United Airlines' budget for 2006 includes capital spending of $400 million that will be invested in new resources including more airport check-in kiosks, refurbishing aircraft interiors, upgrading computer systems and new ground equipment. The information was contained in UAL Chairman and CEO Glenn Tilton's weekly telephone message to employees.
Air Canada is taking its simplified fares concept onto the transatlantic this year, beginning with service to London Heathrow and Manchester. The international pricing structure contains just four fare categories: Tourist, Leisure, Latitude Plus and Executive First. Other international destinations will follow "in the near future." AC has been transitioning to a simpler fare structure over the past few years beginning with its domestic network and in 2005 with its transborder services.
Continental Airlines reported a 13.1% rise in December traffic to 7 billion RPMs from 6.19 billion in 2004. Capacity was up 11.4% to 9.01 billion ASMs and load factor grew 1.2 points to 77.7%, a December record. CO said consolidated passenger RASM increased 7%-8% over December 2004 and mainline RASM grew 5.5%-6.5%. Separately, Continental Express posted a record load factor of 75.4%, up 4.6 points. Regional traffic shot up 23.1% to 817.2 million RPMs and capacity rose 15.6% to 1.08 billion ASMs.
Continental Airlines' announcement that it would take 69 aircraft out of its fleet agreement with ExpressJet ( ATWOnline, Jan. 4) came as no surprise to ExpressJet CEO and President Jim Ream. During months of negotiations, CO followed in the footsteps of other mainline carriers and aggressively sought concessions as it moved to cut costs. ExpressJet is the exclusive provider of Regional flying to CO using a fleet of some 274 ERJ-145s.
Israel Aircraft Industries' Elta Systems Group said it received authorization from Israel's CAA to install its Flight Guard anti-Manpads system on 767 passenger aircraft. According to press reports, El Al will install the system on six 767s.
EADS bought a 10% stake in Russia's Irkut Corp. for $65.3 million last month, the Russian aerospace company announced. The deal coincided with the awarding of a 10-year contract for A320, A330/A340 and A380 component and subassembly production ( ATWOnline, Dec. 22). "It is part of the global strategy of EADS to form partnerships with leading aerospace companies," EADS Russia CEO Vadim Vlasov said. The companies have been working together since 2002.
Caribbean Aircraft Leasing will acquire an additional 50-seat Q300 turboprop for $16.3 million, Bombardier announced. The lessor, parent of Caribbean Star Airlines and Caribbean Sun Airlines, ordered three A300s two months ago.
Aerospace Industries Assn. named Susan Mertes director-aviation infrastructure, a new position focusing on improvements to the civil air transport system. Rockwell Collins appointed Beverly Carmichael VP-staffing and organizational development. She comes from Southwest Airlines.
EasyJet will add 14 new routes across its European network this spring as it takes delivery of nine A319s. It also will convert its bases in Liverpool, Edinburgh and Glasgow to all-Airbus operations, replacing its current fleet of 737s in a move signifying its "commitment to future investment and expansion." It will operate 116 A319s by this summer.
B/E Aerospace announced that it completed a $45 million deal with Emirates to design and manufacture the international super first class cabins on a portion of its new 777s.
UAL Corp., parent of United Airlines, said its reorganization plan was accepted by all classes of creditors in voting tabulated and submitted last week to the US Bankruptcy Court. A confirmation hearing is scheduled for Jan. 18.
Delta Air Lines reported a November net loss of $181 million in a Dec. 30 filing with the US Bankruptcy Court compared to losses of $1.14 billion during the six weeks following its entry into Chapter 11 ( ATWOnline, Dec. 2) and approximately $300 million in October. November's net loss minus reorganization items and taxes was $164 million. Operating loss was $107 million on revenues of $1.29 billion and expenses of $1.4 billion.
