US Dept. of Transportation, responding to a request from the Air Transport Assn., is asking for public comment on whether it should change its rules on airline price advertising. In particular, DOT wants to know "whether it should allow airlines to separate carrier-imposed charges, such as fuel surcharges, from the advertised fare in consumer advertising." ATA wants airlines to be able to list surcharges separately, which is not allowed under the current rules. DOT only permits carriers to list government-imposed taxes, fees and other charges separately.
Pelesys Learning Systems signed with LTU of Germany to provide Web-based training courseware for the next five years. It also signed to deliver its recurrent training program to Emirates.
Gol said it executed a definitive agreement related to its joint venture to create a low-fare airline in Mexico. The proposed holding company for the new airline has been incorporated in Mexico as Controladora Prosea, with Gol holding 25% of the voting capital stock and approximately 47.6% of the total capital stock. The remaining capital is subscribed by Mexican investors. The company is capitalized at $40 million, of which $19 million will come from Gol. Startup of service is expected in mid-2006. The airline will operate domestically initially, adopting Gol's business model.
Ryanair signed an agreement committing it to help develop Brussels Charleroi Airport through 2016. It will base a fourth aircraft there and launch service to Faro, Nimes, Malaga, Salzburg and Valencia from April, bringing the total number of routes it operates from Charleroi to 16. The five new routes will deliver another 250,000 passengers per year and increase Ryanair's annual traffic at CRL to 2.3 million. The airport recently announced plans to open a new terminal in 2007 able to handle 5 million passengers annually.
Royal Jordanian said yesterday it expects 2005 and 2006 net earnings "similar" to the JOD17.5 million ($24.6 million) achieved last year. Revenues for 2005 are expected to be JOD389 million, increasing 20.6% to JOD469 million in 2006. Expenses are expected to climb 20.7% from JOD 377 million this year to JOD455 million.
Dallas/Ft. Worth International Airport will lose service to five US cities and one international market and see flights to several additional cities pared as American Airlines reapportions assets at its principal hub following this month's action to open Missouri to flights from Dallas Love Field. Southwest Airlines launched service to Kansas City and St. Louis yesterday and American countered with the announcement of its schedule from Love Field to the Missouri cities, San Antonio and Austin beginning March 2 ( ATWOnline, Dec. 13).
Detroit Metro Airport will return $11 million to airlines after beating budget forecasts in FY05. Nearly 70% of the surplus will go to Northwest Airlines, the Detroit Free Press reported. The airport said it hoped the gesture would entice carriers to increase service.
Qantas is set for the most aggressive expansion in its history after revealing plans to acquire up to 115 787s valued at almost $15 billion at list prices for its mainline brand and the launch of its new long-haul, value-based product Jetstar International.
International Federation of Airline Pilots said the Chicago Midway runway overrun accident last Thursday "demonstrates once again the need for Runway End Safety Areas to be established at airports with airline operations." IFALPA favors a RESA 300 m. in length by at least twice the runway width. At airports where no space is available for an overrun area, such as Midway, the organization advocates that Engineered Materials Arrester Systems be installed.
UK residents traveling abroad for leisure have been by far the fastest-growing component of total international traffic at UK airports since the European aviation market was liberalized in 1993, according to a new report by the UK CAA. Self-evidently, the study also concludes that the spread of no-frills airlines has been by far "the most striking development" following liberalization.
A short time after Southwest Airlines launched its first flights to St. Louis and Kansas City from Dallas Love Field yesterday, American Airlines announced its own schedule from the airport, where it owns the rights to three gates. Daily flights to St. Louis, Kansas City, San Antonio and Austin will begin March 2. Regional affiliate American Eagle will operate the flights within Texas. The airlines will require two gates for the current schedule and said they are working with airport officials to arrange for ticket counters and other facilities.
El Al Israel Airlines signed an agreement for the purchase of two 777-200ERs, the parties announced yesterday. The aircraft, valued at $362 million and powered by Trent 892s, will be delivered in 2007. "The purchase of the 777s is in accordance with El Al's business strategy to acquire widebody long-range aircraft," President Haim Romano said. The carrier currently operates four 777s on routes between Tel Aviv and New York and the Far East.
