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Monday, August 15, 2005

Supply Side


Izmir Hava Yollari, a start-up Turkish airline, is negotiating to be the launch customer of Bombardier's [BBD] new C Series jetliner. In a deal that would be worth $275 million, Izmir would buy five C Series airplanes, three CRJ 900s and two Q 400S. Bombardier will make a decision this fall on whether there is enough interest to build the C Series. At the same time, the nation's established carrier, Turkish Airlines, has exercised an option to purchase eight Boeing [BA] 737-800s for delivery in 2008. That deal is valued at $542 million.

In an effort to sell more planes in the fast-growing Asian market, Bombardier is expanding its presence in the region with additional sales and service centers. In its new Singapore office, Bombardier is basing Christophe Chicandard as a sales director for its business aircraft. Since 2003, he has been responsible for all new and used business aircraft sold in Canada.

In its New Delhi office, the company has named Nalin Jain as the sales director of business aircraft in India. He was previously the sales leader for the entire Bombardier product line in India.

Assigned to the Hong Kong office, Gregor LaForme will be the sales director for North Asia. He has been part of the sales support team there since 2001. Also based in Hong Kong, Carl Mcintosh has been named the sales director of Asia-Pacific, promoting SkyJet International, the company's jet charter company. Mark Hudson has joined the sales support team in Hong Kong.

Within the next 12 months, Bombardier will open maintenance facilities in India and China.


Embraer [ERJ] has received regulatory approval to equip its Legacy aircraft with high-speed data capability. Brazil's Centro Tecnico Aerospacial, the U.S. Federal Aviation Administration and the European Aviation Safety Agency all approved the use of wireless technology and high-speed connectivity based on the Inmarsat Swift64 service. Chelton, based in the United Kingdom, supplied the data connectivity technology while Miltope, based in the U.S., supplied the Wi-Fi connection. The first Legacy, which is based on an ERJ 135, with the new technology was delivered in late July to Jackie Phelon, a U.S. customer. Current Legacys can be outfitted with the high-speed connectivity through a service bulletin. The plane has a base price of $22.4 million.

Embraer is running three years ahead of schedule in meeting its promise to reforest the acreage surrounding its Gaviao Peixoto facility. The company will have 350 hectares, or 424 football fields, replanted by 2007. It had promised the local government that it would have 600,000 new trees planted by 2010. With 80 percent of the work complete, it now estimates the planting will be completed in 2007. Embraer in 2001 built a five-kilometer long runway to test its aircraft. The effort to reforest at least 20 percent of the site began at that time. The company is planting more than 135 different native species on the site.


Viva International has selected SkyVantage of Salt Lake City, Utah, to provide the reservations system for its Eastern Caribbean Air unit. It should be operational for online bookings on Sept. 15. Viva will integrate Viva Air Dominicana, its other unit, later in the fall when the winter travel schedule is published. Besides a very "user friendly" booking engine, the SkyVantage software offers gate check-in and flight management tools, flight passenger reports and financial revenue data analysis and processing.

Viva selected the SkyVantage system because it enabled the carrier to combine its in-house comprehensive aircraft maintenance program into the back-end administration tracking system. In addition, Viva has already begun the pre-development process of a crew scheduling module and self check-in kiosks with SkyVantage. At this time, it envisions these enhancements becoming available in early 2006.

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