Air Canada plans to add another member of the Embraer 170/190 family to its fleet with the announcement of an order for 15 Embraer 175s, making Canada's flag carrier the first customer for the 175 variant.
Alaska Airlines signed a 10-year deal with GE Engine Services for maintenance of 85 CFM56-3 engines powering 40 Boeing 737-400s. Under the cost-per-hour agreement, GE also plans to install an enhanced performance upgrade kit for the engines. The deal's estimated value is $300 million.
The U.K. should take advantage of its position as chair of the European Union's Council of Ministers in the second half of 2005 to include air transport in the EU emissions trading scheme, said the House of Lords' EU sub-committee on the environment last week.
House and Senate transportation staff began meeting again on Friday on a compromise version of the intelligence reform bill that appeared to have come up against a permanent roadblock over the powers of a National Intelligence Director (NID). Sources could not say whether the resumption of talks signaled forward movement on a bill that even some lawmakers predicted would die if it weren't signed into law before the elections.
Delta yesterday warned that a bankruptcy filing is still very much a possibility in the next 18 months if it can't cut its target $5 billion of annual savings, finalize the bond exchange offer and note deferral, and if fuel prices remain high.
Lufthansa Cargo Argentina (LCA) has been honored for the third year in a row as the best supplier of logistic airfreight services in Argentina by the trade publication Logistik Inside. Awards were based on a survey of 240 employees in charge of air cargo logistics at industrial and commercial companies. With a record of 766 points in image, LCA is known by 86% of the public. LCA placed second in terms of overall image.
Brazil's low-fare, low-cost Gol Airlines last Friday added an eighth point to its northeast Brazilian network with the launch of daily Boeing 737-700 service between Sao Paulo and Teresina, in the state of Piau. Formerly one of the most depressed areas in the country, northeast Brazil now accounts for 13% of its GDP, and tourism to Piau has been growing at the record rate of 70% annually since 2001. The regional airport at Recife is expected to become one of the most modern in the country as a result of a $108 million upgrade.
American parent AMR scored worst among aviation companies listed in the latest annual U.S. corporate reputation ranking released by Harris Interactive and the Reputation Institute. AMR was ranked 50th out of 60 companies, barely beating out Tyco and Martha Stewart Living Omnimedia. Boeing was 30th, and Southwest had a reputation ranking of 21st. UPS and FedEx were in the top 10 with the best reputation scores.
Air Canada narrowed its third-quarter net loss to C$81 million (US$67.5 million) from C$263 million last year, including one-time charges, thanks to high load factors and a recovery in nearly all of its markets.
SAS on Friday had to cancel all morning flights from Copenhagen, as Danish cabin crew staged what the company called a "wildcat strike." Unions said employees were protesting against changed seniority rules and easier access for their Swedish colleagues to SAS positions in Denmark. As part of a $2 billion cost-savings program, SAS has split up flight operations into three different units in Sweden, Norway and Denmark (DAILY, March 29).
AirTran's dispatchers, represented by Local 540 Transport Workers Union of America, ratified the new collective bargaining agreement by a significant margin.
Guangzhou-based China Southern Airlines has signed an agreement with parent company China Southern Air Holding Co. to acquire China Northern Airlines and Xinjiang Airlines. China Southern will pay CNY16.9 billion (US$2 billion) to acquire the two carriers and their fixed assets and will also assume some CNY15.1 billion (US$1.8 billion) in debt. The carrier will pay CNY897 million in cash and take out a short-term US$1 billion loan to fund the acquisition.
Hawaiian Airlines reached a tentative labor agreement with the Transport Workers Union on a new contract for the airline's dispatchers. The agreement, which must be ratified, would take effect when Hawaiian exits Chapter 11. "In order to exit Chapter 11, Hawaiian needs agreements with each of its unions," said Trustee Joshua Gotbaum. "Our goal is to negotiate fair contracts that allow Hawaiian to get out of bankruptcy and stay out." -SL
Jetsgo's October traffic jumped 39.7%, slightly outpacing the 38.5% capacity increase. As a result, load factor grew 0.6 percentage points to 66.2%. "We are now moving into the busier period for winter travel and are ready to meet this demand with the addition of three more Fokker 100 aircraft between now and the end of the year," said CEO Michel Leblanc. Jetsgo will have 11 Fokker 100s and 14 Boeing MD-83s in service by December, "allowing for greater scheduling flexibility as well as increased capacity." -SL
SkyWest signed a 16-year engine maintenance deal with Standard Aero for the maintenance of GE CF34-8 engines powering its Bombardier CRJ-700s. The agreement covers scheduled and unscheduled repairs, with SkyWest paying a set amount per month for each engine hour flown. The carrier currently flies 10 -700s and expects to add 22 more planes to its fleet by May 2005. -LR
The Transportation Security Administration (TSA) named Vernon Baker federal security director at Houston Hobby, replacing Skip Williams, who is returning to his previous position as FSD for Orange County's John Wayne Airport. Baker was TSA's stakeholder manager at Houston Intercontinental for the past two years. He also worked as assistant director of operations for the City of Houston's aviation department, as well as security specialist for FAA.
Boeing is designing a freighter using 777-200LR technology set for debut in the fourth quarter of 2008. Boeing said it's talking with several potential customers about the plane. The new freighter will be the sixth member of the 777 family. Specs for the aircraft include 222,000 pounds of revenue payload capability, and space for 27 standard pallets on the main deck and 10 in the lower cargo hold. Projected range is 5,200 nautical miles. -LR
Arrow Air tentatively won an all-cargo designation to Brazil last week in a renewed U.S. Transportation Dept. (DOT) proceeding after Evergreen and Gemini declined to start service. Along with the designation, DOT awarded five weekly roundtrip frequencies to Arrow. The department also gave backup authority to Amerijet International, the only other applicant for new authority. The U.S.-Brazil Air Transport Agreement provides for four all-cargo designations and 24 roundtrip all-cargo widebody frequencies per week between the two countries.
Great Lakes Aviation pilots are deciding if they should approve a tentative agreement reached with management after four years of negotiations. The carrier's 175 pilots, represented by the International Brotherhood of Teamsters, voted in favor of a strike authorization in February 2003. The tentative deal provides a wage increase of 3%-5%, and an additional 1.5% each following year.
Southwest CEO Gary Kelly says Southwest is not helping to lobby for changes to the law restricting nonstop service from Dallas Love Field, but it will not stand in the way of efforts by Tennessee officials to add Nashville as a nonstop destination. Kelly also says Southwest is definitely not interested in acquiring some of the DFW gates vacated by Delta.
All U.S. legacy airline defined benefit plans will eventually be frozen now that United has decided to punt its plan to the Pension Benefit Guaranty Corp. and Delta has set a freezing precedent outside of bankruptcy, says JP Morgan analyst Jamie Baker. "We believe American will look to do the same, followed by Continental and Northwest, in that likely order," Baker predicts.
Flights between Seoul and Taipei will restart next month after a hiatus of 12 years, with Korean Air and Asiana Airlines operating nine passenger flights and one freighter service each week. Flights between the two countries stopped abruptly in 1992 after Seoul established diplomatic relations with China. Since then, Cathay Pacific and Thai Airways International have operated the route via Hong Kong.
