Jordanian government plans to retain a 26% stake in Royal Jordanian when it proceeds with the carrier's privatization later this year but may eventually sell, RJ President and CEO Samer Majali said. "I'm not sure that the Jordanian government intends to remain a shareholder over the long term," he said last week at ATW's Winning Airline Strategies conference in Washington, where he accepted the magazine's Phoenix Award.
Japan Airlines on March 25 will redeem ¥79.7 billion of convertible bonds due to mature in 2011, the company said in a stock exchange filing cited by Bloomberg News, which said investors had until Feb. 23 to convert the ¥100 billion of bonds into stock but that shares in JAL closed 32% lower than the bonds' conversion price. JAL said it is seeking a ¥60 billion credit line to help repay the bonds, according to Bloomberg.
News from Travel Technology Update: The European Commission asked for public comment on whether the Code of Conduct for Computerized Reservation Systems, first established in 1989, should be revised or abolished. The EC noted that since the last change to the Code of Conduct, most airlines have divested their holdings in GDSs. Of the four major GDS companies, only Amadeus still has some airline ownership: Air France/KLM owns 23.2%, and Lufthansa and Iberia each own 11.6%.
Open skies talks between the US and EU are set to resume today in Brussels with experts warning that the lack of an accord--or at least an initial agreement--could postpone a potential transatlantic air pact indefinitely and create increased tension for US-EU flight operations. "The US cannot surrender its role of leadership in the international aviation community," attorney Allan Mendelsohn, former assistant secretary for transportation affairs at the US State Dept., said last week in Washington at ATW's Winning Airline Strategies conference.
Air Transport Assn. board of directors, apparently hoping to forestall a push by consumer groups and politicians for so-called "passenger bill of rights" legislation, took the initiative at a meeting last week in Washington and said it is working to develop procedures for handling delays caused by extreme weather.
Qatar Airways installed an instant loyalty program enrollment kiosk in its business class lounge at Doha. The kiosk dispenses membership cards "within seconds" of the new member's registration.
Brian Rowe, a giant in the history of jet engines and a man closely associated with the rise of General Electric into the leadership position it currently enjoys in the jet engine business, died Feb. 22 following surgery. He was 75. Rowe led GE-Aviation from 1979 to 1993, serving as the division's president and CEO as well as a corporate senior VP.
German Chancellor Angela Merkel and French President Jacques Chirac jointly backed Airbus's Power8 restructuring plan Friday as a revised proposal put forward by EADS co-CEO and Airbus CEO Louis Gallois appeared to ease German opposition to the cost-cutting program, details of which could be revealed as soon as this week and likely no later than next week.
European Commission extended until June 13 its deadline to rule on Ryanair's €1.48 billion ($1.94 billion) hostile bid for Aer Lingus, both the EC and Ryanair confirmed yesterday, although neither offered a reason for the 20-day extension. The regulator set an initial deadline of May 11 to investigate worries that the acquisition would raise "serious competition concerns," ( ATWOnline, Dec. 22, 2006).
Airlines looking to make operational or marketing decisions based upon feedback from customers may be wasting their time, Aerobrand President David Hedley-Noble said yesterday during a forum dubbed "Winning Passenger Strategies" at ATW's Winning Airline Strategies conference in Washington. Aerobrand counts MAXjet Airways, Spirit Airlines, TACA, KLM, Lufthansa and Embraer among its clients.
Air New Zealand upgraded its long-haul Pacific Premium Economy service to include several features available in business class, such as pre-flight drinks, printed menus and amenity kits. ANZ added eight seats to its 747 PPE class last October. The upgrade also is available on 777s.
Airline Partners Australia may be facing a conflict of interest as it works to convince the government to approve its A$11.1 billion ($8.75 billion) buyout of Qantas ( ATWOnline, Feb. 22). The Australian reported that Lynton Crosby and Mark Textor, founders of the consulting firm credited with masterminding the ruling Liberal party's past four election victories, have been retained for A$50,000 by APA to lobby government ministers and members.
Virgin Blue could be a target for an equity buyout by Singapore Airlines, according to the Centre for Asia Pacific Aviation. Speaking to ATWOnline, CAPA Executive Chairman Peter Harbison said, "Virgin Blue's 62% owner, Australia's transport giant Toll Holdings, has again refused to rule out the possibility of liquidating its interest in the airline beyond the end of the current financial year to June 2007." He added that "this is near to an effective signal to the equity markets that Virgin Blue is up for bids." Some analysts believe Toll indeed is ready to sell down.
SkyWest Airlines named Russell Childs president and COO replacing Ron Reber, effective April 2. Reber will remain at the airline and work on special projects. Childs came to SkyWest as senior director and controller in January 2001 and was named VP and controller later that year.
The complexity of airline operations coupled with increased customer expectations have made development and implementation of reliable IT, communication with customers and accurate databases even more critical, according to a panel of industry experts who spoke yesterday at ATW's Winning Airline Strategies conference in Washington.
American Airlines wishes to become "the clear-cut airline of choice for passengers in the New York market" and yesterday unveiled a series of service enhancements and promotions designed to achieve that end.
Alitalia shareholders officially removed Giancarlo Cimoli as chairman and CEO yesterday and installed Banca di Roma Chairman Berardino Libonati, the Associated Press reported from Rome ( ATWOnline, Feb. 13). A new board also was appointed. Meanwhile, Il Sole-24 Ore reported that the new board is considering writing down the value of AZ's fleet by €400 million ($525.5 million), which would increase the company's 2006 net loss to approximately €780 million.
Avitas Senior VP Adam Pilarski projected that the airline industry's return to profitability in 2006, excluding the results of bankrupt US carriers, will continue for two to three years barring unforeseen events. Speaking yesterday at ATW's Winning Airline Strategies conference in Washington, he rejected the notion that consolidation is necessary. "Did United go into Chapter 11 because it was too small?" he asked. "What we really need is restructuring instead of consolidation. .
Indian government ministers approved the merger of Air India and Indian Airlines ( ATWOnline, Jan. 18). The next stage is final approval at a cabinet meeting next month, and Civil Aviation Minister Praful Patel told media he expects approvals to be completed by the end of March. According to sources, the name and head office of the new airline are yet to be decided but what has been approved is a structure around six business units.
CSA Czech Airlines terminated its Prague-Dubai service, calling it "unprofitable." It also announced that it will save CZK100 million ($4.7 million) annually on insurance premiums after selecting Renomia and JLT as its new insurance brokers.
Brussels Airlines, the new carrier resulting from the merger of SN Brussels Airlines and Virgin Express ( ATWOnline, Nov. 8, 2006), changed its logo, adding a dot to its stylized b mark after passengers complained the 13 dots that comprised the original symbol were unlucky. The new logo is up on the carrier's website. "We are never surprised by reactions, but that it was that bad? It really took us aback," a Brussels spokesperson told the BBC. The carrier will launch formally on March 25.
Indian Airlines reached a deal with KfW IPEX-Bank of Germany for $500 million in financing toward the carrier's purchase of 20 A321s, 19 A319s and four A320s ( ATWOnline, Feb. 22, 2006). The carrier expects to take delivery of 10 aircraft this year and has 12 years to repay the loan. HSH Nordbank is joint underwriter. Separately, Indian launched thrice-weekly nonstop Delhi-Kochi service Feb. 18 aboard an A319. It will continue to connect the cities daily via Mumbai.
