Delta is on track to reach its goal of assigning half its network to international routes, but CEO Jerry Grinstein said last week that the carrier has no need or plans to buy new aircraft to reach that target thanks to changes planned to its existing fleet and some small acquisitions on the open market.
The European Union Ministers of Foreign Affairs formally approved the European Union/U.S. agreement on passenger name records clinched earlier this month, at their meeting yesterday in Luxembourg. "The process of signature by both parties is due to be completed on 18 October," said the European Union's Council of ministers. The accord will go into effect provisionally immediately after it has been signed, without awaiting ratification, said a spokesman of the Finnish government, which chairs the EU Council of Ministers until the end of December. -MT
Lufthansa this winter plans to boost systemwide capacity by 3.3% with most of the growth in European routes, but the airline also will add two new destinations in two new countries. The airline's European capacity will increase 6% and long-haul service 2.2%. Starting Dec. 1, the airline will start three flights per week from Frankfurt to Kolkata, India, for the first time. With 88 flights per week, Lufthansa will offer more connections from Europe and India than any other carrier, executives claim.
Korean Air next year is expected to launch new service to Houston and is eyeing flights to Miami in 2008, says President Jong Hee Lee. He told reporters in Seoul that the carrier sees strong traffic from Continental, a SkyTeam alliance partner. At the same time, Korean Air may pull out or scale back service at Dallas/Fort Worth. SkyTeam member Delta cut service radically at DFW in January 2005.
A bankruptcy judge late yesterday ruled that Mesaba management could impose concessions on its labor groups, while negotiations were continuing last night and today. The judge is set to rule on Mesaba's request injunction against a strike today. If management and pilots, mechanics and flight attendants fail to reach consensual deals by Wednesday, Mesaba plans to mandate its terms on Wednesday.
Airbus yesterday began a series of high-altitude tests at Addis Ababa, Ethiopia, for the A380 Engine Alliance engines. Addis Ababa, which is at 7,500 feet altitude, will be used to validate the GP7200 engines' performance at high-altitude airports. The aircraft with the GP7200 engines is the fifth development aircraft to join the A380 test program. Six A380 customers have selected the Engine Alliance engine for 82 firm orders.
Comair flight attendants plan to tally votes on Nov. 14 for the tentative deal their union reached with management last week, while the airline's pilots are angry that management presented them with the same proposal that wasn't agreed to during negotiations earlier this month.
FL Group yesterday sold its stake in Icelandair for $380 million; the move comes as a surprise, as the investment company earlier targeted an initial public offering for the airline.
Korean Air is close to ordering as many as 10 Boeing freighters as part of an aggressive expansion plan of its cargo division, The DAILY has learned, as the carrier looks to boost freighter capacity to China, India and Eastern European cities.
Emirates has dropped its plan to convert firm orders for the A340-600 into A380 orders, according to Emirates Airline President Tim Clark. "There is no point to say we are going to substitute with the A380 when the A380 is two years late," he said in an interview.
Express giant DHL yesterday announced its intention to buy 49% of air cargo carrier Polar in a transaction that also includes a 20-year agreement for capacity on Polar aircraft. Under a letter-of-intent signed by the two companies, DHL will pay $150 million for the 49% equity and 25% voting interest. Polar is currently a wholly owned subsidiary of Atlas Air Worldwide Holdings (AAWH). The transaction is subject to regulatory approval, and DHL expects it to close late this year or early 2007.
Arinc this month unveiled a new business-class messaging service called AviNet Exchange that takes advantage of the latest technologies and web services, including XML.
BAe is marketing its Avro RJ/BAe 146 plane to the corporate and executive aviation market after placing three planes for corporate use during the last year. About 14 planes are flying in executive configurations. The company tapped Andy Whelan, who has held positions at Raytheon and Jet Aviation, to head executive aviation sales in the U.K. Art Rink is overseeing corporate sales in North America. BAe believes its Stage 4 noise-compliant Avros could compete to replace older, second-generation planes, such as Boeing 727s and DC-9s. -LR
The task force in Brazil investigating the collision between a GOL Airlines Boeing 737-700 and an Embraer Legacy executive jet over the jungles of Mato Grosso two weeks ago, killing all 154 aboard the jetliner (DAILY, Oct. 6 & 11), began its work late last week. The high-level group of government and private investigators said they would release preliminary findings without announcing definite conclusions or assigning culpability until the investigation is fully concluded.
The first Airbus A320 assembly plant to be set up outside Europe in Tianjin, China, next year will be a joint venture involving the European manufacturer, Tianjin Enterprises and Aviation Industries of China 1 (AVIC I) and Aviation Industries of China II (AVIC II).
Boeing yesterday confirmed it will stretch the passenger version of the 747-8 another six feet, compared with previous proposals, making it exactly the same length as the freighter version.
Air New Zealand last week named Swissport as the preferred bidder in its proposed outsourcing of ground-handling at New Zealand's three largest airports. Air NZ is still in consultations with its unions about the outsourcing but issued a tender to identify its best options. Swissport, with partner company Transfield Services New Zealand, was selected and now must wait for the outcome of the labor talks.
30 Years Ago Oct. 18, 1976 -- Cuban Premier Fidel Castro will cancel a 1973 agreement with the U.S. that provided for the return of persons hijacking U.S. aircraft, basing the decision on "barbaric" terrorist attacks against Cuba by CIA-backed Cuban exiles. 20 Years Ago Oct. 20, 1986 -- A Justice Dept. official warned last week that department positions on airline mergers have been based on regional considerations, but if there is another merger of major carriers, DOJ will look at its competitive impact nationwide.
Ramp, operations and cargo agents at Continental turned down representation by the Transport Workers Union of America (TWU). The union filed an election application in August.
