World Airways and its pilots, represented by the International Brotherhood of Teamsters, are continuing to negotiate in advance of the Jan. 28 conclusion of the 30-day cooling-off period imposed by the National Mediation Board ( ATWOnline, Jan. 11). At that time, the 430 pilots may go on strike while the airline can impose a new contract. Pilots are barred from interrupting flights carried out on behalf of the US military, World's largest customer, but IBT said it could "make no promises" to other customers.
AirTran Airways announced the promotion of Director-Corporate Finance Arne Haak to VP-finance and treasurer and Director-Engineering Kirk Thornburg to VP-maintenance and engineering. Gulf Air named Rajeev Nambiar GM for India operations.
BAE Systems Regional Aircraft said it had "done well" in 2005 as it secured new business worth more than $320 million despite a highly competitive regional aircraft marketplace. The company concluded lease transactions in its BAe 146/Avro RJ and ATP portfolios for 68 aircraft, business worth just under $230 million. A further 28 aircraft were the subject of other financial transactions. The Jetstream 32 and 41 portfolios resulted in $12 million in business.
SAS Scandinavian Airlines and Alitalia each began returning to normal operations yesterday following several days of strikes. An SAS spokesperson told ATWOnline that the airline cancelled 500 flights between Monday and Wednesday when 200 pilots from SAS Denmark staged a strike and 80 pilots from SAS Braathens in Norway called in sick. Although the Norway group remained sick on Thursday, SAS was operating most of its schedule; through mid-afternoon it had cancelled 26 flights in Denmark and 47 in Norway.
WestJet is investing up to $30 million to develop a reservation system and other new technology that will enable it to begin codeshare operations with other carriers as early as 2007, CEO Clive Beddoe said yesterday at the Raymond James Growth Airline Conference in New York. "We see it as a growth opportunity for us," Beddoe told ATWOnline. Air Canada "has abandoned" a large numbers of carriers because of its relationship with Star Alliance, he added. Several airlines, including legacy carriers and LCCs, have expressed interest in a codeshare partnership with WestJet.
Ryanair yesterday said it will begin charging for checked baggage but that a 9% across-the-board fare reduction will offset the new fee for many customers who avail themselves of the ability to check in for their flights online. Although the carrier long has talked about charging passengers to check luggage, FlyBE beat it to the punch last month ( ATWOnline, Dec. 20).
Cintra SA, Mexico's airline holding company, is changing its name to Consorcio Aeromexico, according to media repots. Cintra sold Mexicana and its Click LCC to hotel company Grupo Posadas last month ( ATWOnline, Dec. 20) but opted to retain AeroMexico.
Alitalia suffered a sixth day of strikes Wednesday as unrest continued over its restructuring and the sale of the majority of ground services arm AZ Services to Fintecna. Union leaders met with government ministers yesterday afternoon and presented a document claiming Alitalia is uncompetitive, does not possess a strategic industrial plan and is under poor management, according to La Stampa.
Three unions representing American Airlines employees--the Allied Pilots Assn., the Assn. of Professional Flight Attendants and the Transport Workers Union--each filed presidential grievances yesterday protesting the cash bonuses that around 1,000 members of management are set to receive in April under the carrier's Performance Unite Plan, which links the payments to stock performance. The unions contend the bonuses are a violation of their collective bargaining agreements and also occurred despite that fact that American parent AMR Corp. lost $861 million last year.
Delta Air Lines is moving forward with previously announced plans to cut its workforce ( ATWOnline, Sept. 23). According to media reports, 800-1,000 MRO jobs at Atlanta Hartsfield-Jackson International Airport will be eliminated. The cuts go into effect April 1 when the airline will close a hangar at Hartsfield.
Garuda Indonesia told a parliamentary commission it lost IDR672 billion ($70.7 million) in 2005, a narrowing of 17.1% from its 2004 losses, according to AFP. The carrier said the slight improvement came as cost cuts were offset by rising fuel prices and continued fallout from the Bali terrorist bombings, which ate into earnings by an estimated $14.7 million, according to an airline spokesperson cited by AFP. Garuda reportedly missed a $55 million debt repayment in December and remains $1.2 billion in the red.
