Score one for reality over alarmism. The argument for maintaining the new rules for union-representation elections at U.S. airlines received a major boost—or at least it should have—from a vote in August by JetBlue Airways pilots. Proponents of the new rules, which the National Mediation Board (NMB) implemented last year, should be using the election as Exhibit A in the case against the push by some airlines and Republicans to have Congress overturn the changes.
Tiger Airways has signed an agreement related to its decision to buy one-third of Mandala Airlines. The Singapore low-cost carrier says it has signed a share subscription contract“and finalized "other commercial agreements” in relation to its proposed purchase of a 33% stake in Mandala. “Tiger’s investment in Mandala will be held through wholly owned subsidiary in Singapore, Roar Aviation,” it adds.
Hundreds of United Airlines and Continental Airlines pilots are planning to picket Sept. 27 in New York's financial district, adjacent to the New York Stock Exchange, over the lack of progress on a joint contract with parent company United Continental Holdings. Plans call for the informational picketing to be followed by a rally in Battery Park. Meanwhile, the unions representing Southwest Airlines’ and AirTran Airways’ pilots reached agreement Friday on integrating seniority lists. Ratification is needed by Oct. 1 to avoid binding arbitration.
Global airports will spend more than $1 trillion on capital projects through 2030 to meet rising traffic demand, adding significantly to debt, the regional director for the Airports Council International told a Beijing Global Friend Airports CEO Forum.
Airports Council International-North America is making a serious effort to reach out to airport members and learn their opinions on how best to finance capital needs estimated at $80 billion over five years. The four-month effort will be launched at the October ACI meeting in San Diego and will continue with regional sessions and electronic surveys. ACI-NA President Greg Principato has called Nixon-era airport funding rules shackles that deprive airports from rebuilding.
Southwest Airlines , Dallas, promoted Bob Jordan to executive VP and chief commercial officer; Jeff Lamb to executive VP administration and chief people and administrative officer; and Ellen Torbert to VP of diversity and inclusion.
United Continental Holdings has unveiled a new structure for its revamped MileagePlus frequent flyer program, which integrates members from Continental Airlines’ OnePass with United Airlines’ FFP. The new program adds a new qualifying level to the old MileagePlus, and provides more rewards and incentives as the eligibility levels rise. The airline also introduces a new lifetime benefits program and adopts an auction site employed by Onepass.
Airbus is close to acquiring a 51% stake in PFW Aerospace, a German supplier that is facing increasing financial difficulties due to delays in two major aircraft programs in which it participates—the A350XWB and the Boeing 787. According to Airbus, the decision was made to ensure a continued supply of parts for Airbus programs and avoid an imminent liquidity crisis. The company is a specialized producer of aircraft parts, such as pipes and tanks. It was owned by Airbus until 2001, when it was sold to private equity investor Safeguard International.
The FBI and three other law enforcement agencies conducted searches at six locations Wednesday at the San Bernadino International Airport, which has been under fire by a county grand jury alleging mismanagement and poor oversight. In addition to the six airport sites, a search was carried out at a residence, according to FBI spokesman Laura Eimiller.
Sun Country Airlines, which emerged from bankruptcy protection in February, made a $9 million operating profit in the first quarter, according to financial data released this week by the U.S. Transportation Department (DOT). The data from the DOT also show the carrier made an $11.9 million net profit for the quarter. Its parent company at the time, MN Holdings, sold it in July to Cambria Holdings, a private company owned by the Davis family of St. Peter, Minn., for $34 million.
The largest Boeing 787 system suppliers say they laid out aftermarket support programs years ago and are ready for aircraft operations to launch. In fact, “We’re better prepared for the 787 entry into service than I think we have been for any prior airplane,” says Brad Weyer, senior director of Boeing programs at Rockwell Collins.
American Airlines has confirmed its third-quarter consolidated unit revenue is expected to grow 7.8-8.8%, several percentage points higher than in the previous quarter. Full-year unit cost guidance, however, is up slightly on the carrier’s previous forecast, which was released in June, despite a small reduction in domestic and international capacity; higher fuel costs appear to be to blame.
London Heathrow Airport, while still a vital aviation hub, could lose its leadership position in Europe if capacity constraints remain in place, concludes a report by Frontier Economics, funded by BAA owner Ferrovial.
Ameco Beijing, a joint venture of Lufthansa and Air China, plans to add Airbus A320 heavy checks to its offerings. This is being done because the maintenance, repair and overhaul (MRO) company supports Air China, says Ameco Beijing Marketing Director Mao Shilei, referring to the fact that Air China is an A320 operator. The Beijing MRO traditionally has focused on Boeing aircraft, in particular widebodies. But it also performs some lower-level C checks on Airbus A330 widebodies. Mao says it also plans to do heavier checks on A330s.
The White House is proposing new, tougher lobbying rules that might outlaw government employees from attending trade shows for free. Taking office in 2009 on the heels of the Jack Abramoff lobbying scandal, President Obama restricted gifts from lobbyists to political appointees. The notice of proposed rulemaking (NPRM) from the Office of Government Ethics (OGE) extends those restrictions to all federal employees and tightens the definitions of what events they can attend on a lobbyist’s dime.
China is ready to break the Western monopoly over its domestic full-flight simulators after the certification of its first two high-standard simulators, developed by Avic’s Blue Sky Aviation Technology Co. Ltd, and Rockwell Collins Simulation and Training Solutions. The two simulators, one each for Xi'an Aircraft International Corp.'s MA60 and MA600 turboprop regional airliners, have been classified “Level C” by the Civil Aviation Administration of China (CAAC), (specifically CAAC CCAR-60) and are upgradeable to the highest “Level D” with a data package.
ICAO is creating a framework for air traffic management modernization that is expected to help countries develop ATM roadmaps and ensure they are globally aligned. The approach is being rolled out to state and industry representatives at the ICAO Global Air Navigation Industry Symposium (Ganis) this week in Montreal. ICAO hopes to gain feedback at Ganis, which will help the organization refine the concept in the run-up to its 12th Air Navigation Conference in November 2012.
Ever since a wave of mergers greatly reduced the number of prime contractors in aerospace and defense between 1992 and 2003, prevailing wisdom has held that the industry’s top-tier companies have grown large enough. Now one of those giants, United Technologies Corp. (UTC), is challenging that assumption by striking an $18.4 billion agreement to acquire Goodrich Corp.
