American this week said it achieved its goal of generating at least $150 million in extra value through its Kansas City MRO base last year, putting the plant on course to contribute a stand-alone profit to the company. The base generated $152.5 million through productivity improvements, cost reductions and new revenue. The goal was set in February 2006 by a joint team representing American management and the Transport Workers Union. The second part of the goal is to turn the base from a “cost center” to a “profit center.”
Aerolineas Argentinas (AR), its unions and the Argentine Ministry of Labor this week began talks aimed at establishing a permanent, government-supervised negotiating panel at the airline that would settle problems before workers resort to force (DAILY, Jan. 24.)
U.K. Air Accidents Investigation Branch inspectors are examining the fuel system of the British Airways Boeing 777-200ER which crash-landed at London Heathrow Airport last week after updating its preliminary findings to say that both engines did briefly produce some thrust during the approach.
State-owned Boliviana de Aviacion (BoA) will soon join Lloyd Aereo Boliviano and startup Aerolineas Sudamericanas — temporarily functioning as charters and well on their way to full operational licenses (DAILY, Jan. 18) — in competing in the domestic market.
AirTran yesterday said it will introduce service between Milwaukee and New York-LaGuardia, as part of its efforts to expand its Milwaukee operation. The three daily roundtrip flights are to begin May 6, using Boeing 737-700s and 717-200s. AirTran said the New York announcement is “the first of several…new service initiatives for AirTran from Milwaukee in 2008.”
Alaska Air Group believes its fleet and capacity plan puts it in a good position to cope with a slowing economy and new competition, and the carrier says its transition to a single fleet type will be a real advantage.
Southwest and American both announced new details of their trials of on-board broadband Internet access for passengers. Southwest says it is partnering with Southern-California based Row 44 to “test satellite-delivered broadband…access on multiple aircraft.” Anyone with a wi-fi- enabled device will have full Internet access. The carrier says it intends to deliver the “highest bandwith available to commercial airlines in the U.S.” Alaska is one of the other U.S. carriers also working with Row 44.
SAS says an inspection found that 63% of the Bombardier Dash 8 Q400 turboprops it grounded and put out of service after three accidents showed technical defects. SAS last year suffered three Q400 accidents, prompting management to cease operating the aircraft — a move other carriers do not match, noting they retained confidence in the aircraft. But SAS says that a technical review found problems in the solenoid sequence valves in the inspected aircraft.
Mexico City’s new international airport would be built on 9,000 hectares in the Texcoco area owned by the federal government (DAILY, Jan. 24), thus avoiding the appropriation of private lands, according to a senior source at the Dept. of Transportation (SCT).
TACA yesterday announced an order for 15 Airbus A320 family aircraft, which the airline said would be used to replace and expand its fleet. Wire reports put the value of the order for 12 A320s and three A319s at US$1 billion.
Argentine Labor Minister Carlos Tomada, in the wake of last week’s wildcat strike by Aerolineas Argentinas (AR) workers (DAILY, Jan. 16), strongly called on unions to set up with management a permanent panel that would be supervised by the government and would seek to negotiate outstanding labor issues instead of settling them by force. Tomada explained his mechanism would also give time for AR to issue advance notice to consumers if work stoppages were about to develop.
The Air Transport Association is attempting to have airline-specific language included in the economic stimulus package that lawmakers are trying to put together. Congressional leaders want to get the stimulus bill signed into law by Presidents’ Day.
The Maintenance Repair and Overhaul (MRO) industry called upon India to harmonize regulations with international rules, review training methodologies and reduce tax liabilities to keep pace with growth of Indian aviation, in a white paper released following Aviation Week’s first Executive Round Table in Mumbai.
Ryanair is increasing its charges for checked baggage. The fee will go up from five to six pounds (about US$12), the airline said in a statement. The airport check-in fee, meanwhile, increased from two to three pounds (about US$6).
The Senate Commerce Committee announced that its nomination hearing for Robert Sturgell as FAA Administrator will be Feb. 7. The hearing will also consider the nomination of Simon Gros to DOT assistant secretary for governmental affairs.
Mexico City International Airport (AICM) is expected to be completely saturated in three years despite the recent opening of a second terminal (DAILY, Nov. 21) at the airport, said the authors of a recent study about the airport. The study, by Sunderland Kuri & Associates, adds AICM is already too expensive and inefficient, generating delays that hurt airlines and passengers, reported El Universal.
Delta Air Lines will continue its focus on international flying, with plans to unveil 20 new destinations in 2008, said CEO Richard Anderson in the carrier’s quarterly earnings call. Delta’s international capacity was only 20% when the carrier started its transformation in 2005, said Anderson. “Now, 40% of Delta’s capacity will be international, with almost two-thirds of [that] where no other U.S. flag carrier is in the market. And our joint venture with Air France will make that even stronger,” he said.
Royal Jordanian has decided to further increase its fleet of Boeing 787s beyond the 12 airliners it is already committed to putting in service; the latest is a lease deal with CIT Aerospace. The Jordanian carrier is taking two 787s on a 12-year lease to service destinations in north America and the Far East. The aircraft are to be delivered in September 2012 and January 2013, ahead of the four 787s the airline is buying, which don’t arrive until later in 2013 and 2014.
