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Local news headlines archive (12 months history)The European Union has banned three more airlines from operating in the 25 nation bloc and put restrictions on a fourth, updating its blacklist of carriers to try to boost safety in European skies. The executive European Commission said Suriname-based Blue Wing and Kyrgyzstan's Sky Gate International would be banned from operating in the EU. The Commission also added Star Jet of Kyrgyzstan to the list of banned carriers because it was the same company as Star Air of Sierra Leone, which had already been banned within the bloc. Those airlines had plans to operate in Europe, according to Stefaan de Rynck, spokesman for Transport Commissioner Jacques Barrot. "This is important to prevent them from doing so," according de Rynck . Sudan's Air West would face operating restrictions on one of its planes. Buraq Air of Libya, which previously faced curbs on its cargo activities, has been withdrawn from the list because it no longer performs those services, the Commission said. De Rynck said after the changes the list would ban 95 airlines and three would face operating restrictions. The airline bans were based on criteria such as old or poorly maintained aircraft, failure to solve problems identified in inspections, and bad oversight by regulatory authorities. In March, the EU banned a slew of mostly African carriers from European skies to reassure travellers after a spate of fatal airline accidents involving European passengers. De Rynck said Japan and Australia had contacted the EU to discuss exchanging data from the blacklist. Source: Reuters and News desk A spokesman for EADS, one of Europe's biggest flagship companies, said Russian state bank Vneshtorgbank (VTB), the former Soviet foreign trade bank, had bought 5.02 percent in EADS. A Russian newspaper had already reported at the end of August VTB's purchase, on which EADS and the Russian bank had then declined to comment. The report had lifted EADS shares and sent tremors round financial markets as analysts weighed the uncertain political impact against potential business wins for EADS in Russia. The EADS spokesman said VTB's move would not affect the structure of core French and German shareholders controlling the firm, the world's second-largest aerospace group after US rival Boeing. EADS is run along careful power-sharing lines enshrined in a shareholder agreement between the founding industrial partners and the French state. The spokesman said VTB was one among several shareholders owning a similar size of the firm's free-float stock. EADS, whose products range from the world's largest passenger jet, the A380, to combat helicopters and participations in major European fighter and missile programs, is keen to expand in Russia, where it is competing with Boeing for a multi-billion dollar contract to renew the ageing fleet of Russian national carrier Aeroflot. VTB's move comes as Russia plans to relax its curbs on foreign investment in commercial aviation projects to allow foreign capital to own stakes of up to 49 percent. Currently foreign companies can own less than 25 percent. EADS is posed to become the primary foreign partner in the newly created state-controlled aircraft holding firm Russian United Aircraft Corporation, set up in February in an effort to consolidate Russian plane makers into one body, after it bought a 10 percent stake in private combat plane maker Irkut. Source: Reuters and News desk A collaboration of Dutch Universities and international businesses aim to improve the availability of empty containers for return logistics, with the ultimate goal being to optimise the matching of transportation requirements of recyclables with empty-container flows. The first milestone for the project team is a draft of the business opportunities. Initially, the focus is on the electrical & electronic market. The first results of the project are expected October 2006. The project will be finished at the end of 2008. Return logistics is expected to become of major importance in global supply chains, which means return freight will become an important volume for main ports. From the perspective of the container imbalance, return logistics will become increasingly important for carriers. According to Drewry Shipping Consultants, 41% of the containers on European routes last year returned to Asia empty. On American routes, this percentage was 60%. It is expected that return flows will contribute to solving the container imbalance and reducing empty container miles. For the total electrical & electronic market, American research bureau D.F. Blumberg Associates puts the annual worldwide total revenues for service logistics & repair at €24 billion. For this sector, the EU’s WEEE directive (Waste Electrical & Electronic Equipment) comes into force shortly, and original manufacturers will be obliged to set up a return and re-use system. Participants that started the Efficient Closed loop supply chain Optimisation (ECO) project are Havenbedrijf Rotterdam, IBM, Contell-IKS, Device Global, RSM, Erasmus Universiteit, Universiteit van Tilburg and Universiteit Twente. The ECO-project is sponsored by Stichting Transumo (TRansition SUstainable MObility). Transumo is a Dutch platform of 150 companies, governmental authorities and knowledge organizations, and focuses on the development of shared knowledge regarding sustainable mobility. Source: News desk The EU Regulatory Committee on Aviation Security agreed on a range of new security measures to be introduced at all airports of the 25 member states. The measures will limit the individual quantities of liquids allowed to be carried by passengers to 100 ml. per container, require that the number of containers fit in one transparent resealable plastic bag of a maximum size of 1 liter and state that passengers must present the plastic bag at security checkpoints. EC Commissioner for Transport Jacques Barrot committed to submitting promptly "a proposal to the College [of Commissioners] to formally incorporate these rules into Community law. I expect this to be adopted in the course of the next week." The new rules should take effect in late November. The committee also agreed to limit the size of carry-on luggage from EU airports to a