S. A.): Calle Francisco Valldecabres 31, Valencia, E-46940, Spain; Phone 34 (96) 196-0200; Fax 34 (96) 196-0209; Http://www. airnos-trum. es; Code YW; Year Founded 1994. Air Nostrum, S. A. is set up at Valencia in late 1994 to offer scheduled passenger services to regional destinations. Emilio Serratosa is president with Carlos Bertomeu as general manager; Revenue flights duly commence in December with 3 Fokker 50s.
The fleet is increased in 1995 by the addition of 4 more Fokker 50s. Destinations served come to include Barcelona, Biarritz, Bilbao, Ibiza, Madrid, Nice, Palma de Mallorca, and Vitora.
During January 1996 orders are placed for 3 previously used Fokker 50s. These are delivered in April and May and assist in increasing the number of domestic cities visited to 20 with the inauguration of new routes in northern and central Spain. In December, the carrier enters into a franchise agreement with Iberia Spanish Airlines (Lineas Aereas de Espana, S. A.) to serve as its regional affiliate. A total of 18,041 scheduled departures are made and enplanements total 406,674.
The formal franchise agreement with Iberia Spanish Airlines (2) begins on May 12, 1997. Employing 12 (later 14) Fokker 50s, the partner will operate its 400 weekly departures under Iberia code, livery, and other branding.
On October 26, Iberia Spanish Airlines (2) integrates its own resources, together with those of its domestic subsidiary AVIACO (Avia-cion y Comercio, S. A.), its charter operation, VIVA AIR (Vuelos In-ternacionales de Vacaciones, S. A.), and its regional Air Nostrum under one centralized operational holding company. Long-term plans are made to institute a single Iberia branding over all three, but due to potential union problems, this plan will be implemented in phases. Meanwhile, coordination becomes the theme of the day in the short run.
Although the companies are held as separate legal entities, a management committee made up of the commercial directors from each airline, now allocates the group’s fleet, crew, and scheduling according to perceived daily requirements for each route. All passenger revenue receipts are turned into a central office, while all marketing activities are also centralized. Under this reorganization, VIVA begins to drop unprofitable charters, while AVIACO dumps unprofitable routes off on Air Nostrum, thereby freeing up capacity for Iberia.
At the end of the year, a $108-million order is placed for 5 Canadair CRJ200ERs, plus five options.
Passenger boardings skyrocket 112.4% over the previous year to 874,511; there are 33,094 scheduled departures.
While awaiting delivery of its own RJs during the second quarter of 1999, the carrier begins operating leased units in March 1998. At the same time, 3 Fokker 50s are leased from Kenya Airways, Ltd.
The first owned Canadair is received in November. It is immediately put into service on the Zaragoza to London (LGW) route, replacing one of the Kenyan Fokkers.
The fleet at year’s end includes 4 ATR72s, 5 Canadairs, and 18 Fokker 50s.
Customer bookings increase 76.5% to 1.56 million.
This Spanish regional, at the beginning of 1999, offers almost a thousand weekly flights to 23 domestic and 6 foreign destinations. Airline employment stands at 439, a 2.4% decline from the previous year.
The 3 Kenya Airways, Ltd. Fokker 50s, out on lease to Air Nostrum during the past 15 months, are withdrawn by the African carrier on June 17 and sold to the Spanish airline.
During the fall, a BAC 1-11-518FG is chartered from British World Airlines, Ltd.
The rapidly growing regional boards 1,748,000 passengers during the year.
Airline employment stands at 943 as 2000 begins, a figure that represents a whopping 114.8% increase over the previous 12 months. Expansion continues during the first quarter. The Iberia feeder, with a 53.1% increase to 586,410 people carried, posts the second highest (after BASE Regional Airlines, B. V.) increase in passengers carried during the period of any member of the European Regions Airline Association. Plans remain in place to increase capacity by year’s end through the addition of six previously requested Fokker 50s, 1 ATR72-520, and 1 CRJ200ER.
In late March, an $818-million order is placed with Bombardier Aerospace for 29 Dash-8-Q300s and 15 CRJ200ERs. As deliveries begin, the regional jets will take over several Iberia Spanish Airlines (2) (Lineas Aereas de Espansa, S. A.) international routes from Madrid and Barcelona and its own Fokker 50s on longer domestic segments such as Bilbao to Seville. The turboprops will replace Fokker 50s on shorter legs.
