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    Archived pages: 190 . Archive date: 2012-11.

    Descriptive info: UNITED AIRLINES CHARGES.. Written by Administrator.. UNITED AIRLINES PARENT SEES $162M IN 1Q CHARGES.. Business Week, 19 April 2012.. USA: The parent of United Airlines said on Thursday that costs from a big computer integration last month and other items brought $162 million in special charges during the quarter.. The items include $134 million for integration-related costs.. United and Continental airlines merged into United Continental Holdings Inc.. in 2010.. In early March they switched over to a combined passenger information computer system and frequent-flier program.. The switch prompted a flood of passenger complaint calls, forcing United to add staff and pay overtime in its call centers.. On  ...   United has been reducing average wait times.. The other charges included $49 million for voluntary severance and benefits.. United said 400 mechanics volunteered to retire early and get a cash payment tied to their years of service with the airline.. And 1,800 flight attendants volunteered to go on leaves of absence.. The airline also had gains from selling six planes and its interest in a crew hotel in Hawaii during the quarter.. United Continental Holdings Inc.. is set to report first-quarter results on April 26.. On Thursday, shares of the Chicago-based company rose 64 cents, or 2.. 8 percent, to close at $23.. 34.. Facebook Comments (.. )..

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    Descriptive info: SOUTHWEST AIRLINES EXPAND.. SOUTHWEST AIRLINES TAKES MAJOR STEP TO EXPAND INTERNATIONALLY.. The Wall Street Journal, 19 April 2012.. Southwest Airlines Co.. announced a major step Thursday in the Texas carrier s efforts to expand internationally.. Southwest which has been struggling to integrate AirTran Airways and has been locked in a fight with United Continental Holdings Inc.. UAL +2.. 82% over plans to add international service to Houston s smaller airport said Thursday it will add a global reservations system by Amadeus IT Group SA.. The deal will let Southwest offer international flights by 2014.. AirTran already flies to Mexico and the Caribbean.. Meanwhile, the company announced a first-quarter profit of $98 million, buoyed by $116 million in fuel-hedging gains.. Southwest earned $5 million in the first quarter of 2011, before it acquired AirTran in May 2011.. The company declined to disclose its pro forma combined net income for a year ago—what Southwest and AirTran would have earned together, a truer year-over-year comparison.. Southwest, which began as a small Dallas-based budget airline three decades ago, has been eyeing a spot among the giants of the global airline industry.. But in its merger with AirTran, the company has hit some snags in rebranding airplanes and connecting Southwest and AirTran flights in its reservations system.. It encountered problems earlier this year when converting several AirTran flights in Atlanta to Southwest.. Eventually the airline reversed course, keeping the flights on the AirTran network.. The airline plans to convert 11 AirTran planes to Southwest this year, and about another 60 next year.. It also plans to eliminate some of AirTran s bag fees and assigned seating.. "There will be radical changes on an on-going basis," Southwest Chief Executive Gary Kelly said Thursday.. "Ultimately it will  ...   line up: physically on the airline side, and next, all the technology that connects our two networks.. As Southwest expands into an international carrier, it must find airports for its new routes abroad.. Its first target is Houston s William P.. Hobby Airport, where Southwest wants to add about 25 international flights a day.. Southwest is seeking approval for a new $100 million international concourse at the airport—funded by user fees—despite fierce objections from United, the world s largest airline by traffic.. United is lobbying city officials against the plan, saying it will hurt business at Houston s George Bush Intercontinental Airport, where it operates about 100 international flights a day.. United, which includes the former Houston-based Continental Airlines, says that if Southwest s plan is approved, it would likely have to cut flying by 6% from Houston and relocate 1,300 employees from there.. A United spokeswoman said in a statement, "We embrace international competition and welcome all new competitors" at Bush Intercontinental.. Mario Diaz, director of Houston s airport system, has endorsed Southwest s expansion plan, saying in a letter to Houston s mayor that it would create 10,000 jobs and generate $1.. 6 billion annually for the city.. In the letter, he said, "United has presented no persuasive data to support its claims," calling them "at odds with its actions at every other airport where it has faced low-cost competition.. In a letter to the mayor, United Chief Executive Jeff Smisek called a city-ordered study on the plan "rushed and flawed," and on Monday, Houston s city council was similarly critical of the plan.. On May 8, both airlines will present their cases to the city council, which is scheduled to vote on the plan a week later..