maximum of 56 cm. by 45 cm. by 25 cm. (approximately 22 in. by 18 in. by 10 in.) with the possibility of some exemptions, such as for musical instruments. The standard roll-on bag is 22 in. by 14 in. by 9 in. It further decided to make obligatory certain procedures that already are mandatory at US airports, such as putting all jackets and coats through x-ray machines and requiring that laptop computers be put through separately. The measures include no changes to the rules on liquids in checked bags. Equally, liquids, gels and pastes purchased from retail outlets after security are not affected by any new security measure. AEA and Airports Council International Europe "applauded" the EU moves to harmonize aviation security measures at a more "passenger-friendly" level, yet warned that their implementation will have significant consequences from both cost and operational perspectives for both airports and airlines. Source: News desk European aerospace group EADS will unveil restructuring measures this week aimed at saving EUR2 billion euros (USD$2.54 billion) a year after new delays in deliveries of its A380 super jumbo, a newspaper reported. The delays, discussed in a board meeting, are likely to cut EUR2 billion from the group's earnings by 2010, financial daily Les Echos said in an article without quoting sources. The restructuring plan, which would come on top of a three-year EUR1.5 billion (USD$1.9 billion) savings plan launched in 2003, would involve a shake-up of industrial operations and assembly sites, increased use of external suppliers and the sale of sites judged non-strategic, the paper said. Les Echos said details of the plan would be presented to staff representatives later. EADS, the world's second-largest aerospace group after Boeing has been hit by a series of crises over the past year, culminating in further delays to deliveries of the A380 super jumbo, which is now about 18 months behind schedule. The company, which called the meeting to discuss a revised delivery schedule for the A380, is under pressure to present a clear picture of the future to ward off a further loss in confidence in its super jumbo. Source: Reuters and News desk Amsterdam's Schiphol Airport will not be able to increase fees for noisy aircraft until November 2006 at the earliest. Schiphol currently levies a 30 percent surcharge for the noisiest planes and gives a 10 percent discount for the quietest planes. It had planned to widen the gap to discourage airlines from using noisy planes, a spokesman said. Following a change in the Dutch aviation law, the airport is still in negotiations with the competition authority NMa and as a result cannot introduce new fees in April, the spokesman said. The airport can adjust fees only twice a year. Apart from the noise discounts and surcharges, the airport plans to keep fees stable overall next year to better compete with other European hubs. The spokesman said a recent study had found that Schiphol was still cheaper than London's Heathrow, Charles de Gaulle in Paris and Frankfurt, but the gap was getting smaller, particularly due to higher security charges. "To retain our competitive position, we have decided not to increase tariffs," the spokesman said. A passenger departing from Schiphol currently has to pay 26 euros (USD$33) in airport charges, roughly half of which is for security measures. The Dutch government's plans to sell a minority stake of just under 50 percent in Schiphol Group were put on hold when the City of Amsterdam vetoed the necessary changes in Schiphol's articles of association. Schiphol Group also holds stakes in Brisbane Airport and in Terminal 4 of New York's John F. Kennedy Airport. Source: Reuters and News desk Air France-KLM merger could deliver up to €1 billion ($1.27 billion) in savings to the airlines by 2009, double the initially anticipated cost benefit of €500 million, Air France KLM Vice Chairman and KLM President and CEO Leo van Wijk told Dutch magazine Zakenreis. Since the 2004 merger, the carriers have realized savings of €660 million, he noted. He also revealed that he is considering relinquishing his titles at KLM when his contract expires in May 2007 in order to take a strategic role in the merged company. He said he expects to be replaced by Deputy CEO Peter Hartman, who will retain a purely operational role as head of the Dutch entity. Final decisions will be taken later this year. The top 20 managers of AF and KLM will meet later this year in order to "reflect on what the 'grand plan' should be for next year and how we can take the next steps," Van Wijk said. He did not rule out further integration, "but there must be good reasons for that." Possible investment in China will be on the agenda, while he reiterated that the company would consider a stake in Alitalia if the airline is privatized and profitable. Source: News desk TNT has reached agreement to sell the business line Document Management (part of Cendris) in the Netherlands to Barcelona, Spain-based Service Point Solutions (SPS) for €27 million. Document Management provides mailroom management, reprographics and scanning & capture services. Business activities also include on-site management of 150 large mailrooms and 48 reprographic centres for its customers. In total, Document Management employs more than 900 people, and has annual revenues of around €70 million. Following its strategic review, TNT concluded that the business line Document Management is not core to TNT's focus strategy and no longer adds value to Cendris’ other services. Completion of the transaction is expected in the fourth quarter of 2006. Source: News desk The European Commission has released the second quarterly update of the list of airlines banned in the European Union. The new list has been published on the Commission’s website. Changes made to the previous list (June 2006) are: Two individual airline companies have been added to the list on a proposal from the Commission: Kenya's DAS Air Cargo and Uganda's Dairo Air Services are now banned due to serious safety deficiencies identified in these twin airlines in the last few months. All of the 27 companies certified in the Kyrgyz Republic have been banned due to the national control authority's inability to supervise them effectively. The lists of companies certified in four of the five States already banned previously have been updated on the basis of the latest information supplied by these States. A total of 68 carriers have had to cease operating because these countries have revoked their certificates, and have therefore been taken off the list: 19 from the Democratic Republic of the Congo, 21 from the Republic of Liberia, 18 from the Republic of Sierra Leone and 10 from the Kingdom of Swaziland. 