Amadeus this week will unveil the first components of a new next-generation distribution technology platform for the hotel industry. As a first step, Amadeus has completed the migration of the 75,000 hotel properties that participate in its GDS from a system based on TPF (transaction processing facility) to a Linux platform, Jérôme Destors, deputy managing director of Amadeus' Hospitality Business Group, said. All hotel GDS operations are now running on the open-systems platform.
'IT'S NOT TOO FAR, IT JUST SEEMS LIKE IT IS' I first experienced the above quote from the legendary baseball player Yogi Berra in an airline purchasing executive's office. The subject was a proposed modification on a cabin pressurization switch, and there was general agreement from the vendor and those from maintenance and materials. "Everyone loves this mod," I remember someone said. "But these systems are problematic to line maintenance and pilots. Replacing manual cabin pressurization with electronic results in higher reliability, more comfort for passengers."
BASED IN COPENHAGEN but with warehouses scattered around the globe, Satair is one of the leading distributors of aircraft production parts and spares. In the year to June 30, 2007, it boasted revenues of almost $360 million, up 37% from the previous year. Of this growth, 18% was organic with the remainder attributable to acquisitions that made a sizeable contribution. For the current FY it is forecasting revenue in the range of $400-$410 million, up 13%, reflecting a period of consolidation following considerable acquisition activity in the last couple of years.
IT WAS 1 P.M. ON A TYPICAL SUMMER afternoon at Los Angeles International. WestJet Flight 900, a 737NG from Calgary that had just landed, held between parallel Runways 24R and 24L as directed by the LAX tower. "Without authorization, the WestJet crew changed radio frequencies and contacted ground control," according to the US National Transportation Safety Board. The ground controller "assumed" that the 737NG had been "cleared to cross Runway 24L and provided instructions for the flight to taxi to its gate," NTSB said.
THE STRENGTH AND longevity of the current aircraft buying cycle continues to surprise, but is it a legitimate reflection of the underlying vitality of the global economy or a dot.com-like bubble that is soon to burst? Among aircraft financiers and asset managers with whom ATW spoke, the consensus is that it's the former.
The speed at which revenue is processed and understood together with the level of accuracy that results from certain accounting methods has been a growing concern in the airline industry for some time now. Greater processing complexity tends to drive cost up, and these days cost is a factor that most airlines can't afford to be complacent about.
DURING ITS DRAMATIC 19-MONTH stint in Chapter 11, the third-largest US carrier focused adeptly on costs, especially the folks in purchasing. "To put a bit of scale to it," says Shawn Anderson, Delta Air Lines VP-supply chain management, "we renegotiated over 2,000 contracts600 separate sourcing initiatives."
US airlines enjoyed another strong financial quarter in the three months ended Sept. 30, with the 10 largest carriers all in the black for the second straight reporting period and posting a cumulative net profit of $1.67 billion compared to a $738 million loss in the year-ago quarter. But executives worry that the next down cycle may not be too far away. Fuel costs are ascending rapidly and the US airline industry doesn't exactly have a history of long-term financial stability.
In addition, V Australia, Virgin Blue's new long-haul airline, will adopt the Amadeus Altea Customer Management System. The standalone solutions for the company's short-haul operations will manage connectivity on behalf of Virgin Blue's interline and GDS partners. They also will process incoming e-ticket coupons from interline partners, enabling Virgin Blue to receive passengers from full-service carriers such as Etihad and Virgin Atlantic.
Alaska long has been called America's last frontierthe final refuge for the restless, the risk-takers and the adventurers. But it also has been an entrepreneurial frontier, providing a chance to build business success from its vast expanses of undeveloped wilderness. The founding fathers of Alaska Airlines, marking its 75th birthday this year, were both adventurers and entrepreneurs. And certainly they were risk-takers, bush pilots par excellence who often literally flew on a wing and a prayer.
IATA estimates that the airline industry "may need 17,000 new pilots annually due to expected industry growth and retirements" and cautioned that training standards need to be revised in order to tackle a "looming" shortage. "It's time to ring the warning bell," DG and CEO Giovanni Bisignani told the FAA International Safety Forum yesterday. "We must re-think pilot training and qualification to further improve safety and increase training capacity. There are no global standards for training concepts or regulation.
