Ukraine International Airlines took delivery of two 737-500s on lease from Boeing Capital Corp. UIA now operates 12 737s. It expects 2006 traffic to be up 26% compared to 2005 and is considering whether to add another 737 before year end.
The Australian airline landscape is set for some dramatic changes after the country's dominant port operator, Patrick Corp., which has a 62.4% stake in Virgin Blue, accepted Friday a A$6.20 billion ($4.52 billion) takeover bid from Australia's Toll Holdings ( ATWOnline, August 24, 2005).
Phoenix Sky Harbor received US government approval Friday to proceed with an enhancement program comprising a new, 33-gate West Terminal, demolition of Terminal 2, an automated people-mover, realignment of Sky Harbor Blvd. west of Terminal 3, two new taxiways and improvements to the Terminal 4 International Concourse. Approval from the Phoenix City Council still is required. The airport said its three runways should be sufficient "well into the future."
In a move likely to chill slowly thawing labor relations at United Airlines, parent UAL Corp. is providing a generous severance package to Douglas Hacker, a longtime member of the company's executive management team who sued UAL in March to recover bonus and incentive payments he claimed he was owed. Hacker was named executive VP-strategy two days after UAL filed for bankruptcy protection in December 2002 but currently is listed on the airline's website as executive VP. He joined United in 1993.
DirectFly, a new Polish Regional, launched service this week. The carrier operates five Saab 340s and offers flights to and from Gdansk, Lodz, Bydgoszcz, Warsaw, Krakow and Wroclaw. It hopes to attract passengers by offering point-to-point flights bypassing Warsaw. Initial international destinations are Berlin Schoenefeld, Copenhagen, Kiev and Lvov. DirectFly uses the AOC of Sky Express.
Boeing announced a number of changes to its senior management. Upon the retirement of Washington Office Senior VP Rudy deLeon effective June 30, Tod Hullin will assume his responsibilities as senior VP for public policy and communications. Also, Thomas Downey, who leads Boeing Commercial Airplanes Communications, will move to Chicago to become VP-corporate communications for the entire company. Connexion by Boeing President Laurette Koellner, 51, will become president-Boeing International Relations, replacing Thomas Pickering, 74, who is retiring.
Delta Air Lines will increase fuel surcharges effective today by $10 each way on transatlantic routes (except France and Italy), by $15 on flights to or from India and by $19 on services to or from Israel. Separately, DL will boost its presence in New York this summer with the following new routes: LaGuardia-Las Vegas Saturdays from June 10 aboard 757s, LGA-Los Angeles Saturdays from June 10 aboard 757s, JFK-Burlington twice-daily from July 5 aboard CRJ200s and JFK-Richmond twice-daily from July 5 (originally scheduled to begin Sept. 9) aboard CRJ200s.
Canada's air navigation services provider, NAV Canada, said it will reduce the weight factor used in calculating its terminal services charge from 0.9 to 0.85 beginning May 1.
Northwest Airlines pilots will receive an $888 million stock claim when the carrier emerges from bankruptcy, according to press reports citing a video on the Air Line Pilots Assn. website. Voting on the new labor deal, which was reached last month ( ATWOnline, March 6) and is worth $358 million in savings to the airline, is being conducted through May 3. The stock claim will represent 13% of all unsecured claims on NWA and will be paid in shares of the reorganized company.
United Airlines signed a five-year, full-content distribution agreement with Worldspan designating the GDS as a "preferred distribution channel." The agreement is expected to be implemented in the next six months. UA signed a similar agreement with Galileo earlier this week. Separately, Worldspan said Mexicana Airlines chose to adopt its Rapid Reprice solution for repricing airline tickets when itineraries change.
Evergreen Air Center will break ground on a new widebody hangar at Pinal Air Park in Marana, Ariz., April 18. The 87,000-sq.-ft. hangar, set to open in early 2007, will be able to accommodate the 747-400 Large Cargo Freighter that will be used to deliver 787 wing and fuselage assemblies to Boeing. Evergreen International Aviation will operate and maintain the aircraft on behalf of Boeing.
Construction of a second main runway at Dublin Airport was approved by the Fingal County Council Planning Dept. earlier this week. Dublin Airport Authority welcomed the decision, calling the runway "a vital component of the overall future development plans to enable the airport to handle in excess of 30 million passengers per annum." DAA said that based on current forecasts, the runway needs to be operational within the next 6-7 years. However, "it is expected that [it] will not be brought into operation until usage of the current runway is maximized."