Liftoff for Jade Cargo International, an all-cargo joint venture between Lufthansa Cargo and Shenzhen Airlines founded in October 2004, apparently has been pushed back again. Jade now will receive the first of six new 747-400ERFs in June 2006, six months later than initially announced ( ATWOnline, Sept. 16), with the second and third set to join the Shenzen-based carrier in October and December next year.
Tarom Romanian Airlines announced that it expects to be named a special Alliance Associate member of SkyTeam. The carrier said it was included in the first batch of four airlines selected to start the association process, which could be finalized during 2006.
Alaska Air Group said it intends to offer 5.7 million newly issued shares. At its current share price of around $35, the airline would raise gross proceeds of almost $200 million. Citigroup Global Markets is acting as the lead managing underwriter and was granted an additional 427,500 shares to cover overallotments. Proceeds will be used for general corporate purposes including working capital, the acquisition of aircraft and other capital expenditures.
Delta Air Lines partnered with SideStep in a deal intended to promote Delta fares and services via the travel search engine. "A combination of search results listings and geographically targeted in-product advertising will enable Delta to reach active travelers as they search for specific trips," SideStep said in a statement. Customers will earn bonus SkyMiles, avoid booking fees, and obtain the carrier's best fares by booking directly on delta.com.
Varig's bankruptcy reorganization took a new twist Tuesday after a Brazilian buyout fund reportedly took controlling interest in the airline's parent, Varig SA. According to Reuters, the fund, Docas Invertimentos, owned by Nelson Tanure, paid $112 million to the Rubem Berta Foundation for 25% of the voting shares owned by the Foundation. It agreed to "rent" a further 42% of the shares, giving it control of the airline. TAP Portugal previously agreed to participate in a restructuring of Varig that would see the Foundation lose control of the carrier ( ATWOnline, Nov. 3).
Lufthansa "will look seriously at the 747-8," Chairman and CEO Wolfgang Mayrhuber told ATWOnline Saturday at a Star Alliance meeting in Montreal, citing in particular the decision by Boeing to offer the GEnx as the engine for the new model.
Blue1, the SAS subsidiary in Finland, will add three MD-90s, boost ASKs more than 70% and increase its destinations from 14 to 25 with the start of the summer season in March. The Star Alliance regional member will add Athens, Barcelona, Dublin, Dusseldorf, London, Madrid, Nice, Paris, Rome, Warsaw and Zurich to its network. "This heavy expansion is our response to the market need," said Stefan Wentjarvi, president and CEO. The airline said it already is the biggest operator between Finland and Scandinavia.
Austrian Airlines Group officially began the search for a new CEO to replace Vagn Soerensen, who announced that he will leave the company by September 2006. Application deadline is Jan. 9.
Delta Air Lines and its approximately 6,500 pilots, represented by the Air Line Pilots Assn., announced a tentative agreement Sunday, ending several contentious weeks of threats, spin and bluster from both sides. The accord, subject to union ratification by Dec. 28, suspends US Bankruptcy Court hearings on Delta's request to cancel the current contract and will be in effect until March 1, by which time a comprehensive deal must be reached.
Frontier Airlines named Christopher Collins senior VP-operations. He came from JetBlue Airways, where he was VP-system operations. TNT Express promoted Matthew McDonough to president, North American region.
China Southern Airlines signed an agreement with Singapore Aircraft Leasing Enterprise for the lease of five new A320s. The carrier already counts 58 A320s among its fleet of 257 aircraft. The new A320s will be delivered directly from Airbus in the first half of 2006 and will be leased for 12 years each. The deal is the largest bulk placement by SALE to date. The 158-seat, two-class aircraft will be powered by IAE V2500s.
TAM Brazilian Airlines announced it selected the CFM56-5B to power 25 new A320s. The deal is worth $300 million at list prices, according to a CFMI spokesperson. TAM placed an order for 20 A320s plus 20 options at this year's Paris Air Show ( ATWOnline¸ June 17), at which time it had a backlog of 10 A320s.
