US Secretary of Transportation Norman Mineta speaking at the Canadian Open Skies Forum in Canada yesterday, said he believes the US and Canada can "move ahead quickly with exploratory discussions to establish a framework for a more open bilateral agreement." He also said a liberalized agreement between the countries leading to a unified approach in aviation policy would permit the US and Canada "to work together to achieve regional liberalization across the Atlantic."
Air France-KLM Group Chairman and CEO Jean-Cyril Spinetta urged US and EU negotiators to accept "a certain degree of realism" and not get diverted by "tricky" issues such as cabotage in pursuing a proposed transatlantic Open Aviation Area.
Pratt & Whitney is developing an all-digital wireless broadband inflight entertainment solution that will offer video-on-demand, live television and broadband Internet connectivity to airline passengers.
Australia could have a fourth domestic airline by the middle of the year, with upstart OzJet planning an assault on the premium market controlled by Qantas with a business-only operation. Formula One team boss Paul Stoddart Tuesday announced the proposed A$70 million ($55.1 million) launch of OzJet, which will use a fleet of four 737-200s and six BAe 146s that are fully owned by his European aviation company. Stoddart said he originally intended OzJet to be a low-cost operation but this was frustrated by the launch of Qantas budget subsidiary Jetstar in May 2004.
Despite efforts by AirAsia to persuade the government to build a new low-cost hub at Malasyia's former main airport Subang, authorities instead have decided to construct a new terminal for LCCs at Kuala Lumpur International Airport. AirAsia CEO Tony Fernandes said he believes a new terminal at Subang would provide his airline with "the competitive edge against growing competition in the region," but government officials said building the terminal at KLIA will help the carrier.
JetBlue Airways will launch new daily nonstop service to Portland, Ore., from New York JFK May 17 and add a second daily nonstop flight between Seattle and JFK June 17.
AirAsia posted a net profit of 44.4 million ringgit ($11.7 million) for the fiscal second quarter ended Dec. 31, according to a filing with Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange). Revenue for the period totaled 178.6 million ringgit, while cost of sales was 114.4 million ringgit. As a result, gross profit from operations amounted to 64.2 million ringgit. For the six months ended Dec. 31, the company reported a net profit of 54.8 million ringgit. Revenue was 302.8 million ringgit and cost of sales reached 206.5 million ringgit.
India's Kingfisher Airlines continued to expand its fleet by signing a contract with Airbus to purchase three V2500-powered A319s. The aircraft will be configured with 144 seats in a one-class layout and deliveries will begin in Dec. The carrier late last year placed a firm order for 10 A320s with 20 options, and also inked a deal to lease four A320s from debis AirFinance that it will use to launch operations in May ( ATWOnline , Dec. 21). Kingfisher, which is backed by United Breweries, plans to have a fleet of eight A320s by year end, building to 16 in 2006.
Goodrich Corp. was selected by Air China to supply the main deck and lower lobe cargo handling system for its two new 747-400Fs, which will be delivered in Nov. 2005 and March 2006. The Goodrich cargo system includes the mechanical system, power drive units, electrical control system and floor panels.
Flynordic , the low-cost subsidiary of Finnair in Sweden, and Sterling, a low-cost carrier in Denmark, have signed a codeshare agreement. Under the deal, the two will share 11 destinations operating mainly from Stockholm and Copenhagen. Sterling, owned by Norwegian firms Bonheur and Ganger Rolf, has a similar deal in place with budget airline Norwegian Air Shuttle.
United Airlines will launch daily service between Taipei and Nagoya April 29 using a 777 in a three-class configuration. In addition, the airline is advancing its scheduled increase in flights on its existing daily service between Chicago O'Hare and Hong Kong to May 6 from the original date of June 7. The service increase will add three more flights per week between the cities for a total of 10. United also said it will upgrade from a 777 to 747 on its Chicago-Beijing service from June 6 to Oct. 29 owing to increased demand.
Lufthansa was forced to cancel 77 flights yesterday morning at Frankfurt affecting thousands of passengers amid heightened security owing to US President George W. Bush's visit to Germany. Bush landed at Frankfurt at roughly 8:45 a.m. local time on his way to talks with German Chancellor Gerhard Schroeder on the second leg of a three-nation tour of Europe. During his arrival, the airport was closed for about 40 min. "We could rescue all intercontinental flights, but we had to cancel 77 domestic and European flights, affecting 5,000 passengers," a spokesperson told ATWOnline .
Iberia and Mexicana have broadened their codeshare agreement. As of Feb. 26, Iberia will place its code on Mexicana's flights from Mexico City to Oaxaca and Merida while Mexicana will begin codesharing on Iberia's flights between Madrid and both Malaga and Santiago de Compostela.