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    Descriptive info: GOAIR EXPECTS PROFIT.. GOAIR EXPECTS TO MAKE PROFIT THIS YEAR.. Live Mint, 20 April 2012.. India: Budget airline GoAir expects to reverse last year’s losses and swing to a profit this year, buoyed by 80% flight occupancy through combining lower fares with better efficiency.. The profit margin this fiscal is likely to touch that in 2010-11, the first time the seven-year-old company made a profit, chief executive Giorgio De Roni said before a press conference announcing the launch of GoAir’s Chennai services.. The unlisted firm doesn’t make its earnings public.. Chennai will be the 22nd destination for GoAir—run by Go Airlines (India) Ltd— and will contribute to 10% of the company’s business, De Roni said.. “This is a turbulent time for our sector but our focus is on profitability and plying 5 million passengers this year through 35,000 flights,” said De Roni, who headed Air One, an Italian private airline with more than 60 planes and a turnover of $1 billion, before joining GoAir last year.. “We are not here for the short run.. We are here to stay.. ”.. De Roni’s projections are higher than the Mumbai-based carrier’s 2011-12 numbers of 4 million passengers and 30,000 flights that failed to sustain profits because of higher fuel costs and a weak rupee.. “A marginal downtrend in crude oil prices and a possibility of importing jet fuel could help revive  ...   now operating 120 flights a day with 20 planes, or one-third its year-ago levels.. Kingfisher logged the smallest market share in the industry at 6.. 4% in March, down from nearly 20% a year ago.. GoAir’s market share rose to 7.. 5% from 6.. 8% in the same period, according to data provided by the Directorate General of Civil Aviation.. De Roni said GoAir will return to profit this year but refused to give a number.. Last June, promoter Jehangir Wadia, the younger son of Wadia Group chairman Nusli Wadia, said GoAir’s 2010-11 profit after tax rose 7%, operating margin 15.. 7% and operating profit 13.. 7%.. He didn’t give details.. GoAir’s upbeat outlook comes amid a slowdown in passenger demand, which rose just 1.. 1% year-on-year to 4.. 87 million passengers in March, the third month of single-digit growth following 16 months of double-digit jumps between September 2010 and November 2011, according to consulting firm Centre for Asia Pacific Aviation.. Last year, GoAir announced an order for 72 Airbus SAS A320neos.. The $7.. 2 billion booking marked the airline’s intent to join larger rivals such as IndiGo—India’s largest low-cost carrier and the only profitable airline.. GoAir is controlled by the diversified Wadia Group, which also controls Bombay Dyeing and Manufacturing Co.. and Britannia Industries Ltd.. The group’s other business interests include textiles, chemicals, plantations, engineering and real estate..

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    Descriptive info: AMERICAN AIRLINES TAKEOVER.. UNIONS AT AMERICAN AIRLINES PLAN TO BACK TAKEOVER BID FROM RIVAL US AIRWAYS.. Washington Post, 20 April 2012.. USA: Unions at American Airlines plan to support a potential takeover offer by rival US Airways, according to two people familiar with the situation.. The unions believe that combining with US Airways would give American the best chance to grow and preserve jobs, said the two, who spoke on condition that they not be identified because no decision has been announced.. An announcement by the unions is possible as early as Friday morning, they said.. A spokesman for American said Thursday that the company is focused on its own plan to reorganize under bankruptcy protection, which he called the best option for the airline’s 73,000 employees.. US Airways Group Inc.. , based in Tempe, Ariz.. , declined to comment.. It has previously confirmed hiring advisers to consider a bid for American’s parent company, AMR Corp.. , based in Fort Worth, Texas.. AMR filed for bankruptcy protection in November and has since outlined plans to cut more than 14,000 jobs, including 13,000 held by union members.. On Thursday, the company reported a $1.. 66 billion loss for the first quarter, mostly on bankruptcy-reorganization costs.. On Monday in New York, AMR is scheduled to begin presenting its case for throwing out union contracts and imposing new pay, benefits and work rules.. A federal bankruptcy judge is expected to rule on the request in early June.. Unions for American’s pilots, flight attendants and ground workers have been discussing supporting a takeover bid  ...   committee backed Delta’s plan to remain independent.. US Airways executives have said that one lesson they learned from the failed Delta bid was the need for support from labor at the target airline.. Reports have swirled for weeks that US Airways was meeting with AMR creditors.. AMR CEO Thomas Horton referred to the situation in a letter to employees Thursday.. “There continues to be much takeover speculation in the press fuelled by those who seek to serve their own agendas,” Horton wrote.. “I expect this to continue and to escalate.. AMR spokesman Bruce Hicks said the company is in the middle of a complex restructuring process to return to profitability and find “the very best path forward for all of its stakeholders.. Horton has opened the door to merger talks, but only after AMR emerges from bankruptcy protection.. The unions, however, have signalled their lack of confidence in Horton’s reorganization plan, which includes short-term cuts but promises long-term growth.. They question whether American can catch up to bigger rivals United and Delta without a merger.. Last week, the Allied Pilots Association, the Association of Professional Flight Attendants and the Transport Workers Union took the unusual step of criticizing elected officials who came to AMR’s defense.. Oklahoma Gov.. Mary Fallin and U.. S.. Sen.. Kay Bailey Hutchison, R-Texas, said that AMR should be left alone while it reorganizes and not become the prey in a hostile takeover.. But the presidents of the three unions said that in looking out for their members’ interests, “we must exercise due diligence and examine every possibility..

