Boutique lessor International Aircraft Investors is advising shareholders that its first-quarter revenues and earnings will fall well short of analysts' expectations because Mexican airline Taesa has defaulted on the lease of a Boeing 737-300 owned by the Los Angeles company. Taesa's default would cause more than 80% of the $700,000-$800,000 aircraft rental reduction it expects to see for the three months.

Ground handling specialist Servisair has signed an innovative performance-related handling deal with KLM uk covering its operations at seven airports in the UK. Under the new agreement Servisair will be offered financial rewards for delivering consistent service excellence but will be penalised for service failures.

Northwest Airlines has appointed Glenn Woythaler as vice-president of crew and performance analysis. In his new position, Woythaler will be responsible for the carrier's system operations control (SOC), including operations analysis, performance engineering, crew resources and crew scheduling, reporting to SOC vice-president Tim Rainey.

Completion of a fifth runway at Charles de Gaulle Airport is forcing Aeroports de Paris (ADP) to cooperate with train and road operators to improve access to the crowded site. French transport minister Jean-Claude Gayssot is meeting Ile-de-France authority chairman Jean-Maurice Esnault to address the issue, which has led to journey times from the centre of Paris to the airport taking an average of one hour.

Romanian flag-carrier Tarom has begun a 13-week evaluation phase marking the first step towards privatisation which it hopes to complete by year-end. Consultancy firm SH&E is working with the investment banking arm of ABN AMRO and local affiliates on the project with a view to complete the privatisation before elections in Romania this November. The country's Ministry of Transport has indicated it is willing to sell up to a 67% stake in the flag carrier, but only 49% of this will be made available to non-Romanian investors.

Qantas Airways has raised union fears in Australia by saying it is looking at ways to reduce costs through basing certain operations overseas because of increased competition and rising costs at home. Qantas chief executive James Strong says the Australian government's aviation policies are forcing the move. Unions have expressed concern.

Source: Flight Daily News