EasyJet reached outside the airline industry to tap Andrew Harrison as chief executive to succeed Ray Webster, who announced in May that he is retiring. Harrison, 48, will take up his new post on Dec. 1. He was chief executive of RAC, the UK motoring services group, prior to its acquisition by British insurer Aviva in March. He joined RAC predecessor company Lex Service as CEO in 1996 and led its transformation from a seller of high-end automobiles through a network of 30 dealerships into consumer services such as roadside assistance, insurance, legal services and financing.
Alteon Training and Aerolineas Argentinas opened their new joint training facility near Ezeiza Airport in Buenos Aires. The Buenos Aires Training Center has a 737-300/-500 simulator with plans to install a flat-panel 737 trainer by year end. It is Alteon's first location in South America.
AeroMobile, a joint venture of ARINC and Telenor, reached agreement with Boeing Commercial Airplanes to explore the feasibility of equipping new Boeing passenger aircraft with AeroMobile's inflight cellular solution. The agreement covers line-fit options for widebody and narrowbody aircraft starting with the 777.
Troubled Thai airline Phuket Air has been banned from French airspace, putting its longer-term expansion on hold. The carrier started services in 2001 and operates to eight domestic destinations including Phuket plus offering international charter and scheduled flights. International services are operated with four 747-200B/Cs and one 747-300 but these aircraft have been the subject of regulatory problems, with faults alleged in both the Netherlands and UK this year. The 747-300 is presently impounded in Seoul over alleged unpaid fees relating to maintenance.
British Airways will reorganize its customer service and operations department following the retirement of director Mike Street, a 42-year veteran of the airline, at the end of September. Effective Oct. 1, Geoff Want, director-safety and security since 2002, will become director of all ground operations for the airline, including assuming responsibility for the move to Terminal 5 at London Heathrow in 2008. Want joined BA in 1988.
South Korea's Hansung Airlines, which bills itself as a low-cost Regional, commenced service Aug. 31 operating twice-daily flights between Chongju and the resort island of Cheju with a 66-seat ATR 72-200. Hansung plans to grow its fleet to 10 aircraft over the next five years and a second ATR 72 will arrive at the beginning of 2006.
SkyQuest International will remarket an undisclosed number of Saab 340B turboprops on behalf of AMR Leasing. The aircraft come out of the American Eagle fleet.
AirTran completed a financing agreement with Royal Bank of Scotland for up to $345 million to fund aircraft deposits and provide permanent financing for 737-700 deliveries in 2006 and 2007. The transaction frees up $51.9 million in pre-delivery deposits made by AirTran to Boeing. SkyWorks Capital advised the airline on the transaction. Separately, AirTran said it has suspended service to Gulfport/Biloxi and New Orleans through Wednesday, Sept. 7.
Dragonair will provide two aircraft to its mainland affiliate Air China via wet-lease. The deal covers one A330 and one A320 for two years. Dragonair and Air China are linked through equity and codeshare on seven routes.
AirTran Airways Chairman and CEO Joe Leonard smiles slyly when asked to discuss everybody's favorite topic these days, the price of fuel: "I'd like to see oil go up to about $80 a barrel for about three months, then drop down to $30," he tells ATW at the carrier's modest one-story headquarters near Orlando International Airport.
This works on several levels. Most obvious is the idea of the LCC as an eating machine, chewing up the competition. Another thought, equally applicable, is the need to move forward continually or die. This characteristic is not unique to LCCs, but it seems to be of greater importance to them. Recently a groundswell of opinion has held that the LCC tide has peaked due to inter-LCC competition, aging workforces, aging fleets and reduced market opportunities. Geoffrey Thomas in last month's issue (8/05) presented this argument in fine detail.
The US airline industry continues to separate into those companies that in some small way can overcome today's record fuel prices and those that cannot. Seven of the 11 Major passenger airlines reported profits in the second quarter ended June 30. These carriers earned a combined $371 million, with 40% of that amount coming from perennial profit leader Southwest Airlines, which is heavily hedged.
