Susumu Yamaji, former president and chairman of Japan Airlines, died in Tokyo May 27 at the age of 80. Yamaji joined JAL in July 1985 after a career in the Ministry of Transport and other government agencies. He was appointed president in December 1985 and helped to restore the airline following the August crash of a 747 in which 520 people were killed. He also oversaw the privatization of JAL in 1987. In June 1990 he was appointed vice-chairman, subsequently becoming chairman in 1991. He retired from the chairmanship in June 1998 but continued to serve as an adviser.
Air New Zealand will not reapply for regulatory approval for an equity alliance with Qantas. Speaking to ATWOnline in Kyoto at the Star Alliance AGM, ANZ CEO Ralph Norris said the airline is looking at some "cooperation with Qantas" but an equity alliance is off the agenda. The carriers fought a two-year battle with regulators for Qantas to take a 25% stake in ANZ in a far-reaching alliance. Both applications initially were rejected last year but an appeal to the Australian Competition Tribunal was successful, opening the way for a fresh bid.
Lufthansa is expanding its Lufthansa Private Jet to Frankfurt, citing a "thoroughly positive" customer response since the service was launched at Munich on March 29. From June 1, first and business class passengers flying LH from Frankfurt to any destination worldwide can arrange to purchase travel to Frankfurt by Lufthansa Private Jet. Likewise, passengers arriving at FRA aboard long-haul flights can connect to more than 1,000 airports throughout Europe. Private Jet flights depart from and arrive at Egelsbach Airport close to FRA.
Gol, although it is facing "intense" price competition in the second quarter that has caused yields to decline, reaffirmed its financial outlook for 2005. The carrier said it still expects net revenues of roughly 3 billion reais ($1.32 billion) and anticipates delivering an EBITDAR margin of 38%-40% and an operating margin of 27%-29%.
The market for 30/60-seat regional jets is "reaching maturity," but 50-seat RJs will remain the backbone of the US fleet, according to Rolls-Royce Senior VP-AE Business Joe Dunne. Rolls manufactures the AE3007 engine that powers the Embraer 135/140/145 family of RJs.
Northwest Airlines will stop carrying all magazines except its own inflight magazine on all of its flights and in its airport lounges in a move it said will cut roughly $565,000 in expenses per year. In addition to the cost savings, a spokesperson said the carrier has concerns with the operational and financial viability of the vendor who provides the magazine service. American Airlines eliminated magazines after 9/11.
SAS Cargo reported an EBT of Sek12 million ($1.6 million) for 2004, its third consecutive profitable year. Turnover totaled Sek2.83 billion but yield continued to fall owing to overcapacity in the market that drove prices down, along with decreasing rates in the US.
Fares continued to fall, oil prices continued to rise. That sums up the experience for the 11 largest US passenger airlines in the first quarter ended March 31. In aggregate, they posted a net loss of $3.2 billion for the period, more than double the $1.54 billion shed in the prior-year period. Losses were not spread evenly, however, as two airlinesDelta and Unitedspilled $2 out of every $3 in red ink, much of it owing to special charges related to their respective restructurings.
Although the sky-high energy prices of the past 18 months have created major hardships for the airline industry and driven a few to the edge of the financial abyss, a positive side effect for beleaguered legacy carriers has been the stifling of interest in spreading the low-fare revolution into the arena of long-haul intercontinental services. Even investors with kerosene in their veins know that with Brent crude pushing $54 a barrel, this is not the time to take a flyer on a couple of used 747s or even 767s to fly between New York and London.
The principles of radio frequency identification have been around since development of the Identification Friend or Foe system in World War II. But it is only recently that the technology is being seen as a key contributor to the airline industry, though it is widely in service in the logistics, supply-chain, retailing and other commercial businesses.
The models strutted and sulked their way across the stage as the crowd of fashionistas watched and cheered. But this was not the spring reveal of one of France's top haute couture houses; it was the culmination of a business decision made three years ago by Air France. Airlines change liveries and now it was time for a change of clothes. Renewing its uniforms is always an important decision for an airline,AF-KLM Group Chairman and CEO Jean-Cyril Spinetta said at the April fashion show here. First and foremost, it is an image, a symbol of its history, its value and culture."
Does radio frequency identification technology meet the 2-10 rule coined by Microsofts Bill Gates, which states that most new innovations are hyped endlessly during the first two years but take a decade to become truly useful? Depends whom you talk to.
My mind clicks on and off. I try letting one eyelid close at a time while I prop the other open with my will. My whole body argues dully that nothing, nothing in life is quite so desirable as sleep. My mind is losing resolution and control.
