UPS' pilots union believes the contract deal its members ratified yesterday will join the new FedEx contract as the gold standard for U.S. airline pilots. Although some clauses in the FedEx contract will be better than in the UPS contract -- and vice versa -- the two contracts will be very similar in overall value, an Independent Pilots Association spokesman said. As more details from these two contracts emerge, it is clear that the deals have moved the cargo carriers further ahead of passenger airlines in terms of pilot compensation.
Washington-based private equity powerhouse Carlyle Group is recouping some of its investment in Firth Rixson, a U.K.-based aerospace metals supplier, by selling a 36% stake in the company to Lehman Brothers-Investment Partners.
Eurocontrol is introducing the first product of the Airspace Infringement Initiative it launched at the end of last year, recommending ways for civil aviation authorities to cut down the risk of general aviation aircraft straying into unauthorized airspace. The "toolkit" Eurocontrol has developed identifies "short-term solutions in this key risk area," Eurocontrol said. It provides guidance and support material for the creation of airspace infringement working groups, briefings for pilots and controllers, and airspace structure reviews.
Canada's Halifax Airport is betting that the opening of a new U.S. Customs preclearance center will bring in more air service. The airport has credited the center, scheduled to open in October, with landing a new daily flight to New York LaGuardia Airport with American Eagle, starting Dec. 14. The carrier already operates two flights a day to New York Kennedy Airport.
Finnair expects traffic on its Asian routes to grow 30% this year and in 2007. "The economic growth of Asian countries is among the best in the world, and we intend to exploit boldly the new opportunities that are continuously opening up," Jukka Hienonen said in a statement this week. He added that Finnair is looking at new destinations in the region. The airline in October will inaugurate flights to India, where it sees "huge demand." Finnair next year will add two Airbus A340s to its long-haul fleet. -JF
American Express Business Travel yesterday signed United to its alternative air content distribution program, TravelBahn DS, at the same time that it decided not to charge most of its customers the new fees being charged by airlines or global distribution systems.
Hurricane Ernesto -- downgraded to a tropical depression -- did not disrupt airline operations as much as was feared, although hundreds of Florida flights were canceled yesterday and Tuesday. The major South Florida airports closed down Tuesday evening, although they reopened Wednesday morning. Ernesto brought heavy rain and strong winds, but no significant damage was reported at any airport. One airline spokesman described Ernesto as "fairly manageable," compared to other hurricanes that have struck Florida.
Management of British consortium TAA insists on exercising proprietary rights to 50% equity in LAB (DAILY, Aug. 30) but acknowledges having problems in London and Cochabamba. In London, TAA representatives are encountering difficulty in legalizing their consortium status. TAA's legal representative in Bolivia, Alvaro Cassab, said TAA principals are having a hard time nailing down the Bolivian consul in London to notarize key documents. Cassab wondered if this was a political ploy or if there were outright instructions not to legalize the documents.
Europe's low-fare airlines are demanding a redesign of Berlin's planned new international airport. The European Low Fare Airlines Association (ELFAA) in a statement yesterday said current plans go against the needs of low-fare airlines and threaten growth perspectives in Berlin.
Aircraft and engine lessor AerCap Group yesterday named Keith Helming as its new CFO, succeeding Heinrich Loechteken, who will assume the new position of chief investment officer. Helming has been a senior executive of GE Capital with more than 25 years at GE; he also was CFO of GE Commercial Aviation Services for five years.
Italian cargo carrier Ocean Airlines would use a Boeing 747-200 freighter for the two weekly Milan-Washington Dulles flights the airline wants to inaugurate soon. Ocean is asking the U.S. Transportation Dept. for a foreign carrier permit encompassing scheduled and charter flights between the U.S. and Italy and beyond. The Brescia-based carrier was established in 2003 with the goal of meeting "the ever-increasing demand for direct services to Asia, Africa, North American and other long haul destinations from Italy."
Port Columbus, Ohio, Airport's efforts to attract new service from existing and new airlines were rewarded with top honors in the partnering with carriers category of Airports Council International-North America's annual Excellence in Marketing and Communications Contest.
Sabre Holdings this week named Scott Alvis president and general manager of SynXis, the company's business dedicated to hotel distribution technology and services. Most recently, Alvis was VP-enterprise marketing for Sabre Holdings, guiding corporate strategy and market research. Before that, he held the position of senior VP-sales and marketing for Sabre Travel Network.
The strong entry of low-cost carriers into the Mexican airline market just one year ago resulted in airfares falling as much as 55% to 65% on the most competitive routes, said a report from Mexico's civil aviation department (DGAC).
US Airways is placing new firm orders for seven Airbus A321-200 aircraft, and is also converting eight existing A319 and A320 family orders to A321s. Deliveries of the 15 A321s are scheduled in July 2008 through 2010. The pre-existing orders were not due for delivery until 2009. US Airways still has 22 remaining A320 orders.
The U.S. and Kuwait yesterday signed an open-skies agreement, and both sides decided to implement the deal as soon as possible. U.S. Ambassador Richard LeBaron and Kuwait's Director of Civil Aviation Yacoob Al-Saqer signed the pact in Kuwait City. The restrictions will drop as soon as the accord is ratified by the Kuwaiti Parliament. The deal also will allow all-cargo carriers to fly between the other country and third countries without directly connecting to their homeland. -SL
Alaska Airlines took delivery of its eighth Boeing 737-800, which is part of the airline's plan to accelerate its transition to an all-Boeing 737 fleet. The carrier earlier this year said it will acquire up to 102 new 737-800s during the coming years and will speed up the retirement of 26 MD-80s. The airline now has 114 planes, including 737-800s, -900s, -700s, -400s and -200s.
Colgan Air once again was chosen by the U.S. Transportation Dept. to operate essential air service at Presque Isle/Houlton, Augusta/Waterville, Bar Harbor and Rockland, all in Maine. Colgan was the only carrier to submit a proposal to operate the service. The carrier will receive a total of $4,774,068 in subsidies annually for a two-year period beginning Nov. 1 for the flights, which Colgan will operate under the US Airways Express banner [OST-2000-8012]. -ARS
The International Brotherhood of Teamsters, which represents 40 ground support equipment technicians at AirTran, ratified a new labor agreement with the carrier, effective Sept. 1 for a 60-month term.
Abu Dhabi-based Etihad Airways this week unveiled its first frequent flyer program -- Etihad Guest -- which has no redemption restrictions or blackout periods.
