|
A |
|
Law Firm Serving Aviation & Travel Industries |
A |
|
|
A |
HOME FIRM PRACTICE LAWYERS RECRUITMENT ARTICLES NEWS NAVIGATION CONTACT DISCLAIMER |
A |
||
|
A |
|
|
A
|
|
|
|
September 2005 Aviation
News
Aeroflot
Will Buy More Planes from Boeing and Airbus
(2005-09-30) Russia's Aeroflot plans to acquire 12 Airbus
320 planes and two to five Boeing 767 aircraft as the
state-controlled airline seeks to update its fleet, it said on
Friday."
"In a year and a half we'll take 12 additional planes of
the A-320 family," Aeroflot Deputy General Director Sergei
Kharitonov told an investment conference in Moscow. He said the
Boeing planes were likely to be acquired in about a year.
Kharitonov
said Aeroflot also planned to replace outdated Tu-134 planes
with foreign-made used aircraft. Starting from 2008, Aeroflot
intends to buy 30 planes used for regional routes. It will
choose from either An-148s or RRJs, he said.
The
government has promised to ease import restrictions on some
Boeing and Airbus models after Russia's flagship Ilyushin-96-300
passenger plane disrupted a trip by President Vladimir Putin,
raising concerns about the safety of domestic passenger planes.
Russia grounded all Il-96-300 planes for repair works.
US
Airways and America West Merge
(2005-09-26) "Today
we start a new chapter in aviation history," said Douglas
Parker, the America West chief executive who will lead the
fifth-biggest domestic carrier by volume. The new airline has
numerous hurdles to overcome, including a poor industry record
for mergers, continued high fuel prices, and the challenge of
combining thousands of unionized pilots, flight attendants and
mechanics into one work force over the next two years. The
airline will employ nearly 40,000 people.
The
deal worth more than $1.5 billion lifts old US Airways out of
bankruptcy after a year-long restructuring. It also tests the
leadership and vision of Parker, a rising industry star whose
decision last spring to embrace a failing and much bigger US
Airways was questioned by many industry insiders. The
carrier launches service during one of the industry's most
tumultuous moments with three other major U.S. airlines
operating in bankruptcy protection. Looking
over Parker's shoulder are a handful of private investors who
chipped in $565 million and will control the company. America
West shareholders and the government agency holding $1 billion
in loan guarantees for both companies also have measurable
stakes in the merged entity.
US
Airways begins trading on the New York Stock Exchange under the
ticker symbol LCC. The
airlines are continuing to operate separate reservations systems
and Web sites for the short term. Travel miles from both
programs earned both before and after the merger will be
honored. Expansion
to Hawaii is a key plan for US Airways and America West
following their Tuesday merger into a single major carrier. The
new airline keeps the US Airways name but puts America West
leadership in charge and establishes the corporate headquarters
in Tempe, Ariz., rather than in Arlington, Va., where US Airways
has lately been based.
The
seventh and eighth largest U.S. airlines were two very different
carriers before now. America West, only 22 years old, is a
discount carrier with a route network predominantly in the West.
It sells code-share tickets to Hawaii on Hawaiian Airlines but
plans its own service to Hawaii this winter. America West
competes heavily with Southwest Airlines, which now will be the
biggest U.S. airline with no Hawaii service. America West has
the distinction of having the very first commercial flight to
take off after the lifting the flight ban of 9/11.
US
Airways, formerly USAir, was formed a generation ago by the
merger of Allegheny and Piedmont, two airlines that made their
living serving small and medium markets in the Northeast. In its
trouble early years there was a joke that USAir stood for,
"Unfortunately Still Allegheny in Reality." Today the
airline has extensive service to Europe and the Caribbean but it
has been through two wrenching bankruptcies, emerging from the
second just in time for merger. Airline
industry analysts have wondered in print whether a discount
carrier like America West and a legacy carrier like US Airways
can merge successfully, but America West executives reply that
the two airlines have similar pay scales and largely
non-overlapping route networks, both of which they consider more
important than the pricing issue.
Governement
of Canada Invests in Helicopter Technologies
(2005-09-18) The Honourable Raymond Chan, Minister of State
(Multiculturalism), on behalf of the Honourable David L.
