News from Travel Technology Update: Amadeus released a new report that describes four emerging demographic groups that it says will be key factors in the ways airlines develop and distribute their products. The report, commissioned by Amadeus and developed by Henley Centre HeadlightVision, a London-based strategic futures and marketing consultancy, describes four "traveler tribes" as they might behave in 2020:
Northwest Airlines introduced an A330 on flights from Minneapolis-St. Paul to Honolulu, completing the retirement of its DC-10s ( ATWOnline, Oct. 31, 2006). NWA flew 5.96 billion RPMs in January, a 1.5% increase over the year-ago month. Capacity rose 3.8% to 7.64 billion ASMs, dropping load factor 1.8 points to 77.9%. Domestic traffic grew 2.7% to 3.14 billion RPMs, capacity was up 3.3% to 4.12 billion ASMs and load factor dipped 0.5 point to 76.2%.
Qantas yesterday released an independent expert report supporting its recommendation that shareholders accept the A$11.1 billion ($8.61 billion) or A$5.60 per share private equity takeover bid by Airline Partners Australia. The analysis by accounting firm Grant Samuel makes up part of Qantas's target statement and argues that the price is fair and reasonable. In fact, Grant Samuel indicates that anything above A$5.18 per share is a good deal and suggests that if the bid fails the share price, currently at A$5.40, will sink to A$4.20.
Comair pilots were back at the bargaining table yesterday in yet another effort to forestall the imposition of some $15.8 million in proposed wage and benefit cuts. Comair officials reportedly were reviewing the latest proposal from the pilots and had extended the deadline for imposing the cuts until after midnight last night. A bankruptcy court judge ruled Feb. 7 that the pilots, who are represented by the Air Line Pilots Assn., were forbidden to strike or take other job actions against Comair, a wholly owned subsidiary of Delta Air Lines.
Frontier Airlines will launch daily Denver-Vancouver service on May 5 aboard A319s. It flew 637.3 million RPMs in January, a 10.8% increase over the year-ago month. Capacity was up 12.3% to 977.2 million ASMs and load factor fell 0.9 point to 65.2%.
Hawaiian Airlines announced that US FAA Air Traffic Organization COO Russell Chew will leave Washington and join the airline as its executive VP-operations. He replaces the retiring Norm Davies. A former pilot, Chew worked for American Airlines for 17 years and was MD-system operations control before joining FAA in 2003.
EADS co-CEO and Airbus CEO Louis Gallois is scheduled to meet today with German Finance Minister Michael Glos to discuss the Power8 restructuring plan, details of which are expected to be revealed to Airbus employees on Feb. 20. Glos warned yesterday that job cuts and facility closures must be "evenly spread between Germany and France."
Spirit Airlines is charging $10 for a second piece of checked luggage as part of a policy instituted Saturday. Additional bags will be allowed and will cost a minimum of $100 each, with fees rising to as much as $150 per bag depending on size and/or weight. In addition, initial pieces of checked luggage that weigh 51-70 lb. will cost $25, or $100 if they weigh 71-99 lb. Spirit has bases in Fort Lauderdale and Detroit.
Sabena technics and Taneja Aerospace and Aviation intend to establish a joint venture to respond to "the demands of the growing Indian aviation market." The MRO activity will take place at TAAL's private airfield in Tamil Nadu some 50 km. southeast of Bangalore. Initially the MRO provider will target regional turboprop aircraft such as ATR 42s/72s and eventually will ramp up to narrowbodies.
EU Friday made its first written submission in the US government's WTO challenge to EU government support for Airbus. While declining to make the actual submission public, the EU said it was a "robust response" to US allegations that Airbus received illegal subsidies. The first WTO panel will meet March 20-21. This will be followed by another round of submissions and hearings with a final decision due on Oct. 31. The EU noted that this could slip into 2008.
United Airlines flew 9.22 billion RPMs in January, up 2% from the year-ago month. Capacity climbed 1.6% to 11.82 billion ASMs and load factor rose 0.3 point to 78%. Delta Air Lines flew 8.86 billion systemwide RPMs in January, a 3.3% increase over the year-ago month, against a 2.9% climb in ASMs to 12.02 billion. Load factor rose 0.3 point to 73.7%. Domestic traffic fell 5.2% to 6.09 billion RPMs, capacity dropped 5.1% to 8.32 billion ASMs and load factor was down 0.1 point to 73.2%.
JetBlue Airways said it expects net savings of $30 million over five years by removing six seats, or one row, from each of its A320s ( ATWOnline, Dec. 21, 2006). The figure includes estimated lost revenue. Inflight cabin crew will be reduced to three and aircraft weight will fall 904 lb. Modifications are expected to be completed by March, at which time the cabin will feature 36-in. pitch in rows 1-11 and 34-in.
Qantas scotched rumors that it is contemplating cutting its investment in Singapore-based Jetstar Asia Airways. Qantas CFO and Jetstar Asia Chairman Peter Gregg said in a statement that "Jetstar Asia is, and will continue to be, an important part of the Qantas Group's diversification strategy." Local press reports have expressed concerns over the airline's future following a number of operational cancellations and claims regarding pilot shortages.
Pakistan International Airlines posted a PKR9.19 billion ($150.7 million) loss in 2006, Chairman Tariq Kirmani said at a press conference in Karachi, according to news reports. Comparison to 2005's final result was not provided, but he did say that revenue rose 10% to PKR70 billion and passenger numbers climbed 5.1% to 5.7 million. PIA's year was soured by the July crash of an F27 that killed all 45 onboard ( ATWOnline, July 11, 2006).
Shanghai SR Aircraft Technics, a joint venture between SRT and Shanghai Foreign Aviation Service Corp., signed an agreement with Air New Zealand to provide technical support and line maintenance on its 777s at Shanghai Pudong.
Lamar Muse, who co-founded Southwest Airlines with Rollin King and Herb Kelleher and served as its first president and CEO, died Feb. 5 of cancer. He was 86. Muse was hired by King and Kelleher to bring their idea for a Texas intrastate airline from the napkin to the runway.
Kingfisher Airlines partnered with dishtv of India to offer live television and digital entertainment in flight. The first aircraft was equipped with the service, called Live, in December. It features 21 channels of television and video content, 10 of music and a map channel.
British Airways said yesterday that it reached an agreement with the trustees of its New Airways Pension Scheme to address its £2.1 billion ($4.12 billion) deficit. The accord, which was reached in principle last year but rejected by the GMB Union last month ( ATWOnline, Jan. 15), includes a one-off injection of £800 million, annual company contributions of £280 million for the next 10 years and an additional £150 million over the next three years subject to BA's financial performance.
Flybe said the UK Office of Fair Trading approved its acquisition of British Airways regional subsidiary BA Connect ( ATWOnline, Nov. 6, 2006). OFT asked Flybe to grant access to one of the 13 parking stands it currently uses at Southampton Airport.
Air France KLM flew 16.12 billion RPKs in January, up 2.3% from the year-ago month. Capacity rose 2.4% to 20. 4 billion ASKs and load factor was level at 79%.
European Travel Agents and Tour Operators Assns., which comprise associations from 29 countries, once again is calling for a system that will protect passengers from airline failure or default and suggested that it be funded through a €1 ($1.29) contribution per ticket paid by all carriers, including ones from outside the EU, flying to/from an EU airport. ECTAA's effort to establish the passenger protection fund is not new, but recent bankruptcies highlight the need, President Jan Van Steen said.
