Thomas Cook AG board chose Manny Fontenla-Novoa chairman. Dubai Aerospace Enterprise appointed Munther Akram Juma as senior VP-marketing and corporate communications.
American Airlines announced plans to invest $20 million in cabin upgrades on its fleet of 767-200s, which are used primarily on transcontinental routes from and to New York. Enhancements will become available in summer 2007 and include "updated" first and business class seats, an additional first class seat in each aircraft, new on-demand personal entertainment devices and new cabin interiors. AA said it is the only US airline operating the widebody aircraft on the transcontinental route.
Boeing said that Air France Industries has adopted the Boeing Airplane Health Management system, which will provide real-time maintenance information on AF's 42 777s (plus 13 to be delivered) and 21 747-400s. Separately, Boeing named former Connexion by Boeing executive Stan Deal as VP-Asia/Pacific sales for Boeing Commercial Airplanes and VP-China Sales Rob Laird as VP-Greater China sales.
IATA estimates that the current proposal to bring aviation into the EU Emissions Trading Scheme would cost the industry €2.9 billion ($3.84 billion) in 2011, the first year in which aviation would be included, and even more in subsequent years. The figure represents a 5% increase to the cost of a gallon of fuel at today's prices.
American Airlines flew 10.71 billion system RPMs in November, a 1.1% drop from the year-ago month. Capacity fell 3.7% to 13.43 billion ASMs and load factor rose 2.1 points to 79.7%. Domestic traffic declined 3.2% to 7.15 billion RPMs against a 4.8% fall in ASMs to 8.75 billion, lifting load factor 1.4 points to 81.7%. International RPMs rose 3.3% to 3.56 billion, capacity was down 1.5% to 4.68 billion ASMs and load factor climbed 3.5 points to 75.9%. British Airways flew 8.76 billion RPKs in November, down 0.8% from the year-ago month.
ANA issued a statement last week indicating that it is in the "final steps" of selling hotels and real estate worth approximately $952 million, according to Reuters. ANA owns 13 Japanese hotels that produced revenues of about $571 million in the fiscal year ended March 31.
Comair pilots voted to authorize a strike if a US Bankruptcy Court judge rejects their contract. The pilots, represented by the Air Line Pilots Assn., said they should not have to make additional concessions because the company is projected to earn a $50 million profit this year. Comair, a wholly owned subsidiary of Delta Air Lines, filed for bankruptcy along with its parent in September 2005. "Make no mistake, the pilots will not tolerate company-imposed pay and work conditions," MEC Chairman J.C. Lawson said after the Monday vote.
Volvo Aero is expanding its Newington, Conn., Aero-Craft facility by 67.5% to 67,000 sq. ft. and almost doubling the number of employees in a $15.3 million project that will see Volvo produce fan cases for the GE90, GEnx, Trent 900 and Trent 1000.
Precision Conversions will provide seven full 757-200PCF conversions that will be leased by VarigLog. SkyWorks Capital of Connecticut is managing the deal. The first aircraft will be delivered in January.
Sabre Holdings reached agreement to be acquired by Silver Lake Partners and Texas Pacific Group for $32.75 in cash per share in a transaction valued at about $5 billion, including the assumption of $550 million in net debt. The deal follows last week's $1.4 billion Travelport-Worldspan merger ( ATWOnline, Dec. 11) and includes in TPG one of the principal players in the attempted takeover of Qantas. Sabre said the price represents a 30% premium over the average closing share price over the 60 days ended Dec.
Qantas introduced online check-in for same-day-return domestic flights. Separately, Qantas Freight launched a four-times-weekly Melbourne-Auckland overnight service aboard a 767-300F.
The streak of six consecutive years in the red will end for the world's airlines in 2007, according to IATA DG and CEO Giovanni Bisignani, who tempered the good news by calling the $2.5 billion profit he expects next year "peanuts" when compared to $450 billion in revenues. Losses for this year are expected to be $500 million, a significant improvement over the loss of $1.7 billion that was projected based on September figures ( ATWOnline, Nov. 2).
Silverjet, a UK startup that will offer all-business-class flights between London Luton and Newark beginning next month, said it reached agreement with Luton Airport to build a separate terminal that will be modeled after a private jet facility and enable it to check in and board passengers in just 30 min. The airline said there will be "no check-in desks" in the new terminal.
United Airlines yesterday unveiled the initial details of its new United First Suite, the signature element of a $165 million upgrade to its international widebody fleet. It said that the "new suite was designed to be the optimal space to work, sleep or relax while enjoying the latest entertainment and exclusive amenities." It is nearly 3 in. wider than the existing United First Suite and reclines to multiple angles or serves as a fully flat bed. Each suite features a 15.4-in.
News from Travel Technology Update: If the acquisition of Worldspan by Travelport is approved, the combined company will have three GDS platforms to juggle. Galileo International, founded by a consortium of European airlines in 1987, and Apollo (then known as Covia) formed the Galileo Partnership in 1993, but they have remained discrete systems. It is not clear whether Travelport plans to integrate Worldspan into Apollo or Galileo. Some observers predict that Travelport will retain certain elements of Worldspan's technology but jettison the basic platform.
American Airlines last week asked the US Dept. of Transportation to approve a "modification" to its application to win route authority to China, saying it now wants to operate service to Beijing from Chicago-O'Hare rather than Dallas/Fort Worth to comply with flight distance provisions in its labor agreement with pilots. The AA aircraft going to China would originate at DFW but would fly first to O'Hare and then go to Beijing as a "through flight." The return from Beijing would operate directly to DFW.
US Transportation Security Administration named Mike Golden assistant administrator-operational process and technology, making him the agency's chief technology officer. Golden joins TSA from Southwest Airlines, where he served as senior director-airport security technologies.
Mesa Air Group flew 561.6 million RPMs in November, up 3.1% over the same period a year ago, while ASMs were up slightly more than 1% to 766.4 million. Load factor improved 3.9 points to 75.5%. The carrier also reported that its Hawaiian inter-island subsidiary go!, which started service in June, carried 57,383 passengers in November, resulting in a load factor of 63.7%.
Messier Services UK was selected by EgyptAir Maintenance & Engineering to provide main landing gear MRO for two A321s and MRO for the whole shipsets of another two A321s. The deal commences immediately and includes the loan of a shipset for the duration of the agreement, which runs through June.
Hawaiian Airlines scored a legal victory last week when US Bankruptcy Court Judge Robert Faris rejected Mesa Air Group's countersuit in which Mesa charged that Hawaiian had violated antitrust laws. Hawaiian's original lawsuit alleges that Mesa used proprietary information to bolster its startup proposal for go! A trial to determine the merits of the claim is set for Sept. 25, 2007.
Varig was conspicuously absent from last weekend's Star Alliance meeting and ceremony in Istanbul, prompting speculation about whether or not the struggling Brazilian carrier remains a viable component of Star.
Allegiant Travel Co., parent of Allegiant Air, raised $90 million in gross proceeds late last week through an IPO of 5 million shares of common stock priced at $18 per share. Allegiant granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of common stock to cover any overallotments. The stock will trade on the Nasdaq under the symbol ALGT. Allegiant Air has operated primarily in leisure markets, linking smaller cities with major tourist destinations such as Las Vegas, Orlando and Tampa/St.
CAAC and Japan Airlines reached agreement to launch cooperative aviation safety study projects in conjunction with the Civil Aviation Safety Institute of China, saying their goal is to contribute "to the development of global flight safety."