8 companies recently created in the DRC have been added to the list. Since Afghanistan's Ariana Afghan Airlines has sold the only aircraft registered in France with which it was authorized to operate in Europe, it is now banned. Air Services Comores of the Union of the Comoros, previously banned outright, is now subject to operational restrictions, and will be allowed to operate services bound for the Community with an aircraft recently fitted with appropriate safety equipment. Finally, though noting the progress made by Phuket Air certified in Thailand since its banning last March, the Commission considered that, as in the case of Air Koryo of the Democratic People's Republic of Korea, it would be premature to remove this carrier from the list. The Commission and the Member States' aviation safety experts examined other individual cases, and decided that although an immediate banning measure was not called for, the following six operators will be watched and possibly re-examined in the near future: Pulkovo Aviation certified in Russia, Pakistan International Airways, Ghana's Johnsons Air, and Ajet (the former Helios Airways) certified in Cyprus. Source: News desk On November 7th, the European Commission held a hearing with the main European associations representing road haulers, their trade unions and their customers. The aim was to prepare for a review of the current Community rules on admission to the occupation and access to the market. The participants addressed issues relating to road haulage cabotage, the criteria relating to the setting-up of companies, the integration of Member States' control systems, the improvement of financial capacity and professional qualification and the simplification of procedures. According to Jacques Barrot, Commission vice president with special responsibility for transport, the smooth functioning of the internal market calls for simpler and clearer rules that can be applied and complied with by all operators in all Member States. The current legislative framework for the internal market in road transport comprises a directive governing admission to the occupation of road hauler and four regulations on access to the market for the carriage of goods and passengers. This framework has contributed to the development of a competitive industry. However, given the development of the sector – in particular international transport – the framework now needs to be reviewed in order to simplify implementation and controls, improve legal certainty and ensure fair competition. According to responses to a questionnaire circulated throughout the industry, stakeholders believe that goods transport and passenger transport by road should remain regulated in two separate sets of rules, since the two different types of transport do not have sufficient commonalities to be treated in one legal text. Other points agreed by the majority of respondents include:
Source: News desk The aviation industry should be included in Europe's existing emissions trading system, not a new scheme as proposed by the European Parliament, European Environment Commissioner Stavros Dimas said. "Our proposal will be for the existing emissions trading system," Dimas said when asked which option the Commission favoured for controlling greenhouse gas emissions by aviation. Dimas reiterated that the Commission would like to see the sector included in the scheme during the 2008-2012 trading period, possibly around 2010. But he declined to confirm a date, saying that would depend on the EU legislative process. Dimas confirmed the proposal would include all airlines flying into and out of the European Union, an issue which has drawn ire from the United States and some airline representative bodies. The European Parliament in July 2006 suggested setting up a separate trading system for airlines on a trial basis, to prevent carriers from distorting the scheme and buying up rights from power companies instead of tackling their own pollution. Dimas cited a report, however, that said including aviation in the current scheme would have a minimal effect on other sectors that are covered now. The scheme in its current form sets limits on the amount of carbon dioxide (CO2) big factories can release, forcing companies to buy emissions permits if they exceed their cap. Source: News desk The inclusion of Das Air Cargo and its sister carrier Dairo Air Services on the EU’s ‘blacklist’ of airlines banned from European airspace has resulted in increased freight costs for Ugandan exporters. Both carriers were the biggest transporters of freight from Entebbe to Europe. According to local news reports, exporters claim that airfreight charges, already estimated to be higher than those from other countries, have increased by US$0.20c per kg. The two airlines were added to the EU’s blacklist last month due to serious safety deficiencies. The ban became effective at midnight on October 14th. Dairo Air Services has voiced its objection to the European Commission’s decision to ban both Dairo Air Services and DAS Air Cargo from operating into and out of the EU, saying that neither carrier had received any prior notification that the Commission was considering such action, nor had any justification for this decision been received by the Ugandan Civil Aviation Authority. While all operations to and from Europe have been suspended, DAS Air Cargo continues to operate the flights outside of Europe, and is increasing the number of flights it operates between China, India, the Middle East and Africa. The airline reported that a delegation from DAS Air Cargo and the Ugandan Civil Aviation Authority has met with the European Commission to begin to address safety concerns, and expects continuing discussions will result in the airline resuming its operations within Europe. Source: News desk Cargo tonnage on freighters at Amsterdam