The move is a natural progression for JetBlue, which serves 11 U.S. cruise ports. The carrier is working with EzRez, the Honolulu-based software company that specializes in dynamic packaging. The booking engine will have a completely new interface and will use XML connections to pull in pertinent cruise data.
The party's in gear, everybody's invited, the music is playing and yet amid the mirth on the dance floor there are sad faces, going through the motions of having good times yet enjoying not a bit of it. And so it goes with the airline industry halfway through 2005, five years since the start of the downturn and almost four years since the attacks of 9/11 put an air-tight lid on the industry's fun and booted it down the stairs: Some are doing great and some are hating life.
AeroMexico appointed Jose Kuri Orvananos senior VP-US div. Airports Council International-North America selected Gregory O. Principato as its new president. Alaska Airlines welcomed Amanda Tobin as mgr.-media relations. Alteon Training named Keith Williams VP-Asia/Pacific region. Astar Air Cargo tapped Jeff Miller as dir.-human resources. ATA Holdings chose Francis J. Conway as interim CFO, Subodh Karnik as senior VP & chief commercial officer and Mark Suman as MD-market planning. Aviareps appointed Gulio Santoro GM.
Air France-KLM Group restated its results for the fiscal year ended March 31 in accordance with IAS/IFRS. As a result, net income rose to €770 million ($929.7 million) under IFRS against €351 million under French GAAP after the writeback of negative goodwill in respect of the KLM acquisition. Turnover remained unchanged at €19.08 billion but operating income before other nonrecurring income and expenses jumped to €534 million under IFRS from €489 million under French GAAP.
SAS Group and Carlson Hotels Worldwide completed a previously announced agreement under which SAS sold a 25% shareholding in its Rezidor SAS hotels company to Carlson Hotels Worldwide in exchange for which Rezidor SAS Hospitality Group achieves improved commercial terms and extension options until 2052 of its Master Franchise Agreements ( ATWOnline, March 15). The agreement is expected to improve Rezidor SAS profitability by €6 million ($7.3 million) in the second half of 2005 and €11 million on an annual basis.
Qantas's ambitions to establish a low-cost beachhead in Asia appear to be hanging in the balance after its Jetstar Asia joint venture confirmed it is in alliance talks with another Singapore-based LCC, Valuair.
Skybus Airlines, a proposed low-cost carrier to be based in Columbus, Ohio, named as its CEO Bill Diffenderffer, former CEO of SystemOne Corp. and its successor SystemOne Amadeus. Most recently, Diffenderffer served as a partner in IBM's Global Travel and Transportation consulting practice and from 1998 until 2001 he was chairman and CEO of XTRA On-line, a developer and provider of Internet-based travel planning and reservation software.
Japan Airlines has thrown the 767 program a lifeline to bridge production until a possible USAF tanker order is finalized, placing an order for six 767-300ERs consisting of three freighters and three passenger models. The order will take JAL's fleet of 767s to 46, of which nine are on order. They will be powered by CF6-80C2s and will be delivered in 2007-08.
American Airlines Cargo will increase its fuel surcharge from $0.40/kg. to $0.45/kg. for most US-origin international shipments and from $0.16/lb. to $0.18/lb. for US domestic shipments from July 12. The fuel surcharge also will be adjusted in local currency for most non-US-origin shipments unless the adjustment is not allowed for regulatory reasons.
Assn. of Asia Pacific Airlines May figures show a 7.3% hike in passengers to 10.1 million while RPKs rose 5.9% on a slightly higher capacity increase of 7.2%, resulting in a 0.8-point decline in passenger load factor to 67.6%. FTKs dipped 1.9% during the month on a capacity increase of 3.9%, producing a 3.8-point drop in freight load factor to 64.4%.
Icelandair parent FL Group reported a first-quarter profit of 25 million kronur ($382,021), a significant improvement over the 855 million kronur net loss (as calculated by this website) in the prior-year period. The company said first-quarter results were characterized by "large profits from investment activities," which were the basis for its earnings improvement. Turnover rose 7.4% to 7.8 billion kronur while operating costs climbed 10.6% to 9.4 billion kronur primarily owing to increased wages and fuel costs, which were up 28% year-over-year.
Swiss International Air Lines will raise its fuel surcharge again on July 1. The surcharge will jump to CHF53 ($41.40) from CHF48 per leg on long-haul flights and to CHF20 from CHF18 for European flights.
