Aviareps was appointed by Ariana Afghan to provide representation as the carrier's GSA in eight markets: Austria, Benuelux, Czech Republic, France, Germany, Italy, Poland and Switzerland.
Meridiana selected Messier Services as the landing gear MRO provider for its A319s. KLM Engineering & Maintenance extended its MRO contract with Focus Air, which wet-leases 747 freighters. KLM E&M will handle engine and component maintenance, A checks, engineering and line maintenance.
SAS Group is selling a 67% stake in its component overhaul and support business to Singapore Technologies Engineering, parent of ST Aerospace, for €80.4 million ($96 million). SAS Group will maintain a 33% share of SAS Component. As part of the transaction, SAS will release capital from its component inventories (rotable components and spares), lifting the total value of the transaction to €260 million. SAS Group also has a put option on the remaining 33% of the shares to ST Engineering from year three of the transaction.
The European Commission took Austria, Belgium, Luxembourg and Sweden to the European Court of Justice and sent a "reasoned opinion" to Slovakia for failure to comply with legislation on air passenger rights. "We are determined to ensure that the rights of European passengers are dealt with effectively in all the member states," stated EC VP for Transport Jacques Barrot.
Australian Competition Tribunal ruled this week that the federal government will retake control of airport pricing after three years of deregulation. The decision stemmed from a dispute brought last year by Virgin Blue against Sydney Airport in which the airline said Sydney favored full-service carriers by basing fees on weight rather than passengers, a policy favored by Qantas. Price negotiations between airports and airlines now must be approved by an arbitrator.
Boeing announced yesterday that its board of directors elected Kenneth Duberstein lead director replacing the late Lew Platt. Duberstein, 61, has served on the Boeing board since 1997.
British Airways said it sacked one of three ringleaders involved in the illegal walkout by 1,000 baggage handlers, cargo loaders and bus drivers at London Heathrow in August.
Sabre said Air One of Italy slashed data communications costs 40% following conversion to a suite of SabreSonic and other systems from Sabre Airline Solutions covering passenger, revenue and fare management, planning and scheduling, movement control, dispatch management and market analysis.
CAE signed a deal with Jet Airways for a second 737-800 full-flight simulator and integrated procedures trainer for delivery in early 2007 and an upgrade for an existing simulator. It also sold a 737 Maintenance Training Simulator System to Japan Airlines and an A320 full-flight simulator and two flight training devices (A320 and 737) to an undisclosed customer. The contracts are worth a combined C$48 million ($41.7 million).
FDR data from the Southwest Airlines 737-700 overrun accident on Dec. 8 show the thrust reversers did not deploy until about 18 sec. after the aircraft touched down on Chicago Midway Runway 31C and 14 sec. before it ran through a blast fence at the end of the runway, the National Transportation Safety Board said yesterday. The aircraft continued through a perimeter fence and onto a roadway where it struck two cars, killing a six-year-old passenger in one of them.
US Dept. of Transportation, responding to a request from the Air Transport Assn., is asking for public comment on whether it should change its rules on airline price advertising. In particular, DOT wants to know "whether it should allow airlines to separate carrier-imposed charges, such as fuel surcharges, from the advertised fare in consumer advertising." ATA wants airlines to be able to list surcharges separately, which is not allowed under the current rules. DOT only permits carriers to list government-imposed taxes, fees and other charges separately.
Pelesys Learning Systems signed with LTU of Germany to provide Web-based training courseware for the next five years. It also signed to deliver its recurrent training program to Emirates.
ATA Holdings, parent of ATA airlines, took a major step toward exiting bankruptcy after the US Bankruptcy Court approved its disclosure statement, which specifies how it intends to finance its restructuring as well as its future operating plan. The reorganization plan calls for an investment of $120 million from MatlinPatterson, including $30 million in DIP financing that will be converted to equity upon emergence, up to $70 million in the form of equity and a standby commitment to purchase shares not taken up by creditors, and $20 million in exit financing ( ATWOnline, Nov.
Gol said it executed a definitive agreement related to its joint venture to create a low-fare airline in Mexico. The proposed holding company for the new airline has been incorporated in Mexico as Controladora Prosea, with Gol holding 25% of the voting capital stock and approximately 47.6% of the total capital stock. The remaining capital is subscribed by Mexican investors. The company is capitalized at $40 million, of which $19 million will come from Gol. Startup of service is expected in mid-2006. The airline will operate domestically initially, adopting Gol's business model.
Cendant Corp., less than six weeks after it announced it was breaking itself up into its component businesses ( ATWOnline, Oct. 26), warned that fourth-quarter earnings will not meet expectations owing to "continuing challenges at its Travel Distribution Services division," which includes Orbitz and the Galileo GDS.
Royal Jordanian said yesterday it expects 2005 and 2006 net earnings "similar" to the JOD17.5 million ($24.6 million) achieved last year. Revenues for 2005 are expected to be JOD389 million, increasing 20.6% to JOD469 million in 2006. Expenses are expected to climb 20.7% from JOD 377 million this year to JOD455 million.
Detroit Metro Airport will return $11 million to airlines after beating budget forecasts in FY05. Nearly 70% of the surplus will go to Northwest Airlines, the Detroit Free Press reported. The airport said it hoped the gesture would entice carriers to increase service.
Propelled by losses among US carriers, the global airline industry is expected to lose $6 billion this year and $4.2 billion in 2006 before returning to the black in 2007 with a profit of $6.2 billion, IATA said yesterday in Geneva at its Global Press Day. The latest forecast represents an improved outlook for 2005, as the organization previously expected a deficit of $7.4 billion this year.
International Federation of Airline Pilots said the Chicago Midway runway overrun accident last Thursday "demonstrates once again the need for Runway End Safety Areas to be established at airports with airline operations." IFALPA favors a RESA 300 m. in length by at least twice the runway width. At airports where no space is available for an overrun area, such as Midway, the organization advocates that Engineered Materials Arrester Systems be installed.
SR Technics and Chinese startup Okay Airways signed an MOU calling for the creation of a maintenance joint venture in Tianjin. The facility will provide "full technical solutions" for Airbus and Boeing types including aircraft services, fleet technical management and component support.
UK residents traveling abroad for leisure have been by far the fastest-growing component of total international traffic at UK airports since the European aviation market was liberalized in 1993, according to a new report by the UK CAA. Self-evidently, the study also concludes that the spread of no-frills airlines has been by far "the most striking development" following liberalization.
Nigerian President Olusegun Obasanjo ordered the grounding of Chanchangi Airlines and Sosoliso Airlines during a meeting broadcast on national television yesterday, three days after a 32-year-old Sosoliso DC-9 crashed in Port Harcourt, killing 107 people ( ATWOnline, Dec. 12). It was the fifth Nigerian accident since 1992 to claim more than 100 lives, according to the BBC. Obasanjo fired Tommy Oyelade, secretary of the national aviation ministry, and said that all Nigerian aircraft will undergo safety checks within the week with the help of ICAO officials.
Tarom Romanian Airlines announced that it expects to be named a special Alliance Associate member of SkyTeam. The carrier said it was included in the first batch of four airlines selected to start the association process, which could be finalized during 2006.