On May 1, a wet-leased British Aerospace BAe 146-300 operated by WDL Aviation (KOLN), GmbH., launches Iberia Regional weekday return flights from Zaragoza to Madrid, Nice, and Frankfurt. These are complemented with weekend services to Bologna from Madrid and Barcelona.
The Spanair, S. A. subsidiary AeBal (Aerolineas de Baleares, S. A.)
Launches competing service from Palma de Mallorca on July 4 employing a pair of Boeing 717-200s. Air Nostrum is able to counter with a fleet that includes 5 CRJ200ERs, 5 ATR72-520s, and 25 Fokker 50s. On July 25, it converts part of the earlier DHC-8/CRJ200ER order into a request for 8 CRJ900s.
Under a new code-sharing agreement between Air France and Iberia Spanish Airlines (2) (Lineas Aereas de Espana, S. A.), the Spanish regional on October 29 launches twice-daily roundtrips between Madrid and Toulouse.
AIR NOVA, INC.: 310 Goudey Dr., Halifax International Airport, Enfield, Nova Scotia B2T 1E4, Canada; Phone (902) 873-5000; Fax (902) 873-3897; Http://www. airnova. ca; Code QK; Year Founded 1986. This small, third-level operation is established at Halifax International Airport, Enfield, Nova Scotia, in May 1986 to provide Air Canada, Ltd. with a commuter entrance into the Maritimes market. As such, it is the first regional airline of the “Air Canada Connector” network. Shareholding is divided between the state carrier (49%), Labrador Airways, Ltd. owner Atlantis Investments, Ltd. (34%), and the company’s board chairman, Roger Pike, (17%). Labrador Airways, Ltd. agrees to feed President Joseph Randell’s 43-employee new entrant with its Labrador and Newfoundland traffic.
A pair of de Havilland Canada DHC-8-101 turboprops are acquired and employed to inaugurate services on July 14 linking the carrier’s Halifax hub with Sydney, Deer Lake, St. John’s, and Goose Bay. A Beech 99 is also placed into service. Another Dash 8 is leased in October and used to initiate replacement service for Air Canada, Ltd. from Halifax to Yarmouth and a new frequency to Charlottetown.
The St. John’s terminus is stretched to Gander in January 1987 and 2 more DHC-8-101s arrive, 1 each in February and March. Three new services are inaugurated in August, including two from Halifax (to Moncton and to Saint John) and one from Yarmouth to Boston. En-planements for the first full year of service total 226,000. Start-up costs bring a loss of $C694,000.
In March 1988, Roger Pike’s interest is purchased by Atlantis Investments, giving it 51% majority control; Angus Bruneau is appointed chairman, with Joseph D. Randell as president/CEO.
The Maritimes are connected to Quebec in June when Air Nova, Inc., employing another new Dash 8 received in May, opens routes from Halifax to Moncton and Quebec City and to Bathurst and Montreal. A Toronto-based merchant bank, Sheildings, Ltd., purchases the 51% ownership of Atlantis Investments; Air Canada, Ltd, holds the remaining 49%.
In September, orders are placed for 5 British Aerospace BAe 146200s and two 146-100s are simultaneously leased and used to initiate Halifax to Montreal and Ottawa jetliner flights. Beginning in late fall, the chartered aircraft are employed to operate a Halifax-Orlando charter on behalf of Air Canada, Ltd.
One of the leased BAes is returned in December when the first purchased Dash-200 is delivered. Orders are placed at year’s end for DHC-8-300s and, operating from hubs at St. John’s, Halifax, and Montreal, the airline now provides scheduled services to 18 destinations in eastern Canada, plus Boston, Massachusetts.
Passenger boardings increase by 68% to 380,000, and the loss declines to C$686,000.
A second BAe 146-200 arrives from the U. K. in January 1989, to be followed by two more in June. That month, the second leased Dash-100 is returned to its manufacturer, delivery positions are reserved for 10 of the newly designed Canadair CRJ Regional Jets, and work begins on a C$4.8-million maintenance and repair facility at Halifax.
During late summer and early fall, a new Atlantic Canadapass program is introduced for foreign travelers. The fleet at year’s end comprises 3 BAe 146-200s, with options for 2 more, 2 de Havilland Canada DHC-8-101s, and 5 DHC-8-102s, including 1 leased from Air Ontario, Inc. The last remaining “Air Canada Connector” partner in which Air Canada, Ltd. does not have controlling interest, the carrier becomes 100% owned by Air Canada, Ltd. before the year is out. Overall en-planements increase to 641,312.
