The International Brotherhood of Teamsters tapped David Bourne, recently the master executive council chairman for the Air Line Pilots Association unit at Atlas Air, to become the union’s airline division director. He replaces Don Treichler, who is retiring after nine years in the position.
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Expedia reported a 20% rise in gross bookings in the first quarter — worth $5.9 billion — as its revenues jumped 25% to $688 million over first quarter 2007.North American bookings on the site were the weakest, up 15%, while European bookings jumped 34%, which would have been only 25% when accounting for the favorable exchange rate. The “other” category of bookings, mainly comprising Expedia Corporate Travel and the Asia/Pacific region, was up 31%.
Korean Air — like other airlines — is struggling to cope with high oil prices, but the Center for Asia Pacific Aviation notes there is a silver lining. Soaring fuel costs may “force a rethink by some of the planned [airline] startups” in the Korean market in the next 12 months, and a “downscaling or deferral of startup plans” is possible while oil remains above US$110 a barrel.
Delta on May 1 launched the first daily nonstop service from New York Kennedy to Edinburgh, Scotland. So far this year, the Atlanta-based airline inaugurated 13 new international destinations, and now operates in 37 transatlantic markets. The Edinburgh flights are being operated with ETOPS-approved Boeing 757-200s with 16 seats in BusinessElite and 158 seats in economy.
Lawyers in the Boston Logan skycaps case against American have filed an emergency injunction against the airline’s no-tipping policy for skycaps working curbside check-in.
Ctrip.com is helping to break open the China travel market for visitors from the West by launching an English-version option. The site is a consolidator of hotel rooms and airline tickets. Its English version still cannot support international flight bookings, but it offers flight deals and supplies a call center phone number for bookings. Ctrip says it is interested in negotiating more favorable rates with airlines, and intends to pursue “selective strategic acquisitions” allowing it to expand to Macau, Taiwan and Hong Kong.
YTB International, Inc. appointed former Carnival Cruise Lines President and CEO Robert Dickinson and Florida State Sen. Burt Saunders to its board, effective immediately.
Boeing reports a 50% improvement in the cool-down period for weight-saving carbon brakes as an option for its 737NG family as it moves toward certification of the Messier-Bugatti brakes in June and a service entry with Delta in the third quarter. But cool-down times may still be too long to make switching from steel to carbon brakes economically attractive for airlines with fast gate turnaround times. Carbon brakes offer a 550-700 lb. weight savings over steel, an advantage with fuel costs so high, and longer in-service life advantages.
Oneworld member Japan Airlines asked the U.S. Transportation Dept. for authority to carry the code of alliance partner British Airways on its flights between Tokyo and New York. JAL will not be carrying BA’s local traffic, the airline tells DOT in its application, but passengers traveling between Japan and the EU. The carriers plan to implement the arrangement on June 3 [DOT-OST-2008-0141].
Russian carrier VIM would use a Boeing 757 for charter services to the U.S., the airline told the U.S. Transportation Dept. VIM operates mostly domestic service but does some flying to Greece, Italy, Korea and Spain [DOT-OST-2008-0152].
The U.S. Transportation Dept. has launched a blog to keep the public informed about department news and announcements, Secretary Mary Peters said this week. The blog, “Fast Lane” (http://fastlane.dot.gov), aims to build a community for people interested in what DOT is doing, Peters said. The blog "will allow me and others here at the department to speak directly with interested citizens, members of the transportation community and the blogosphere to engage in earnest conversation about our nation's transportation future," said Peters in a statement.
Airlines have seen an average 6% decline in lead premium insurance rates during the first four months of the year, with other segments of the industry also seeing declines. In its latest industry update, Aon notes that 61 carriers have renewed, with only 10 seeing higher rates. Of those, five saw rates jump more than 5% owing to losses, with one carrier distorting averages somewhat by seeing premiums double. Without that one case, average rate reductions would be 8%.
Finding a consensus on emissions trading it not just proving difficult between members of the International Civil Aviation Organization, airline lobby groups also differ on what approach to take.
China will promote regional aviation with subsidies for small and medium airports and for airlines running short flights, helping to balance its airline sector away from big trunk routes and eastern hubs while boosting sales of domestically built aircraft.
American plans to appeal a jury decision last month that awarded nine Boston Logan skycaps some $325,000 for tips the skycaps said they’ve lost since September 2005, when American implemented fee-for-curbside baggage check at the airport .
Mitsubishi Aircraft Corp., the builder of Japan’s new regional jet, will raise JPY67 billion (US$640 million) in capital from parent Mitsubishi Heavy Industries, Toyota Motor, Sumitomo and Mitsui & Co. Mitsubishi Heavy’s share in the business will fall to 67.5% from the current 100%. The aircraft company and its Mitsubishi Regional Jet were launched on April 1.
Korean Air is working on the final details of a new alliance with Alaska Airlines, starting in July, to take advantage of the carrier’s Pacific Northwest base, says Arnold Song, team leader with the U.S. route management team. The carrier is also working on similar deals with WestJet, LAN Airlines and GOL.
United’s pilots’ union this week stressed its opposition to any merger with US Airways, saying such a move would be “extremely negative” from United’s point of view. “While United has its own problems and issues…US Airways’ problems run even deeper,” said the United unit of the Air Line Pilots Association.
Hawaiian lost $19.9 million in the first quarter, worse than its $11.9 million loss in the first quarter of 2007, but said the collapse of Aloha and ATA will help the airline going forward.
GOL will pay out some BRL36.41 million (US$21.3 million) in first-quarter dividends to its shareholders on June 20. All shares outstanding on April 30 will be eligible for the payouts, which amount to BRL0.18 (US$0.11) per common and preferred shares of the company.
