Brussels-based no-frills carrier Virgin Express will scrap the 9% commission it pays to travel agents as of April 1. "In recent months most of our competitors have reduced their commission levels to 0%," said Paul Sies, commercial director of Virgin Express. Full-service carriers have cut travel agents' fees throughout Europe to fight low-cost competitors like Virgin Express, forcing Virgin Express to "make some radical changes to our own distribution and remuneration model," Sies said.
The U.S. Senate governmental affairs committee is unlikely to schedule a confirmation hearing for U.S. Homeland Security Secretary nominee Michael Chertoff during this inaugural week, says a congressional source, leaving senators little more than a week to approve Chertoff before Tom Ridge leaves his post Feb. 1. Confirmed three times before, Chertoff is not expected to run into any difficulties.
US Airways was expected to meet an important financing milestone with General Electric Friday, but meanwhile one Wall Street analyst questions the wisdom of the Air Transportation Stabilization Board's decision to extend its cash collateral agreement with the airline.
Swiss charter carrier PrivatAir asked the U.S. Transportation Dept. for permission to carry American's designator code on flights it operates under a wet lease for Swiss between Zurich and Newark. PrivatAir also wants DOT to let it carry the "AA" code on other routes on which American holds code share authority with Swiss because it may operate other flights for Swiss in the future. PrivatAir flies a Boeing 737-700 six times a week between Zurich and Newark [OST-2005-20095].
Boeing's exit from the 100-seat market with the end of 717 production changes the competitive landscape in that size class just as Bombardier weighs launch of its 110-135-seat C-Series family. Production of the 717 officially ends in 2006, Boeing said Friday. A spokesman for the airframer said the airplane was a "victim of a sluggish market," noting that orders for similar products from Embraer and Airbus had dropped during the last couple of years.
To list an event, send information in calendar format to Ron Brown at [email protected] (Bold type indicates new calendar listing in PDF format.) JAN. 18 -- International Aviation Club Luncheon, Journalist Roundtable - Industry Outlook 2005, Marriott Metro Center, Washington, e-mail [email protected], www.iacwashington.org JAN. 19-21 -- Airports Council International-North America, Air Cargo Seminar, The Ritz-Carlton New Orleans, New Orleans, 202-293-8500, e-mail [email protected], www.aci-na.aero
Abraaj Capital has acquired an 80% stake in Jordan Aircraft Maintenance Ltd. from Jordanian Investments Ltd. for US$55.1 million. Four other potential investors also bid for the stake that would privatize the maintenance company. State-owned Royal Jordanian Airlines will hold the remaining 20%. Jordan-based Abraaj Capital is one of the largest equity firms in the Gulf. -WD
The Aircraft Mechanics Fraternal Association (AMFA) is suing Northwest to allow extra union observers into contract talks. The union says airline representatives walked out of a Jan. 12 negotiating session because of union observers. The U.S. District Court for Minnesota will hear arguments in the lawsuit.
US Airways slashed costs stemming from ground damage to its aircraft in 2004 to an estimated $4 million from $7 million in 2003. The airline reported 80 damage incidents last year, versus 90 in 2003. "This is a tremendous improvement and credit goes to all our employees for their vigilance," says VP-safety and regulatory compliance Bill Bozin -- who departs the carrier at the end of the month to become VP-safety and compliance at Airbus North America.
Italian carrier Air One took its grievance against aid to Ryanair to the EU's Court of First Instance, but the Irish carrier isn't the only party Air One is gunning for: its complaint also takes aim at the European Commission. In its complaint Air One defines the aid in question as "extremely competitive airport tariffs and prices for services provided to (Ryanair) airplanes using Italian airports, at times without any charge whatsoever being made."
Ryanair plans to cut one daily frequency each on the routes from Milan Bergamo to London Stansted, Hahn and Charleroi, after failing to resolve a contractual disagreement with the airport. The airline did not go into the details, but the airline's Deputy CEO Michael Cawley said: "Unfortunately the airport feels that it cannot now honor one term of the agreement and regrettably we have decided to cancel part of our expansion which involves a reduction in frequency on three routes."
Spirit is delaying implementation of its new Detroit-Cancun service from March 23 to April 8 as the carrier works a fleet transition from MD-80s to new Airbus aircraft. "Because of the dramatic and prolonged increase in fuel prices, Spirit has opted to accelerate the retirement of its MD-80 fleet," the carrier told the U.S. Transportation Dept. "Given the need to adjust its operation without causing undue disruption during the Easter holiday, Spirit plans to defer the anticipated startup of this service by two weeks" [OST-2004-18692].
Appointed Ben Baldanza, most recently senior VP-Marketing and Planning at US Airways, president and chief operating officer of the airline, effective Jan. 24.
FAA boosted its pool of controller candidates by extending the eligibility period for graduates of college ATC courses, a move already called for by the main ATC union and industry group. The extension applies to courses under the FAA's Air Traffic Collegiate Training Initiative (AT-CTI). Trainees once eligible for hire only within two years of graduation can now apply for an extra year of eligibility, up the maximum hiring age of 31.
Named current senior VP-alliances and US Airways Express President Bruce Ashby to executive VP-marketing and planning, to replace Ben Baldanza; VP-Network and Revenue Management Andrew Nocella will become senior VP-planning, senior VP and controller Anita Beier will add "organization re-engineering" to her duties as VP-Restructuring James Schear moves to VP-safety and regulatory compliance.
The U.K.'s National Air Traffic Services is preparing to install a NavCanada electronic flight data system at Heathrow and Gatwick airports. The system, which eliminates the need for controllers to use paper flight strips, was introduced at Stansted airport last week.
Tsunami-hit beach resorts in Thailand continue to see a reduction in flights due to declining passenger loads. Starting Saturday, Thai Airways International will cut its daily Singapore-Phuket service to three weekly, and SilkAir has dropped a Phuket flight and halved its services to Krabi to twice weekly. Low-fare Thai Air Asia has suspended the route indefinitely.
The major U.S. freight forwarders' industry group is concerned that the Transportation Security Administration is seriously underestimating how much its proposed cargo security rule will hurt its members.
