Southwest Airlines board of directors declared a regular quarterly dividend of $.0045 per share to shareholders of record at the close of business Dec. 8, payable Jan. 5. It is the carrier's 117th consecutive quarterly dividend.
Indian Civil Aviation Minister Praful Patel said the government will invite private investment in state-owned Air-India and Indian Airlines but does not intend to privatize more than a 20% ownership. India's state-owned carriers have been starved for investment for many years, subjected to bureaucratic meddling, and face increasing competition from a wave of new entrants. "The two airlines need more financial muscle and more equity.
Assn. of Asia Pacific Airlines DG Andrew Herdman cautioned delegates at the 49th Assembly of Presidents in Hong Kong that slowing cargo demand is a warning sign for the industry. "So far the lower growth rate has not shown up in passenger growth, but the lower demand for cargo shipments is an early warning sign that the fuel price is impacting economies," Herdman said. Cargo traffic grew a robust 14.5% in the 2004-05 year but was up only 4.7% in the first six months of the current year. July actually saw a decline of 0.7% in FTKs.
US Senate Wednesday approved a pension relief bill with an amendment that permits airlines to make up pension funding shortfalls over 20 years while other industries would receive seven years. In a statment, Northwest Airlines called passage of the bill with the amendment "a positive development for employees of airlines and taxpayers.
Southwest Airlines named Mike Van de Ven as its new executive VP-aircraft operations to replace Jim Wimberly, who will retire at year end. Van de Ven is a 12-year veteran of the airline and a member of its Executive Planning Committee.
Lufthansa Flight Training will provide a comprehensive training package for Martinair with the introduction of the 747-400 Freighter to the latter's fleet. Through 2007, 42 Martinair pilots will earn their type ratings from LFT for the 747-400F. Value of the deal is more than €2 million ($2.3 million). Separately, LFT announced that from Dec. 1, Florian Hamm will become chairman of its management board succeeding Dieter Harms, who is retiring after more than four decades at Lufthansa Group.
Delta Shuttle is introducing nine 142-seat MD-88s on its East Coast Shuttle between New York LaGuardia, Boston Logan and Reagan Washington National, replacing 120-seat 737s. The aircraft, which currently are flying in a two-class configuration, will be refitted to carry 134 in a roomier single-class arrangement. At the same time, Delta Connection carrier Comair announced it now is offering bi-hourly service between New York JFK and Logan and will begin "frequent" service between Boston and Baltimore-Washington International Dec. 1.
Air Berlin carried 1.4 million passengers in October, up 11.3% over October 2004. Year-to-date boardings were up 14.6% to 11.7 million. Turnover for the period was estimated at €1.09 billion ($1.3 billion), surpassing the year-end total for 2004 of €1.05 billion. MD Joachim Hunold continues to anticipate a positive result for 2005 despite high fuel costs.
Virgin Blue, coming off a quarter in which profits fell 33.1% ( ATWOnline, Nov. 17), will raise fares in an effort to capture a bigger share of the business class market. According to Australian Financial Review, the carrier said it lost more leisure traffic to Qantas LCC Jetstar than anticipated and would be offering sufficient product enhancements to justify the price hikes.
Qatar Airways yesterday denied reports that it had entered into a marketing agreement with Israel's Arkia Airlines ( ATWOnline, Nov. 17). A senior QR official said, "We deny this. . .we have not been in any discussions with this company and no agreement has been signed," Reuters reported. The reported agreement, which would have been the first between Israeli and Gulf Arab carriers, would allow Arkia passengers to fly from Tel Aviv to Amman before connecting on Qatar Airways to destinations in Asia and Africa via Doha.
US Senate Commerce Committee yesterday approved legislation requiring FAA to repeal the Age 60 Rule in favor of permitting pilots to work until they are 65. Copilots would have to be below age 60. The bill must be passed by the entire Senate as well as the House and signed by the President before it becomes law. It was welcomed by the Southwest Airline Pilots' Assn. but criticized by the Allied Pilots Assn. representing pilots at American Airlines. FAA consistently has refused to amend the rule and it is an issue that still divides pilot groups.
Iran Air said earlier this week that it has been forced to ground five of its 16 A300s/A310s because US sanctions prevent it from securing spare parts for the GE engines powering the aircraft, Reuters reported, quoting Iran Air spokesperson Malek Barzegar-Sedigh. Unable to buy new airplanes or spares from the West, the airline has supplemented its fleet with aircraft from former Soviet Union countries.
