Scandinavian Airlines reached agreement with Amadeus on a new distribution contract that will ensure its product is available to Scandinavian travel agents while also addressing its concerns over the high cost of using the GDS channel. The airline did not provide terms of the deal but said it is "a step in the right direction," adding that it is in negotiations with all its GDS providers "to obtain lower distribution costs." It intends to "alter its current full content strategy" as of Oct.
Malev Hungarian Airlines' privatization process failed for the fifth time. State Privatization and Holding (APV) cancelled the sale Friday. According to Budapest Business Journal, the board of APV decided that none of the bids met its expectations and closed the tender. The sale had been criticized by some, with both opposition party Fidesz and the airline's trade union calling for a halt citing various reasons.
US Airways Group earned $2.3 million in July net of $7.2 million in Chapter 11 reorganization-related expenses. Comparisons with the year-ago period were not supplied. In its monthly operating report to the bankruptcy court, the carrier also said it achieved an operating profit of $33.6 million on revenue of $678.3 million. Operating expense totaled $644.7 million. Fuel was the largest expense category at $161 million, followed by labor costs at $139 million.
Goodrich Corp. was selected by China Cargo Airlines to supply the main deck and lower lobe cargo handling systems for its two new 747-400ERFs. The Goodrich cargo system includes the mechanical system, power drive units, electrical control system and floor panels. The aircraft will be delivered to China Cargo in July 2006 and August 2007.
Malaysian government ministers are talking openly of the need to restructure Malaysia Airlines' unprofitable domestic services. Yesterday, Transport Minister Datuk Seri Chan Kong Choy told a press conference, "We are mindful of the urgency." Earlier this week, Malaysia Airlines MD Ahmad Fuaad Dahlan announced his retirement after a 32-year career with the carrier as it reported a loss of MYR280.7 million ($74.5 million) for the three months ended June 30. He was named MD in April 2004 ( ATWOnline, Aug. 23).
Shandong Airlines' application to operate flights to Hong Kong and Macau was approved by CAAC. Shandong operates a fleet of 737-300s and CRJ200s/700s and has 737-700/-800s on order. It serves 43 domestic destinations and Singapore.
As part of the integration of Swiss International Air Lines into the Lufthansa system, the carriers announced they will operate all services between Switzerland and Germany, a total of 563 weekly flights, as codeshare flights with introduction of the 2005-06 winter schedules from Oct. 30.
Rockwell Collins said its Airshow 4200 moving map system received a "technical offerability recommendation" from Boeing and can be offered on all models of the 737, 747, 767 and 777. Deliveries of Airshow 4200-equipped aircraft will begin in October.
TAP Portugal and Swiss International Airlines concluded a commercial cooperation agreement including joint marketing and codesharing on all flights between Portugal and Switzerland beginning Sept. 1. In the first stage, the Star Alliance partners will codeshare on all flights from Lisbon to Zurich and from Lisbon and Oporto to Geneva. In the next phase, they intend to extend their codeshare operations to destinations beyond Zurich and Lisbon.
Tiger Airways CEO Tony Davis told Channel NewsAsia that it will take up to three years for the low-cost carrier to post a profit. It previously forecast a profit in its first year. Davis, the airline's second CEO, told Channel NewsAsia that he hopes Tiger will be able to launch flights to China and India shortly. The LCC is owned by a consortium of Singapore Airlines (49%), Irelandia Investments (16%), Indigo Partners (24%) and Temasek Holdings (11%).
United Airlines parent UAL Corp. said it achieved an operating profit of $113 million in July, more than double the $51 million earned in July 2004, in spite of a 46% rise in fuel price between the periods that added $127 million to operating expenses. Mainline unit cost rose 5% on a 5% decline in ASMs, but actually fell 5% if fuel expense is excluded. Passenger unit revenue jumped 9%.
Volga-Dnepr Airlines said it will acquire five new An-124-100M-150 freighters from Aviastar-SP. The freighter is an improved version of the An-124 outsize and heavyweight cargo aircraft and has a capacity of up to 150 tonnes. Deliveries are set to begin in 2008. The announcement came a day after Volga-Dnepr Group reached agreement with Russia's Vnesheconombank regarding financing arrangements for the resumption of An-124-100 production and the IL-76 freighter modernization program ( ATWOnline, Aug. 23).