British Airways reported a 1.8% increase in March RPKs to 9.5 billion and a 2.5% rise in capacity to 12.63 billion ASKs. Load factor fell 0.5 point to 75.2%. Northwest Airlines flew 6.43 billion RPMs in March, a 6.1% decrease from the year-ago month. Capacity fell 8.8% to 7.38 billion ASMs and load factor rose 2.5 points to 87.1%. Domestic traffic dropped 9.5% to 3.77 billion RPMs against a 12.9% fall in capacity to 4.46 billion ASMs, lifting load factor 3.2 points to 84.5%.
World Air Holdings, parent of World Airways and North American Airlines, authorized the repurchase of up to 2 million shares of its common stock once it files its annual report, which has been delayed.
Atlas Air and Polar Air Cargo parent Atlas Air Worldwide Holdings, in its first full fiscal year since exiting bankruptcy protection, reported a 2005 profit of $73.9 million on revenue of $1.62 billion, a performance that left the company confident as it pursues a listing of its common stock on a national exchange. "We believe that reaching these milestones will greatly broaden our potential investor base and therefore interest in AAWW, ensuring a more liquid market for our shares," Senior VP and CFO Michael Barna said.
Netherlands and Surinam agreed to liberalize air traffic between the countries effective May 1. Two Dutch carriers, Martinair and ArkeFly, will be allowed to operate the Amsterdam-Paramaribo route. At present, only KLM and Surinam Airways have the right to fly between the capitals. Both TUI-controlled ArkeFly and Martinair reportedly intend to commence twice-weekly services using 767-300ERs.
Southwest Airlines will appeal last week's verdict in a racial profiling case that concluded with a $27.5 million award to a California woman and Iran native who claimed false imprisonment and malicious prosecution following her 2003 arrest in El Paso, according to press reports.
Alaska Airlines will spend $3.5 million to upgrade its terminal at Nome. Work on renovating and expanding the passenger lobby by nearly 1,500 sq. ft. and upgrading the secured passenger area, cargo facility, ground service equipment area, parking lot and water and sewer line connections will begin in June and conclude in March 2007. The carrier operates three daily flights at the airport. Separately, Alaska flew 1.53 billion RPMs in March, a 4.2% increase over the year-ago month. Capacity rose 3.7% to 1.95 billion ASMs and load factor improved 0.3 point to 78.2%.
Etihad Crystal Cargo, the cargo division of Etihad Airways, said it had more than $15 million in sales last month and handled more than 10,000 shipments.
US Airways announced the completion of a $1.25 billion debt refinancing transaction yesterday, allowing the carrier to pay off loans from America West ($250 million), the Air Transportation Stabilization Board ($551 million), General Electric Capital Corp. ($111 million) and "an affiliate of Airbus" ($161 million). A second Airbus loan of $89 million was forgiven as part of an agreement with the airframer. The new five-year loan, underwritten by GE Commercial Finance and Morgan Stanley Senior Funding, will bear interest at LIBOR plus 3.5%.
American Airlines and KLM are increasing their fuel surcharges. AA will add $10 each way on most transatlantic and transpacific routes, excluding Japan, effective immediately. KLM will add €5 per stretch on all long-haul segments effective April 15. Surcharge on intercontinental flights will rise to €45 but remain at €15 per segment on European routes.
The on-again-off-again relationship between Air New Zealand and Qantas is back on, with the carriers announcing yesterday a comprehensive codeshare agreement for their routes across the Tasman Sea. Both airlines will file shortly seeking authorization from the New Zealand Minister of Transport and the Australian Competition and Consumer Commission. Regulatory approval is expected to take approximately six months. The agreement replaces the more ambitious equity tie-up that ran foul of competition regulators in both countries in 2003.
Star Alliance is working on collective specifications for the 787, Air New Zealand CEO Rob Fyfe told ATWOnline during the group's meeting in Johannesburg earlier this week. The alliance has a working group including member airlines Lufthansa, ANA, Singapore Airlines, ANZ, Air Canada and LOT Polish Airlines negotiating with Boeing on a wide spectrum of specifications ranging from cockpit configuration through galley configuration and seat pitch.