Airport Schiphol fell for the second straight month in October 2006, reversing a long-term expansion of all-cargo business at the key European gateway. Schiphol officials said the freighter tonnage fell 4.1 percent in what is traditionally one of the year's busiest periods for international air cargo traffic. Amsterdam's overall cargo business was off 0.7 percent in October as cargo carried on combination airlines grew 4.1 percent. Freighters provide 56 percent of the cargo tonnage at Amsterdam Schiphol, one of Europe's top four airports for freight. Source: News desk Air France KLM is looking to create a low cost carrier to benefit from the growing leisure market. The group is examining the development of its subsidiary transavia.com, which offers a mix of scheduled and charter flights, for low-fare flights from France to popular destinations such as Morocco, Tunisia and Spain. Spain is the world's second-biggest tourist destination after France. Government figures in September showed Spain's crowded no-frills airline market accounted for nearly a third of flights into the country during the peak travel month of August, The new low-cost carrier's rivals would include easyJet and Ryanair, which both also fly to Morocco, and Air Berlin. If approved by the Air France board of directors on November 22, the new company will be 60 percent owned by Air France and 40 percent owned by KLM subsidiary transavia.com. Its launch is set for the spring of 2007. "This latest initiative would fit in very well with the growth strategy of transavia.com, which has for some time been planning to operate from additional bases outside the Netherlands," Air France KLM said in a statement. Transavia.com runs a fleet of 31 Boeing 737-700s and 800s and had a net operating profit of EUR32 million (USD$40.8 million) on revenues of EUR468 million (USD$597.6 million) in its 2005-2006 year. Source: News desk Aviapartner has signed a contract with Finnair for the provision of cargo-handling services in Brussels, Amsterdam and Paris-CDG. The contract in Brussels and Amsterdam has been effective since the beginning of December. In Paris-CDG, Aviapartner will start handling Finnair’s cargo from the beginning of January. For the three stations, Aviapartner Cargo is handling 68 flights per week for a total yearly volume of 7,500 tons. This involves 14 flights in Amsterdam, 19 in Brussels and 35 in Paris. Most of these flights are operated with A320 and Embraer 170 aircraft, but Finnair also uses A330 and MD11 aircraft to serve an extensive Asian market. Aviapartner has been providing ramp handling and cargo transport services to Finnair in Brussels and Amsterdam for several years. Source: News desk The EU, which hopes to jumpstart transatlantic open skies negotiations this week in meetings with US officials in Brussels, said that it plans to seek a separate open skies accord with Canada. The European Commission said an EU-Canada deal "may generate consumer benefits of at least $94 million through lower fares and could create 3,700 jobs in the first year." Canada currently has separate bilateral agreements with 17 EU member states, accords the EC said are in conflict with current EU law. The Canadian Airports Council embraced the proposal, urging the Canadian government "to make concluding an agreement a priority." CAC President and CEO Jim Facette said an "open aviation area with our second biggest trading bloc and source of tourists is a natural next step and would be a boon." Air traffic between Canada and the EU doubled between 2000 and 2005, according to CAC, which noted that more than half of Canada's overseas tourists come from Europe. The EC said a liberalized air treaty would increase annual EU-Canada passengers from 8 million currently to 14 million by 2011. The Canadian government recently said it would make commercial air transport liberalization a priority. Source: News desk Air France KLM maintained a veil over its intentions towards Alitalia on Monday after a newspaper reported it had decided against making a bid for the struggling Italian carrier, hitting Alitalia shares. France's La Tribune reported that Europe's biggest airline had decided an Alitalia bid would be too expensive and also that it would be too difficult to restructure Alitalia's networks "Air France KLM has absolutely no comment," a spokeswoman said. Air France KLM Chief Executive Jean-Cyril Spinetta resigned from the Alitalia board last week, prompting speculation in Italy that a tie-up was close but a more muted reaction in Paris, where industry-watchers tend to be sceptical about a rapid bid. "Air France was one of the few companies with all the requirements in place. It's certainly bad news for (Alitalia), and so there's a lot of selling," a Milan trader said. French bankers who follow the group said last week that Air France KLM was reluctant to tackle a possibly formidable management challenge at the strike-prone Italian carrier, distracting it from its own recent merger integration. While Air France KLM has not ruled out a bid for Alitalia, it has given no signs of being in a hurry to do so, despite pressure from Rome to declare its hand and a nudge from French President Jacques Chirac that the carriers should work closely. The airline has said Alitalia must be privatized and its finances strengthened before it will consider a bid. The Italian government, which owns 49.9 percent of Alitalia, has set a January 29 deadline for bidders to express interest. La Tribune said Air France-KLM would continue to monitor the situation at Alitalia and that another party looking to bid for Alitalia could seek out the help of the Franco-Dutch airline. Explaining his decision to resign in a statement on Friday, Spinetta said the timing had been driven in Rome not Paris. Spinetta said he had decided to quit for "obvious reasons" at the beginning of December once the Italian government had set out a procedure for the sale of Alitalia stock. He said he had been asked to delay an announcement pending investigations into the legal implications, only to be urged by Alitalia to announce it as quickly as possible on January 13. Spinetta's resignation forced Alitalia to dissolve its board. It plans a shareholders' meeting on February 22. Italian media speculate daily on bidders for their country's