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
Israir won an exemption to fly scheduled service between Tel Aviv and New York, which means El Al will soon have competition on the route (DAILY, March 7). Israir would use a Boeing 767 seating 18 in first class and 242 in economy for the four-times-weekly service, which is expected to grow to six weekly flights in the summer.
The union representing FAA's technicians is sending its members a contract proposal but is asking them to vote against it, prompting FAA to file an unfair labor practices complaint against the union.
Air Wisconsin's last BAe 146 -- operating between Denver and Vail, Colo. -- will leave the fleet on April 16. The carrier now flies exclusively under the US Airways Express banner. Most of Air Wisconsin's United Express flying was taken over by SkyWest.
Air Canada recently decided to drop plans to strip the paint from its Boeing 767s and go with a polished metal livery. The carrier did a three-month test by stripping the white paint from one aircraft and found that the move shed about 360 pounds from the weight of the plane, which translated into annual fuel savings of $24,000. However, staff that analyzed how the polished fuselage stood up against harsh operating environments "determined the extra maintenance costs outweighed the benefits."
Several unusual items caused Pemco's 2005 losses to mount to $5.8 million versus a $3 million loss the previous year, including the bankruptcy of the maintenance, repair and overhaul provider's largest commercial aircraft customer, Northwest.
Delta yesterday narrowed its February net loss from $267 million in 2005 to $209 million last month. Excluding $71 million in reorganization costs, the net loss was $138 million. The reorganization items reflect estimated bankruptcy claims for aircraft lease matters and professional fees in the company's Chapter 11 case. Operating loss for the month was $71 million, less than the $183 million deficit last year. On Feb. 28, Delta had $3 billion in cash and cash equivalents, of which $2.2 billion was unrestricted. -SL
