AirTran has made "very little progress" in contract negotiations with its pilots' union, reports CEO Joe Leonard. "You can't get much done when you only meet two days per month," he says. The two sides are only in the "wish list stage." Leonard is willing to make adjustments in the contract but said it is necessary to keep costs in line.
The FAA on Friday issued the final version of its revised and updated instructions for implementing the National Environmental Policy Act (NEPA) for airport changes and construction, which the agency hopes will streamline the process.
A new terminal at Ecuador's Simon Bolivar Airport in Guayaquil will open on July 25. Ninety percent of the works in progress for the terminal are now complete, reports Nicolas Romerio, CEO of the airport's managing foundation. During the first stage, the new terminal will handle services for two international and one domestic airline, while other equipment and cargo facilities are moved from the old terminal.
JetBlue hopes to shave at least five minutes from its aircraft turn times and standardize the process across the system as part of its new "BlueTurn" project, reports CEO David Neeleman. The airline didn't have a "process-oriented approach" to turning planes and there wasn't a standard time line. The carrier is also trying different boarding procedures. The Embraer 190s are turned in about 30-35 minutes, but if flights are late, Neeleman wants a 20-minute turn.
A European Commission official last week warned that open-skies talks with the U.S. can't go on forever and are now under some time pressure to be completed.
LAN Airlines last week reported a 72% jump in first-quarter profits to $79.7 million, including a one-time gain, thanks to cost control and double-digit revenue growth.
American wants to double revenues from third-party maintenance contracts this year, projecting income of about $100 million. Total revenues from outside contracts reached about $44 million in 2005, American VP-Engineering, Planning and Quality Assurance Oliver Martins told The DAILY last week during Aviation Week's MRO conference.
Bangladesh Air Asia (BAA), a new regional low-fare airline, will start operations in October, using Dhaka as its base. The carrier will be the first low-fare airline in Bangladesh. Bangladesh's East West Airlines holds the majority 51% stake in BAA, while Malaysian low-cost carrier Air Asia holds the rest. Air Asia will also provide technical and management support to BAA.
Bangkok Airways and Thai Airways International, in a surprise move, concluded an agreement to code share on domestic and international routes operated by both carriers.
Massport has awarded a contract worth up to $3.2 million to Westfield to upgrade the food and beverage concessions at Boston Logan's Terminal C; the move is driven by upgrades already performed by JetBlue, along with the end of the current concession contract. "Westfield takes over the area on July 1, and there is an 18-month construction process, taking us to January 2008," said Massport spokeswoman Danny Levy. "Consistent with the other terminals, the new concessions at C will have a mix of national brand food and beverage, as well local products.
General aviation manufacturers took in a record $4 billion in billings in the first quarter, nearly a 40% leap from the $2.9 billion in billings in first-quarter 2005, the General Aviation Manufacturers Association reported Friday.
U.S. bankruptcy reorganizations could be a catalyst to further mergers in the industry, participants in the Phoenix Aviation Symposium stated last week. "You can shape your merger partner to make it suit best to you," Texas Pacific Partner Rick Schifter said. "It relieves the target of a standalone reorganization plan." In his view, Delta or Continental could follow the example of America West and US Airways.
Mesa Airlines is searching for a single supplier to maintain the engines powering planes across its entire fleet as part of its business plan to continue to outsource maintenance functions. It follows deals the carrier reached last year with AAR to sell spare parts Mesa had in its inventory for use on its Bombardier CRJ-200s/7000/900s and Embraer ERJ-145s. AAR paid $50 million for current and future inventories and is also supplying Mesa with component repair and asset planning.
A large Temporary Flight Restriction (TFR) zone on the Arizona/New Mexico border with Mexico was canceled by FAA after a government General Atomics Predator B unmanned aerial vehicle that was operating in the area crashed in Arizona last week, leaving no immediate need for the 300-mile long TFR to remain in force.
The National Air Traffic Controllers Association on Friday made its second request in a week to the FAA to return to the bargaining table, saying it is not too late to reach a voluntary agreement.
Brazilian development bank BNDES might be enlisted to help Varig through its restructuring, an aide to President Luiz Lula da Silva revealed after a meeting with the cabinet. BNDES' involvement was one of many options proposed and floated as government and private sector officials work to rescue the financially cornered carrier. Analysts interpreted the possibility as a change in the government's policy, which previously held there are no official resources for this purpose, nor can the government act to salvage a private company.
Elects Carlos Bonilla, currently senior VP of the Washington Group, and Richard Thayer, who recently retired as managing director at J.P. Morgan Securities, to its board and appointed Raul Rizo-Patron as VP-corporate development and Jim Marshall VP-human resources.
US Airways will boost capacity on the Phoenix-Cancun route in September when it launches its own daily service on the route, which is already operated by America West.
Despite concerns from federal watchdog agencies, Harris Corp. says it is making good progress on its massive FAA telecommunications contract, and Harris executives are confident the network supporting air traffic control operations will be completed by FAA's 2007 deadline.
