Fitch Ratings has assigned a 'B' rating to the $300 million in senior unsecured notes issued by Northwest Airlines. The notes carry a coupon rate of 10% and mature in 2009. The Rating Outlook for Northwest is Negative. The unsecured rating and the negative rating outlook reflect Northwest's heavy debt load, high level of cash obligations over the next few years and the lack of progress toward the achievement of lower contract pay rates for unionized employees that would bring the carrier's unit labor costs in line with its restructured network carrier rivals. If competitive deals on amendable labor contracts are reached, Northwest should be in a position to deliver unit operating expenses at the low end of the network airline peer group. However, progress toward this goal has been

The first brand awareness campaign for SkyTeam, an alliance of six global airlines, takes off this month with an online sweepstakes offering trips valued at up to $35,000 to any of 500 international destinations served by alliance members. Interactive promotion specialist ePrize is in the cockpit, handling everything from creative aspects and foreign legal, registration and translation responsibilities to prize fulfillment. During their quarterly meeting Thursday, the SkyTeam Steering Committee confirmed their decision to welcome Aeroflot's bid for membership in the alliance. SkyTeam constantly considers prospective members that can offer customers greater convenience and extend the alliance's global network. With 108 destinations in 54 countries, Aeroflot's addition to the allian

A struggling airline industry, ongoing pressure on profits and intensifying competition are transforming the EUR 8.5 billion European commercial maintenance, repair and overhaul (MRO) market. The resultant trends toward outsourcing and industry consolidation are expected to force market participants to redefine their competitive strategies. Several major, low-cost and regional carriers are today outsourcing their maintenance work. As airline maintenance units strive for third-party work due to compulsions of overcapacity, aggressive competition is expected to result for some of the newly generated outsourced businesses. Even as the contest between airline maintenance units and independent MRO companies heats up, the entry of original equipment manufacturers (OEMs) is expected to f

On February 3 at 8:00 p.m. PST, Singapore Airlines' new A345 LeaderShip aircraft will lift off from Los Angeles on the world's longest scheduled non-stop flight. Traveling 7,937 nautical miles over the Pacific, the 18.5 hour flight carries 181 passengers and links two of the world's great cities: Los Angeles and Singapore. Travelers can dine on Lobster Thermidor, grab a snack in the world's first Economy Class lounge on a plane, or choose from more than 29 movies and 122 music CDs.

As if the airline industry wasn't already beset by all sorts of problems already, get this: Fitch Ratings is providing the following commentary on the US Senate's passage last week of a broad pension funding reform bill that includes targeted relief for the largest US airlines. The Senate legislation, which passed by a vote of 86-9, now must be reconciled with a House of Representatives bill that also includes airline industry relief provisions. Pending the outcome of House-Senate conference committee negotiations to determine the final form of the bill (assuming no White House veto), it now appears likely that significant changes will be made in the required cash funding of the major airline's defined benefit pension plans in 2004 and 2005. Fitch believes that the proposed fundin

The good news is that Emirates Airlines acknowledges it's a potential customer for Boeing's new 7E7 Dreamliner. The bad news is, the carrier is worried about how the revolutionary airplane will stand up to the usual bump and grind experienced on the ramp. To put it in a nutshell, the airline is worried about the sort of fender-benders that are all to common to aircraft in near-terminal operations.

The FAI Environmental commission was formed back in the mid-90’s to deal with the growing noise complaints. The commission has traditionally focused on technical issues, but is keenly aware of the growing problems associated with political concerns. There are increasing reports from National Aero Clubs (NAC) of problems associated with environmental concerns. In most cases these problems are economic issues under the guise of environmental. Regardless, the results are fewer airports (or areas) in which to enjoy air sports. As one delegate described it, “we are suffering death by a thousand cuts.” Taken individually, none are significant, but collectively they threaten our existence.