Assn. of European Airlines selected Wolfgang Mayrhuber, CEO and chairman of the executive board of Lufthansa, as chairman for 2006. He takes over from TAP Portugal CEO Fernando Pinto.
Southwest Airlines launched service from Denver International Airport yesterday with 13 daily nonstops to Chicago Midway, Las Vegas and Phoenix. It also announced it will begin new services March 4 with a daily flight from DEN to Baltimore/Washington International Airport and four-times-daily service to Salt Lake City. It will increase DEN service to Phoenix from four daily flights to five and to Las Vegas from five to six on the same day.
While some analysts are forecasting a spike in airfares out of Washington Dulles as a result of the shutdown of Independence Air tomorrow, others believe the departure of the carrier formerly known as Atlantic Coast Airlines will cause barely a ripple.
Continental Airlines said Dec. 28 it will withdraw 69 of 274 Embraer RJs from its capacity purchase agreement with ExpressJet Airlines because the latter's rates "are above the current market." ExpressJet may continue to sublease any of the 69 aircraft at higher rates but cannot operate them into any of CO's hubs. The ERJ-135s and dash 145s operate in the Continental Express network. ExpressJet at one time was a wholly owned subsidiary of CO but now is publicly traded.
Republic Airways Holdings knows it is difficult to serve two masters, even more so three or four. What satisfies one may not work for another. Recognizing this, it has created three subsidiaries to meet the requirements of its four codesharing partnersAmerican Airlines, Delta Air Lines, United Airlines and US Airwayswhile staying in compliance with the respective scope clauses contained in the pilot labor agreements at each.
Viewed with altered expectations, 2006 will be at or near the top of the current economic cycle and should produce the best financial results the industry has seen since 2000. Passenger traffic, on a steady rise since the 2001-02 period, will ride a still-buoyant global economy to continue its ascent at rates a bit higher than the long-term trend, but this time with some improved yields, especially in the North American domestic market where 2006 capacity should decline.
At a time when the state-owned airlines of the oil-rich Arab Gulf have embraced aggressive expansion into long-haul international markets, Royal Jordanian is setting a more modest flight path, trimming global ambitions while focusing on liberalizing trends within the region.
AirTran, which dropped out of Worldspan in November because the two companies could not come to terms on the cost of participation, is back in the GDS with a new multiyear, full content agreement, effect Jan. 24. The carrier is distributing inventory, availability and fares through Worldspan at a level of participation called Limited Connect, which is below Worldspan's Full Service level. Worldspan said Limited Connect is designed to meet the distribution needs of carriers that require limited functionality.
AeroMexico appointed Manuel Jaquez US West Coast regional mgr. AirBridge Cargo introduced Robert Song as regional dir. & area mgr.-Asia/Pacific. Aircelle tapped Laurent Schneider-Maunoury as president of its SCLA aerostructures subsidiary. Air Wisconsin promoted Scott Orozco to MD-flight operations & chief pilot. Alaska Airlines elevated Steve Jarvis to VP-sales & customer experience and Greg Latimer to MD-brand & product marketing.
Last year's surge in new and conversion freighter programs confirms the confidence felt within the air transport community regarding the intermediate- and long-term outlook for air cargo. In May Boeing launched the 777 Freighter. At the end of October it moved forward with the 767-300 Boeing Converted Freighter and followed this in mid-November with the program launch of the 747-8, which is being offered in both freighter and passenger versions. Significantly, the first orders were for the freighter.
Nothing succeeds like success. Perhaps this is the explanation for Emirates' phenomenal performance over the past two decades, a period in which it has experienced only one annual loss. From a two-airplane, four-city network launched on Oct. 25, 1985, it has grown into the world's ninth-largest international passenger carrier in terms of RPKs, serving 77 cities in 54 countries.
Vietnam Airlines said Thursday that its revenues for the first 11 months of 2005 totaled VND22 trillion ($1.38 billion), according to Vietnamese media reports. It flew 6.8 million passengers during the period.