SAS Scandinavian Airlines announced on its website yesterday afternoon the conclusion of the pilots strike and sickout that had grounded hundreds of flights in Copenhagen and at its Braathens division in Norway since Monday ( ATWOnline, Jan. 24). The pilots, who were protesting potential labor issues connected to SAS Group's split into national airline divisions, were expected back at work this morning. SAS estimated the strike cost it approximately DKK30 million ($4.9 million) per day, according to media reports.
Sabre Holdings and Northwest Airlines signed a five-year, full content agreement to make available through the Sabre GDS all Northwest published fares and inventory, including special Web fares. Concurrent with the announcement, the companies said they agreed to settle all current litigation.
Scandinavian Airlines Group said recently discovered financial reporting errors at its Spanair subsidiary related to improper accounting of certain revenues and costs will result in a charge against earnings at Spanair of SEK80 million ($10.6 million) for the 2005 fourth quarter. The SAS subsidiary still is expected to show a profit for the quarter and the corrections will not affect SAS Group's full-year outlook, the company stated. SAS also will restate results for the 2002-04 period with a negative impact of SEK340 million.
Eos, a New York-based all-premium airline, is participating in the Sabre GDS. Eos operates 757s configured for 48 seats on services between New York JFK and London Stansted.
EADS Revima said the first 777 landing gear shipset arrived at its workshop in Caudebec-en-Caux, France, for scheduled overhaul, with completion scheduled for the beginning of next month. The landing gear belongs to Cathay Pacific, which recently signed a long-term contract with EADS Revima for gear exchanges and MRO of its fleet of 777-200s/-300s. PSA Airlines renewed its avionics MRO contract with Rockwell Collins, which will provide support and maintenance of avionics on CRJ200s and CRJ700s for the next 10 years.
Evans & Sutherland Computer Corp. said Malaysia Airlines will equip its Thales A380 simulators with E&S's EP-1000CT visual system. Emirates, Qantas and Singapore Airlines also recently placed orders for the system. E&S signed a deal with CAE to produce an EP-1000CT/ESCP-2000 system for an Embraer 170 simulator ordered by Saudi Arabian Airlines.
Fatal crash of a Corporate Airlines Jetstream 32 on Oct. 19, 2004, outside Kirksville, Mo., was owing to "the pilots' failure to follow established procedures and properly conduct a nonprecision instrument approach at night in instrument meteorological conditions," the US National Transportation Safety Board said yesterday.
FedEx Express signed an agreement to acquire Tianjin Datian W. Group's 50% stake in the FedEx-DTW International Priority express joint venture plus DTW's Chinese express network comprising 89 locations for $400 million. The JV, launched in 1999, now will be a wholly owned FedEx subsidiary. The deal also includes DTW assets used to perform IP services. DTW will continue to operate international freight forwarding, general cargo transport and merchandise distribution businesses.
ITA Software, which provides software solutions to the airline and travel industries and is also a GDS new entrant, announced $100 million in equity financing. Led by Battery Ventures, the round includes participation from General Catalyst Partners, PAR Investment Partners, Sequoia Capital and Spectrum Equity.
China Airlines will retrofit Aviation Partners Boeing Blended Winglets to 11 737-800s. Work at the carrier's MRO facility in Taipei will commence in March and be completed by year end.
News from Travel Technology Update: AirTran, which dropped out of Worldspan in November because the two companies could not come to terms on the cost of participation, is back in the GDS with a new multiyear, full content agreement, effect Jan. 24. The carrier is distributing inventory, availability and fares through Worldspan at a level of participation called Limited Connect, which is below Worldspan's Full Service level. Worldspan said Limited Connect is designed to meet the distribution needs of carriers that require limited functionality
Indonesian government, as expected, is seeking foreign capital to rescue debt-ridden Garuda. However, the government's desire to retain 51% control is expected to restrict interest significantly, analysts say. According to the Centre for Asia Pacific Aviation, Garuda has asked Malaysia Airlines to reduce its thrice-daily 777 service between Kuala Lumpur and Jakarta to increase yields--Garuda operates 737s on the route. The carrier's problems are wide-ranging, with traffic to Indonesia down 5.9% due to the recent Bali bombings.
Royal Air Maroc announced creation of an A320 and 737 MRO subsidiary called Aerotechnic Industries to be based at Marrakech-Menara. RAM's initial investment of MAD70 million ($7.5 million) will be directed largely toward the construction of an 11,000-sq.-m. hangar with room for two aircraft.
