AirAsia could be the next major takeover target in Asia, according to the Centre for Asia Pacific Aviation. "The Asian market is a fertile breeding ground for investor opportunities, with equal doses of liberalization and new travelers opening up massive traffic expansion opportunities," CAPA Executive Chairman Peter Harbison said. "AirAsia has the attractions of a large and expanding market share, the lowest airline costs in the world, a brand name to die for, and unquestionable recent profitability."
Former Swissair executives and board members went on trial yesterday for their alleged roles in the historic 2001 collapse of the airline, the largest bankruptcy in Switzerland's history. Nineteen executives, including former CEOs Philippe Bruggisser and Mario Corti, will mount their defense in a Swiss court near Zurich, responding to a 100-page charge sheet submitted by prosecutors that includes accusations of false accounting and unlawful management.
News from Travel Technology Update: Expedia said it ceased the processing of certain American Airlines bookings using the Worldspan GDS. The decision, implemented on Jan. 8, applies to domestic business and first class fares and international fares purchased on the U.S. Expedia.com site. American's economy seats are still available on the site. The move does not affect American's bookings through Expedia Corporate Travel, which are processed through Sabre, or through international points of sale.
British Airways is holding critical talks with representatives of the Transport & General Workers Union following Monday's vote by the union's cabin staff in favor of industrial action that could begin as early Jan. 31. T&G, which represents more than 20,000 BA employees, including 11,000 flight attendants, said that more than 8,000 cabin crew, or 96%, voted in favor of a series of three-day walkouts to protest sick leave policies, pay grading and onboard staffing levels.
VEM Maintenance and Engineering aims to become a major player in the repair and maintenance of Airbus aircraft in South America, according to Filipe Morais de Almeida, who joined the company as CEO last October from Bombardier Portugal, where he served as chairman and CEO. VEM, the former Varig Engineering & Maintenance, was acquired by TAP Portugal in early 2006 ( ATWOnline, Jan. 16, 2006).
Aeroflot announced that it increased its share in its OJSC Aeroflot-Don subsidiary from 51% to 100%. Aeroflot-Don, based in Rostov-on-Don, carried 600,000 passengers in 2006 and has a fleet of 15 aircraft including 737-500s and Tu-154s.
Claiming that US Airways' bid for Delta Air Lines "represents a clear and present danger to the careers of all Delta employees," MEC Chairman Lee Moak told Air Line Pilots Assn. members in a letter last week that the MEC pledged to spend $15 million in an effort to derail the takeover, which he said "simply ignores the implications of our contract."
British Airways' hopes to resolve its pension deficit issue were dashed Friday when the GMB Union rejected its latest proposal, which included a one-time company contribution of £800 million ($1.55 billion) into its New Airways Pension Scheme and annual contributions of about £280 million for the next 10 years subject to the unions' acceptance of benefit changes.
EgyptAir now issues e-tickets on all its domestic routes and can do so to some international destinations as well. According to the Arab Air Carriers Organization, remaining international routes should be e-ticket enabled by the end of March. Interline capabilities should be in place by the end of this month.
Cathay Pacific Airways flew 6.33 billion RPKs in December, a 4.6% increase over the year-ago month. Capacity climbed 3.3% to 7.8 billion ASKs and load factor rose 1 point to 81.2%. Delta Air Lines flew 9.44 billion system RPMs in December, a 3.5% rise over the year-ago month. Capacity grew just 0.2% to 12.12 billion ASMs, lifting load factor 2.5 points to a December record 77.8%. Domestic RPMs fell 4% to 6.59 billion against a 7.3% decline in capacity to 8.46 billion ASMs, raising load factor 2.7 points to 77.9%.
US and EU met for two days in Brussels last week "in a friendly and positive atmosphere" after which they reaffirmed their interest in reaching an open skies agreement and agreed to meet in Washington the week of Feb. 5 "to identify areas where improvements might be made." In a statement signed by delegates representing both bodies, the EU reiterated its "deep regret and disappointment" over the US Dept.
American Airlines said that it no longer will sell tickets for international flights or domestic first and business class seats through Expedia.com or any of its affiliates. Domestic coach tickets will remain available through Expedia. AA did not give a reason for the move.
SR Technics announced Friday that it will not convert its option to acquire 60% of Empire Aero Center of New York, which it has held since signing an MOU last April ( ATW, November 2006). "Though SR Technics continues to be interested in the North American market, for the present it intends to focus its investment interests on the high-growth markets in the Middle East and Asia," the company said.
TUIfly is scheduled to launch services under its new name today. The carrier is the result of the merger announced last month of Hapagfly and Hapag-Lloyd Express, whose brands will disappear from the market ( ATWOnline, Dec. 18, 2006). TUIfly expects to fly 13.5 million passengers in 2007, up 22% from the number transported by HLX and Hapagfly together last year.
Indonesian authorities appear to be closing in on the wreckage of the Adam Air 737-400 that was lost on Jan. 1 with 102 aboard ( ATWOnline, Jan. 10). A fisherman reportedly found a section of what has been described as a piece of the aircraft's right horizontal stabilizer in the Makassar Strait some 185 mi. off Sulawesi Island. Reports continued to surface yesterday of more wreckage--at least 11 pieces--found floating nearby. USNS Mary Sears, an oceanographic survey ship, arrived in an area 125 mi.
Tiger Airways secured a $100 million loan facility to finance pre-delivery deposits for eight new A320s on order ( ATWOnline, Oct. 18, 2006). The facility was arranged and underwritten by BNP Paribas. Deliveries are scheduled for 2008-10.
The ambitious A$11.1 billion ($8.64 billion) buyout bid from Airline Partners Australia to take Qantas private will succeed, according to the Sydney-based Centre for Asia Pacific Aviation, if only because the consequences of failure "are too grotesque to imagine." Speaking yesterday to ATWOnline, Executive Chairman Peter Harbison said, "If the deal is knocked back, there would be a massive loss of confidence and the share market would bail out of the stock, sending the share price below last year's lows."
British Airways said it will change its baggage policy from Feb. 13 by placing restrictions on the number and size of bags that can be checked and charging customers fixed fees of up to £120 ($232) per excess bag.
CAE received an order for two A320 and two 737NG Level D full-flight simulators valued at C$52 million ($44.2 million) from Flight Simulation Co. of the Netherlands. Delivery is scheduled for the second half of this year.
DaimlerChrysler will sell a 7.5% stake in Airbus parent EADS to a consortium that reportedly includes Deutsche Bank, Commerzbank, KfW and Goldman Sachs. A company spokesperson told German media this week that an agreement had been reached and "final details" were being settled. DaimlerChrysler will hold a 15% stake in EADS after the sale, which is expected to net nearly $2 billion.
Iberia flew 4.28 billion RPKs in December, an 11.6% increase from the year-ago month. Capacity climbed 3.8% to 5.45 billion ASKs and load factor rose 5.5 points to a December record 78.5%. Air Canada and Air Canada Jazz flew a combined 3.9 billion RPMs in December, up 6.7% from the year-ago month. Capacity grew 4.5% to 4.98 billion ASMs, lifting load factor 1.6 points to 78.3%. Copa Airlines flew 398.5 million RPMs in December, up 30% from the year-ago month. Capacity rose 24.1% to 502.1 million ASMs and load factor was ahead 3.6 points to 79.4%.
SR Technics opened a line maintenance station at Paris Orly with Air Caraibes as the first customer. SRT said "easyJet and further customers are expected to follow soon." The station will offer services for A320s, A330s, A340s, 737s and a variety of engines.