The workforce is increased by 7.3% in 1990 to 502 and the BAe 146200 fleet increases to 6 and DHC-8-102s to 8, including 3 more obtained from Air Ontario, Inc. Options are taken for 10 Canadair Regional Jets. Service is inaugurated to the New Brunswick communities of St. Leonard and Newark.
Passenger boardings jump 21.6% to 818,000 and revenues move ahead by 36.8% to C$91.9 million.
Company employment grows 3.6% in 1991 to 520 and one BAe 146200 is withdrawn, as is a DHC-8-102. On May 25, daily nonstop round-trip jet service is inaugurated from Halifax to Newark while turboprop flights are initiated from Montreal to St. Leonard. The “Air Canada Connector” subsidiary is, like its parent, plagued by recession.
Customer bookings slide 4.8% to 780,000. Revenues, on the other hand, advance 3.3% to $C110 million.
In 1992-1993, President/CEO Randell’s carrier operates to 20 U. S. and eastern Canadian destinations; charter flights are also offered. Airline employment is 540. Flights between Yarmouth and Boston are introduced during the latter year.
The fleet in 1994 includes 5 BAe 146-200s, 2 DHC-8-101s, and 12 DHC-8-102s, including 3 leased from Air Ontario, Inc., 1 from Air BC, Ltd., and 1 chartered from Air Alliance, Ltd.
As a result of Air Canada, Ltd.’s January corporate makeover, the company will spend the remainder of the year having its fleet color scheme changed to match that of its major partner. The work will be performed at the West Virginia Air Center at Bridgeport. A new C$4.5-million training and administrative center is opened at the company base during the fall. Traffic and financial data is again unavailable.
A total of 50,499 scheduled departures are made in 1995 and en-planements reach 1,127,590. In March 1996, a five-year lease is signed with Asset Management Organization for the charter of its 5 BAe 146200s. Traffic and financial data for this year is not made public. En-planements reach 942,953 on 52,642 scheduled departures.
The workforce is increased by 8.3% in 1997 to 650.
On January 10, the company’s pilots join their 900 colleagues from the other “Air Canada Connector” carriers in a strike over merged seniority lists. The company operates with replacement workers and charter aircraft, but many flights must be cancelled.
The job action ends on March 1 following a marathon 24-hour negotiating session in a downtown Quebec City hotel. It is decided to leave it to the Canada Labor Relations Board to decide whether Air Canada, Ltd. is to be considered a common employer of both regional and Air Canada pilots.
After weeks of negotiation, the company’s pilots, on March 9, ratify a new 4-year contract with Air Canada, Ltd. Initially tentative, the pact, providing increased benefits and income, is approved by 88% of the eligible flyers voting in a special election.
Pilots for the four “Air Canada Connector” airlines begin to return to work on March 10. Among the first new services they operate is a BAe 146-200 route from Halifax, Gander and Deer Lake—the only jet service in central Newfoundland.
Bell Mobility Skytel Airfones become available for customers on company BAe 146s on April 3.
With the beginning of the new spring schedule on April 6, flights are restored to every Air Nova destination in Atlantic Canada.
Joined by representatives of the government of Newfoundland and Labrador and the Cabot 500 Foundation at an elaborate kick-off breakfast at St. John’s on June 16, Air Nova officials dedicate a BAe 146-200 and a DHC-8-100 to the celebrations being held in honor of the 500th anniversary of John Cabot’s expedition. The aircraft, wearing special logos, will serve as celebration ambassadors.
On October 27, DHC-8-100 service is inaugurated from Ottawa to Boston, eight-times-daily.
As a result of the job action, there are 48,425 scheduled departures. Passenger boardings are off by 4.2% to 904,146 and cargo drops 35.3% to 2 million FTKs. Operating revenues fall 3.8% to C$163.04 million; however, a C$3.6-million net gain is generated.
Airline employment stands at 725 in 1998 and the fleet includes 5 BAe 146-200s and 17 DHC-8-100s.
Destinations visited include Bathurst, Blanc Sablon, Boston, Deer Lake, Gander, Goose Bay, Halifax, Montreal, Ottawa, and St. Johns.
During the first week of January, Air Nova contacts the Canadian Red Cross to donate its services in transporting persons and supplies to aid in the relief effort during the great ice storm. On January 16, a DHC-8-100 flies 5,000 personal-hygiene “Storm Comfort” kits to Montreal (YUL) from Halifax.