Ryanair announced yesterday that it will implement a "commonsense" change in its policy limiting the number of blind passengers it will carry on a flight following the public outcry it encountered after removing nine visually impaired passengers from a flight to Italy last month ( ATWOnline, Oct. 17). In the immediate aftermath of that event, the airline said it would not alter its policy of restricting to four the number of disabled passengers per flight.
The European Parliament voted yesterday to introduce a publicly available EU-wide blacklist of airlines that do not meet safety requirements ( ATWOnline, Oct. 13). The vote followed by one day the proposal by the European Commission to extend the powers of the European Aviation Safety Agency to manage air operations, including licensing pilots and overseeing third-country airlines in the EU ( ATWOnline, Nov. 16).
Boeing and negotiators for the Society of Professional Engineering Employees in Aerospace reached a tentative agreement yesterday on a new three-year contract covering nearly 18,000 engineering and technical employees in the western US. Highlights of the deal, which is subject to ratification by union membership, include average engineering salary increases from $82,060 to at least $95,884 and technical employee increases from $61,774 to $71,134, an incentive plan including a potential of 20 days extra pay, and improved health, pension and 401(k) benefits.
Northwest Airlines yesterday received bankruptcy court approval to impose temporary wage and benefit reductions valued at $114 million per year on its ground workers represented by the International Assn. of Machinists. NWA sought authority under Section 1113e after it was unable to reach agreement with the union on temporary pay and benefit reductions. Pilots ratified an interim contract Tuesday totaling $215 million in annual givebacks ( ATWOnline, Nov. 16), while flight attendants have consented to $117 million in cuts.
CasaAero, a joint venture between Alteon and Royal Air Maroc, opened its pilot training facility at Aeroport Casa Anfa Tuesday. It will house two 737 simulators.
United Airlines will close its Denver reservations office, eliminating 235 jobs, according to a Denver councilman. The airline will offer severance packages and transfer opportunities to displaced employees, Councilman Michael Hancock told the Denver Business Journal.
Ten largest US passenger airlines in aggregate lost $3.24 billion in the third quarter ended Sept. 30, a threefold increase over a loss of $1.04 billion in the third period of 2004. However, current-period results include more than $2.5 billion in bankruptcy-related charges at Northwest, Delta and United.
AIRUnion, the alliance of Russian airlines under a single management company, wants to move toward a full merger in 2006, an official said in Moscow ( ATWOnline, Sept. 21). Members of the group are Krasair, Domodedovo Airlines, Omskavia, Samara Airlines and Sibaviatrans. Should the combination take place, the resulting carrier will surpass Sibir to become the second-largest in Russia in terms of passengers. AIRUnion currently operates about 100 aircraft and has begun taking delivery of 10 737-200s, VP-Sales and Marketing/International Affairs Urs Herzig told ATWOnline.
Alitalia's unions warned they will stage multiple strikes totaling 72 hr. beginning Nov. 29 with a 24-hr. walkout by pilots and flight attendants. The financially troubled carrier on Monday launched its rights issue in an attempt to raise about €1 billion to finance its 2005-08 restructuring plan and avoid insolvency ( ATWOnline, Nov. 14). Unions claim it is not doing enough. "It's not just today that the industrial strategy is lacking," six unions said in a joint statement published in Italian media.
BCI Aircraft Leasing of Chicago acquired three 767-300ERs subject to operating leases with Germany's TUI. Valued at $90 million, the transaction was financed by BCI and a commercial lending syndicate.
Qatar Airways and Arkia Airlines reached an agreement that allows Arkia passengers to fly from Tel Aviv to Amman and then connect on Qatar Airways via Doha to destinations in Asia and Africa, according to media reports. It is the first such accord between Israeli and Persian Gulf airlines.
ANA will move into the new South Wing of Narita Airport Terminal 1 in June 2006, along with fellow Star Alliance members Air Canada, Asiana, Austrian, Lufthansa, Scandinavian, Singapore, Thai, United and Varig.
British Airways will invest £100 million ($173.8 million) in a major overhaul of its long-haul business class, including a revamp of all aspects of passenger services on the ground and in the air. The carrier contracted B/E Aerospace to design and manufacture "next generation" lie-flat seat-beds that will begin delivery in mid-2006. BA was the first airline to introduce a lie-flat business class seat. It said it also will make a major upgrade to its inflight entertainment system in all four cabins.
