Air China intends to launch nonstop service in the Beijing-Dallas market May 11 with the start of three weekly Boeing 747 freighter flights. The carrier is seeking an exemption from the U.S. Transportation Dept. that, if approved, would give Air China the authority to carry passengers and cargo between Beijing and the Texas city. Air China also operates cargo flights that stop over in Anchorage. No other carrier serves the market with nonstop service [OST-2006-24486]. -ARS
The U.S. Transportation Dept. calls the Virgin America certification application "unusual, given the complexities of its filing," because of the "substantive updates" the carrier made to its December filing and the fact that it has been contested by several airlines and unions. DOT, however, said it "is committed to completing its review in as timely a manner as possible," and notes that last week's information request represents a step forward (DAILY, April 14).
Alaska Airlines last week unveiled plans to spend $3.5 million to upgrade and expand its Nome Airport, Alaska, terminal. Construction is scheduled to begin in early June and be completed in March 2007. The project includes renovating and expanding the lobby, secured passenger area, cargo facility and ground service equipment area, as well as paving the parking lot and connecting the terminal building to city water and sewer lines. The airline built the existing Nome Airport terminal building in 1985.
Former United CFO Doug Hacker plans to resign from his full-time job at the airline May 1, the carrier revealed in a securities filing Friday, but he will stay on as a consultant for several years.
The investigative branch of the U.K.'s Dept. of Transport issued four recommendations to Airbus after the crew of an Airbus A319 reported that the plane's flight and navigation displays had failed. Investigators with the Air Accidents Investigation Branch (AAIB) noted the plane, registered to British Airways, lost information on a number of displays as it approached a flight level of 20,000 feet on a flight from London to Budapest last October.
Today is the deadline for a bankruptcy judge to rule on rejecting the Comair flight attendant contract. Comair claims it needs $8.9 million from the group to help parent Delta out of Chapter 11. Management and attendants ask the judge to extend the original April 10 deadline for a ruling, and an airline spokesman says, "Comair continues to stress its preference for a consensual agreement." Attendants, represented by the Teamsters, voted in favor of a strike authorization, saying they're prepping for "possible job actions" as early as this week.
Menzies Aviation, Alaska Airlines' ramp service company in Seattle and other airports, "is meeting most of its performance objectives" after some early problems, the airline says. "On average, Menzies is achieving our goals for bag delivery times, first flights of the day departures and overall on-time performance, but it is still falling short on baggage-handling," the airline tells staff. In terms of aircraft damage, Menzies has had zero incidents in Seattle for two months and none anywhere on the carrier's system during March.
FAA has approved plans for a new $2 billion, 33-gate terminal and infrastructure improvements at Phoenix Sky Harbor Airport. "In the last seven years, we've made tremendous investments in Sky Harbor," said David Kreitor, aviation director for the city of Phoenix. "This new plan allows us to balance our landside and ground facilities with airfield capacity."
Selected Randall Shealy to succeed John Lee as senior VP and CFO following Lee's retirement, effective April 1, and named Chris Warden director-internal audit.
Southwest's headcount per aircraft continues to fall, dropping from 74 at the end of 2004 to 71 at the end of 2005. Since the end of 2003, the airline's headcount per plane has dropped 16.5%. That corresponds with rising fuel costs the airline is logging in its operating expenses. Net of hedging and taxes, fuel costs constituted 19.8% of Southwest's operating expenses last year, up from 15.2% in 2003.
Air Canada plans to save about $120,000 annually in fuel costs related to a decision by the Toronto airports authority to waive a morning curfew restriction. Flights at Toronto normally arrive and depart between 6:30 a.m. and 12:30 a.m., but when the winds are favorable, Air Canada's flights from South America arrive before 6:30 a.m., and crews have to cut speed or put planes in a holding pattern. Aircraft will now be allowed to land early "under certain specified conditions."
Shanghai-based China Eastern Airlines will launch flights to Frankfurt on June 30, offering five services a week using Airbus A340-600. It will be the carrier's fifth European destination. The others are Munich, Madrid, Paris and London. China Eastern will expand its network this year to another nine international destinations. It currently operates 403 routes, including 99 international, with a fleet of 136 aircraft, including 10 freighters.
Brazilian carrier GOL and Mexican low-cost carrier Click last week joined the Latin American Airline Association, growing airline membership to 29 carriers. "This shows AITAL is active and growing, uniting all carriers in the region under one umbrella so that we may collectively tackle many ongoing Latin American and Caribbean aviation issues," said AITAL Executive Director Alex de Gunten.
Star Alliance appears close to signing up its first members from China, an area the group has been targeting for years. "Our strategy is to pursue two carriers because of the size of the market," said Star CEO Jaan Albrecht in Johannesburg. "We believe they are about to be ready to make a decision" that could come "in the next few weeks." Star has been lobbying Air China and Shanghai Airlines to join the group.
Airline fuel efficiency has risen 16.2% since 2000, from 38.2 revenue passenger miles per gallon to 44.4, the Air Transport Association says. Some of the gain is due to load factor improvements, but capacity per gallon also increased 8.1% in that period. Since 1971, RPMs per gallon have tripled, and capacity per gallon has doubled.
Avion subsidiary Excel Airways Group last week reached a deal to buy all of Kosmar Villa Holidays to boost its tour operation division. The acquisition is expected to close May 2. Founded in 1982, Kosmar specializes in tours to Greece, offering more than 80 resorts in the country.
Guests at 37 Hilton Hotels are now able to print boarding passes for 18 major airlines at lobby kiosks. The kiosks connect directly to the web sites of airlines, letting travelers check in for their flights, change seats, request upgrades and print boarding passes. Participating airlines include American, Continental, Delta, United, Southwest, US Airways and Northwest.
Bangkok Airways is eager to build a new airport in Luang Prabang in Laos. Founder and CEO Prasert Prasarttong-Osoth said the existing airport's short runway of 1,850 meters and the mountainous terrain surrounding the facility make it dangerous for aircraft flying to the city. He said the problem was compounded by haze during winter and smoke from forest fires. The airport, which handled 150,000 passengers last year, is expected to hit its capacity of 230,000 in three years. More than 85% of the passengers are carried by Bangkok Airways.
Chile's major international and domestic airlines are increasing fares to offset rising fuel costs that could place profits in jeopardy, local sources say. As oil crept toward $70 a barrel, LAN announced increases in fuel surcharges from $9.50 to $14.30 on domestic tickets, $20-$25 on regional international routes and $60-$80 on long-haul international tickets. Domestically, Sky has upped surcharges from $11.50 to $19, while Aerolineas del Sur plans to escalate increases from the current $9.50. -LZ
Appointed Maryann Goebel, formerly chief information officer for General Motors North America, as CIO-DHL Express in the Americas, Asia Pacific and Emerging Markets/Latin America.
British Airways is beginning talks with its unions on its plan to resolve its pension deficit headache, but the crucial negotiations will probably not occur until a new estimate of the deficit is completed, a senior BA executive says.
