counsel. She has been company secretary since September 2005 and will retain that title. FAA Deputy Administrator Robert Sturgell will assume the role of acting administrator today following the departure of Marion Blakey, whose fixed five-year term heading the agency ended yesterday. It is unknown how long it will take for US President George Bush to nominate a permanent replacement.

Alitalia posted a consolidated net loss of €211.1 million ($292.7 million) for the first half of 2007, slightly narrowed from a €220.2 million loss in the year-ago period. The carrier's board last week outlined financial and performance targets for its "survival/transition" plan that aims to keep AZ viable through 2010 as it continues to seek a sale to private investors ( ATWOnline, Sept. 10).

Ryanair said it will base 12 aircraft at Milan Malpensa and launch 50 international and 10 domestic routes from the airport in response to Alitalia's plan to nearly halve its 340 daily flights from MPX ( ATWOnline, Sept. 5). In a statement dubbed "Ryanair's Manifesto for Malpensa," the Irish LCC said it is willing to commit up to $1 billion between 2008 and 2012 at two airports, MPX and Orio al Serio near Bergamo, where it currently has a base.

Nigeria's Arik Air increased its commitment to Boeing airplanes, placing an order for 10 737-800s, four 787-9s and one 777-300ER worth a combined $1.8 billion at list prices.

European Commission launched a formal investigation into support that would have been granted by the Sardinia Region and SOGEAAL, the publicly owned company operating Alghero Airport, to various air carriers and by the Sardinia Region to SOGEAAL itself.

JetBlue Airways added the title of president to COO Russ Chew, who joined the carrier from US FAA in the wake of the February operational difficulties at New York JFK. "Since Russ joined our team, we have established the right foundation for continuous improvement," CEO Dave Barger said.

Singapore Airlines' A380s will be configured with a main deck first class cabin consisting of 12 "Singapore Airlines Suites," 60 business class seats on the upper deck and 399 economy seats spread across both decks, the carrier announced yesterday.

Japan Airlines will introduce first class for the first time on domestic flights from Dec. 1. The new offering will be rolled out on seven daily flights between Tokyo Haneda and Osaka Itami and eventually will be available on all flights. From April 1, the first class product will be available on flights from HND to Fukuoka and Sapporo. The move follows the rollout of a dedicated business class (J Class) on domestic routes in June 2004. JAL offers 8 million J Class seats per year with an 85% load factor.

Finnair Group ground handling subsidiary Northport Oy agreed to sell its Finnhandling AB and Northport Norway AS units, as well as Arlanda Airport lounge and ticket sales services, to Menzies Aviation. Transaction is scheduled to close on Sept. 30. Financial details were not disclosed. Menzies will provide ground-handling services to Finnair in Stockholm and Oslo. Separately, Finnair flew 1.77 billion RPKs in August, up 19.8% from the year-ago month. Capacity rose at the same rate to 2.3 billion ASKs, leaving load factor at 77.1%.

Brussels Airlines Group and Hewa Bora Airways reached agreement jointly to create a new Congolese airline to be based at Kinshasa N'Djili Airport. It will operate both domestic and international services aboard 737s and BAe 146s. BAG's participation in the new company is through its Pan African Airlines Leasing Co. affiliate, which is based in Mauritius and specializes in developing African aviation projects and partnerships.

European Commission released the fifth update of its list of airlines banned in the European Union. Two new carriers appeared: Ukrainian Mediterranean Airlines and Mahan Air of Iran. "This latest update illustrates once more that the black list is a dynamic instrument which the Commission can use whenever necessary, without having to wait for the quarterly reviews," VP-Transport Jacques Barrot said.