Indian Airlines appears certain to order 12 A330s to handle its expanding international routes. The airline's board approved the purchase of 12 widebody aircraft, which expands a decision last Sept. to lease six widebodies to replace existing A300B4s. Indian Airlines is drafting an RFP to Airbus and Boeing and also may look at used options. Insiders suggest the A330 or A340 is favored.-- GT
AirAsia said it will buy an additional 20 A320s, raising its previously announced commitment to 100. The latest aircraft are earmarked to handle expansion of Thai AirAsia to China. According to AirAsia CEO Tony Fernandes, the airline has secured regulatory approval from China's regulatory authorities to serve five destinations, including Chengdu, Kunming and Xiamen from Bangkok from May. Fernandes told media in Kuala Lumpor that AirAsia also is looking at flying from Kota Kinabalu to southern China.-- Geoffrey Thomas
Pinnacle Airlines Corp. reported net income of $10.3 million for the fourth quarter ended Dec. 31, up 5.3% over net income of $9.8 million in the prior-year period. The company said fourth-quarter results were impacted negatively by severe weather, particularly in the final week of Dec. Total operating revenues for the period rose 42.7% to $181.3 million while operating expenses climbed 49.5% to $163.8 million, producing an operating income of $17.5 million, down 0.2% from operating income of $17.6 million in the year-ago period.
US Airways reached agreement with Eastshore Aviation, an investment entity owned by Air Wisconsin Airlines Corp. and shareholders, on a $125 million financing commitment to provide a "substantial portion" of the equity funding for US Airways' plan of reorganization. "This agreement with Eastshore Aviation provides the cornerstone from which we can obtain additional financing and construct a plan of reorganization. While we have more work to do, this is another positive signal to the marketplace," President and CEO Bruce Lakefield said.
FLYi, parent of Independence Air, said it completed its financial restructuring, which it said will provide the company with "greater financial flexibility to execute its low-fare business plan." FLYi has struggled financially since deciding to end its codesharing relationships with United Airlines and Delta Air Lines last year in favor of launching its own low-fare operation. "Today's announcement represents an important step forward in building a much stronger future for Independence Air," Chairman and CEO Kerry Skeen said.
Gol signed a contract with Boeing to exercise five more purchase options for 737-800s that were included in its original order for 43 737-800s ( ATWOnline , May 18). The original order consisted of 15 firm orders and 28 options, but with this new agreement the airline is increasing the number of firm orders to 26, which will be delivered between 2006 and 2010.
CSA Czech Airlines, the fastest-growing carrier among the new EU member states, plans to continue to add at least 2-3 new destinations to its network every year. "In 2004 we added 10 new destinations, especially owing to the fall of aeropolitical barriers after the Czech Republic and other countries joined the EU," VP-Financial Petr Juza told ATWOnline . CSA also is evaluating modifying its current long-haul operations, "and we will try Tokyo during the next months," Juza added.
US Dept. of Transportation proposed to select Continental Airlines and American Airlines as new entrants in the US-China market and to award new weekly cargo flights to four carriers already serving the market. DOT proposed to award Continental seven weekly passenger flights for rights that become available March 25. Continental plans to serve the Beijing-Newark route. The department also proposed to award seven weekly passenger flights to American for services in the Chicago-Shanghai market effective March 25.
ATA Holdings Corp. yesterday promoted Co-Chief Restructuring Officer John Denison to CEO of ATA Airlines. Denison, who joined the bankrupt company in Jan., will report directly to ATA Holdings Corp. Chairman and CEO George Mikelsons. He previously served in several senior management positions with Southwest Airlines, including executive VP-corporate services and CFO. Southwest and ATA recently began codesharing on a number of flights. "John has proven himself to be a valuable member of our senior management team in the short time he has been with ATA," Mikelsons said.
Alitalia was forced to cancel 176 flights Monday after its flight attendants staged a one-day strike, according to media reports. The strike was organized by Sult, one of the unions currently in negotiations with the airline.
Boeing reached an agreement with Onex Corp. under which Onex will acquire Boeing Commercial Airplane facilities and assets in Wichita, Kan., and Tulsa and McAlester, Okla., for $900 million in cash. Boeing had been studying the sale of the facilities since last year. "This agreement fully supports our strategy to focus Boeing on large-scale systems integration, which is where we are must competitive and can add the most value to our airplanes and services," BCA President and CEO Alan Mulally said.
Singapore Airlines Cargo is adding two destinations to its global network. Freighter services to the newly opened Central Japan International Airport near Nagoya will commence March 2 and to Istanbul on March 29. The new freighter service to Centrair will operate twice-weekly, making it the third SIA Cargo freighter destination in Japan after Tokyo and Osaka. Istanbul will be introduced as an additional stop on the existing twice-weekly Singapore-Kuwait-Amsterdam route. SIA Cargo operates a fleet of 14 747-400Fs on a network that extends to 68 cities in 35 countries.
