Republic Airlines has filled all its major management positions with the appointment of Alex Olseger as director-flight operations. Olseger had the same position at Chautauqua Airlines. Other senior positions the airline had to fill to meet FAA certification requirements include Mark Musial as director-maintenance, Greg Dean as director-quality assurance, Frank Shea as director-safety, and Rick Morgenstern as chief pilot. Republic is scheduled to start service from Louisville, Ky., in October. -LR
The one-year-old Alianza Summa plans to cut its fleet by 10 more aircraft and shrink its headcount by 30% as part of its overall restructuring. CEO Juan Emilio Posada said last week in Bogota the first stage of Avianca's reorganization under U.S. Chapter 11 bankrupcty protection succeeded. According to DAILY affiliate AvNews Latin America & Caribbean, the New York bankruptcy court approved the return of one Boeing 757-200 and one 767-300 to International Lease Finance Corp. and Ansett.
Singapore Airline's senior management, which includes senior VPs and above, will take a pay cut of 27.5%, effective June 1, as part of an aggressive cost-cutting effort.
UBS Warburg last week narrowed its airline industry loss prediction for full-year 2003 from $7.8 billion to $7 billion thanks to a lower war effect, deeper capacity cuts and wage concessions.
Air France's last scheduled Concorde flight, AF001, is still planned May 31 from New York Kennedy to Paris, but several charter flights are likely next month. Sources say one Air France Concorde will fly to Washington Dulles in June to join the new Smithsonian annex's collection.
The 1000th Rolls-Royce BR700 engine, slated for a Midwest Airlines Boeing 717-200, left the engine developer's facility in Dahlewitz Germany last week. Two BR715 powerplants power the 717. Roll-Royce said the engine is 48% under ICAO's limit for nitrogen oxide emissions and 65% below the standard for carbon monoxide.
Argentina's departing Duhalde administration last week committed the government to launching a new state-run feeder airline during the next six months, using six former LAPA aircraft. All the working capital of the new carrier, tentatively called Intercargo Vuelo, will come from the state-owned Intercargo airport ramp services specialist. The stop-gap carrier will employ some 800 staff left jobless when financial problems grounded LAPA (DAILY, May 13).
CAE this week signed a two-year contract, with two renewable successive two-year terms, to provide CRJ200 full-flight simulator training to Midway Airlines pilots. The contract is valued at C$5 million-C$6 million at list prices, based on planned simulator use. Midway pilots will train primarily in CAE's Denver training center, beginning next month. The airline operates as a US Airways Express carrier, providing connecting service to Washington National and Raleigh/Durham. -SL
American this week named Bob Reding as its new senior VP-technical operations with oversight of the carrier's maintenance and engineering, flight operations, operations planning and performance and the safety, security and environmental departments. The carrier also reported that Dan Huffman, senior VP-maintenance and engineering, would be leaving the company following 33 years of service with AMR. Huffman retired several months ago but stayed on so that his division "would not be in transition during the company's recent heightened financial crisis."
Air Austral this week took delivery a used Boeing 777-200ER from International Lease Finance Corp. The aircraft, MSN 29908, is powered by PW4090 engines. The lease term is for six years and the aircraft is the second of two used 777s to be leased by Reunion Island-based Air Austral from ILFC. The latest aircraft entered service in 1999 and was operated by Air Europe. -SL
Delta's AirElite Business Jets subsidiary added a Gulfstream G100 to its fleet as it continues to expand charter capacity. The aircraft, based at Lunken Airport in Cincinnati, joins Delta AirElite through a charter management agreement. "This aircraft adds to our midsize fleet of business jets, which has experienced tremendous growth and demand," said Michael Green, CEO of AirElite. -SL
The Skyteam alliance is sending out strong signals that it would welcome KLM as a member, apparently in an effort to lure the carrier away from a possible link-up with British Airways. While no formal talks with KLM have been launched, the airline would certainly fulfill the requirements for joining the club, Air France Chairman Jean-Cyril Spinetta said at a SkyTeam briefing in Paris. In parallel, KLM said a decision on the alliance question is not imminent but could come by the end of the year.
China Airlines next month plans to put its code on Delta flights beyond San Francisco and Los Angeles, nearly one year after the two airlines postponed the start of their code-share partnership. Last year, the airlines planned to launch their code-share cooperation on June 1, but put the start on hold after CAL's Flight 611 in late May broke apart over the Taiwan Strait, about 180 miles from Taipei. All passengers and crew on the Boeing 747-200 perished.
The oneworld alliance carriers should focus on getting their own house in order during the current industry crisis and postpone any new broad initiatives, says British Airways CEO Rod Eddington, warning that members risk distraction from their own recovery efforts.
US Airways' pilots union says it is considering legal action to redress what it claims is the airline's "aggressive misinterpretation" of agreements reached during the restructuring process, but US Airways, in turn, faulted the union for undermining its recovery.
By Rep. James L. Oberstar (D-Minn.) In Departures May 14, Robert Poole, Jr., of the Reason Foundation, predicted I would offer an amendment to the Federal Aviation Administration reauthorization bill to "redefine air traffic control as 'inherently governmental.'" First, I should correct the record: I did not have to offer that amendment, because, by bipartisan agreement, the language was included in the bill itself.
FAA this week imposed additional airspace restrictions due to a heightened national security threat level announced by the TSA, but the restrictions are more limited than those applied during the last security scare and do not affect New York City. In three notices to airmen (NOTAMS) issued by FAA, waivers that allowed certain operations within a 15-nautical mile inner security zone centered on Washington were canceled. Waivers allowing aircraft into airspace above major sports events were also rescinded, although banner towing had already been banned.
Finnair posted a first-quarter loss of EUR14.0 million (US$16.4 million) after one-time items, compared with a EUR4.7 million loss in the same period last year, and forecast worse results as it braces for fallout from the SARS pneumonia outbreak. The company's January-March revenue rose 2.4% year-over-year to EUR400.3 million (US$469 million).
Air transport will face considerable disruption this weekend, when a string of strikes and demonstrations against a planned reform of national retirement schemes are expected to start.
A non-Malaysian company agreed to acquire a stake in Malaysian no-frills domestic carrier Air Asia. Air Asia CEO Tony Fernandes, though declining to reveal the identity of the company, reported that negotiations have been completed and the deal awaits regulatory approval. He said an announcement on the deal would be made by month's end.
Colombian authorities this month set up a special committee in Colombia, sponsored by the civil aviation department (Aerocivil), to control the spread of the SARS pneumonia through the country's major international airports.