A DHC-8-100 is configured in a 21-seat passenger/cargo combi arrangement and, on April 5, is assigned to the company’s schedule in Newfoundland and Labrador.
Daily nonstop roundtrips commence on June 1 between Halifax and Boston; three frequencies are operated by DHC-8-100s and two by BAe 146-200s.
Previously thought-out contingency plans come into effect on September 2 with the beginning of the strike by pilots at Air Canada, Ltd. The plan involves all manner of points from proactively contacting customers to positioning aircraft throughout the region and adding additional BAe 146-200 flights between Halifax and the cities of Montreal, Ottawa, and St. John’s.
Executives from Air Alliance, Inc. and Air Nova jointly announce on November 12 that the two carriers will consolidate both operations into one before the introduction of the summer schedule on April 5. The company will be based in Halifax and Quebec City and will initially retain independent branding. The consolidated DHC-8-100 and BAe 146-200 service will operate under the brand name Air Nova, while the Beech 1900D service will retain the Air Alliance name; independent liveries based on the aircraft types will be maintained for brand-recognition purposes. The companies will work diligently together over the next few months toward implementation of the merger; in the interim, there will be no immediate changes in the services provided by either.
Affected union pilots from both carriers begin to negotiate simultaneously with management from Air Alliance and Air Nova, Inc. concerning new contracts.
For the holiday season between December 18 and January 5, additional flights are added across the network and the airline switches to the use of the larger BAe 146-200s from the DHC-8-100s whenever possible.
The company’s one-millionth passenger of 1998 is transported on December 15, for a total of 9.1-million passengers carried since the airline’s first day.
A code-sharing agreement is signed with United Airlines on December 22.
Passenger boardings jump 16.6% to 1.05 million, while cargo traffic accelerates 27.2% to 2.6 million FTKs. Revenues shoot up 23.1% to C$200.73 million.
By the start of 1999, airline employment has been increased by 9.1% to 745. Under terms of the new dual-designator pact, United Airlines, beginning on January 4, sells blocks of seats on Air Nova DHC-8-100s return services between St. John, New Brunswick, and Boston.
The new contracts between the pilots and management at both Air Alliance, Inc. and Air Nova are ratified on February 26.
On March 1, Air Ontario, Inc. Chairman David McCamus and Air Nova President/CEO Joseph Randell agree to discuss with Air Canada, Ltd. a consolidation of their two airlines. Toward that end, Mr. Randell is immediately appointed interim president of Air Ontario, while maintaining his current Air Nova posting.
The consolidation with Air Alliance, Inc. is officially completed on March 12. Hoping to gain greater flexibility and productivity in terms of fleet utilization, the enlarged Air Nova projects 1999 revenues of almost C$300 million. Schedule improvements for customers throughout Atlantic Canada and Quebec are implemented on April 5.
With the consolidation of Air Nova and Air Alliance proving successful, a review of the additional opportunities to be derived from a further consolidation of those two with Air Ontario and AirBC, Ltd. is undertaken during the remainder of the year.
On January 20, 2000, Air Canada, Ltd. announces that the process of consolidating Air Nova, Air Ontario, and AirBC, Ltd. will begin immediately under the leadership of Joseph Randell. It is anticipated that the integration process, which will facilitated by representatives of the three lines, will require a number of months. In the interim, the three will continue operations under their original names.
Daily roundtrips are started on April 3 from Stephenville to Goose Bay and Halifax and from Montreal to St. Johns. The same number of frequencies begins on June 4 from Stephenville to Halifax and on June 18 from Montreal to Charlottetown.
During the summer, the three regionals, AirBC, Ltd., Air Nova, and Air Ontario take a major step towards their consolidation into a single unit when a head office for a joint carrier is established in Halifax and a western hub at Calgary. Having failed to find a buyer, Air Canada, Ltd. is permitted to take over Canadian Regional Airlines, Ltd. on August 30 and add that feeder into its regional airline consolidation process. When the integration process is completed at year’s end, it is anticipated that the (as yet) unnamed airline will be one of the largest regional airlines in the world, with over 5,000 employees and some 135 aircraft, mostly Dash-8 turboprops.
After several months of study, executives from Air Alma, Ltd., PropAir, Inc., and Air Satellite, Inc. approach Quebec Finance Minister Bernard Landry on October 25 and request $84 million to help them merge into a larger regional. If the arrangement can be concluded, the new airline, to be named Air Quebec, Inc., will form a credible alternative to Air Nova, which enjoys the majority of local market share.
World History
