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.
Count us among those who applauded when Northwest Airlines began offering passengers the opportunity to reserve a select number of aisle or exit row seats in the economy cabin for an additional fee of $15. Whether or not the program is successful over the long termand early returns are encouragingNorthwest has taken an important step down the road toward product differentiation. All coach seats are not the same, so why behave as if they are? Moreover, it has put the consumer in charge of the purchase decision.
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.
When Catherine Mayer found herself waiting in an airline customer service line to find out why her luggage didn't show up after an international flight in early April, she knew there had to be better way. In fact, she knew exactly what that way should be. Mayer is VP-airport services for SITA, which is at the forefront of an industrywide push to accelerate passenger self-service options.
Sweden's FlyMe yesterday reported a SEK63.2 million ($8.8 million) loss in the first quarter ended March 31, a period it called "one of the most demanding and exciting" in its two-year history. The loss was nearly three times heavier than the SEK23.9 million reported in the year-ago quarter and reflected the LCC's significant commitment to growing its business. Toward the end of the quarter it launched new services to 11 European cities, overhauled its aircraft and increased daily utilization from an average of 4 hr. to 11 hr.
A milestone quarter that featured the Malaysian government's decision to shift the bulk of domestic operations to AirAsia starting Aug. 1 and the opening of the low-cost terminal at Kuala Lumpur International Airport did not end with very good news on the LCC's bottom line, which showed a profit of MYR22.8 million ($6.3 million) for the fiscal third quarter ended March 31, narrowed from earnings of MYR40.7 million in the year-ago quarter.
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.
Pakistan International Airlines took delivery of its first new ATR 42-500 yesterday, part of a $100 million order for seven signed in November ( ATWOnline, Nov. 4). It will receive the next two aircraft in November and December and four more in the first five months of 2007. They will replace PIA's aging F27 fleet.
Cathay Pacific Airways will launch twice-weekly 747-200F Hong Kong-Mumbai-Chennai cargo flights Friday. Estonian Air will close its Talinn-Manchester route on July 1 and its Talinn-Dublin service on Sept. 1. In the autumn, flights to Paris and Hamburg will be suspended for the winter season. Finnair today will launch daily Helsinki-Geneva flights aboard an Embraer 170 and on Saturday will start thrice-weekly Helsinki-Nagoya Chubu flights. It launched Helsinki-Pisa service earlier this month aboard an A320.
Competition regulators gave preliminary clearance to Qantas to establish an interlinked low-cost airline network in Asia through its Jetstar brand despite opposition from rival LCC Tiger Airways.
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.
Delta Air Lines this week launched daily Atlanta-Athens and New York JFK-Kiev flights and next week will start daily services from ATL to Edinburgh and Venice, all aboard 767-300ERs. Turkish Airlines and TAP Portugal concluded a codeshare agreement that will see TAP place its code on THY's thrice-weekly Lisbon-Istanbul service beginning July 1.
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."
Transavia.com, celebrating its 40th birthday this year, achieved its 28th consecutive annual profit with a net result of €11.1 million ($14.1 million) for the financial year ended March 31. This compares to a net profit of €13.6 million in FY05, the 18.4% decline owing to a switch to EU-IFRS accounting standards. Revenues rose 15% to €597.1 million and operating costs increased 16% to €573.5 million. Cost per seat grew 6%, driven largely by fuel. Operating profit at the low-cost and charter subsidiary of Air France-KLM was €18.1 million.
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).
