Niki Lauda told ATWOnline that his low-cost carrier Niki, a partner of Air Berlin, is expecting a passenger increase from 940,000 in 2004 to more than 1 million this year. "Now we have to evaluate whether to add a sixth A320 in 2006, one year earlier than scheduled," he said. In addition, Niki, which operates from bases at Vienna and Salzburg, is looking for a third hub, which could be located outside Austria, possibly in nearby Bratislava. It flies four A320s and one A321, and after the summer season the A321 will be replaced by a new A320 from an order for 10.
United Airlines late Tuesday announced it was implementing a 3% fare increase on most US domestic and international published fares, effective immediately. The increase came on the same day the price of oil briefly flirted with $60 a barrel, a new record. "With oil continuing to trade at historically high levels, all industries must act responsibly to offset rising costs. . .We are confident our customers will understand that we must take appropriate measures to mitigate our higher fuel costs," said Executive VP-Marketing, Sales and Revenue John Tague.
American Airlines said it made a $75 million contribution to its defined benefit pension plans, bringing its total contribution to the plans in 2005 to more than $200 million. AA employees, led by Chairman and CEO Gerard Arpey and leaders of the pilot, flight attendant and mechanic unions, lobbied in Washington yesterday in favor of pension reform legislation. AA noted that with its defined benefit pension plans funded at about 80%, "it has the best-funded defined benefit plans in the industry."
Evans & Sutherland Computer Corp. announced that Lufthansa Flight Training-Berlin purchased an EP-1000CT visual system for use on a new A320 simulator ordered from CAE.
FLYi Inc. shareholders approved a request by the board of directors to effect a reverse stock split in an effort to avoid delisting by NASDAQ. The parent of Independence Air has until Nov. 23 for its shares to trade above the $1 threshold for at least 10 consecutive days. The reverse split could range from 1:2 to 1:10.
CAE shareholders agreed to the transfer of the company's head office from Toronto to Montreal, where CAE was founded in 1947. The firm employs more than 2,800 in the Montreal area and generates some $70 million into the economies of Montreal and Quebec.
Qantas denied a report in yesterday's Sydney Morning Herald newspaper that the airline "could issue a profit downgrade as early as Friday." Chief Executive Geoff Dixon said Qantas "would meet the current market expectations" for the fiscal year ending June 30, 2005.
Emirates will invest $38.8 million to build a luxury conservation resort in Australia's Blue Mountains. According to the company, the development will be built on farmlands that currently border the Gardens of Stone National Park, with guest facilities occupying less than 2% of the total land. "We want to take this beautiful but sadly distressed rural farming site and turn it into a sanctuary to further showcase Australia to the world," said Emirates Chairman Sheikh Ahmed bin Saeed Al-Maktoum. Opening of the resort is planned for 2007.
The labor agreement that would have permitted Air Canada to go forward with its order for up to 36 777s and 14 787s ( ATWOnline, June 21) was rejected primarily by Air Canada pilots unhappy over the integration of Air Canada and Canadian Airlines seniority lists following AC's purchase of its cross-country rival in 2000, the Air Canada Pilots Assn. confirmed Monday. Of pilots who voted, 54% opposed the agreement, which would have set pay rates and working conditions for 777 flightcrew.
Ryanair, while warning that its fuel costs will be higher than expected if oil prices stay at current levels, maintained its earnings guidance for its current financial year. The LCC is unhedged on fuel until September, but from that point it has hedging in place for 90% of its fuel needs at $47 per barrel. "If it stays at $60 through the remainder of the summer and the winter, our fuel bill will be higher than originally predicted," CEO Michael O'Leary said at a press briefing in London.
Vietnam Airlines yesterday signed a firm agreement with Boeing to purchase four 787-8s at a signing ceremony in Washington. The deal was announced in December ( ATWOnline, Jan. 4). The aircraft, valued at $500 million at list prices, are scheduled for delivery in 2009 and 2010. The agreement also includes purchase rights for 11 additional aircraft in the 2010-13 timeframe. Engine selection was not announced. The carrier plans to use the 787-8s to expand its route system and replace some existing aircraft.
United Airlines carried its 3,888,888th passenger from the US to China. It currently operates four daily services to China, flying from San Francisco and Chicago to Beijing and Shanghai.
US mainline system revenue per ASM for the eight largest US passenger airlines (excluding Southwest) rose 5.2% in May compared to the year-ago period on a 2.4% increase in capacity, according to JP Morgan, which cited data from the Air Transport Assn. Yield was up 0.6%--the first year-on-year increase since July 2004--and revenues climbed 7.7%. JP Morgan's Jamie Baker described the RASM rise as "stronger than expected."
Continental Airlines yesterday said it applied to the US National Mediation Board for the immediate appointment of a federal mediator to help in its negotiations with its flight attendants. Earlier this year, the flight attendants rejected a tentative agreement, becoming the only workgroup at the carrier that did not ratify a new deal ( ATWOnline, April 1). Continental has said it needs $500 million in annual pay and benefit savings from its employees and has achieved roughly $418 million of that total.
Actel Corp. announced that it has provided field-programmable gate arrays and intellectual property core modules for a number of applications onboard the A380. More than 700 devices from the company's ProASIC Plus and SX-A FPGA families have been designed into the following applications: Flight computers, engine control monitoring, braking systems, safety warning systems, cabin air conditioning and pressurization and cockpit displays.
United Airlines is offering a 5% discount for residents of Washington on flights departing from any of the three D.C.-area airports purchased through the carrier's website. The offer is good for tickets booked between June 21 and Aug. 31 and the travel period for the deal is June 21 to Oct. 31.
Smiths Detection has formed a strategic partnership with Paladin Capital Corp., a private equity investment firm based in Washington. Smiths said the relationship aligns it with a partner "focused on investing in homeland security technology businesses."
TAP Portugal ended negotiations to acquire a 20% stake in Varig following the Brazilian carrier's bankruptcy filing Friday. The bankruptcy filing voided the agreement, a senior Varig official told the Associated Press. The carrier will continue to operate as it seeks to reorganize under the New Bankruptcy and Restructuring Law of Brazil, which took effect June 9 and is similar to US Chapter 11. The filing became necessary, Varig said, to prevent lessors from repossessing aircraft for which payments are in default.
Continental Airlines named Mike Bonds senior VP-human resources and labor relations replacing Michael Campbell, who retired at the end of 2004. In this position, Bonds will be responsible for all of Continental's human resources and labor relations including compensation, benefits, staffing and corporate training. Bonds, who has served as VP-human resources since 2003, will continue to report to President Jeff Smisek.
Following a meeting with senior management, leaders of the pilots union at America West Airlines expressed "deep concern" that AWA management continues to ignore "reasonable requests to help the union protect its membership" if the proposed merger with US Airways is approved.
LTU German Airlines, which will offer low-fare scheduled service under the brand City Quickies by November, is expecting the arrival of a new financial investor. MD Juergen Marbach told the German daily Welt am Sonntag that in a few days a positive acceptance from a potential investor could be announced.