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  • Title: Russian Aircraft Vanishes
    Descriptive info: Russian Aircraft Vanishes.. Russian Aircraft Vanishes From Radar During Promotional Flight.. MOSCOW — A demonstration model of Russian passenger jet vanished from radar screens and lost contact with ground controllers Wednesday during a flight in Indonesia for airline representatives and journalists that was meant to promote sales of the aircraft.. A Sukhoi Superjet 100 taking part in the 48th Paris Air Show on June 17, 2009.. A Russian Sukhoi plane with 46 people on board has gone missing over Indonesia, officials said on May 9, 2012.. The plane departed from Halim airport in Jakarta, and was to land there, but vanished from radar screens and lost contact with ground controllers.. Russian and Indonesian authorities confirmed the loss of contact with the crew of the airplane, the Superjet 100 manufactured by Sukhoi, Russia’s major aircraft company, during a flight that departed from Halim airport in Jakarta, the Indonesian capital, and was to return to the same location 50 minutes later.. The Russia Today news Web site said that 50 people were aboard the plane, including eight Russians and 36 citizens from other countries, mostly airline representatives interested in buying it.. The Superjet 100 is the first newly designed passenger jet made in Russia since the collapse of the Soviet Union.. The plane vanished soon after the pilot requested permission to descend, a spokesman for the Russian Embassy in Indonesia told the Interfax news agency.. The agency also cited an unidentified spokesman for the Russian Transportation Ministry saying that a preflight check had turned up nothing suspicious, a standard assurance offered by Russian transportation authorities after mishaps.. “The plane was absolutely flightworthy,” the spokesman said.. Gagah Prakoso, a spokesman for Indonesia’s national search and rescue service, said the plane disappeared from radar around Bogor, a mountainous area about 50 miles south of Jakarta, and that 200 police officers and rescue workers were sent to the area to search.. “We are still looking for it and we are uncertain whether it crashed,” he was quoted by Agence France-Presse as saying.. Much of Russia’s hopes of reviving its commercial  ...   short-hop jets made by its main competitors, Embraer of Brazil and Bombardier of Canada.. The Superjet is Sukhoi’s only commercial product.. Eight of the planes are in service now, and the company has said it has orders for 200 more; it hopes to sell about 1,000 of the planes over the next two decades and to secure a 20 percent share of the global market for jets in the 100-seat category, which Embraer and Bombardier now dominate.. But the Superjet seemed afflicted with safety lapses from early on.. When it entered commercial service last year with Aeroflot, Russia’s national airline, the first plane was promptly grounded because of a sensor that detects leaks in the pipes that funnel fresh air into the cabin had broken down.. As the jet entered production, the Russian television station NTV reported that 70 engineers at the plant making the Superjet had obtained fake engineering diplomas by bribing a local technical college.. Sukhoi said those employees were not directly involved in assembling the planes.. Also of concern for prospective buyers, the finished planes turned out to weigh two tons more than the initial estimates that were presented to airlines, based on engineering designs.. The extra weight hurts the aircrarft’s fuel economy, making them less attractive.. Sukhoi has said such deviations are typical for new aircraft.. Last week Sukhoi began a six-nation road show of presentations to Asian airline executives about the plane, and it had already made stops in Kazakhstan, Myanmar and Pakistan.. Wednesday’s flight in Indonesia was to have been followed by visits to Laos and Vietnam.. Russian aviation has had a particularly rough time in recent years.. About 400 people died in Tupolev jet crashes in Russia and Ukraine in 2006.. Last year, a Tupolev Tu-134 crashed while approaching a provincial airfield, killing most of the 52 people aboard, and a Yakovlev jet chartered by the Lokomotiv hockey team crashed in Yaroslavl, killing most of the team.. The latest lethal crash in Russia, in April, involved a French-made turboprop airplane on a short-hop flight in Siberia.. Source nytimes.. com..

