Airline News May 2005

Harvard to study challenges faced by Chinese airlines. Harvard Business School is conducting a study of the challenges faced by rapidly expanding Chinese airlines, the Boston Globe reports. Hainan Airlines, a Chinese discounter, will participate in the study. Boston officials also hope to convince the airline to launch flights from Boston to China. May 20, 2005

Hawaiian Airlines, an important US regional carrier with a fleet of 11 Boeing 717 and 14 Boeing 767 is expected to emerge from Chapter 11 bankruptcy in early June more than two years after seeking protection from creditors. The airline, which has been in a financial limbo since March 2003, says that creditors will receive 100% of their claims and stockholders their full shareholding, virtually unknown when an airline has sought financial protection. The airline flies to Sydney, around the Hawaiian Islands, to most West Coast US cities and as far as Phoenix. http://www.hawaiianair.com May 20, 2005

Helvetic, the Swiss airline, which on May 15 switched its Zurich - London services from Gatwick to Luton, has come up with a marketing innovation, which could just catch on. Helvetic customers will shortly be able to buy flight vouchers per sector at around 1,800 post offices in Switzerland. Customers can pay cash or with their Postcard, then book their flight on the Internet. Ideal for people who don't trust credit cards. http://www.helvetic.com May 13, 2005

Independence Air lowers fares to Washington, D.C., but future remains unclear. Independence Air's cheap prices have lowered airfares to and from the Washington, D.C., market, but it is unclear how long the discounter will stay afloat, USA TODAY reports. Independence chief executive Kerry Skeen insists the low fares are not hurting the industry. The airline recently posted a large first-quarter loss. May 9, 2005

Independence Air chief expects to break even this summer. Independence Air expects to break even by June or July, according to chief executive Kerry B. Skeen. The airline said it will report a $105 million first-quarter loss, the Washington Post reports. One analyst, however, said the airline will burn through all of its cash by the end of 2005. The airline has recently launched fares as low as $29 for one-way travel. May 6, 2005

Independence Air promises free fare if luggage is delayed. Independence Air will give a free ticket if the airline does not deliver a passenger's luggage on time, Travel Weekly reports. The Happy Bags Delivery Promise is part of the airline's plan to promote its customer service. The free fare is valid for one year after it is issued and does not include taxes and fees. May 4, 2005

Japan still has a different perception of honor than other places. The chairman of Japan Airlines, Isao Kaneko, will resign at the end of the month to take responsibility for a string of safety lapses. The departure is also motivated by health problems. The announcement came just a day after a JAL flight from New York - Tokyo with 355 passengers aboard made an emergency landing in Sapporo after a sudden drop in air pressure inside the cabin. The carrier has been under mounting pressure amid a series of embarrassing safety lapses that drew widespread attention in January when a JAL pilot attempted to take off without receiving approval from air traffic controllers. The airline was humiliated when Japan's Transport Ministry issued a highly unusual public warning to the company earlier this year. Just last week another JAL jet carrying 85 passengers bound for Manila, was rerouted to Kansai when its altimeter malfunctioned shortly after takeoff, causing a two hour delay on the ground. http://www.jal.co.jp May 13, 2005