US Airways posted a $37.9 million net loss and an operating loss of $10.4 million in May, the carrier said in a filing with the US Securities and Exchange Commission. Total operating revenue for the month was $625.3 million and total operating expenses came in at $635.7 million. According to the filing, the company actually spent more on fuel ($141.4 million) than on personnel costs ($140.1 million) during the month.
International airline traffic (RPKs) rose 8.8% in May compared to the same month last year, according to IATA. With capacity (ASKs) up 7.3%, passenger load factor improved to 71.9%. However, May freight traffic (FTKs) declined 1.6% year-on-year on a 6.9% increase in capacity. "As a leading economic indicator, the slowdown in cargo traffic demonstrates that the high price of oil is slowing the global economy faster than expected," said IATA DG and CEO Giovanni Bisignani.
Rockwell Collins issued a Service Information Letter certifying that Blue Sky Network's Iridium satellite phone system is a qualified data channel for its Airshow 4000 moving map and inflight information system. The Blue Sky Network system is also certified for the current fleets of Airshow Network (Genesys) customers.
Although its previous attempts have failed, Northwest Airlines again is boosting fares to try to offset rising fuel prices. According to a recorded message to employees, effective Tuesday the carrier raised its fares that match low-cost competitors by $5 each way, raised business fares that have been capped at $499 by $50 each way and expanded the minimum stay for fares not specifically matching an LCC from one to two nights.
SAS Technical Services AB will cut about 120 jobs in its medium and heavy maintenance organizations in Norway and Sweden and 80 jobs in its line maintenance operation in Norway out of a total workforce of 3,700. The layoffs are part of SAS Group's Turnaround 2005 program.
Milan Linate and Malpensa operator SEA will not be the subject of an IPO, the City of Milan governing authority has decided. However, a plan to sell off a 34% stake in the company to financial and institutional investors in Italy and abroad was approved. The city holds 84% of SEA and had considered listing it this year. The full municipal authority is scheduled to clear the sale on July 10 with sale proceedings starting in September, AFX reported. "The operation will amount to €600 million ($725.9 million).
Aviapartner began ground handling French scheduled carrier Aigle Azur in Marseille, Lyon, and Toulouse this month. Aviapartner already handled the airline in Lille and Mulhouse. The new deal also covers Aigle Azur's charter flights at Nantes, operated with A321s.
Korean Air reported a 5.5% increase to 4.04 billion RPKs in May. Despite a drop in domestic traffic and slowing passenger flow to Japan and Southeast Asia, traffic between Korea and China jumped 32% to 204.4 million RPKs. Capacity between the two countries also climbed, rising 14.5% to 292.5 million ASKs. Capacity on European operations was up 24.1% while RPKs increased 15.9%. To the US, ASKs grew 14.9% and RPKs 7.1%.
Air New Zealand is planning to make radical changes to its short-haul operations in the Tasman and South Pacific markets to cut losses in a move that is expected to have an impact on Qantas's cost-cutting plans. Over the next 18 months, the airline will integrate its ANZ brand and low-cost Freedom Air leisure carrier under one operational umbrella built around the latter's cost model, with the two airlines' A320 fleets placed on the same AOC "to gain efficiencies from a single fleet type." The move will not affect ANZ's regional and long-haul operations.
United Airlines parent UAL Corp. reported a net loss of $93 million for May, which included $36 million in reorganization items. This is on par with the $93 million net loss the company reported for May 2004, of which $58 million represented reorganization expenses. UAL posted an operating loss of $21 million for the month compared to an operating profit of $9 million in the year-ago period.
Virgin Atlantic said business-class travel increased 26% in its last financial year. During the 12 months ended Feb. 28, the airline carried 352,095 Upper Class passengers, up from 279,714 in the previous 12 months. This produced an Upper Class load factor of 56%, "the highest enjoyed by the airline since 2000," it noted.
SriLankan Airlines Cargo Center at Bandaranaike International Airport handled an all-time high 146,883 metric tons of cargo in 2004. Previously, the highest total the carrier handled was 127,116 tonnes in 2000. The company said it expects to handle even more cargo this year.
Qatar Airways will add 11 weekly frequencies to India following the recent successful round of bilateral discussions between the countries. Qatar currently operates 19 scheduled flights a week between Doha and Cochin, Trivandrum, Hyderabad and Mumbai. From July 14 it will add New Delhi with seven services a week, flown initially with A320s in a 144-seat, two-class configuration and later with A330s offering three classes of service. From July 15, the Mumbai route will increase from six services a week to daily with the introduction of a new Friday night flight from Doha.