flag carrier, which has a market value of EUR1.4 billion euros (USD$1.8 billion). But analysts say that considering Alitalia's outdated fleet, heavy costs and labor disputes, anyone interested might get a better bargain by holding out for a break-up of the company. A source said earlier this month that Rothschild was working on a consortium for a bid. On Friday, turnaround fund Orlando Italy Special Situations said it may join a bidding group. Paolo Alazraki, a businessman who sprang onto the scene earlier this month, says he is working with unidentified investors on a possible bid. Source: News desk European Union countries should establish national regulators to settle disputes between airports and airlines over infrastructure fees, the EU executive proposed. The European Commission presented draft legislation that seeks to make airport charges more transparent and non-discriminatory. It requires airports to consult with airlines about the fees, which airlines body IATA has called among the most expensive in the world. "Everything we've done here is designed to bring down the costs of airport fees and, hence, the costs of travelling by air for passengers," Transport Commissioner Jacques Barrot told a news conference. The rules, which will apply to all airports with more than a million passenger movements or 25,000 tonnes of cargo a year, do not set out a specific calculation method for determining take-off and landing fees. Barrot said different costs and conditions at different airports made that impossible. Airport charges make up between 4 and 8 percent of major EU airlines' operational costs, the document said. IATA said last year Europe had 15 of the world's most expensive airports, singling out Charles de Gaulle in Paris as one of the worst offenders for increasing its charges by 26.5 percent over five years. New regulators would help check such fees in the future, Barrot said. He cited a regulator in Britain that was working well and said it would not be expensive to establish them in states where they did not yet exist. In a separate report, the EU executive said ground handling services throughout Europe were becoming more competitive after a first phase of liberalization. The Commission also laid out a plan to reduce congestion at Europe's busiest airports. It said airports should make better use of existing capacity and improve technology. Airports lobby group ACI Europe said that was insufficient. "The Commission's strategy fails to recognize that better use of existing capacity alone will not be enough and new airport infrastructure will have to be provided," Olivier Jankovec, the group's director general, said in a statement. "Otherwise, airport congestion will continue to negatively affect passengers and airlines with wide-ranging repercussions for society, including the environment. It is urgent that new airport infrastructure becomes a high priority at EU level." Source: News desk Air France KLM is actively pursuing its co-location strategy Air France KLM is actively pursuing its co-location strategy, opening a joint office in Brussels from where a single management team will oversee operations in Belgium and Luxembourg. A joint office is scheduled to open this week in Israel while the possibility of implementing a similar structure in Germany and Great Britain is being studied. "We are committed to move ahead with this co-location/joint management strategy unless there are some legal and practical restraints," KLM Senior VP and Area Manager-Benelux Bram Graber told a newspaper. "We have a very pragmatic approach and we don't apply a standard, one-fits-all model. About a year after the spring 2004 merger, the group carefully started testing joint management and appointed a single manager for Brazil, the Andean countries (Colombia, Ecuador, Peru, Venezuela) and the Dutch Caribbean. From April 2006, seven new regional divisions are being managed jointly: Iberian peninsula, Scandinavia/Finland/Baltic states, Belgium/Luxembourg, Indochina (Cambodia, Laos, Myanmar, Philippines, Thailand, Vietnam), Southeast Asia and Australia (Singapore, Malaysia, Brunei, Indonesia, Australia), Japan and South Africa. "The goal is to optimize the implementation of commercial synergies, to ease the decision-making process and to exchange views on a joint dynamic," AF Senior VP-Europe and North Africa Etienne Rachou explained, adding that customers as well as Air France and KLM teams "largely approve of this management principle, which has produced some very satisfactory results." Source: News desk Dutch government shelved plans for an IPO of Schiphol Group during the next parliamentary term. The long-awaited privatization was blocked last year following resistance from a minority shareholder, the City of Amsterdam. "Considering the international competition with privatized airports in Europe, the Board of Management regrets that after years of consultation a longstanding wish will not be fulfilled," Schiphol Group noted in a statement. President and CEO Gerlach Cerfontaine said, "Now seems to be the right moment to start a dialogue and to look together with the City of Amsterdam at ways in which Amsterdam can contribute to retaining Schiphol's leading international position." Schiphol Group owns and operates Amsterdam Airport Schiphol, Rotterdam Airport and Lelystad Airport, has a 51% share in Eindhoven Airport and also has interests in the US and Australia. Source: News desk Air France KLM trebles third-quarter profit Citing "dynamic" passenger activity, "buoyant unit revenues" and a "favorable economic backdrop" that included a drop in oil prices to year-ago levels, Air France KLM Group reported that its net profit tripled to €229 million ($297.4 million) for the fiscal third quarter ended Dec. 31 from €77 million in the year-ago period. Group revenue rose 5.9% to €5.75 billion and operating costs were up 5% to €5.5 billion, or 4.2% excluding fuel. The fuel bill rose 8.3% to €1.08 billion. Operating income of €252 million jumped 32.6% over the €190 million in the year-ago period. Passenger revenue climbed 7.1% to €4.52 billion and operating income from AF KLM's passenger business soared 69.7% to €168 million. Three-month passenger traffic rose 4.3% against a 4.7% lift in capacity, dropping load factor 0.3 point to 