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    Descriptive info: BUSINESS TRAVEL GROW.. BUSINESS CLASS TRAVEL TO GROW: IATA.. The Times of India, April 19 2012.. Mumbai: For airlines, increase in business travel is a welcome news and February was again a good month in that regard for airlines across the globe.. The International Air Transport Association (IATA) released its premium travel monitor for February 2012 on Thursday with the positive news that it had recorded an increase in business passengers for the said month.. That in turn boosted  ...   low-point last October.. "Premium travel expanded 6.. 3 per cent in February compared to the same month a year ago.. Economy class travel also increased in February, by 8.. 9% from a year ago, well above the January result of 6.. 1%," said the IATA report.. "However, the year-on-year increases were given a one-off boost of several percentage points - from the Arab Spring a year ago, Chinese New Year in January, and Carnival and the Leap Year in February"..

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    Descriptive info: NEW COALITION.. EIGHT GROUPS JUMP ON NEW COALITION TO PRESS CASE FOR TOURISM.. TTG Asia, 20 April 2012.. Eight travel and related associations have jumped on a new coalition to press a case for tourism to governments.. As of now, the coalition comprises the WTTC, UNWTO, IATA, PATA, World Economic Forum, American Society of Travel Agents, Cruise Lines International Association, Airports Council International and the US Travel Association.. Their alliance was a result of a call in May last year by the WTTC for the industry to come together with one voice to effectively engage governments to give real support to tourism.. Governments continue to confound the industry with their bureaucratic visa processing and taxation policies, the UK APD and EU-ETS being the most odious taxes right now.. These two current hot button issues – visas and taxes – reflect governments lack of real understanding of how tourism could support the economy, industry CEOs said.. IATA s director-government and industry affairs, Jeff Poole, said IATA alone could not convince governments of the foolishness of taxation, which was why it joined the coalition.. He scathingly said that "politicians don t know, don t want to know and when they  ...   David Scowsill, WTTC s president and CEO, said the coalition was about "coalescing around the same issue" and demonstrating a case through research findings and where it actually counted for politicians, for example, connecting jobs to visas.. The coalition s immediate opportunity is to make a go of the G-20 leaders meeting in Los Cabos, Mexico, this June and present each G-20 country a "profile" of how its visa processing policies impact jobs.. Preliminary findings of research for this campaign commissioned by WTTC and UNTO show, for example, that for every 37 extra visas the US issues, it is creating one job.. Scowsill also pointed out that it was thanks to intense lobbying by WTTC member CEOs such as Bill Marriott and Hubert Joly (Choice Hotels International) that "finally resulted in President Obama’s Executive Order to Hilary Clinton in the state department, to speed up visa processing from Brazil, China and other countries”.. Said Scowsill: "Only last week President Obama signed another significant agreement on the same visa issue with the Brazilian President, Dilma Rousseff.. Obama finally gets it.. Let’s hope he is still around after November, otherwise we will have to start over again with someone else..

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    Descriptive info: IATAS PLANS THREAT AGENTS.. IATA S DATA PLANS ARE A THREAT TO AGENTS.. Travel Trade Gazette, 19 April 2012.. The GTMC is up in arms over IATA s plans to use PaxisIS data after it was revealed that many agents are unaware of it.. Gary Noakes reports.. Business travel agents are being warned about a scheme from IATA that potentially makes most of their booking data available to rivals.. IATA is seeking permission to sell on PaxIS (Passenger Intelligence Services) data, primarily to airlines, but to anyone on request.. The association wants to emulate Global Distribution Systems by making data collection a profitable business.. The Guild of Travel Management Companies (GTMC) has written to agents warning that there is an automatic opt-in.. The GTMC believes travel management companies customers could be identified through the data and their buying and travelling patterns detected easily because PaxIS contains information from more than 400 airlines from  ...   aware it has been sent.. She said the data meant a TMC could potentially discover "how many, how often and at what price" transactions were being made to specific destinations.. "It would give people a way of targeting companies," she said.. "At the moment, I am not aware of any TMC that has said yes.. IATA said agents who agreed to be identified in IATA s intelligence tools and products would benefit from being visible.. "Airlines are using these products, among other things, to spot promising agents with whom to conduct special business relationships - an invisible agent will not come to the attention of an airline subscriber," it said.. "An agent that does not agree to identification will not be identified in the IATA business intelligence products from August 1 if they have rejected our offer by April 30, and agents will have the ability to reject their agreement on an on-going basis..