Emerson, Minister of Industry, today announced a $3.5-million
investment to develop new methods for maintaining and repairing
helicopter engines and other aircraft components over their life
cycle. This Technology Partnerships Canada (TPC) investment is part of
a project costing up to $11.7 million being undertaken by Vector
Aerospace Corp. through its subsidiary, ACROHELIPRO Global
Services Inc. (AHGS), to develop its capabilities in helicopter
engine testing, repair and overhaul, and in dynamic and
hydraulic component rework.
Snowbirds Celebrate 2000th Show
(2005-09-16) The Canadian Forces Snowbirds will celebrate their 2,000th show Saturday,
September 17 in Reno, Nevada, with about 50,000 spectators present to celebrate this significant
accomplishment in the team's history." We are extremely proud of our Snowbirds, especially as they celebrate this tremendous milestone in the
team's history," said Lieutenant-General Steve Lucas, Chief of the Air Staff. "The Snowbirds are
part of the Air Force's cultural fabric and are an inspiration for Canadians considering a career in the
Canadian Forces."
"This is a tremendous accomplishment for the team and is a testament to the dedication, professionalism,
and teamwork of all Snowbirds," said Major Ian McLean, commanding officer and team lead, Canadian Forces
Snowbirds. "We consider ourselves privileged to perform in communities across North America, representing
the men and women of the Canadian Forces."
The Snowbirds are celebrating their 35th anniversary season in 2005, marking a legacy of professionalism,
dedication and teamwork. The Snowbirds have performed in front of more than 118 million spectators in
Canada and the United States. The Snowbirds will perform in 56 shows in 32 different locations across
North America, including small communities and large centres during this show season. During their famed show,
the Snowbirds perform more than 50 different formations and manoeuvres, including thrilling solo passes with
closing speeds of 1,000 km/h and beautiful 9-aircraft formations. The Canadian Forces Snowbirds' mission is to
demonstrate the professionalism, dedication and teamwork of the Canadian Forces across North America and to act
as a platform for recruiting.
Delta
and Northwest File for Chapter 11
(2005-09-14) The US airline industry on Wednesday faced its
biggest shake-out in a decade after Delta Air Lines and
Northwest Airlines, the third- and fourth-largest carriers by
revenue respectively, both filed for bankruptcy. The
bankruptcies after four years of heavy losses and at least
120,000 job losses across the sector are likely to accelerate an
industry-wide restructuring around a low-cost model but could
raise political pressure on the indebted federal agency that
insures workers' pensions. Four US airlines are now in Chapter
11 bankruptcy protection, following earlier moves by United and
US Airways a recognition, analysts said, of the traditional
carriers' inability to restore profitability and shed legacy
costs in a unionised industry. Even so, observers doubted that
Wednesday's bankruptcy filings would eliminate the overcapacity
that has seen airlines lose pricing power as too many seats
chase too few passengers.
Analysts
at Merrill Lynch estimate there are 100-200 too many aircraft in
the domestic network. Delta has a fleet of 869 aircraft while
Northwest operates more than 400. "The airline industry has
changed permanently," said Doug Steenland, Northwest's
president and chief executive officer. "Northwest must
significantly lower its costs to compete with other
carriers." The carrier employs 40,000 staff. Mr Steenland
said one trigger for the filing was that, after Hurricane
Katrina, Northwest had been paying close to $100 a barrel for
jet fuel more than twice the amount it paid at the start of the
year. Northwest
and Delta's decision to go into Chapter 11 was likely to have
been hastened by an October 17 deadline when bankruptcy
legislation comes into force that will give management far less
room to manoeuvre than under the present regime. Delta's filing
in New York comes a year after the Atlanta-based carrier
launched a restructuring aimed at reducing annual costs by $5bn
by 2006. The carrier, advised by the Blackstone Group, has
secured $1.7bn in debtor-in-possession finance from GE
Commercial Finance and Morgan Stanley, and agreement in
principle for a further $350m from American Express. The airline
hopes to use bankruptcy protection to secure additional savings
from its 52,000 employees and has made a proposal to its pilots
union. Northwest, advised by the Seabury Group, is not using
such funding and will instead rely on its cash balance of $1.4bn
as of September 14 to see it through the process. It is seeking
more concessions from its three union-represented employee
groups, with analysts estimating that these need to be raised to
an annual $1.4bn to restore profitability. Delta
has higher pension obligations than Northwest and its strategic
position is viewed by analysts as weaker, prompting speculation
that the two carriers could seek to exit bankruptcy together
through a merger. Delta is the most exposed of the majors to
low-cost competitors, and analysts remain concerned about its
ability to generate viable revenues even on a lowered cost base.