79.8%. Yields increased 3% to €8.76 cents and unit revenues were up 2.6% to €6.99 cents. Unit costs grew just 1.2% to €6.63 cents. In the nine-month period, AF KLM earned €847 million, down 6.5% from a €906 million profit in the year-ago period that was boosted by the sale of its stake in Amadeus. Revenues rose 8.8% to €17.68 billion, operating charges were up 7.5% to €16.45 billion and operating income of €1.23 billion was ahead 31% on the prior-year periodSource: News desk Air France KLM Group will increase summer schedule capacity Air France KLM Group will increase summer schedule capacity 5.4% year-over-year, including a 5.6% hike on the long-haul network and 4.3% on medium-haul. Long-haul increase will include 11.4% growth to Latin America, 7.3% to Asia and 10.1% to North America owing mainly to the launch of new daily Paris Charles de Gaulle-Seattle service on June 11 aboard an A330-200. AF's domestic network will see only a 0.2% ASK increase. Both airlines are pursuing fleet modernization programs. By June, the entire AF long-haul fleet will be equipped with new interiors. Flights to the French Caribbean and Reunion now are operated with new 777-300ERs, replacing 747-400s. Remaining 737s are being phased out of the narrowbody fleet, which will be made up exclusively of A320 family aircraft. KLM will have finalized an important part of its fleet renewal program at the start of the summer season by replacing 767-300ERs with new A330-200s, while the first phase of its MD-11 interior modification has been concluded. The second part of the cabin upgrade, which will begin this fall, will entail putting lie-flat seats in business class and installing the same inflight entertainment system as on its A330-200s and 777-200s. Source: News desk Dutch Amsterdam Airport Schiphol Sale Called Off The incoming Dutch government has called off the planned sale of a minority stake in Amsterdam airport operator Schiphol Group, Dutch TV Source: News desk EU lifts ban on Phuket, adds PIA to updated blacklist The EC's third update of its airline blacklist, features the first removal of airlines that successfully raised their safety standards and new restrictions on Pakistan International Airlines. The removal of Thailand's Phuket Air and DAS Air Cargo/Dairo Air Services of Kenya and Uganda respectively from the blacklist "shows that our list acts not only as essential protection against unsafe operations but also as a strong and effective incentive for companies who deviate from international safety norms to address their shortcomings," EC VP-Transport Jacques Barrot said. In addition, 49 airlines included on the previous list have ceased operating either on their own volition or because they lost their operating certificates. Ten carriers from Kyrgyzstan, Equatorial Guinea and Democratic Republic of Congo were added and a partial ban on Sudan's Air West was made total. PIA's appearance on the list, uncommon for a larger flag carrier, is a blow to an airline that suffered a fatal F27 crash and a $150 million loss in 2006. The ban extends to all PIA aircraft save its six 777s. It also operates 14 A310s, nine 747s, seven 737s, three ATR 72s, two A321s and one L-1011, according to the Ascend CASE database. Anticipating the result following the EC's October revelation that it was paying close attention to PIA's activities, the airline said late last month that the EU's Air Safety Committee "expressed its satisfaction" following consultations with PIA management in early February and that its engineering department consistently had passed semiannual EASA audits. The EC noted that Bulgaria and Russia took the initiative to prohibit airlines registered in their respective countries from operating into the EU. Bulgaria banned Air Sofia, Bright Aviation Services, Heli Air Services, Skorpion Air and Vega Airlines from EU activities, while Russia barred Aero Rent, Tatarstan, Atlant Soyuz, Aviakon Zitotrans, Centre Avia, Gazpromavia, Lukoil, Russian Sky and Utair. Source: News desk Aviapartner acquires Aero Groundservices at Amsterdam Airport Schiphol Aviapartner is close to a takeover of VCK Holding’s shares in its cargo-handling subsidiary Aero Groundservices BV. This acquisition is an important step for Aviapartner, as it strengthens its operations at Amsterdam-Schiphol, and for Aero Groundservices, as it integrates the company’s one-station activity into Aviapartner’s 38-station European network. The acquisition is also in line with Aviapartner’s strategy to focus on major cargo airports. Amsterdam-Schiphol is the third largest cargo hub in Europe, handling a large portion of cargo to and from Asian markets. These markets are expected to grow above market average in the next two decades. Aero Groundservices has traditionally been strong in the Asian full freighter carrier sector at Schiphol. With this acquisition, Amsterdam-Schiphol becomes the largest cargo station in Aviapartner’s network, with a volume of 412,000 tons of cargo. Aviapartner Cargo currently handles 980,000 tons of cargo a year, corresponding to a turnover of €70 million. With Aero Groundservices, the group’s tonnage will increase by 43% to 1.39 million tons, and total cargo turnover will increase by 71% to €120 million. Source: News desk Profits and passengers grow at Dutch VLM
Dutch
regional airline VLM saw net profits jump by 143 percent to EUR3.2 million
(USD$4.3 million) in 2006, the ninth consecutive year the carrier has been in
the black.
Despite rising fuel costs the pre-tax figure for the Antwerp-based airline rose
to EUR4.4 million, more than double the result for 2005.
VLM, which
operates over 100 flights a day in and out of London City Airport, announced
that passenger numbers rose by 9 percent and forecasts that this year they will
grow to over 900,000.
The
airline will this month introduce a jet aircraft to its fleet for the first time
with the arrival of a 92-seat BAe 146-300.
Dutch airline Martinair posted a €7 million ($9.5 million) net loss in 2006
Martinair
posted a €7 million ($9.5 million) net loss in 2006, reversed from a profit of
€14 million in 2005, as both its cargo and passenger activities were impacted by
high fuel prices. Operating loss was €17 million compared to a prior-year
operating profit of €22 million. Turnover climbed 9.1% to €1.2 billion.
