A potential merger with Delta is already costing Northwest pilots money. The Northwest Master Executive Council of the Air Line Pilots Association is collecting a $50 “merger assessment” from each member. The MEC says ALPA policy does not allow any ALPA dues to be used for expenses incurred by the Merger Committee.
Strong growth in both the civil simulation and civil training and services segments helped CAE boost net profit for the December quarter by 33% to C$39.5 million (US$39.2 million).
AirTran on Feb. 15 announced Burlington, Vt., as the latest addition to its network, with the carrier planning three daily flights here from Baltimore Washington Airport. This follows the airline’s unveiling of new BWI-LAX flights the day before. At the time, the airline hinted it would reveal additional BWI service (DAILY, Feb. 15). The new BWI-BVT service will begin May 21, using Boeing 717-200s.
FLO Corp. has signed a deal to use the American Association of Airport Executives’ Transportation Security Clearinghouse (TSC) as part of the company’s participation in its rtGO registered traveler program. FLO becomes the fifth vendor to sign with TSC.
Fuel now represents 42 cents in every dollar of cost for AirTran, says airline CEO Bob Fornaro. This is about 12 cents over the industry average, since the carrier’s non-fuel cost structure is so low. Fornaro believes rising fuel costs and the prospect of softening demand will cause most airlines to cut capacity guidance further this year.
Massport has unveiled a new incentive program to help Boston Logan Airport compete more aggressively for international airline service. The board approved the International Air Service Incentive Program, which will be available to all scheduled passenger air carriers, including those not currently serving Boston Logan, between July 1, 2008, and June 30, 2011.
CAPA Says Asiana’s purchase of a major stake in proposed low-cost carrier Busan International Air is evidence of a “sharp acceleration of budget airline activity” in Korea, says the Center for Asia Pacific Aviation. CAPA notes that the $24 million buy-in price for an airline that is yet to fly “is an extraordinary outcome” for the startup, and this “underscores the threat the incumbent carriers feel from new airline entry.” Korean Air, meanwhile, is expected to set up its own budget carrier in May.
Japan’s Takenaka Corporation has been tapped to handle the $354 million upgrade of Singapore Changi Airport’s Terminal 1. Terminal 1 was the airport’s first, opened in 1981. The Civil Aviation Authority of Singapore plans to begin the upgrade in May and complete it by 2011. CAAS plans to use a Tropical City theme for the upgrade, which includes changes to the interior and exterior design and finishes and improved passenger flow at key areas.
While Schiphol Group reported a 17.7% increase in profits, to EUR233 million (US$341.6 million) for 2007, it warned that an eco tax being imposed by the Dutch government will hurt the bottom line in 2008.
The U.S. and Australia signed an open-skies agreement late Feb. 14, which will lift all restrictions on flights between the two countries. The deal was reached after three days of talks in Washington. It allows airlines to select routes and allocate capacity strictly by consumer demand. It also provides opportunities for code-sharing and marketing agreements between U.S. and Australian carriers.
Tuesday, March 4, 2008 Andrew W. Mellon Auditorium Washington, DC AVIATION WEEK’S Laureate Awards were conceived 51 years ago to recognize the extraordinary achievements of individuals and teams in aerospace, aviation and defense. Today, this formal dinner and Awards ceremony is the industry’s premier event — attracting scores of industry pioneers and thought leaders from around the world. Reception with dinner to follow. Black Tie
Boeing says the “degree of completeness of sections” is much better on the latest 787 to enter the final assembly line at Everett, Wash. “We’ve received significantly less traveled work on this airplane,” Boeing says. This will be the second flight test aircraft, but the fourth off the production line – two other aircraft will be used for static and fatigue testing. Boeing now has 21 787s in various stages of production.
The return of some of Mesa Air Group’s aircraft may have hurt first-quarter net income, but Chairman and CEO Jonathan Ornstein said the move is best for the company’s long-term interests. Mesa recorded a $2.8 million after-tax loss for the quarter ended Dec. 31, which includes one-time costs associated with legal fees and the return of aircraft to lessors.