Orbitz Worldwide and Priceline.com reached distribution agreements with JetBlue Airways. The Orbitz deal will make JetBlue inventory available on the Orbitz, CheapTickets and Orbitz for Business websites while the Priceline agreement will give the discount site full access to JetBlue fares under a multi-year deal.
Alitalia revised the deadline for nonbinding offers to Dec. 6 after receiving an update from its adviser, Citigroup, on potential industrial and financial investors who may bid for a majority shareholding. Air One/Intesa Sanpaolo, Lufthansa and Air France KLM reportedly remain interested ( ATWOnline, Nov. 21).
Coalition of Smaller Airlines, a group representing midsize US carriers including Virgin America, AirTran Airways, Spirit Airlines and Frontier Airlines, is lobbying the US Dept. of Transportation to ensure that any new traffic management rules at New York JFK ( ATWOnline, Nov. 29) do not unduly favor major international airlines. "We've got to find a solution. . .that doesn't shut out smaller airlines, which in many cases are offering premium service at lower fares," VA Vice Chairman Samuel Skinner said.
Russian court ruled yesterday that Boris Berezovsky, a longtime political enemy of Russian President Vladimir Putin who has been living in exile in the UK since 2000, fraudulently embezzled RUB214 million ($8.78 million) from Aeroflot when he maintained financial control over the carrier in the 1990s. He rejected the verdict as a "farce" and the UK government said it would not extradite Berezovsky to Russia.
Malev Hungarian Airlines announced that it will cut staffing levels by 9%, resulting in annual savings of HUF1.2 billion ($6.9 million). It did not say when the layoffs will take place. The carrier employs 3,508 and said it will cut a "maximum" of 250 workers even though 9% would equal 315. CEO Peter Leonov confirmed the 9% figure, saying that "besides reducing expenditures, optimization of the staff level is necessary primarily to ensure that 91% of the employees. .
Ryanair lodged yet another case in the European Court of First Instance against the European Commission for failing to act on the LCC's complaint about illegal state aid to Volare, a subsidiary of Alitalia. Ryanair claims the aid consisted of the writeoff of around €20 million in debts owed by Volare to Italian airports and reductions in airport charges and fuel costs in favor of the airline. Ryanair said it initially called on the EC to investigate the allegations two years ago.
Goodrich signed a 12-year agreement with LAN Airlines to provide MRO and asset management solutions for its fleet of V2500-A5-powered A319s and A320s. Goodrich's Alabama Service Center will refurbish thrust reversers and provide as-needed services for inlets and fan cowls. Goodrich also will supply on-site spares.
SITA Passenger and Travel Solutions and S7 Airlines launched online calendar booking this week via SITA Airfare Shop. S7 said it is the first Russian carrier to display all fares across multiple days and offer calendar-based booking for all domestic and international flights. It currently sells 6.3% of its tickets on its website and expects "further significant growth in 2008."
Rolls-Royce Trent 700s will power six A330 freighters owned by Aircastle. Deliveries are scheduled for 2010-11. Separately, Rolls signed a TotalCare services agreement with Singapore Airlines covering the Trent 900s on SIA's A380s. SIA selected the engine for its initial 10 aircraft. Deal runs to 2021 and work will be conducted at Singapore Aero Engine Services.
During a visit to Washington yesterday, IATA DG and CEO Giovanni Bisignani urged US officials not to employ congestion pricing at crowded US airports such as New York JFK and described President George W. Bush's recent efforts to alleviate flight delays as "a political placebo for a serious long-term illness."
ANA will pay cash for at least 20% of its order for 50 787s, or at least ¥140 billion ($1.3 billion), from the proceeds realized from its hotel sales ( ATWOnline, April 16), Senior VP-Finance and Accounting Eiji Kanazawa told Bloomberg News. It also will sell bonds and use loans backed by Japan Bank for International Cooperation. "We're not going back to the days of more than ¥1 trillion in debt," Kanazawa told Bloomberg.
AmSafe said FedEx Express now is using the AcuTemp RKN container, which employs compressor technology rather than dry ice to maintain temperature, for appropriate shipping services.
European Commission yesterday issued the sixth update of its airline blacklist, removing Suriname's Blue Wings Airlines and lifting the operating restrictions imposed on Pakistan International Airlines ( ATWOnline, July 6). Both carriers, however, will remain subject to prioritized ramp inspections at Community airports in order to ensure their "consistent adherence" to relevant safety standards.