Passenger revenue rose 10% to €377 million but the operation suffered a loss of
€15 million, widened from €7 million in 2005. Cargo revenue was up 13% to €798
million on a 6% growth in volume to 3.7 billion CTKs. The cargo operation lost
€3 million, a major reversal from 2005's €40 million profit.
In addition to fuel, the Dutch carrier said results were
impacted negatively by one-off costs associated with phasing out its 747-200
fleet and the loss generated by Colombian subsidiary Tampa Cargo. It said it
"strives to return to profitability levels comparable to the years before 2006"
in the current year.
AF KLM completes three-year merger phase, announces management overhaul
Air France
KLM will be changing its top management structure in line with increasing
integration between the two airlines and marking the conclusion of the
three-year phase-in period following their merger in May 2004.
The group now
will be managed by an executive committee consisting of eight members, each
representing an operational division across both airlines. This replaces the
existing strategic management committee, comprising four members from each
carrier, which meets every two weeks alternating between Paris and Amsterdam and
makes decisions relating to coordination of the networks and hubs, medium-term
budgets, investments and fleet plans as well as alliances.
"The
strategic management committee members represented a company; those of the
executive committee will represent a function," a spokes person told a reporter,
stressing that the group will "remain faithful to the principle of one group-two
airlines but we will become more reactive" and that the changes fit within a
legal a framework established as part of the merger.
The framework
contains two main elements: A three-year agreement ending today and a 2004-12
accord covering traffic rights, preservation of the KLM brand, balanced
development of the two hubs of Amsterdam Schiphol and Paris Charles de Gaulle
and a fair division of the management positions.
Under the
terms of the agreement, Air France is allowed at the end of the initial phase to
increase its representation on KLM's supervisory board from four to five of the
nine seats, on group level to evolve the strategic management committee into a
more functional management committee and to dissolve the Dutch foundations,
which were created to safeguard the Dutch nationality of KLM. While the first
two elements will take place, the last will remain untouched.
TIACA welcomes new US-EU open skies agreement The International Air Cargo Association (TIACA) has welcomed the signing of a new transatlantic economic partnership between the US and the EU that incorporates an open skies agreement for transatlantic flights, effective March 2008.
The open
skies agreement will allow EU carriers to fly to anywhere in the US and vice
versa. The deal promises to reduce air fares and provide more choice for
passengers on both sides of the Atlantic.
According to
TIACA chairman Jack Boisen, while this US-EU agreement is an important step
forward, there are obviously some issues that still need to be resolved.
TIACA is
campaigning for the resumption of bilateral negotiations between the US and the
EU in line with its objective to allow unrestricted access for air carriers to
move air cargo between two points anywhere in the world, and has taken its
campaign to the leaders of the US Dept of Transportation and the head of EU
aviation policy.
“TIACA will
continue to support and campaign for any measures that lead to liberalisation,”
said Boisen. “We are confident that the commercial benefits that will be derived
by airlines and consumers as the first phase of the open skies agreement is
implemented will make it difficult for both sides not to successfully conclude
second phase negotiations. This is a significant move towards the unrestricted
movement of air cargo.”
The new
transatlantic economic partnership is designed to boost trade and investment by
harmonising regulatory standards, establishing the basis for a US-EU single
market.
According to
an EU statement, the EU hopes to go further and create an ‘open Aviation Area’
between the two sides "in which investment can flow freely and in which European
and US airlines can provide air services without any restriction".
Second stage
negotiations are expected to take place by the end of May 2008. Source: News desk
Air France KLM profit slip belies strength, as $7 billion aircraft order attests
Air France
KLM's 2.4% decline in consolidated net earnings to €891 million ($1.2 billion)
in the fiscal year ended March 31, which compares to a €913 million prior-year
profit boosted by the sale of its Amadeus stake, will not slow the airline,
which yesterday announced an aircraft commitment worth approximately $7 billion. The
orders, to be signed at the Paris Air Show, comprise the firming of two A380
options, which Chairman and CEO Jean-Cyril Spinetta were "part of an agreement
with Airbus relating to compensation for [A380] delivery delays," plus 30 A320
family aircraft and 18 777-300s. The
earnings drop belies the company's growth. Excluding the €419 million net
capital gain on the Amadeus sale, earnings rose 80% year-over-year. Group
revenue climbed 7.6% to €23.07 billion and operating costs rose 6.4% to €21.83
billion. Operating profit jumped 32.5% to €1.24 billion from €936 million a year
earlier. "This past
year has demonstrated the benefits of our profitable growth strategy," Spinetta
said. "We have taken advantage of global growth to develop our business in all
major markets and increase our profitability through cost control while
continuing to invest in our future." He added
that the first phase of the merger resulted in "significant value creation for
both the group and its shareholders" and that the current phase will see a
deeper integration of the group's strategic functions. "This will enable us to
further enhance our profitability, with a target return on capital employed of
8.5% by 2009-10." ROCE for the reporting FY was 6.5%, up 1.3 points, and is
expected to reach 7% in the current financial year. Full-year
traffic rose 5.4% against a 4.4% increase in capacity, lifting load factor 0.6
point to 81.4%. The company carried 73.5 million passengers, up 5%, and
generated passenger revenue of €18.37 billion, up 8.4%. Operating income soared
55.5% to €1.07 billion. Yield increased 3.4% to €0.087, RASK rose 4.4% to €0.071
and unit cost grew just 2.6% to €0.066
Fourth-quarter net profit surged to €43 million from €7 million in the year-ago
period. Revenues lifted 3.7% to €5.39 billion and operating costs were up 3.4%.