Aviareps named Johnny Gardsaeter GM-Stockholm. Boeing appointed Roger Bone president-Boeing UK. CSA Czech Airlines selected Lubos Frank as UK sales dir. and Julie Sumner as sales mgr.-North of England.
Lufthansa Systems' O&D-based ProfitLine/Yield revenue management system was chosen by AiRUnion, a new airline alliance in Russia comprising KrasAir, Omskavia, Sibaviatrans, Domodedovo Airlines, Samara Airlines and SAT Airlines. Together the carriers serve more than 5.5 million passengers annually. LHS said it will work closely with Moscow-based Transport Automation Information Systems to implement the solution.
Bucking the trend toward outsourcing maintenance, Qantas said it intends to establish a new consolidated "center of excellence" in Sydney for maintenance of Rolls-Royce RB211 engines. However, the airline also said it will eliminate 60 positions from its Sydney workforce as a result of consolidation and the establishment of Jet Turbine Services, a joint venture with Virgin Blue parent Patrick Corp. for maintenance of CF6 and CFM56 engines in Melbourne. The consolidated facility will employ around 300.
Republic Airways Holdings acquired three Embraer 170s previously ordered by US Airways. They will be leased from GE Commercial Aviation Services and placed into service on the Republic Airlines operating certificate for service in the US Airways Express network.
Air New Zealand, which announced an 8% improvement in net earnings to NZ$180 million ($125.6 million) for its June 30 fiscal year ( ATWOnline, Aug. 30), is reconstructing its service strategy for the Tasman in a bid to become more cost-competitive as a sharply rising fuel bill and falling yields threaten to reduce profit by 40% for 2005-06.
A strategic plan outlining future cooperation between SN Brussels Airlines and Virgin Express is to be presented to the board of parent SN Airholding today, Virgin Express MD Neil Burrows confirmed to ATWOnline.
Alitalia denied press speculation that it is increasing its planned workforce reduction to eliminate an additional 2,000 jobs as part of a revision to its business plan.
China Southern Airlines said it finalized an earlier commitment for 10 787s, part of a commitment from six Chinese airlines for 60 Dreamliners announced in January. The first 787 will be delivered to China Southern in July 2008, one month prior to the start of the 2008 Summer Olympic Games in Beijing. The remaining aircraft will be delivered through 2010. Last month, China Eastern, Air China, Shanghai Airlines and Xiamen Airlines said they had signed up for 42 787s ( ATWOnline, Aug. 9), leaving only Hainan Airlines to consummate an order for six.
General Electric said Republic Airways signed a 10-year, $150 million OnPoint Solutions service agreement covering maintenance, overhaul and repair of 110 CF34-8E engines powering its Embraer 170s. OnPoint services include overhaul, on-wing support, new and used parts, component repair, technology upgrades, engine leasing and diagnostics.
United Airlines awarded a five-year contract covering all of its 777 heavy airframe maintenance to Ameco Beijing, the 60/40 joint venture between Air China and Lufthansa. Value of the deal was not supplied. More than 50 heavy maintenance visits are planned for the first three years, with as many as 80 over the contractual period. Work begins in October with five aircraft nose-to-tail, Ameco said. United's 777 fleet numbers 53 aircraft of which 52 are in service, according to Airclaims data.
ARINC was selected as data link service provider for AeroMexico. Under a contract just signed, ARINC will provide its GlobaLink VHF data link service to the carrier.
Arab Air Carrier Organization said its 23 member airlines transported 9.1 million passengers in the first quarter of 2005, up 6.7% compared to the year-ago period. Based on data from most of the carriers, RPKs for the group rose 8.7% to 1.9 billion while ASKs grew 7.1% to 2.78 billion. Load factor improved slightly to 68.6% from 68.4%.
