Unisys Corp. signed a three-year contract with Cathay Pacific Airways to host its core business applications. Unisys will move Cathay's reservations, departure control and cargo platforms to the Unisys data center in Rhodes. The multimillion-dollar deal includes a two-year option.
Discover the World Marketing said US Airways expanded its agreement to cover the carrier in Australia, China, Hong Kong, Denmark, Finland, Iceland, New Zealand, Norway, Philippines and Taiwan. Discover already represented US in Argentina, Japan, Malaysia, Singapore, South Africa and Uruguay.
EasyJet said Friday it was contacted by Saudi Arabian startup National Air Services and Abraaj Capital of Dubai about using the easyJet brand for the private domestic and regional airline that the Middle Eastern companies are looking to establish, according to press reports. The UK carrier said it would not invest any equity or cash in the new carrier and it likely will not make a decision about franchising its brand before next year.
Delta Air Lines on Friday filed for final US Bankruptcy Court clearance to terminate its pilots' pension plan effective Sept. 2. The move, which the pilots union has agreed not to oppose, would affect 13,000 active and retired workers and is part of the carrier's effort to cut costs in order to emerge from Chapter 11 bankruptcy protection. Defined retirement programs for 91,000 active and retired flight attendants and ground employees will not be terminated, the airline said.
US Dept. of Transportation said the 20 US carriers reporting ontime performance posted a 72.8% ontime arrival rate in June, down 2.4 points from the year-ago month. They canceled 1.7% of scheduled domestic flights, up 0.1 point. The mishandled baggage rate of 6.28 reports per 1,000 passengers fell from 6.32 in June 2005. Hawaiian Airlines posted the best ontime arrival rate of 94.6% while Atlantic Southeast Airlines' 63.5% was the worst. Mesa Airlines canceled 5% of its flights and JetBlue Airways and Frontier Airlines canceled just 0.1% each.
Slovak Airlines ownership faces an uncertain future. Austrian Airlines Group, which holds 62% of the Slovakian carrier, is evaluating its relationship with the subsidiary, which it took over in 2005. "We rescued Slovak Airlines and in doing so, we did the government a favor. But with that deal, there were commitments from the government, which so far have not been met," Austrian CEO Alfred Oetsch told ATWOnline. The deal included a commitment from the Ministry of Transport, which promised to assume debts when Austrian bought in.
Hainan Airlines parent HNA Group took a 45% stake in Hong Kong Express Airways following receipt of approval from the Hong Kong Economic Development and Labour Bureau. The expected move ( ATWOnline, Aug. 4) will see the balance of the airline remain with the original shareholders.
Gol flew 1.46 billion RPKs in July, a 52.3% increase over the year-ago month. Capacity rose 44.8% to 1.74 billion ASKs and load factor went up 4.2 points to 84.1%. Kenya Airways flew 1.65 billion RPKs during the first fiscal quarter ended June 30, a 19% rise over the year-ago quarter. Capacity grew 20% to 2.34 billion ASKs and load factor fell 0.4 point to 70.4%.
European Commission is formally investigating the restrictions placed on flights between Sardinia and mainland Italy by the Italian Transport Ministry and Civil Aviation Authority, which have designated the routes PSO protected and therefore unavailable to non-Italian carriers. Airlines such as Ryanair and easyJet have complained about the restrictions ( ATWOnline, May 15), which they claim violate EU rules that grant EU-based carriers liberal route access.
Air Traset An-28 crashed in eastern Democratic Republic of Congo Thursday, killing all 14 passengers and three crew, according to press reports. The aircraft was attempting to land in Bukavu when it clipped a mountain and went down in a forest 9 mi. short of the runway. DRC was one of five countries subjected to a total ban on the most recent EU airline safety blacklist ( ATWOnline, June 21).
Bombardier launched a new CRJ200PF (package freighter) conversion program that could extend the life of the 50-seaters as their appeal dims in favor of larger RJs. Sweden's West Air Europe is the launch customer and will acquire two previously owned CRJ200s for conversion to an all-cargo configuration. It now operates scheduled and charter package service with a fleet of 17 turboprops. "The CRJ200PF allows direct flights on longer, thin routes that are currently flown by larger aircraft," said Bombardier Regional Aircraft VP-Asset Management Rod Sheridan.
Embraer announced Friday that Frederico Fleury Curado has been appointed by the company's board to succeed retiring President and CEO Mauricio Botelho when he retires in April. Curado, a 45-year-old aeronautical engineer, has been with Embraer since 1984 serving in a variety of positions. For the past eight years he has been executive VP-airline marketing. After he retires, Botelho will continue to serve as chairman. The manufacturer said it made the succession announcement nine months in advance to ensure a "smooth and harmonious transition process."