The mini-explosion of new travel meta search players has occurred largely in the leisure market. But a young company called Enable Solutions is setting its sights on the business traveler. Its product, dubbed mySmartTrip, is designed to accommodate business travelers needs as no other travel meta search engine does, according to Stephen Joseph, chief executive officer. But it has another salient feature that might make suppliers sit up and take notice: It costs them absolutely nothing.
Amadeus is developing a common, open-architecture distribution platform for hotels, similar in approach to its Altéa airline platform. The goal is to address the issue of fragmented hotel technology disparate property management, central reservations, revenue management and customer relationship management systems and to create a platform that distributes hotel inventory through all channels and integrates with all systems. Amadeus worked with British Airways and Qantas to design the Altéa platform, and it plans to replicate that experience on the hotel side.
In Europe, local emission charges already are in place at a few airports. Airlines may be assessed not only for the stuff coming out of the engines but for pollution caused by automobile traffic to and from the airport. More is on the way. Although international aviation was relegated to the too hard pile in the Kyoto Protocol to the UN Framework Convention on Climate Change that became effective in February, there was then and remains a determination to bring it into compliance.
Citing the European Commission's "unwillingness to halt new subsidies for large civil aircraft" including the proposed A350, the US yesterday filed a request for the establishment of a World Trade Organization dispute settlement panel to resolve the matter. "We continue to prefer a negotiated solution, and we would rather not have to go back to the WTO. But the EU's insistence on moving forward with new launch aid is forcing our hand," said US Trade Representative Rob Portman, who cited EU "plans to commit $1.7 billion in new risk-free launch aid subsidies" for the A350.
B/E Aerospace was selected by Air Canada to perform an upgrade of the airline's seating on 143 aircraft. Under the deal, B/E will manufacture and deliver its Spectrum family of coach and first class seating for AC's Hospitality Service and Executive Class on its narrowbody fleet and new Bombardier regional jets. AC's widebody aircraft also will be equipped with Spectrum economy seats. Total value of the deal is roughly $50 million and deliveries are expected to begin later this year.
United Airlines appears to have avoided potentially crippling strike action after reaching an agreement in principle on a new contract with 20,000 ramp agents and customer contact employees represented by the International Assn. of Machinists.
AAR was selected by Brit Air, a subsidiary of Air France/KLM Group, to provide logistics support and component repair services for the carrier's fleet of 19 CRJ100s and 12 CRJ700s. The three-year program will be managed through AAR Aircraft Component Services-Amsterdam.
IATA DG and CEO Giovanni Bisignani continued to hammer the message that governments need to stop treating the airline industry as a cash cow. Speaking at the 61st IATA AGM in Tokyo Monday, Bisignani claimed that "in the US, taxes on a $200 ticket average 26%. This is a $15 billion ripoff." On top of this, he said, the industry "pays $5.6 billion a year for its own security, while our rail competitors are subsidized by $50 billion a year."
Alaska Airlines and its pilots have reached a tentative agreement on a new five-year contract that if ratified will supersede the two-year deal that took effect at the beginning of May after an arbitration decision ( ATWOnline, May 3). According to the carrier, the new contract includes a 20% reduction in both captain and first officer wages as well as work rule changes that will result in "significant productivity improvements." It also allows present employees to choose between the current pension plan and a defined contribution retirement benefit.
IATA reported a 7.5% increase in traffic for April compared to the year-ago month. Capacity also rose, climbing 7.6%, and load factor stood at 73.4%. Cargo traffic increased 5.3% on capacity growth of 6.8% during the month. For the four months ended April 30, RPKs jumped 8.7%, capacity climbed 7.6% and load factor stood at 73.6%. Cargo traffic for the four-month period rose 4.7% and capacity increased 7.5%. "Passenger traffic growth of 8.7% shows that demand for travel is strong. Slower cargo growth of 4.7% reflects a general slowdown in global economic activity.
UK and New Zealand initialed a new aviation agreement on air services that removes almost all restrictions on flights between and beyond the two countries. It also applies state aid rules to ensure a level playing field for competition and liberalizes arrangements on a wide range of other issues, including marketing arrangements, ground handling and other operational matters. The previous agreement limited flights between the countries to seven per week for each side.
European Commission is seeking comments from potential opponents or supporters of the Lufthansa-Swiss merger, Reuters reported last week. The EC will decide by June 20 whether to approve the transaction without conditions, seek changes on competition grounds or launch a longer probe.