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    Descriptive info: INVESTIGATING AVIATION.. EU INVESTIGATING CHINESE AVIATION EMISSIONS PLAN.. Business Green, 20 April 2012.. USA: The EU is investigating whether a Chinese plan to funnel revenues from a passenger tax on international flights towards emissions reduction initiatives is sufficient to exempt the country s airlines from the bloc s own carbon reduction laws.. State-backed newswire Xinhua Beijing reported this week that a tax on passengers on international flights operated by airlines registered in China would be used to provide the newly established Civil Aviation Development Foundation with funds to invest in a variety of new initiatives, including measures to reduce aviation emissions and improve security.. An EU source told BusinessGreen that Brussels is now investigating whether the scheme would amount to a carbon saving equivalent to that which could be achieved through EU plans to include airlines in its emissions trading scheme.. If it is decreed an "equivalent measure," Chinese airlines would be the first to be exempted from the emissions trading scheme (EU ETS), paving the way for other countries opposed to emissions trading to follow suit.. The source said she had "no idea" how long the process would take to assess and whether it  ...   are no overall rules, as what countries have to do may be very different.. China is among a group of around 25 nations, including the US and India, which have called on the EU to abandon emissions trading for airlines and negotiate a global deal through the International Civil Aviation Organisation (ICAO).. The UN body has yet to come up with an agreement despite a decade of negotiations, but the industry believes it is the only way to fend off a trade war between Europe and those countries opposed to its emissions trading plans.. In a speech to the ICAO International Air Transport Symposium yesterday, Tony Tyler, director general and chief executive of the International Air Transport Association (IATA) decried the European scheme as "counterproductive".. He said it distorted markets and could not have the same effect on cutting emissions as a truly global deal, adding Europe had a responsibility to work towards such an agreement.. "Nobody wants a trade war," he added.. "And I am confident that if Europe participates whole-heartedly at ICAO-being prepared to find solutions with the international community beyond its current plans-ICAO will successfully facilitate a durable solution for environmental sustainability..

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    Descriptive info: EURO CRISIS DENTS AIR TRAVEL.. EURO-ZONE CRISIS DENTS PREMIUM AIR TRAVEL IN EUROPE-IATA.. Global first and business-class air travel rose 6.. 3% on the year in February, supported by rising business confidence and increased global trade, figures from the aviation trade body showed Thursday, but traffic within Europe suffered as the region s debt crisis weighed.. Premium traffic between Europe and the Far East rebounded strongly in February from the previous month rising 9.. 3% on the year, but first and business-class volumes within Europe contracted 0.. 8% on the year, reflecting deteriorating economic conditions in the euro zone, the International Air Transport Association said.. "Economic weakness in the euro zone now also looks to be affecting premium traffic within Europe," IATA said.. "After a more positive start to 2012, several  ...   the region s financial stability.. Globally, premium air travel was distorted due to weaker air traffic a year ago thanks to political instability in the Middle East and postponed business travel in January 2012 due to the later than usual Chinese New Year holiday, the trade body said.. Elsewhere, business passenger volumes rose within the North Atlantic market, while the North and Mid Pacific region registered a stronger increase reflecting a pickup in the U.. economy, IATA said.. "Better economic results in the U.. , for example, supporting traffic across the North Atlantic as well as having positive impacts on trade partners with revived demand for Asian consumer exports," it said.. Global economy class travel in February rose 8.. 9% on the year, up from 6.. 1% in the previous month..

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    Descriptive info: FEBRUARY PREMIUM TRAFFIC.. FEBRUARY PREMIUM TRAFFIC MONITOR.. More positive news on travel in February with an increase in business passengers boosting the proportion of premium ticket sales, the fourth consecutive month of improvement since the low-point last October.. Economic indicators suggest that the performance of premium markets is once more being supported by improvements in the business environment - with both trade activity and business confidence increasing in recent months.. Read the full report..

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