The airline said it would rationalise its fleet and network,
increasing its focus on more profitable international services.
"Delta's financial problems are severe, but by no means
insurmountable," said Gerald Grinstein, chief executive.
WestJet
Announces Fuel Risk Management Strategy (2005-09-08)
WestJetr today announced that it has implemented a disciplined
fuel-risk-management strategy using financial instruments to
help mitigate the effects of volatile fuel prices. This approach
to fuel-risk management addresses the unique challenges airlines
face with respect to the sale of advanced tickets in an
environment where future costs are uncertain.
Airline
passengers typically purchase seats for travel weeks or months
in advance of their planned travel date. The price paid for
those seats is partially based on the price of fuel on the date
of purchase. Because of the rapidly increasing price of fuel in
recent months, the actual cost to fly a passenger can be
considerably higher on the date of travel than it was when the
seat was sold.
To
mitigate the effect of volatile fuel prices, WestJet has bought
forward a portion of its exposure to USGC Jet Fuel in Canadian
dollars over a term and quantity that relates to the airline's
advanced ticket sales. For the months of September, October and
November, WestJet has fixed approximately 40%, 20% and 10%,
respectively, of its expected fuel consumption at a rate of
$0.707 CAD/litre.
WestJet
is Canada's leading low-cost airline offering scheduled service
throughout its 34-city North American network. Named Canada's
most respected corporation for customer service in 2005, WestJet
pioneered low-cost high-value flying in Canada. With increased
legroom and leather seats on its modern fleet of Boeing
Next-Generation 737 aircraft, and live seatback television
provided by Bell ExpressVu on its 737-700 fleet, WestJet strives
to be the number one choice for travellers.
(2005-09-01) Bombardier Aerospace today announced two new
international milestones for its light Bombardier Learjet 40
business jet, with a recent first order from an operator based
in Saudi Arabia, and the upcoming entry-into-service of the
first Learjet 40 aircraft in the Asia-Pacific region. Mohamed Al
Harasani, who placed a firm order in mid-July, will use his new
jet to develop and expand his architectural business in Saudi
Arabia, flying mostly throughout the region including trips into
the Mediterranean area.
"My business has grown to where it did not make sense to
continue flying charter," he observed. "I need my own
business jet and, after a thorough examination, it became clear
the Learjet 40 delivers the ideal combination of performance,
range and cabin." Bombardier is scheduled to deliver the
aircraft to the Jeddah-based operator in summer 2006.
Subic
Air Charter of Manila, a long time Learjet aircraft operator,
will soon become the first model 40 customer in Asia-Pacific.
"We believe the exceptional value, performance and
versatility of the Learjet 40 make it well-suited for both local
and regional missions," noted Jose Alvarez, president,
Subic International Air Charter Inc. "The Learjet 40 will
complement our fleet very well - we can't wait to begin flying
it." Subic International Air Charter Inc. currently
operates five Learjet aircraft including a super light Learjet
45 and a midsize Learjet 60. Bombardier is on schedule to
deliver Subic's new aircraft in autumn 2005.
The
Learjet 40 aircraft is earning a reputation worldwide as the
industry's premium light jet. It can operate at altitudes up to
51,000 feet (15,545 m). With full fuel and a maximum payload, it
can fly up to 1,824 nautical miles (3,387 km), and leads its
class in payload-range capability for all missions with payloads
greater than 1,000 pounds (454 kg). The new jet's 368-cubic-feet
cabin (10.42-cu-m) is at least 20 per cent larger than the
competition. First delivery occurred in January 2004 and, as of
July 31, 2005 a total of 27 Learjet 40 aircraft had been
delivered to traditional customers, Bombardier Flexjet owners
and charter operators.
|
|||
|
|
||||
|
"Lawyers committed to the growth and protection of clients' business"
|
||||
|
|
||||
|
A |
A |
|||
|
Suite 1411, 2 Forest Laneway, Toronto M2N 5X7, Canada Tel: +1 (416) 226-0126 Fax: +1 (416) 226-0476 |
||||