Operating result swung to a €49 million profit from the year-ago quarter's €4
million loss.
The group is targeting a capacity increase of about 5% this
year. It expects a "slight" rise in unit revenue and a further improvement in
operating income. The new cost-saving program "Challenge 10" should generate
savings of €560 million this year and €1.4 billion over a three-year period. Source: News desk Dutch Amsterdan Airport Schiphol will need a sixth runway to accommodate its anticipated growth
Amsterdan
Airport Schiphol will need a sixth runway to accommodate its anticipated growth,
Schiphol Group indicated in its long-term outlook published last week. AMS
expects passenger throughput to grow 84.4% to 85 million by 2025, with freight
more than doubling to 3.5 million tonnes. Runway capacity will need to increase
from last year's 423,122 flights to 600,000-650,000 by 2025, with a new
passenger area constructed by 2015, the airport said. The plan also calls for
more selective use of nighttime capacity and a slot policy prioritizing "scarce
capacity in favor of hub carriers, [intercontinental] carriers and those
point-to-point carriers that contribute to the European network, and to
safeguard the intercontinental network."
The report further suggests "providing relief" for AMS by
taking outbound transfer traffic not tied to the main port and relocating as
much as possible to other Dutch airports. It said regional airports like
Eindhoven and Lelystad may be suitable options. Schiphol Group has a 51% share
of Eindhoven and fully owns Lelystad. Source: News desk Air France KLM is seeking full control of Amsterdam-based Martinair Air France KLM is seeking full control of Amsterdam-based Martinair and has begun lobbying the European Commission to obtain clearance for a 100% holding, according to widespread reports from the Netherlands. Martinair is owned jointly by KLM and Danish shipping group Moeller-Maersk. KLM initially launched a bid in 1998 but was rebuffed by the EC, which also imposed a fine equal to €40,000 ($53,474) on the Dutch flag carrier for supplying incorrect and misleading information regarding transavia.com, the LCC that operates as an independent subsidiary of AF KLM.
The company's new plan involves integrating Martinair's
cargo activities into its own operation while incorporating MP's European
charter business into transavia, Dutch news paper De Telegraaf reported. MP
would focus on long-haul charters. It posted a €7 million loss in 2006, reversed
from a profit of €14 million in 2005, as both its cargo and passenger activities
were impacted by high fuel prices. Source: News desk Envirotainer announces partnerships with Air France-KLM
Air France Cargo-KLM Cargo strengthens its partnership with Envirotainer to serve the pharmaceutical market; Emirates SkyCargo has entered into a premium partnership agreement with Envirotainer; and Kuehne+Nagel has achieved accreditation at 29 stations for Envirotainer’s QEP program.
Air
France Cargo-KLM Cargo has extended its partnership with Envirotainer to
serve the pharmaceutical market with active temperature controlled air cargo
solutions.
According to Envirotainer’s vice president of sales, Martin Peter, Air
France Cargo-KLM Cargo is Envirotainer’s biggest customer and partner. Stéphane Lemaire, Pharma Industry director of Air France Cargo-KLM Cargo, said that the carriers’ dedicated product range for the pharmaceutical industry, Variation Pharma, ensures the strictest temperature control through the use of Envirotainer’s equipment. Source: News desk
Dutch
Martinair to shutter short-haul operation, seek KLM tie-up
Martinair
will initiate a restructuring program that includes ending European short-haul
passenger operations and the start of negotiations to bring the company under a
single shareholding, preferably KLM.
Martinair
reported a €7 million ($9.4 million) loss in 2006, reversed from a profit of €14
million the prior year.
"The
shareholders, supervisory board and board of directors have come to the
conclusion that it would be in the interest of all stakeholders to realize a
single shareholder structure for Martinair, preferably with KLM. It is the
intention of shareholders to start negotiations to effectuate this," the company
said in a statement, admitting that adjustments in destinations, product and
organization so far have "not given the company a firm base to be sustainable in
the years to come."
The Dutch
carrier believes its cargo business shows "substantial upside" and its long-haul
passenger activity has enough potential to warrant continuation, although it
needs to improve results drastically to be sustainable in the long run.
"This cannot
be said for the short-haul passenger business," it concluded, confirming it
intends to exit this market, "as the sub-scale operation leads to prohibitively
high unit costs and, in view of the price levels and fierce competition in the
market, it is not justified to invest to reach the necessary scale." Martinair
will look at the sustainability of other activities and will either divest them
or maintain them if outsourcing is not possible or justified.
In the coming
weeks, management will start discussions with all relevant stakeholders,
especially Martinair's Works Council, regarding consequent employee reductions. Source: News desk
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