Comair pilot union leaders described reaction by carrier management to the union's latest proposal as "disappointing," and at this point no new rounds of negotiations are on the calendar. The date for the bankruptcy court to rule on management's request to void the pilot deal is set for the week of Nov. 27.
British Airways last week agreed to limit its proposed increase in employee retirement age to win union approval. As part of its pension change proposal, the airline wanted to raise the age to 65 for most workers, but the revised plan includes an option of retiring at 60 in return for increased contribution rates. While unions recognized BA's attempts to make its proposal more palatable, they said a wide gap still remains between the union and airline positions. -AS
BAA CEO Stephen Nelson has reaffirmed his company's commitment to the U.K. Dept. for Transport's 2003 Air Transport White Paper, which calls for new runways at Stansted and Heathrow airports. Nelson told the annual conference of the Airport Operators Association that the country can't afford a U-turn on the White Paper.
US Airways' proposed merger deal has a better than 50% chance of going through, says Merrill Lynch analyst Michael Linenberg. "Although there are high hurdles, such as labor and regulatory, we think these issues are surmountable," he says. "Whether the merger ultimately consummates is of less importance than the fact that that there is an official proposal on the table." The key implication of this proposal is that US Airways expects a 10% capacity reduction for the combined entity.
The Airbus A380 recently conducted successful landings in crosswinds far above required certification levels, as part of the aircraft's continuing flight test campaign. The crosswind landings were at Iceland's Keflavik Airport. The MSN004 development aircraft completed six landings and five takeoffs with crosswinds above 40 knots, gusting up to 56 knots. The type certification requirement is for landings and takeoffs in crosswinds of at least 23 knots.
Richard Schifter resigned from the boards of US Airways Group, Inc., US Airways, Inc., America West Airlines Inc. and America West Holdings Corporation, effective Nov. 13.
Mesaba was reselected by the U.S. Transportation Dept. to operate essential air service at Muscle Shoals, Ala. The carrier, flying as Northwest Airlink, will receive $1,504,929 annually for a two-year period stating Feb. 1 to fly 19 weekly roundtrips to Memphis. One must operate nonstop, and the rest may stop at Tupelo, Mississippi [OST-2000-7856].
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) NOV. 29-30 -- Aeromart 2006, Toulouse DEC. 5-6 -- Essentials of the PBL Contracting Process, Phoenix
Continental estimates that international flying will comprise 47.8% of its mainline capacity next year, up from an estimated 47% this year, 45.1% in 2005 and 40.2% in 2002. This is significantly higher than the industry average of 30% for the years 2002-2006.
British Airways CEO Willie Walsh says, "The relationship has improved" between the airline and U.K. airport operator BAA. British Airways in September publicly slammed BAA for its inability to cope with new security measures. Since then, the pair has held "very constructive meetings" about security issues, Walsh says; however, the airline will continue to push for compensation for the airport security disruptions.
Mexican airport operator Grupo Aeroportuario del Centro Norte -- commonly known by its trade name OMA -- last week filed a registration statement with the U.S. Securities and Exchange Commission for a proposed initial public offering.
AirTran CEO Joe Leonard says the carrier's costs, including fuel, could be lower than Southwest's in 2008. Currently, Southwest has an 11% cost advantage over AirTran. But Leonard believes that should shrink to 3% in 2007 as some of Southwest's hedges burn off. In 2008, he notes, "we think that will flip over."
Copa Airlines parent Copa Holdings reported a nearly 35% jump in third quarter profits to US$37.2 million as strong revenues gave the carrier one of the highest operating margins in the industry.
Northwest last week put about 50 airline partners on notice that they need to offer interline electronic ticket capabilities or Northwest will terminate its link with them, effective Jan. 1.
Continental has put its Connection partner RegionsAir on notice that it plans to terminate its contract with the airline covering essential air service (EAS) routes from certain airports in West Virginia. At the same time, RegionsAir is also searching for a new owner. If the airline names a buyer soon, it could continue to provide service to meet Continental's expectations.
30 Years Ago Nov. 24, 1976 -- Continental employees returning to work after a 25-day strike are receiving a letter from Chairman Box Six that's far different from the usual "let's all get together and forget the past" letter. Six wrote, "Let the anguish caused by the first industrial dispute in the company's history show." 20 Years Ago
The U.S. Transportation Dept. last week vacated an order requesting proposals from carriers interested in operating essential air service at Sheridan, Wyo., after incumbent carrier Big Sky told the department it plans to continue the service without subsidy after Jan. 31. Big Sky was awarded the flying in January 2005 and received $336,701 in annual subsidy to operate three nonstop roundtrips between Sheridan and Denver with 19-seat Fairchild Metro III/23s [OST-1998-3506].
To list an event, send information in calendar format to Ingrid Lee at [email protected] NOV. 28-29 -- Kenyon International Emergency Services aviation crisis management exercise planning workshop, Bracknell, Berkshire, U.K., 425-442-5565, email: jerry-alliancepr@qwest. net, www.kenyoninternational.com NOV. 29-Dec. 1 -- ALTA (formerly AITAL) Latin American Airline Leaders Forum, Fiesta Americana Grand Coral Beach Resort & Spa, Cancun, Mexico, 703-608-2071, www.LatAmLeaders.com
Philippine Airlines as early as this week plans to order at least six Boeing 777-300ERs, The DAILY has learned, as part of its long-haul fleet expansion; PAL plans to use the new aircraft to boost service to the U.S. West Coast.
