HRG To Relaunch Public Offering TodayHRG today returns to the London Stock Exchange, after announcing late last month it would delay its initial public offering in lieu of more favorable market conditions. Dealings on the company are to be priced this week.
Air France, KLM, El Al Rescind Fuel SurchargesAir France, KLM Royal Dutch Airlines and El Al Israel Airlines recently reduced fuel surcharges following a drop in the cost of jet fuel. Air France cut its long-haul surcharge by E7. KLM reduced its fuel surcharge by E5 per leg on all intercontinental flights. KLM in April increased its fuel surcharge by E5 each way on all long-haul flights and said it would remove the charge "as soon as the barrel price drops below $65 for 30 consecutive days
(BTN, May 1)." Meanwhile, news reports said El Al last week cut its fuel surcharge by $28 per long-haul roundtrip. In April, American, Delta, Northwest, British Airways and KLM Royal Dutch Airlines upped fuel surcharges. American, Northwest, United and US Airways in June matched Delta's fuel increase of $10 on most transatlantic flights from the Western Hemisphere, except those originating in Canada and Mexico
(BTN, June 19). Last week, oil prices dropped below $60 a barrel.
Congress Agrees To Repeal Wright AmendmentCongress late last month approved the Wright Amendment Reform Act of 2006, following a historic compromise this summer between American Airlines and Southwest Airlines. President Bush shortly is expected to sign the legislation, which provides immediate through-ticketing from Love Field, maintains the airport as a domestic airport and limits the number of gates to 20. In 2014, carriers may launch routes from the airport to beyond its current perimeter. The two carriers and the cities of Dallas and Fort Worth in June unified to seek the legislation and repeal the Wright Amendment—a highly contentious piece of legislation from the 1970s that promoted a then-fledgling Dallas/Fort Worth International Airport while restricting air service at crosstown Dallas Love Field. American and Southwest for years had been diametrically opposed on the issue. Southwest had sought to overturn the Wright Amendment, which prevented any carrier from flying from Love Field to any U.S. city, beyond the perimeter encircling Alabama, Kansas, Mississippi and states that border Texas. American, meanwhile, had insisted the Wright Amendment should not be changed, and if Southwest wanted to fly from Dallas to cities not permissible under current regulations, it should do so from DFW. Through a number of compromises, the parties—as well as the House and Senate—agreed to repeal the legislation.
Northwest Orders 72 Regional JetsNorthwest Airlines last week said it ordered 72 new two-class regional jet aircraft, 36 apiece from Embraer and Bombardier. In a statement, Northwest said the 76-seat Bombardier Canadair Regional Jet 900s and Embraer 175s allow the carrier "to pursue growth opportunities in important markets, including in the heartland of the U.S., and provide Northwest with improved aircraft economics." Subject to bankruptcy court approval, the carrier said it expects to begin taking initial delivery of both aircraft in the second quarter of 2007. Northwest did not disclose the value of the orders. "Both new aircraft types will lower Northwest's operating costs over the aircraft they replace, such as the Avro Regional Jet 85 ,through a combination of significantly lower fuel consumption along with inherent maintenance cost advantages," Northwest president and CEO Doug Steenland said.
Travelport Reorganizes Executive StructureTravelport is shuffling senior executives to accommodate its Jan. 1, 2007, reorganization into three global businesses—Galileo, Orbitz Worldwide and Gullivers Travel—the company announced late last month. Each company will operate under a decentralized structure built around Travelport's customer base, company president and CEO Jeff Clarke said in a statement. Reporting to Clarke under the new structure are Ken Esterow, former president and CEO of the Travelport Business Group in the Americas, now president and CEO of Gullivers Travel, and Gordon Wilson, past president and CEO of the business group for Europe, Middle East and Asia/Pacific, now president and CEO of Galileo. Steve Barnhart will continue to serve as president and CFO of Orbitz Worldwide.
AirPlus To Offer Corporate Card In ChinaChina Merchants Bank, the largest dual-currency credit card issuing bank in mainland China, will begin offering a new corporate card later this month through an agreement with AirPlus International, AirPlus announced late last week. The card will provide businesses with both local and international data for analyzing travel and entertainment expenses, according to AirPlus CEO Richard Crum.