When it comes to building an airline alliance, is a close technological marriage better than a series of looser links? The three major global alliancesStar, oneworld and SkyTeamare taking different approaches to the task of getting their systems to communicate. Star, the oldest and largest of the three, has opted to create the framework for a common platform, although no member will be forced to migrate to it. Oneworld has a sort of "virtual" common platform but no formal framework. SkyTeam, meanwhile, is sticking with normal airline messaging methods for now.
Iberia's efforts to return its Barcelona operations to normal following Friday's action by ground workers ( ATWOnline, July 31) included the transfer of more than 100 employees from other airports, two additional aircraft and the placement of extra staff on all shifts until Wednesday, it said yesterday, adding that the airport "is now operating normally" although the carrier is still working on shipping baggage.
Northwest Airlines flight attendants set up a showdown with the bankrupt carrier late yesterday, rejecting the tentative agreement reached two weeks ago in "around-the-clock negotiations" between NWA and the Assn. of Flight Attendants-CWA ( ATWOnline, July 18) by a vote of 3,266 to 2,637. "Our members have spoken. These drastic cuts to our pay, benefits and work rules are simply unacceptable," AFA-CWA Interim MEC President Mollie Reiley said.
AirTran Airways will launch daily Gulfport/Biloxi-Fort Lauderdale service on Aug. 29 Bmi regional will increase frequency on its Edinburgh-Manchester route to six daily weekday flights from Sept. 4. It also canceled its Leeds Bradford-Cork service. Flyglobespan will launch daily Liverpool-Newark service on May 25, 2007.
Atlas Air Worldwide Holdings said yesterday it will pay off approximately $141 million of principal under two aircraft financing facilities using cash from existing balances and will terminate an existing revolving credit facility with no borrowings outstanding.
DHL yesterday signed a multimillion-dollar, two-year agreement with Electrolux, a leading producer of powered appliances, to serve as the company's exclusive global air express services provider.
Avion Group announced the following changes to its Aviation Services division, which comprises Air Atlanta Icelandic, Avion Aircraft Trading, Avia Technical Services and Southair: VP-Finance and assisting CEO Hannes Hilmarsson is the new CEO of Air Atlanta, replacing Hafthor Hafsteinsson, who will be the carrier's chairman. AAI VP-Sales and Marketing David Masson is the new CEO of AAT, replacing Hafsteinsson, who will become executive chairman and remain CEO of Aviation Services. Johann Karason is AAI's new VP-sales and marketing.
WestJet announced the completion of a debt financing facility for C$191.1 million ($168.9 million) to support the purchase of five 737-600s and one dash 700. It took delivery of the first aircraft, a dash 600, last week and will take the remaining five this year. The facility was arranged by ING capital, is supported by guarantees from the US Export-Import Bank and includes ING Financial Holdings Corp. and Societe Generale as lenders. The loan will be drawn in separate installments with 12-year terms for each aircraft.
US Senate is expected to vote this week on pension reform legislation passed last week by the House that would provide relief for US airlines struggling to fund defined benefit retirement plans. The House-passed bill would give carriers that have frozen their pension plans, namely bankrupt Delta Air Lines and Northwest Airlines, 17 years to meet funding responsibilities, or 10 more years than the seven-year requirement imposed by the legislation on other industries. Other airlines would get 10 years--three extra years--to fund plans. Sen.
European Regions Airline Assn. said member carrier flew 8.4% more RPKs in the March quarter against a 7.3% increase in capacity. Load factor was a first-quarter record 57.9%, up 0.9 point on the year-ago quarter.
Malaysia Airlines MD Idris Jala told reporters yesterday that the airline will raise domestic economy fares 15% and business class fares 25% effective Aug. 15 in addition to a 25%-42% fuel surcharge increase on domestic routes beginning today, when the reconfiguration of Malaysia's domestic airline route network takes effect. MAS will operate 22 trunk routes and AirAsia will take the rest.