The US Senate passed legislation late Thursday that significantly reforms US pension law and gives struggling airlines needed extra time to fund defined retirement programs. The bill, identical to one passed by the House in late July, moves to the desk of President Bush, who is expected to sign it into law. Bankrupt Northwest Airlines, a major beneficiary of the legislation, said the new law "will save the pension benefits of 73,000 current and former Northwest employees."
US Cargo Sales Joint Venture, which handles US cargo sales and marketing for SkyTeam Cargo carriers Air France, Delta Air Lines and Korean Air, yesterday named Chang-Hoon Kang as its new CEO. Kang, previously managing VP-cargo network and revenue management for Korean Air Cargo, replaces J.D. Cha, who was reassigned to Korean Air Cargo's Seoul headquarters.
Korean Air has entered the 747 cargo conversion market starting with one of its own 747-400 passenger aircraft. It will launch the program today at its Aerospace Division. It plans to convert 10 passenger jets through 2009. The program will lift its freighter fleet to 30 by 2010.
Saudi Arabian Airlines finalized a privatization program for five of its units--catering, cargo, ground handling, pilot training and technical services--and is preparing to submit its plan to national authorities for certification. According to the Arab Air Carriers Organization, the airline said the new units will be financially and managerially independent and sold through a public offering.
Etihad Airways introduced e-ticketing on flights from Abu Dhabi to Brussels, Toronto, Bangkok, Mumbai and New Delhi and will launch it across its network by year end. Separately, the carrier is set to ramp up services to India with additional frequencies and cities. Currently it flies daily to Mumbai and thrice-weekly to Delhi. Its radar includes Hyderabad, Chennai and Bangalore, although no selection has been made.
Bmi mainline and regional pilots represented by the British Airline Pilots' Assn. began voting yesterday on whether to authorize a strike action. Balloting at bmibaby started last week. The result of the former will be released on Aug. 24 and that of the latter on Aug. 16. The union said there are different issues facing pilots at each of the divisions but that they are united against the "imposition" of a 2.4% pay increase.
IATA said yesterday that global e-ticketing penetration in airline billing and settlement plans reached 54% as of June 30. The organization noted that 156 airlines, responsible for 87% of BSP ticket volumes globally, now issue e-tickets. Europe and the Americas lead the way, with 67% and 68% penetration by those regions' airlines respectively in June. Currently, 23 airlines issue 95% or more of their tickets electronically. IATA has set Dec. 31, 2007, as its goal for 100% e-ticketing worldwide.
AirAsia's shares have been sold down by 21% in the past month following the Malaysian government's decision to give Malaysia Airlines the green light to exercise pricing freedom on its domestic routes ( ATWOnline, July 12), allowing it to compete with AirAsia with cheaper fares.
American Airlines flew 13.3 billion system RPMs in July, a 2.3% decline from the year-ago month. Capacity fell 4.5% to 15.28 billion ASMs and load factor rose 1.9 points to 87%. Domestic RPMs dropped 4.9% to 8.5 billion against a 7.6% fall in ASMs to 9.63 billion, raising load factor 2.4 points to 88.2%. International traffic grew 2.7% to 4.81 billion RPMs, capacity increased 1.3% to 5.66 billion ASMs and load factor was up 1.2 points to 85%. Ryanair transported 3.9 million passengers in July, a 23.2% increase over the year-ago month. Load factor remained at 90%.
Boeing and SIA Engineering Co. said this week they have reached an agreement under which the MRO operator will participate in the manufacturer's Integrated Materials Management program. Using IMM, Boeing and other suppliers will own aircraft parts that will be stored at SIAEC's main maintenance base until needed. SIAEC will pay for the parts as it uses them, reducing inventory holding costs.
Swissport International acquired Japanese ground handling company ShinMaywa Ground Services from ShinMaywa Industries for an undisclosed price. SGS provides handling and line maintenance at Osaka Kansai, Tokyo Narita, Fukuoka and Nagoya, employing approximately 170 and generating some CHF11 million ($9 million) in annual operating revenue.
HNA Group, parent of Hainan Airlines, is negotiating to buy a stake in Hong Kong Express Airways, according to press reports. HKE, formerly Helicopters Hong Kong, was launched in 1997 and provided regular helicopter services between Hong Kong, Macao and the Pearl River Delta region. Last year it re-launched as Hong Kong Express with four Embraer 170s operating to five Chinese mainland cities. The move by HNA follows its ongoing negotiations to acquire up to 60% of Hong Kong's CR Airways.
Continental Airlines said its June consolidated RASM increased 11% year-over-year and that it estimated the July figure to rise 9%-10% over the year-ago month. CO flew 8.74 billion RPMs in July, up 10.8%. Capacity increased 8.9% to 10.24 billion ASMs and load factor rose 1.5 points to 85.4%, matching its July record. Domestic RPMs were up 6.9% to 4.06 billion against a 5.9% gain in ASMs to 4.65 billion, lifting load factor 0.8 point to 87.3%.