Estonian Air will raise its fuel surcharge from €8 to €12 from Sept. 1. The carrier said it has been able to keep the surcharge at the April 2004 level until now despite a price hike of 68% during the period.
Qantas again raised its ticket surcharge for international and domestic passengers as it faces a A$1.25 billion increase in fuel costs this year. From Sept. 2, the domestic one-way fuel surcharge will lift from A$20 ($15) to A$26, international from A$60 to A$75 and transtasman from A$40 to A$46. Chief Executive Geoff Dixon said the decision was made "reluctantly" and noted that "the volatility of current and future oil and jet fuel prices is a serious issue for all airlines." Qantas is 90% hedged at about $49 a barrel until December.
Embraer installed Europe's first flight simulator dedicated to training crews of the 170/190. The CAE simulator is based at Swiss Aviation Training in Zurich.
FKI Logistex announced the launch of its CrisBag baggage handling system in North America. CrisBag uses RFID-tagged baggage totes to offer "complete sort-and-trace capability," the company said.
British Airways said it reached a new deal with its Heathrow catering supplier Gate Gourmet that "paves the way for a return to full catering onboard all British Airways flights at Heathrow." According to the airline, the accord "improves and extends the commercial arrangement" between the companies that has been at the center of a labor dispute involving Gate Gourmet and its own employees and that spread to BA with disastrous effects earlier this month. The caterer had warned of an imminent bankruptcy filing absent a new contract.
Airline traffic (passengers) will grow at a rate of 4.1% per year over the next 15 years, resulting in a doubling in the number of passengers to 7.4 billion by 2020 compared to today and overwhelming the available airport and airspace infrastructure, according to a study by Geneva-based Airports Council International.
Air New Zealand and Qantas eventually will forge an equity tie-up, according to outgoing ANZ MD and CEO Ralph Norris. Speaking with ATWOnline, Norris said there "is a good chance that the deal will go through. It makes common sense." Last year the Australian Competition Tribunal, which was able to consider new evidence, overturned the Australian Competition and Consumer Commission's rejection of Qantas's proposed purchase of a 25% stake in ANZ. The NZ High Court, which was not permitted to consider new evidence, upheld the NZ Consumer Commission's rejection of the deal.
TeamSAI and Cavok Group announced a collaborative marketing agreement. Cavok offers FAA certification support solutions for startup airlines and those transitioning to ATOS or FAR 121 certification. It also provides custom inspection programs and reliability engineering to airlines, OEMs and MROs. TeamSAI's aviation consulting practice includes strategic business planning solutions, financial and operational performance optimization, fleet acquisition support, planning, technical and implementation services and executive recruiting and support.
AirAsia launched what it claims is the world's first online booking service linking its Internet booking system with mobile phones and wireless devices. Developed by eSpherical.com, the offering allows mobile phone and PDA users with any GPRS, 3G, EDGE or wireless facilities to view the airline's Web pages directly. The service provides AirAsia customers the ability to search for flights, book, use a credit card to pay and receive flight confirmation and itinerary details from anywhere in the world 24 hr. a day.
Virgin Blue is at the center of a hostile takeover bid involving its major shareholder that could see Richard Branson's Virgin Group re-emerge as the controlling influence in the low-fare airline. Transport conglomerate Toll Holdings has launched a A$4.6 billion ($3.5 billion) offer for Patrick Corp, holder of a majority 62.4% stake in Virgin Blue. If Tolls succeeds, Patrick's shareholding will be cut to 27% with Virgin Group agreeing to lift its own holding from 25% to 40.6%.
General Electric said Singapore Airlines signed a 10-year OnPoint Solutions service agreement for maintenance, overhaul and repair of the GE90-115Bs that will power 19 777-300ERs entering service in 2006. The OnPoint Solutions agreement is the first for the GE90.
Korean Air moved to take a stake in China's first private low-cost airline Okay Airways, which leases 737-900s from Korean. Okay commenced operations in March from Tianjin just south of Beijing. The maximum foreign equity allowed is 49% with a cap of 25% from any one foreign company.