Varig confirmed it intends to lay off approximately 5,500 of 9,500 Brazilian employees. "Today we begin one of the most important phases of the project of restructuring Varig, promoting the balancing of the company's staff with current operational necessities," CEO Marcelo Bottini said in a statement to employees cited by Reuters.
Lufthansa Systems will provide IT support for Air One, Al Salam 319, Contact Air and Wind Jet. LHS also said it completed implementation of its ProfitLine/Yield Rembrandt revenue management solution at Smart Wings.
Sabre Airline Solutions signed a deal with Japan Airlines to provide the AirFlite suite of products. Separately, Sabre signed a four-month contract with China Eastern Airlines to provide consulting on best practices network planning and flight scheduling and a deal to provide the AirMax Revenue Management Suite to Virgin Blue.
Rolls-Royce said last week that it posted £1.78 billion ($3.3 billion) in underlying sales in civil aerospace engines and aftermarket services in the first half of 2006, up 6% from £1.68 billion for the first half of 2005. Civil aerospace profits rose 23% to £246 million in the year's first six months but engine unit deliveries dropped 6.6% to 412 "as a result of the anticipated slowdown in demand for 50-seat regional aircraft," according to Rolls ( ATWOnline, May 31).
TAP Portugal flew 1.4 billion RPKs in June, a 17% increase over the year-ago month. Passenger numbers rose 9% to 586,015. The airline did not provide capacity or load factor.
Iberia canceled all flights to and from Barcelona International on Friday and Saturday morning after some 2,000 ground workers blocked one of the airport's three runways. The action reportedly was in protest of the airline's loss of a ground-handling license at BCN. It still holds 21 of 27 licenses at the airport, according to AFX News, but earlier last week AENA awarded a concession to a Spanish construction and services company and to subsidiaries of Spanair and Air Europa.
Jade Cargo International selected Swiss World Cargo to represent it in France, Germany, Italy and Switzerland. Inter Aviation Services of Amsterdam will represent the startup in the Netherlands, Belgium and Luxembourg. All European activities will be coordinated by its European head office at Amsterdam Schiphol.
US Bureau of Transportation Statistics said last week that its Air Travel Price Index rose 10.3% in the first quarter, the biggest year-over-year increase since it began tracking changes in airline ticket prices in 1995. Because US passengers increasingly are shifting to LCCs from traditional Majors, "even the lower fares are rising and the index values are a measure of how much they are rising," BTS said. Cincinnati saw the largest year-to-year fare index increase in the quarter with a 36.6% jump. Charlotte and Houston recorded the smallest increases.
Air France said it has become the first carrier to be awarded ISO 22000 certification for food safety. Initial certification covers flights from Paris, with other cities to be included in the next year.
VivaAeroBus, a Mexican LCC startup formed by Mexican bus group IAMSA and Ryanair-backed RyanMex, said its first base will be Monterrey. It will start operations in September with two 737-300s.
Industry experts shared their views on streamlining bag-handling costs yesterday in the ATWOnline webcast, "Don't Get Left Holding the Bag: Creating Value in the Airline Luggage Chain." SJ Consulting Group President Satish Jindel argued for an "unbundling" of airline ticket pricing that would allow carriers to charge passengers per bag checked, just as they now charge for onboard meals. Luggage Express Chairman Richard Altomare advocated that carriers separate moving passengers from moving luggage.
IATA reported a 6.5% year-over-year increase in worldwide international RPKs in June and a 4.4% rise in ASKs, resulting in a 1.5-point gain in load factor to 78.3%. Highest regional load factor was North America's 85.3%, where RPKs rose 6.8% and capacity climbed 5.1%. Global freight traffic increased 4.1% against a 4.6% hike in ATKs. Air China flew 4.99 billion RPKs in June, a 19% increase over the year-ago month. Capacity rose 15.8% to 6.6 billion ASKs and load factor climbed 2 points to 75.6%. Mountain Air Cargo carried 11.2 million lb. of freight in June.
