Aviation Daily

Jennifer Michels
American Express Business Travel says costs across all travel segments rose in 2006, with international fares and international hotel rates seeing the most dramatic increases.

Michael Mecham
Boeing is taking a cue from public restrooms that feature touchless water faucets and automatically flushing toilets on the 787 in an effort to accommodate passengers with limited hand agility to use.

Jennifer Michels
British Airways has signed a three-year, full-content agreement with Sabre Travel Network (STN), making its fares and inventory available to all Sabre travel agents worldwide.

Benet Wilson
The one-year countdown to the opening of London Heathrow Airport's Terminal 5 has begun. The GBP4.3 billion (US$8.4 billion) terminal, which will house British Airways, is scheduled to open March 27, 2008. Operator BAA reports that more than 90% of the facility's construction-related work is finished, and the project is on schedule and on budget.

Benet Wilson
Orlando International Airport is one step closer to screening 100% of the 16,000 workers employed by the airport, airlines, tenants and vendors. The board of directors of the Greater Orlando Airport Authority - which oversees the facility - voted unanimously on a plan to spend $5 on cutting access to secure areas, adding new technology and enhancing employee screening.

Annette Santiago
Aer Lingus' plan to expand its U.S. network to include Washington (Dulles), Orlando and San Francisco was approved by the U.S. Transportation Dept. The Irish carrier capitalized on some of the momentum following the recent agreement of a first-phase European Union-U.S. open-skies deal (DAILY, March 23). Aer Lingus filed exemption applications on March 23, and the DOT decision came on March 27.

Jennifer Michels
American will replace its MD-80 fleet more quickly than intended by accelerating deliveries of 47 Boeing 737-800s. The airline said it has notified Boeing that its board approved the plan to begin pulling forward the delivery of 47 planes under an existing purchase agreement. It will take delivery of three of the aircraft in early 2009, instead of 2016. It intends to continue pulling forward deliveries of other aircraft from their 2013-2016 timeframe to a 2009-2012 delivery schedule.

Martial Tardy
British no-frills carrier EasyJet reached an agreement with French social security and tax authorities on the payment of charges linked to the employment of personnel based in France. Some 100 Paris Orly Airport-based staff will continue their activities under a British labor contract, but EasyJet will pay social security and employer charges in France.

Staff
Correction: The Airlines Reporting Corporation mistakenly said that passenger names are included in the information it is now selling in a new product, called ARC Itinerary Detail. No names or PNR information are included in the data (DAILY, March 27).

Seabury Airline Planning Group

Lori Ranson, Luis Zalamea
GOL put an end to speculation yesterday that it was in talks to buy the new Varig after unveiling a US$320 million deal to buy the carrier from VarigLog and Volo. The two companies will be managed independently, with Varig offering a mileage program and long-haul flights with two-class service. Domestically, Varig will offer single class service to main economic centers in Brazil from bases in Congonhas, Guarulhos, Santos Dumont and Galeao.

By Jens Flottau
Virgin Atlantic and All Nippon Airways will deepening an existing cooperation agreement by offering combination fares in premium economy and business class, allowing passengers to use both airlines on a single roundtrip. The fares were previously available only in economy. Also, premium economy will be included in the around-the-world fare plan that both carriers introduced in September 2006. ANA is a member of Star Alliance. While Virgin Atlantic has no alliance ties, it is 49% owned by Singapore Airlines. -JF

Seabury Airline Planning Group

Staff
The Dept. of Homeland Security said it plans to begin testing air cargo screening technologies this spring at Cincinnati/Northern Kentucky Airport. The effort is part of DHS's announced $30 million Air Cargo Explosives Detection Pilot Program. The program is designed to test the screening of significant amounts of cargo within an air cargo facility and will focus on assessing the flow and speed of screening.

Lori Ranson
Canadian carrier Harmony Airways plans to stop all its scheduled service by April 9. The Vancouver-based airline flies Boeing 757s to the U.S., Canada and Hawaii. Flights to Toronto end March 30, with all other scheduled flights ending in April. Harmony recently won approval to start a code share this month with Fiji's Air Pacific on Vancouver-Honolulu flights and service between Honolulu and Nadi (DAILY, Feb. 21, 2007). Hawaiian is also a code-share partner with the carrier. -LR

Robert Wall
Islas Airways is overhauling and increasing its fleet size, under an agreement to buy six new ATR 72-500s.

Lori Ranson
Northwest withdrew a $129 unsecured claim for salaried employees from its reorganization plan, opting to give those workers cash and restricted stock totaling $77.4 million. After the carrier emerges from Chapter 11, salaried employees below the director level who took pay cuts are slated to receive a $31 million cash payment. The carrier said salaried employees would gain restricted stock units with a grant value of $46.4 million. -LR

Benet Wilson
Airports are satisfied with their employee screening policies despite a recent scandal at Orlando International, where a Comair employee was able to smuggle guns and drugs into the secure area.

Lori Ranson
One of Midwest's shareholders says he would strongly encourage the carrier's board to consider a higher-value offer from AirTran if the airline opts to up the ante in its bid to acquire Midwest.

Lori Ranson
By: Lori Ranson, Aviation Daily It's no surprise that U.S. carriers Delta, Hawaiian and US Airways have already started to court the U.S. Transportation Dept. to secure authority to serve China next year since the potential for traffic growth in that country far surpasses that of any other country in Asia.

Staff
Delta expects its shift from domestic to international service to more than double the international share of its capacity, to about 40%, by 2009, Glen Hauerstein, executive VP-network planning and revenue management, reported yesterday at an investors' conference staged by the carrier. Europe's share of the expanding international pie will drop during this period from two-thirds to one-half, Delta estimates, while Latin America/Caribbean inches up from 26% to 28% and Aisa/Mideast/Africa balloons from 7% to 22%.

Benet Wilson
The push for increasing Passenger Facility Charges (PFCs) to $7.50 will be a tough sell to legislators during the current FAA reauthorization debate, congressional staffers say. Airports Council International-North America and the American Association of Airport Executives hosted a panel on the funding bill this week at their annual spring legislative council in Washington.

Jennifer Michels
Pakistan International Airlines (PIA) Chairman Tariq Kirmani submitted his resignation to Prime Minister Shaukat Aziz, according to reports from Pakistan. Kirmani reportedly stepped down for personal reasons. The airline expects to name his successor this week. Kirmani was appointed chairman and CEO in April 2005. His leadership has been called into question lately after PIA failed to meet European Union safety standards, resulting in a ban of most of PIA's aircraft from flying into EU nations. -JLM