British-headquartered engine manufacturer Rolls-Royce will cut its work force by 2,300 employees as it tries to offset the increasing cost of raw materials and the continuing effect of the weak U.S. dollar. The job cuts “focus on overhead and support functions,” according to the company. The ranks will be decreased at various plants in a manner still to be determined.
With airline consolidation a growing reality, the Master Executive Council of Delta’s pilots has been meeting for two days to form a union strategy in the event of a merger. The Atlanta-based unit of the Air Line Pilots Association opened its Strike Operations Center and mobilized its tactical arm, the Strike Preparedness Committee, which is equipped to organize the type of picketing and lobbying efforts that helped quash US Airways’ hostile takeover bid for Delta.
Sales processed through the Airlines Reporting Corp. rose 3.5% in 2007 to $79.9 billion. Total fares were up 2.8% to $69.3 billion — $32.2 billion in international fares and $37.1 billion in domestic fares. Total taxes and fees rose 7.8% to $9.8 billion. For December, total sales rose 1.6% to $4.4 billion. International fares were up 5.7% to $1.8 billion, while domestic fares were down 2.8% to almost $2 billion. The industry was 97.5% e-ticket-compliant by the end of the year.
Pinnacle this summer will replace Atlantic Southeast Airlines as the Delta Connection carrier operating the Atlanta-Cozumel route. The airline this week filed an application with the U.S. Transportation Dept. for an exemption to fly the route. Three carriers can be designated for ATL-CZM, and Delta and ASA hold two of the three designations.
Having just set a record for its order intake, Airbus is bracing for a reduction this year. One of the big market forces in 2008 was expected to be demand by U.S. airlines to replace their aging fleets, now that those carriers are starting to show operating profits. But Louis Gallois, CEO of Airbus parent Airbus, wonders whether that will really happen. He points to high oil prices and a gloomy U.S. economic outlook as signs the buying spree may not materialize.
JetBlue Airways will launch flights from Boston to Jacksonville, Fla., March 15, becoming the only airline flying jets in the market and adding the Florida city as its sixth destination in the state. The airline will offer up to 28 daily flights from Boston to Florida with the new service, charging startup fare specials of $69 each way.
The National Air Traffic Controllers Association yesterday said attrition caused by the retirement of veteran controllers could result in “chaos” in the air traffic control system by summer. Staff shortages at Chicago, Atlanta, New York Kennedy and the Southern California TRACON have created a “dangerous situation” at those airports, said Patrick Forrey, NATCA president. “FAA continues to downplay the seriousness” of the situation, he added.
Lufthansa achieved record passenger volume and load factors last year, with the cargo business also ending the year on the rise. The airline group transported 62.9 million travelers, including the 6.5 million carried by Swiss. Lufthansa’s own 56.4 million passenger number represented a 5.6% increase from 2006 figures. Load factors for the airline averaged 77%, or 1.8 percentage points more than in the previous year, and the freight business grew 2.6%.
Hawaiian will inaugurate four-times-weekly nonstop service between Honolulu and Manila, it’s first Asia gateway, on April 14. Flights to the Philippine city will operate on Sunday, Monday, Wednesdays and Friday, while return service will fly on Monday, Tuesday, Thursday and Saturday. The airline will use its 264-seat Boeing 767-300ER aircraft for the service. -
The Travel Industry Association wants to raise industry awareness by the presidential candidates with a campaign it is calling “Change the Debate.” TIA said the campaign is to call the attention of presidential hopefuls to critical travel issues. A recent survey of South Carolina and Florida residents showed that more than 60% said they did not believe the 2008 presidential candidates have adequately addressed the flawed or frustrating travel system.
Water spilled from a galley shut down all electricity supplies except the emergency battery backup on a Qantas Boeing 747-400 on Jan. 7, luckily when the aircraft was just 15 minutes from landing at Bangkok after a flight from London. The plane was at 15,000 feet at the time it lost power, already descending on approach. The water, leaking through a cracked drip tray under the first-class galley, short-circuited a generator control unit, the Australian airline says.
Ecuador’s Aerogal is contesting startup carrier Air Ecuador’s application to operate service to the U.S., questioning the airline’s ownership and suggesting the U.S. Transportation Dept. dismiss the application or request more information. Air Ecuador applied for authority to operate U.S. service in November (DAILY, Nov. 30). Its application said it would serve New York Kennedy with wet-leased aircraft operated by its “affiliate” — Spain’s Gadair. Gadair holds 42% of Air Ecuador’s voting stock.
American and India’s Jet Airways this week won U.S. Transportation Dept. approval of their planned code share (DAILY, Nov. 20). American will initially carry Jet’s code on its flights between New York and Baltimore, Boston, Cleveland, Dallas, and Raleigh/Durham, as well as on its Brussels-Chicago service. Jet, meanwhile, will carry the AA code on its flights between Brussels and Delhi, Mumbai and Madras, and between Delhi and Mumbai, Madras, Hyderabad, Bangalore, Calcultta and Ahmedabad.
Singapore Airlines will introduce a fourth daily flight between Singapore and Sydney from April. The Boeing 777-300ER service will take the airline’s daily capacity between the cities to 1,500 seats. The carrier has deployed its first Airbus A380 on the same route.
Canada’s Transportation Dept. has cleared the way for Zoom Airlines to operate scheduled services between Canada and Italy. The designation falls under an existing bilateral agreement between the two countries, but with an eye toward the full liberalization promised by a Canada-European Union open-skies agreement, currently under negotiation.
The International Aviation Club will host Air France-KLM Vice Chairman Leo van Wijk on Jan. 29 at its monthly luncheon in Washington. He is scheduled to speak about the management of international airlines, economic and security issues facing the industry, and recent regulatory developments. The event will be held at the Capital Hilton, 16th and K Sts. See www.iacwashington.org for more information, or email to reserve a table of no fewer than 10 to [email protected].
TAP Air Portugal will increase its fleet of Airbus A320s starting in 2009. The aircraft are taken on lease from the joint venture of AeroCap, LoadAir and Al Fawares and come from a pool of 70 Airbus narrowbodies the lessors ordered in 2005. The aircraft are CFM56-powered.
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Boeing is prepared to prove to FAA that it will comply with special conditions for certification of the 787’s computer networks when the 250- to 300-seat jet’s flight test program begins this spring. The goal is to ensure that the aircraft’s design is secure from intrusion by hackers. The review, noted in a Jan. 2 issue of the Federal Register , is among 10 special conditions FAA has established for the 787’s advances in design, materials and systems that have moved beyond already written certification rules.
