US FAA said it ended contract negotiations with the National Air Traffic Controllers Assn. after receiving a "best and final" proposal from NATCA that was "more costly than what the air traffic controllers union indicated publicly last week." According to the agency, "Negotiations stalled on the issue of base pay and two types of premium pay that together have escalated the average controller's salary and benefits to over $170,000 annually" since the last contract was signed in 1998.
Air France is to trial OnAir's GSM equipment enabling the use of mobile phones inflight. AF will receive the first outfitted aircraft, an A318, off the production line in early 2007 for the six-month trial. The OnAir service will allow passengers to use their own GSM mobile phones and GPRS-enabled devices such as the BlackBerry or Treo to make and receive voice calls or send and receive SMS messages or e-mails without interfering with navigation systems. AF will survey passengers before deciding whether to extend the program beyond the trial.
Hamburg International finalized its $170 million order for CFM56-5Bs to power 14 A319s. It will take delivery of the aircraft in 2008-09 and use them on European charter routes and dedicated flights to Africa and the Middle East.
Cathay Pacific Airways COO Tony Tyler said the Hong Kong airline will focus its mainland China activities on just three cities, Beijing and Xiamen (currently served), and Shanghai with three daily flights starting as early as this year.
VarigLog, the former cargo and logistics subsidiary of Varig that was sold in January to a Brazilian holding company financed in part by US fund MatlinPatterson ( ATWOnline, Jan. 16), offered to buy the restructuring airline for $350 million, according to press reports. The bid was scheduled to be presented to Varig's creditors yesterday.
Series of fires aboard CRJ200s resulting in temporary loss of all cockpit EFIS displays on some of the affected aircraft prompted the US National Transportation Safety Board to urge FAA to address the situation. According to NTSB, there have been seven fires aboard CRJ200s, six of them within the past six months. Although none resulted in loss of life, "the potential exists for an uncontained fire to compromise the oxygen line, which could develop into an even more critical situation." All fires have involved the Ultem 2200 surface material of the 1K4XD contactors aboard the aircraft.
Bmi Group reported a pre-tax profit of £10 million ($17.3 million) in 2005, nearly four times greater than the £2.6 million earned in 2004. Turnover rose 4.7% to £869 million from £830.1 million on a 6.3% increase in RPKs to 9.33 billion. Operating result before exceptional items moved from a loss of £3.2 million in 2004 to a profit of £5.5 million in 2005. Segment information on the performance of each of the group's operations--the mainline based at London Heathrow, bmi regional and its low-cost subsidiary, bmibaby--was not provided.
European Commission warned the Greek government that it must adhere to a May 2005 European Court of Justice ruling and recover €161 million ($194.6 million) in state aid given to Olympic Airways, now Olympic Airlines, between 1998 and 2002. The EC said Greece has two months to "react" to the decision or it will refer the case back to the Court and seek financial penalties. The government still is trying to privatize the airline.
UK and Russian governments signed a new aviation agreement that will lead to "a significant expansion" in air services between the two countries, the UK government announced. The bilateral grants bmi the right to operate alongside British Airways on the principal London-Moscow route and doubles the number of services permitted to 70 per week--35 from each country. The number of flights permitted on the Manchester-Moscow route will increase to 14 per week.
With Independence Air out of the picture and JetBlue Airways' armor revealing a few chinks, Southwest Airlines has decided to increase its presence in the Washington area by requesting two gates at Washington Dulles for unidentified service scheduled to begin this fall.
Continental Airlines signed a five-year comprehensive content distribution agreement with Worldspan. CO participates in Worldspan Airline Source, the GDS's highest level of connectivity.
American Airlines said it is hopeful that it will be permitted to resume a fourth daily Miami-Caracas flight canceled in January owing to road conditions near Simon Bolivar International Airport. Operations were scheduled to begin last Monday, but the Venezuelan government has prohibited AA from restarting service. Venezuela agreed to postpone restrictions on other US flights until April 25 after meeting with US inspectors last week ( ATWOnline, March 31).
