Airline News

Atlantic Southeast Airlines - ASA, a wholly owned subsidiary of Delta Air Lines, marked its 25th anniversary last month with the delivery of a CRJ700 bearing a special livery commemorating the occasion. ASA took to the skies in 1978 with a single 19 passenger de Havilland Twin Otter. It was founded by George Pickett, John Beiser and Robert Priddy, who met while working at Southern Airways. The three spoke at a luncheon in Atlanta recently and shared memories of the early days of the airline. "We realized there were a lot of so-called commuters around, but not one in Atlanta," Pickett recalled. When the founders sought financing for their business plan, they were told they needed at least $3 million in startup costs but they were only able to raise about $500,000. Nevertheless, ASA managed to get off the ground and in 1984 it became a Delta Connection carrier. It was "a goldmine after that," according to Priddy, and when it was sold to Delta in 1999 it was valued at $1 billion. ASA currently operates 133 aircraft to 108 destinations in the US, the Bahamas, Canada and Mexico. Since 1999 it has added 93 new regional jets and another 3,000 employees. It expects to board more than 10 million passengers in 2005. "We've worked very hard over the past five years to get where we are today," said CEO Skip Barnette. Jul 5, 2004

Austrian Airlines Group plans to streamline its fleet with confirmation that it has ordered an eighth 737-800, this one for its Lauda Air charter unit, for delivery in July 2005. Lauda already operates four 737-800s. Earlier this year, Austrian ordered three 737-800s. AAG currently operates 96 aircraft in 10 families and has long-term plans to try to standardize around fewer fleet types. As an immediate solution, it plans to phase out two 737-400s, a dash 300 and two dash 600s. Its seven MD-80s may leave next year. According to CFO Thomas Kleibl, the airline also would like to dispose of its two A340-200s, which are too expensive to operate, but cannot find a buyer. Jul 13, 2004

AWAS delivered a 737-300 to Spanish airline Air Plus Comet. With the delivery, AWAS now has aircraft on lease to six Spanish and Portuguese carriers. Jul 1, 2004

Boeing delivered AeroMexico's eighth 737NG as part of the airline's continuing fleet modernization program. The carrier will receive seven more 737-700s by Nov. 2004 under a 15-aircraft order placed last year. Jul 1, 2004

Boeing confirmed an order by Air China Cargo for two 747-400Fs valued at approximately $400 million at list prices. The first is scheduled for delivery in Nov. 2005 and the second in March 2006. They will be powered by PW4056 engines. Jul 30, 2004

Boeing announced to media in London that it has secured 140 additional orders for 7E7s from 20 airlines, although to date it only has identified four customers for the new aircraft: All Nippon Airways (50), Air New Zealand (two), First Choice (six) and Blue Panorama (four). With this year's Farnborough Air Show just days away, speculation is building about two sales campaigns at Asia/Pacific carriers in which Boeing is believed to have a leg up. Singapore Airlines and Cathay Pacific Airways both are looking to replace and/or supplement their 747-400 fleets and are thought to be close to announcing orders. The conjecture is that SIA will order 777-300ERs and dash 200LRs to replace its 747-400s and A340- 500s. It also is understood to be a launch customer for the 7E7 and has paid a refundable deposit on up to 20, insiders close to the deal said. Boeing declined to comment. Meanwhile, Cathay is thought to favor the 777-300ER to replace its leased A340-600s. In addition, Cathay and Qantas have been searching for at least a dozen secondhand 747s to handle traffic growth but the quest is proving to be difficult. Qantas now is believed to be looking at new 777-300ERs as a better investment. Jul 16, 2004