Maintenance, repair and overhaul organizations are investing millions of dollars in IT systems to manage their operations. Those facilities equipped with the latest software are far more likely to get the work than those without IT.
JetBlue Airways is "looking seriously" at GDS participation, according to David Neeleman, chairman and chief executive officer. At the Merrill Lynch Global Transportation Conference, Neeleman said the airline was missing out on business by not being in corporate travel departments' booking systems.
If US passenger airlines succeed in posting a cumulative operating profit for 2006after five years of negative EBITtwo dates will loom large in the story of their turnaround: Sept. 14, 2005, when Delta Air Lines and Northwest Airlines entered Chapter 11 and began dropping capacity like a cat sheds fur, and Jan. 5, 2006, when Independence Air closed down, bringing some semblance of sanity to East Coast pricing. Give some credit as well to a couple of furies named Katrina and Rita for driving oil prices so high that even the most logic-challenged carrier had to raise its fares.
For some, the Electronic Flight Bag is a rather neat way of displaying airport and approach plates and is supplied by a teaming of Astronautics, Jeppesen and Boeing. Certainly the EFB is a cool technology, but it also is available from 15 other system providers using software from 28 vendors and marrying it to hardware from seven other suppliersand the list of capabilities appears to be growing daily. Now pilots have at their fingertips moving maps, graphical weather forecasts, terrain mapping and a host of additional features that they never knew they needed.
Here's a switch: A Major carrier opting to insource a formerly outsourced operation, and willing to shell out millions of dollars to do it. The carrier is US Airways and the operation is reservations. "We're beginning to insource at least part of reservations," says Executive VP-Sales and Marketing Scott Kirby. The reason? "Customer service and quality are not meeting our standards."
As the world's governments increasingly adopt Advance Passenger Information as a requirement for air travelers, airlines once again find themselves on the brink of a complex proliferation of standards. And once again they are calling for development of a global solution before the situation gets out of hand.
Norwegian is about to make a daring move. Next month, the Oslo-based low-cost carrier will open a base at Warsaw's Frederic Chopin Airport and commence flights to Alicante, Barcelona Girona and Malaga in Spain and Nice in the south of France. It intends to place a second 737-300 in Poland in August and launch service to 3-4 additional destinations.
ALAFCO Aviation Lease and Finance of Kuwait said it purchased five new 737-800s valued at $250 million that it plans to lease to Turkish Airlines for 12 years.
Air France Industries and Thales signed an MOU for maintenance, logistics, supply chain, repair and overhaul of the Top Series IFE systems for Air France A380s. The companies said they will "jointly explore innovative modes of cooperation to ensure cost-effective IFE maintenance and high level of IFE system reliability and availability." This cooperation will lead to a common support offer on a Paris CDG platform for other potential Thales TopSeries IFE customers.
Boeing began final assembly yesterday on the first 737-900ER, which will undergo a five-month flight test program later this year and eventually be delivered to Indonesia's Lion Air.
Delta Air Lines pilots yesterday ratified a new labor agreement that includes $280 million in annual concessions the airline says are "crucial" to its effort to emerge from Chapter 11 bankruptcy protection.
Kenya Airways posted a net profit of KES4.83 billion ($66.5 million) for the fiscal year ended March 31, a 24.4% increase over the KES3.88 billion earned in FY05. Revenues rose 25.1% to KES52.8 billion as the airline carried 2.4 million passengers during the year, an increase of 17%. It plans to take delivery of three new 737-800s this year and a fourth 777 in early 2007.
Air Transport Assn. said it believes the US and EU can reach a new agreement on the processing and transfer of PNR data by air carriers that will not subject airlines to "conflicting demands." ATA President and CEO James May noted that Tuesday's European Court of Justice ruling invalidating a 2004 agreement on data transfer ( ATWOnline, May 31) does not go into effect until Sept. 30, giving authorities time to "find a practical solution to this issue."
Atlas Air Worldwide Holdings, parent of Atlas Air and Polar Air Cargo, received approval from Nasdaq for its common stock to begin trading on the exchange today under the symbol AAWW. President and CEO Jeffrey Erickson said trading on Nasdaq was "one of our most important post-reorganization business goals" after emerging from bankruptcy protection in July 2004.
Alaska Airlines reached tentative agreements last week with the International Assn. of Machinists and Aerospace Workers on two four-year labor contracts covering 3,700 employees. One covers 3,100 workers, including customer service and reservations agents, while the second pact covers 600 ground handlers. Terms of the deals were withheld pending ratification, which is expected to occur in voting next month.
Rolls-Royce, well aware that its foothold in the regional jet market depends largely on the continued viability of Embraer's 145 family, last week unveiled enhancements to the TotalCare support services it provides for the AE3007.
The European Court of Justice yesterday ruled that the May 2004 agreement between the European Community and the US on the processing and transfer of PNR data by air carriers is illegal.
WestJet and Air Canada settled their contentious dispute over alleged corporate spying and unauthorized data collection by WestJet executives, with the Calgary-based LCC agreeing to pay C$15.5 million ($14 million)--C$5.5 million covering AC's legal costs in the matter and C$10 million to charity--and Chairman and CEO Clive Beddoe apologizing to his primary rival for "misconduct."
News from Travel Technology Update: Expedia's chief unveiled some details of its new loyalty program, first announced in February, saying it will "react in a real-time way" to who and where customers are when they log onto the Expedia site. Dara Khosrowshahi, president and chief executive officer, told attendees at the Goldman Sachs Seventh Annual Internet Conference that Expedia hopes to launch the program by the end of the year.
Ferrovial Group upped its BAA takeover bid but the UK airports operator said yesterday that the Spanish firm still is undervaluing the company and advised shareholders to reject the increased offer. Ferrovial modified its bid to £9.73 billion ($18.09 billion), or 900 pence per share, which still "falls well short" of the "more than 940 pence per share" value of the company, BAA said. The initial bid of £8.75 billion was dismissed by BAA Chairman Marcus Agius last week as "cheap" ( ATWOnline, May 29).
Gol secured a R$75.7 million ($33.6 million) loan from the Brazilian National Economic and Social Development Bank Monday and plans to use the money to finance the building of an aircraft maintenance facility at Confins International Airport in Minas Gerais.
Civil Aviation Authority of Singapore awarded a tender to a joint venture company to develop and manage "a luxury facility" for VIP travelers arriving or departing Changi on commercial or private aircraft. It is set to open in August. Members of the JV company are Worldwide Flight Services, Superior Travelers Services and Sembawang Kimtrans.
