Hooters Air plans to cease scheduled service next month after two years in operation, during which it struggled to battle high fuel prices and boost traffic.
AirTran CEO Joe Leonard sees a "very, very strong revenue environment," but reports that fuel costs are higher than expected. He told The DAILY in Orlando that "costs are on plan," with the exception of fuel. With the shift of the Easter and Passover holidays to April, he sees "great" results this month.
Lufthansa and Northwest could be forced to stop their international flights from Portland Airport, Ore. The airport may have to shut down its 11,000-foot south runway by 2011 for repairs. "We're looking at the feasibility of extending the 8,000-foot north runway to accommodate large aircraft," said Mary Maxwell, Port of Portland aviation director. "This would give us the flexibility to shut down the south runway...and still have dual operational capability on the north runway."
Flybe swung from a GBP3.2 million loss in 2004 to a profit of GBP6.6 million in 2005. The airline launched 29 new routes last year and boosted passenger numbers by 19%, flying more than 4 million customers.
Named Frank Huelsmann head of investor relations to succeed Ulrike Schlosser, who is taking up the post of managing director at LSG Sky Chefs subsidiary In-Flight Management Solutions GmbH.
Aer Lingus workers voted massively in favor of industrial action to oppose any unilateral decision on the privatization of the carrier, in a ballot organized last week by the Services, Industrial, Professional and Technical Union. The stoppage will take place if the carrier's management proceeds with privatization plans without agreement from the unions, announced SIPTU National Industrial Secretary Michael Halpenny. "This result is clear evidence of our members' concern for job security, pensions and conditions of employment," he said.
The union representing air traffic controllers warned that contract negotiations with FAA are over as both sides prepare to unveil their final offers this week. FAA and the National Air Traffic Controllers Association have been locked in mediated negotiations for four weeks after starting contract talks last July. Friday, NATCA claimed contract talks had broken down, and FAA rejected an offer from the union for $1.4 billion in savings. Union President John Carr said FAA wanted that number to come in closer to $2 billion.
The Air Transport Association on Friday named former FAA official Sharon Pinkerton as the new VP-government affairs. Pinkerton earlier in the week stepped down as assistant FAA administrator for policy, planning and environment after three years in the post (DAILY, March 23). She will join ATA on April 17 and will head the government affairs group reporting to CEO Jim May.
FAA plans to decommission 100 navigational aids in fiscal 2006, and another 100 in fiscal 2007, FAA Administrator Marion Blakey says. FAA decommissioned 177 in fiscal 2005, which shaved about $2.7 million from FAA costs.
St. John's Evangelical Church in Bensenville, Ill., has been offered $630,000 by the O'Hare Modernization Program to sell the St. Johannes Cemetery. The land is needed as part of the airport's effort to relocate runway 10C-28C. The offer does not include disinterment and relocation costs, which the OMP will pay separately. OMP says the cemetery currently has 1,200 bodies interred.
U.S. airlines "abuse" the bankruptcy laws, claims ILFC CEO Steven Udvar-Hazy. "In most foreign countries, the directors have an inherent obligation to shut the business down and liquidate," he says. "In the U.S., we have this purgatory system that is beneficial to few but very harmful to many." He went on to say that the laws were never intended "for an airline to be in bankruptcy for three years and spend $400 million in legal and consulting fees."
Appointed Thomas Horton executive VP-finance and planning and CFO and named Craig Kreeger senior VP-international and C. David Cush senior VP-global sales ahead of the retirement of Peter Dolara, senior VP-Miami, the Caribbean and Latin America and William Quinn, president of American Beacon Advisors. The company tapped Douglas Herring to succeed Quinn at American Beacon Advisors and Brian McMenamy to succeed Herring as VP and controller, and named Isabella Goren senior VP-customer relationship marketing and reservations.
Brussels-based sister companies SN Brussels Airlines and Virgin Express will merge into a single operation with a new, single brand in April 2007. The new brand will be unveiled ahead of the operational merger "towards the end of the summer," said Neil Burrows, CEO of both companies. He said the aim is to create an "undisputed and sustainable No. 1 in Brussels" with a market share of at least 55%. Burrows is also slated to head the new company.
Rep. John Mica (R-Fla.), chair of the House Transportation aviation subcommittee, reiterates his vow to make counter-MANPAD devices mandatory on some aircraft types. "By one way or another we will be installing them on some targeted aircraft," he said in Orlando. The Homeland Security Dept. is expected soon to issue a report on the equipment's performance, projected costs and deployment options.
American faces the biggest disruption in operations if Venezuela decides to ban U.S. airlines after an April 25 deadline for FAA to decide if the country's aviation oversight meets ICAO standards. The carrier has 23 weekly flights from Miami to Caracas, five weekly trips between DFW and Caracas and two from New York Kennedy to Venezuela's capital.
Bombardier says it is negotiations with US Airways to firm up orders for about 30 CRJs the carrier has in the airframer's backlog. Bombardier is continuing efforts to remarket 15 CRJ-200s returned to lessors by Northwest and 30 CRJs Delta plans to cut from Comair's fleet.
Delta this week announced details of a major facelift for its customer terminal services at the Atlanta hub. The carrier said it will expand lobby space by 50%, add 24 more self-service kiosks, redesign gate seating, open a new Crown Room Club, and introduce 14 more full-service check-in positions. The improvements will be made in two phases and will be completed by summer 2007.
Pratt & Whitney and partner Aviation Fleet Solutions won FAA certification for their QuietEagle noise-reduction system for MD-80 planes powered by PW JT8D-200 engines. The system meets requirements set by ICAO in January. QuietEagle is designed to cut noise by six decibels, and on-wing installation takes about 160 man-hours. PW said European Union countries and airports have more stringent noise restrictions, and QuietEagle could ease landing charges for MD-80 operators. -LR