The U.S. and the European Union will kick off the first round of talks on the second stage of the open-skies agreement May 15-16 in Ljubljana, capital of Slovenia, which holds the EU presidency. John Byerly, deputy assistant secretary of state for transportation affairs, will lead the U.S. team, while Daniel Calleja, director of the air transport directorate of the European Commission, will lead Europe’s. The first stage of the open-skies agreement goes into effect at the end of March.
Operational headaches at Sao Paulo’s Congonhas airport and the incorporation of VRG results both contributed to a fourth-quarter loss for GOL. GOL’s consolidated net loss was BRL24.2 million ($13.6 million) for the quarter, although excluding VRG’s results would have turned this around to a BRL90.2 million profit. In addition to the VRG effect, regulatory restrictions at Congonhas “required network adjustments that reduced load factors and increased ground times,” GOL said.
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) MARCH 4 — Laureates, Washington, D.C. MARCH 12-13 — Aircraft Data, Phoenix, Ariz. APRIL 15-17 — MRO/MRO Military/AVIATION WEEK’s Interiors, Fort Lauderdale, Fla. SEPT. 23 — Green Aviation, Madrid, Spain SEPT. 24-25 — MRO Europe, Madrid Spain OCT. 15-16 — MRO Asia, Singapore
Aviation weather forecasting could be made much more effective simply by improving its distribution, says FAA’s Aviation Weather Office Director Ken Leonard. A lot more could be done with existing forecasts “that doesn’t get into people’s hands,” says Leonard.
Lloyd Aereo Boliviano and startup Aerolineas Sudamericanas are still working on paperwork to get clearance for their full operating licenses from Bolivia’s transport superintendent (ST), but a change in leadership at airline regulator DGAC could further delay the process. Javier Garcia last week resigned as head of DGAC. Minister of Public Works Oscar Coca immediately replaced him with retired Gen. Carlos Antelo-Lenz.
XL Airways France intends to start what will initially be charter service from Cardiff, Wales; Manchester, U.K., and Glasgow to Orlando Sanford Airport, starting May 1 with A330s. It will transport Europe-originating passengers. The airline is owned by XL Leisure Group of the U.K., and has flown under the names Star Europe and Star Airlines. It now flies from Paris to Mexico, the Maldives, Morocco, Tunisia, Dominican Republic and Croatia.
Airbus says its reduced transition training system will allow A320 family pilots to qualify to fly the A380 in just 13 working days. Reduced transition training — known as Cross Crew Qualification — has now been approved by EASA and FAA for pilots of all Airbus families. The latest approval, for transition from the A320 to the A380, was completed Feb. 7. The transition from A330/A340 families to the A380 will take 12 working days.
Air Jamaica has decided to stop serving St. Lucia from both New York and Jamaica because of market pressures. Paul Pennicook, senior VP of marketing and sales, said the decision was made because of corporate restructuring, which entails streamlining and route rationalization. He said dropping the Caribbean island from its route plan follows its strategy to become a leaner airline. American in November began offering three weekly flights from JFK to St. Lucia, and Delta also serves the island daily from Atlanta.
A U.S.-based law firm won a settlement potentially worth more than US$200 million from British Airways and Virgin in a class-action suit regarding collusion on fuel surcharges, and the law firm believes the deal breaks new ground for this type of suit. The settlement covers more than 8 million customers of the two carriers who bought tickets between Aug. 11 and March 23. It provides US$59 million for U.S. ticket buyers, and GBP73.5 million (US$144.2 million) for U.K. customers.
Brazilian holding company Synergy Aerospace, controlled by German Efromovich, last week signed an agreement with Airbus to buy 10 units of its future model A350-XWB. The order, which also includes options for 10 aircraft, supplements previous orders for 47 A320s and 10 A330-200s from Synergy affiliates Avianca and SAM in Colombia, Ocean Air in Brazil and VIP in Ecuador.