Delta Air Lines pilots voted in resounding favor yesterday to authorize union leaders to call a strike if an arbitration panel permits the carrier to reject the current pilot contract and impose a new, concessionary agreement. Of 5,799 eligible voters, 96.4% voted and 94.7% of voters supported a strike. "The results of this ballot will send the strongest message yet that if Delta's senior executives are successful in their misguided attempt to reject our contract, we will strike," MEC Chairman Lee Moak said in a letter to union members. "Our goal has not changed.
Tiger Airways of Singapore offered to take over routes from archrival Jetstar Asia. Responding to press reports that Orangestar Investment Holdings, parent of Jetstar Asia and Valuair, is seeking fresh funding of S$36 million ($22.3 million) after having exhausted the S$60 million that was pumped in at the time of the merger last July, Tiger CEO Tony Davis said in a statement, "We are well placed to take over some of Jetstar-Valuair's regional routes if they want to give them up.
World Airways last week paid off the remaining $24 million balance of a $30 million term loan guaranteed by the Air Transportation Stabilization Board. World used available cash for the transaction and paid off the first $6 million last December. The loan dates from December 2003. ATSB now has no outstanding guarantees, although it does have an $86 million direct loan to ATA Airlines related to that carrier's bankruptcy.
United Airlines flew 10.15 billion RPMs in March, a 3.4% rise over the year-ago month. Capacity climbed 2.3% to 12.08 billion ASMs and load factor increased 0.9 point to 84%.
Goodrich Corp. was selected by Boeing to supply a Flight Deck Entry Video Surveillance System for the 787, which will be offered as an option to customers. The system includes video cameras that allow crews to see in total darkness, a video server designed to interface with the aircraft's EFB system and EFB client server applications, Goodrich said.
Pakistan International Airlines took delivery of its second 777-200LR. It is the aircraft that broke the commercial jetliner distance record on a Hong Kong-London flight last fall ( ATWOnline, Nov. 11, 2005).
Island Air unveiled new aircraft, new interiors and a new look as its Hawaiian market becomes more competitive. It has taken delivery of the first of three 78-seat Q400 turboprops and will take the remaining pair by year end. In addition, it has expanded its Dash 8 fleet from four to 11 over the past 14 months, allowing it to fly to all eight major airports in the state with 92 services per day.
Etihad Airways said it will install Boeing Class 3 EFBs on five new 777-300ERs being delivered in the first half of this year. The EFBs will be installed starting in 2007. Meanwhile, Etihad took delivery of a 777-300ER and an A330-200.
News from Travel Technology Update: Sabre Travel Network is rolling out Upsell, a program that displays amenities and upgrades that are available at a hotel that is about to be booked. The program is part of its drive to move more into a merchandising mode, rather than simply processing transactions. Hotels that agree to participate in the program will share a portion of the incremental revenue they receive with Sabre.
Qantas opened its A$55 million ($39.4 million), 17,500-sq.-ft. Material and Logistics Distribution Center in Mascot outside Sydney yesterday. Executive GM-Qantas Engineering David Cox said the project is part of a larger investment in the airline's domestic MRO capabilities, which includes an $85 million facility in Brisbane and a $20 million upgrade to its Rolls-Royce Engine Maintenance Center of Excellence. The Mascot center is anchored by a Miniload Automated Storage and Retrieval System comprising four stacker cranes moving at up to 24 m. per sec.
US Dept. of Transportation said the rate of domestic flight cancellations rose in February to 2.1% compared to the 1.7% posted in February 2005. Ontime arrival rate among the 19 reporting airlines fell to 75.3% from 77.6% in the year-ago month. American Eagle Airlines led in cancellations with 3.5% followed by ExpressJet Airlines at 3% and JetBlue Airways at 2.9%. Hawaiian Airlines had the lowest cancellation rate at 0.2%, followed by Frontier Airlines (0.4%) and Southwest Airlines (1.2%).
IATA reported a 6.8% growth in February RPKs, a 5.1% increase in international capacity and a 1.2-point rise in load factor to 73.3%, figures that matched forecasted numbers and supported a "new and cautious optimism that is returning to the industry," according to DG and CEO Giovanni Bisignani. Middle East traffic (up 15.3%) and capacity (up 14%) showed the most growth. Capacity increases outpaced traffic in Africa and Latin America. Freight traffic climbed 5.4% on a 5.3% increase in capacity.
