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Miscellaneous
The
largest airline in the world!
Delta Air
Lines and Northwest Airlines said on April 14 they have agreed to merge
in a deal valued at more than USD$3 billion, aiming to cut costs amid
skyrocketing fuel prices and compete better globally. Under the terms of
the proposed deal, which would create the world's largest airline, Delta
will acquire Northwest in an all-stock swap in which Northwest
shareholders will receive 1.25 Delta shares for each Northwest share
they own.
After
racking up USD$35 billion in losses and finally emerging from a
five-year slump in 2006, US airlines are hoping that mergers could lead
to higher fares as combined carriers reduce flights and use their
increased market power to raise prices. The airlines also feel an urgent
need to consolidate and cut costs in order to weather high fuel prices,
a weak economy and a growing competitive threat from European carriers
as trade barriers fall on trans-Atlantic travel.
This
merger could also speed up another tie-up -- that of Continental
Airlines and United Airlines. Those two carriers have laid most of the
groundwork for a merger, two people briefed on the matter said, and
could have a deal ready "pretty quickly" following the Delta
and Northwest announcement, one of them said.
The
new Delta Air Lines will still be headquartered in Atlanta and operate
under Delta's flag, but with over USD$35 billion in annual revenue and
about 75,000 employees. Delta Chief Executive Richard Anderson will lead
the combined airline. Delta's pilots would get a 3.5 percent equity
stake in the new company while US-based non-pilot employees of both
airlines would be given a 4 percent equity stake upon closing of the
deal.
The
deal will combine Delta's strong Atlanta hub and its trans-Atlantic
route network, with Northwest's extensive Asian presence, including a
hub in Tokyo. There will be no hub closures, Delta said.
Previous
talks stalled in February after pilots' unions at Delta and Northwest
failed to agree on how to combine the seniority lists of the two groups.
Delta previously had indicated it would delay merger plans until pilots
-- the airline's only major unionized group -- agreed to an integration
deal. But the airlines have decided to go ahead with the merger to
create efficiencies that will offset high fuel prices and enable the new
carrier to better compete internationally.
Delta,
the third-largest US carrier and Northwest, the fifth-largest, still
have to get the deal past antitrust authorities, which have scuttled
previous airline merger proposals, and overcome objections from pilots'
groups and other employee unions. (Source:
Reuters)
"Hi,
I'm on a plane!"
will be increasingly overheard on flights -- much to the annoyance of
some passengers -- as the European Commission on April 7 unveiled a
pan-EU approach to licensing in-flight calls. The EU is
harmonizing the use of mobile communications on aircraft in EU airspace
so that an estimated 90 percent of passengers who carry a mobile can
make and receive calls, text messages and use email.
The
aim is to provide a licensing "one-stop shop" for airlines and
avoid a patchwork of approaches emerging as in-flight calls using
personal mobile phones start to take off. Passenger phones would
be linked to an on-board network that connects to the ground via
satellite so that aircraft equipment is not affected. Phones will
have to be switched off for take-off and landing, with usage only above
3000 metres. Passengers would be billed in the usual way. The
Commission expects the service to be popular as it will be cheaper than
the back-of-seat satellite services.
Measures
will harmonize and simplify the technical requirements for using mobile
phones and the way EU states will grant national licenses to
airlines. An aircraft registered in France or Spain would be able
to offer mobile communications services to passengers when flying over
Germany or Hungary without having to apply for additional national
licenses. (Source:
Reuters)
Malaysia
Airlines is considering possible mergers,
as the industry struggles to cope with soaring fuel prices and softer
demand,
Chief Executive Idris Jala said on April 25. The company would look at
possible partners world-wide but Idris stressed he was only looking at
opportunities and was not in any talks. "It's very, very early
days. We are just only looking at the landscape. We haven't identified
(anyone). We have looked at all those airlines that we're working with
today. They're probably looking at us too." Idris said the industry
in Asia would be plagued by overcapacity in five years' time and that
state-controlled Malaysia Airlines would prefer a partner that helped
raise revenues rather than just lowering costs.
(Source:
Reuters)
At
a ceremony held in Istanbul on April 1, Turkish
Airlines was welcomed as the 20th Star Alliance member airline. With an
additional 31 destinations – mainly in Turkey, Central Asia and the
Middle East, customers now have more choice than ever before when
travelling on the Star Alliance network. Overall, the world’s most
experienced aviation alliance now offers customers the choice of 18,000
daily flights serving 965 airports in 162 countries. Turkish Airlines is
already one of the fastest growing airlines in Europe (passenger traffic
growth of 23.5% according to AEA [Association of European Airlines]) and
holds a strategic position between Europe, the Middle East and Asia.
(Source:
www.staralliance.com)
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