A ruling from the court overseeing Mesa’s wrongful termination case against Delta is all that stands between the regional airline and Chapter 11 bankruptcy protection.
Lufthansa Cargo has extended by 15 months a contract with World Airways to operate three MD-11s across the Atlantic, effective July 1. “World Airways has performed very reliably for Lufthansa between New York, Chicago, Los Angeles and Europe, and we are pleased that they have demonstrated their confidence in us by renewing our current contract,” which began in 2006, said Jeff Sanborn, chief marketing officer for World Airways parent Global Aero Logistics. Lufthansa Cargo operates 19 of its own MD-11 freighters in addition to contracted capacity.
AirTran President and CEO Bob Fornaro will assume the chairman role being vacated by Joe Leonard, effective June 1. The board also elected Bill Usery, Jr., who is retiring from the board after a decade of service, to the position of director emeritus.
Southwest and Alaska, with the first- and second-best fuel hedges, are in a better position to withstand the stress of high jet fuel prices, says Standard & Poor’s analyst Philip Baggaley. “Although airlines will seek to recover the higher costs through additional fare hikes and higher fees, we believe that this will prove increasingly difficult in a weak U.S. economy,” he says in a report.
About 150 pilots and 30 controllers are known to use the anti-smoking drug Chantix, according to FAA. The agency last week revoked the drug’s approval for pilots and controllers after information emerged about side effects.
U.S. airlines will be required to report more details beginning in October on cancelled and diverted flights and gate returns. As part of changes to requirements for Airline Service Quality Performance Reports, airlines will have to tell the U.S. Transportation Dept. the first gate-departure time at the origin airport; total ground time away from gate for all gate/air returns at origin airport, including cancelled flights; and the longest time away from gate for return or cancelled flight.
UPS is relocating its intra-Asian hub from the Philippines to Southern China to try to save at least one day’s transit time for its regional customers. The Shenzhen shift is due in part to strong demand in Southeast China, which with Japan, Korea and Taiwan, accounts for more than half of UPS’ entire intra-Asia volume.
Southwest’s board of directors tapped CEO Gary Kelly to become board chairman. Kelly will add president to his title upon the July 15 expiration of Colleen Barrett’s employment contract. The board also named Executive VP-Ron Ricks to succeed Barrett as corporate secretary.
To list an event, send information in calendar format to Ingrid Lee at [email protected] (Bold type indicates new calendar listing.) MAY 27-29 — Shared Vision of Aviation Safety Conference, Omni Hotel, San Diego, 856-667-6770 ext. 163, www.aqp-foqa.com/Conferences/2008/index.html MAY 31 — Airline Pilot Job Fair hosted by AIR, Inc., Atlanta, Ga., 800-538-5627, e-mail: [email protected], www.jet-jobs.com
The Association of Flight Attendants (AFA) believes it is time for the Transportation Security Administration (TSA) to consider its request for a standard aviation employee ID card to help speed employee screening.
Other major airlines are likely to follow American’s lead in dramatically ramping up capacity cut targets, says Oliver Wyman Partner Andrew Watterson. “At $125 [per barrel] oil, there is a lot of demand that is now uneconomical to serve,” Watterson says. “While the exact percentage reduction will vary according to each airline’s cost structure, the incentive to reduce capacity will pull along the rest of the industry.”
Colombian carrier Aires forecasts carrying 1.2 million passengers and generating $100 million net profits this year as it plots its international expansion. The airline plans to launch service from five Colombian gateways to Fort Lauderdale and New York, which will require a $480 million investment in 20 new Canadian Dash 8s for medium hauls and either Boeing or Airbus aircraft for longer hauls.
London Heathrow’s Terminal 5 will handle 75% of all British Airways’ flights when the carrier completes the next phase of its shift to the now-infamous terminal. The latest phase, which starts June 5, is the introduction of long-haul flights to T5. When completed, it will see 75% of all flights but only 55% of passengers move through the terminal.
AirTran Airways President and CEO Bob Fornaro will assume the Chairman’s role being vacated by Joe Leonard on June 1. Leonard had previously announced that he would retire his chairmanship after the company’s May 21 annual board meeting. From 1999 to 2007, Leonard served as Chairman and CEO while Fornaro held the dual roles of President and CFO. Fornaro assumed the CEO responsibilities in November.
Fully licensed Lloyd Aereo Boliviano (LAB) plans to relaunch at the end of May but may have to do so without its flagship aircraft. Before the carrier’s troubles “Paititi,” a Boeing 737-300 now considered a symbol of the workers’ two-year struggle to rescue the company, had been in heavy maintenance in Brazil. Paititi was brought back to the U.S. by its original leasing company CSDS Aircraft, which also paid the $2.5 million maintenance bill.
Airlines last week joined the chorus of groups calling on the government to create a comprehensive U.S. energy policy to soften the effects of stratospheric oil prices.
You can now register online for AVIATION WEEK events. Go to www.aviationweek.com/conferences or contact Lydia Janow, 212-904-3225 or 800-240-7645 ext. 5 (U.S. and Canada only) SEPT. 23 — Green Aviation, Madrid, Spain SEPT. 24-25 — MRO Europe, Madrid Spain OCT. 15-16 — MRO Asia, Singapore NOV. 18-19 — Aerospace & Defense Finance, New York, N.Y.
Boeing has promoted Elizabeth Lund to vice president of product development for the manufacturer’s Commercial Airplanes division. Lund, who has been the company’s director of 777 manufacturing since 2005, fills the VP role vacated when Todd Zarfos recently became VP of engineering for the 747/767/777 lines. The new VP will be responsible for the primary design of new and derivative aircraft and systems, environmental performance strategy, research and development, and product strategy at Commercial Airplanes and Phantom Works.
Ryanair is expanding its priority boarding charge to customers who check in via the Web. Those customers had been getting priority boarding for free as an inducement to check in online, but as of June 3 they’ll have to pay the same amount as customers who check in at the airport: EUR5 ($7.78). Customers also can pay for priority boarding when they book the flight.
Only three months ago 10 of the 12 major passenger airlines were hiring flight crew. Now, pilot hiring has come to a screeching halt with the latest spike in fuel prices, the impact of the age 65 retirement rule and talk of a recession, notes Lou Smith, president of FLTops.com, a career service for professional pilots. Recruiter attendance at FLTops.com’s most recent pilot career conference, held in Las Vegas May 16, dropped more than 50%. The buzz on the street is to expect more furloughs at many airlines.
Southwest, noting that other major airlines are charging for everything from checking bags and calling reservations to onboard snacks, is seizing on industry changes as a chance for some positive public relations. It is running ads and enjoying stories in national press touting its free services. Says CEO and Chairman Gary Kelly, “We don’t nickel-and-dime our customers.”
SAS Group has requested a 10% reduction from its suppliers on all goods and services provided to the Scandinavian company. The request, which was revealed in an SAS statement issued May 23, comes as airlines around the world attempt to limit the adverse effects of record fuel prices.
Even though Ireland’s High Court dismissed Ryanair’s lawsuit over Irish regulators’ price caps at Dublin Airport, the carrier is applauding the court’s finding of “ambiguity” in the Commission for Aviation Regulation’s (CAR) process.
