Boeing this week announced the retirement of Corporate VP-Contracts and Pricing Bob Ingersoll and appointed Timothy Malishenko to succeed him. Ingersoll, a 36-year Boeing veteran, has since been responsible for policy, guidance and oversight of contracting since 1999. In 1997, he was Boeing's project manager for the Boeing/McDonnell Douglas merger transition team. He joined Boeing in 1967 in the company's supersonic transport program. Currently, Malishenko is VP-contracts and pricing-Boeing Integrated Defense Systems. -SL
The Air Transport Association yesterday reported systemwide airline traffic "improved modestly" for the week ending April 27 from the week ending April 20 but was still off 2.1% from 2002 levels.
As long as declining revenues hurt the industry, labor will continue have a negative effect on airline operating margins. In 2002, labor costs absorbed 43.9% of total industry revenue, up from 40.6% in 2001 and substantially higher than 34.9% in 2000, according to Standard & Poor's Airline Industry's Survey.
Swiss Chairman and CEO Andre Dose asked for relief and government support to restore credit lines recently canceled by Swiss banks UBS and Credit Suisse for the beleaguered airline, according to an April 29 interview in Swiss daily Blick (see related story on Page 5). "We need immediate measures," Dose said. "The management of Swiss is doing everything it can to get through the crisis, but that alone isn't enough." The carrier also wants relief in taxes, airport and air traffic control charges.
ATA Airlines parent company ATA Holdings yesterday reported a deep $11 million loss as fuel prices soared, despite doubled revenue from military flights. The airline eked out a slim operating profit of $1.5 million, down nearly 85% from the same quarter last year. CEO George Mikelsons believes the operating profit "signals we are moving in the right direction." He reported that the carrier's aircraft and crews are being used more efficiently and its non-fuel unit costs have been cut "significantly."
Northwest Cargo this summer plans to boost its network in Asia with additional service and capacity to Osaka and Seoul, beginning June 3. The new flights will operate westbound Tuesday through Saturday. Cargo customers will have single-connection freight service from any North American NWA Cargo station to the new Osaka/Seoul freighter flight through NWA Cargo's Anchorage, Alaska, hub. The flight will arrive in Osaka at 10:30 a.m., allowing for same-day deliveries in Western Japan, the airline said.
American and SN Brussels Airlines next month plan to move ahead with their previously announced code-share agreement between their respective hubs and on beyond routes, thanks to U.S. DOT approval of the deal. Starting May 7, SN Brussels will place its SN code on American's daily Boeing 767 Brussels-Chicago O'Hare flight. Additionally, SN will put its code on AA flights from Chicago to Atlanta, Dallas/Fort Worth, Houston, Los Angeles and San Francisco, also starting in May.
Key congressional lawmakers say they will oppose further assistance for the airline industry without tougher language on how the money is spent, and those who favor reregulating the industry contend it's unlikely it will ever happen.
Lufthansa, citing continuing depressed demand, yesterday again cut hours for its ground staff and reduced capacity by the equivalent of 15 aircraft. The airline earlier this month cut hours for ground and cabin crews to 36 per week, but the Lufthansa Executive Board yesterday reduced the number to 35. The second round of cuts is planned to take effect on May 15. The airline went ahead with additional cuts after announcing that passenger revenues would be down 20% for April, compared with the same month last year.
American Eagle has completed an agreement to sell 19 ATR-42 turboprops operated by its subsidiary Executive Airlines to Federal Express. The first aircraft will leave Executive's fleet in June, followed by one per month until December of 2004. American Eagle Senior VP of Marketing and Planning Tom Bacon said the sale brings the carrier "much needed cash at a critical time." Eagle plans to ramp up Executive's utilization of "more efficient ATR-72s to cover planned flying," Bacon explained.
United's flight attendants yesterday ratified a contract restructuring agreement that will provide the airline with $314 million in annual savings over the next six years. With 63% of eligible attendants voting, 75% voted in favor of ratification.
Qantas within the next two weeks plans to respond to the draft decision issued earlier this month by the Australian Competition and Consumer Commission (ACCC) on its proposed alliance with Air New Zealand (DAILY, April 11).
Continental, effective immediately, plans to charge customers who use its city ticket offices (CTO) a fee to conduct certain transactions. CTOs will assess a $10 service charge per transaction when customers purchase tickets or change reservations for existing tickets where change fees are not assessed. "The fee is competitive and in line with those charged by most travel agencies," the airline said. Continental customers who purchase or change tickets via continental.com or at an airport ticket counter will not have to pay the fee.
Air-India will go ahead with its proposed plan to acquire small-capacity, short-range and medium-capacity, long-range aircraft once a decision is made on the aircraft types, despite reports to the contrary.
Switzerland flag carrier Swiss is expected to announce further cost-cutting measures at its shareholder's meeting next week, after two banks last week withdrew its credit line, and the government warned it would not provide any more state aid. Switzerland's government is the airline's largest shareholder, injecting 20.5% of the capital to create the airline following Swissair's grounding in October 2001.
The union representing FAA air traffic control technicians claims inadequate staffing contributed to a large number of flight delays after a radar failure at Chicago O'Hare Airport Monday, but FAA says additional staffing would have made no difference.
DHL Airways yesterday unveiled plans to move its corporate headquarters from Chicago to Miami to accommodate several senior executives. Effective May 15, the company will start corporate operations at One Biscayne Tower in downtown Miami. "We have restructured the management team for DHL Airways and given the geographic locations of several of our members, it just makes good sense to relocate our headquarters location," said CEO John Dasburg.
Midwest Airlines this week discontinued its short-term policy allowing customers to change travel plans without paying the standard change fee. Customers had been allowed a one-time change if their travel plans were affected by military action or a Homeland Security Department issuance of a Level Red Alert. -SL
Continental VP-Sales June Bennett will retire from the airline after 20 years service. "At this point, however, I have new goals with one being to spend more time with my family," Bennett said. She started her career in 1983 as a senior sales manager in Denver and held positions of increasing responsibility throughout her tenure at the airline. She became VP-sales in January 2000. Dave Hilfman, VP-sales and reservations, will assume Bennett's responsibilities.
FAA this week announced plans to assess a $60,000 civil penalty against Delta for allegedly violating DOT hazardous materials regulations nearly two years ago. FAA alleges that on June 16, 2001, Delta "improperly offered" a fiberboard box with nine aerosol cans containing penetrating lubricant, spray grease, insecticide and epoxy coating to FedEx for air transportation. Ground-handling employees at the FedEx sort facility in Fort Lauderdale discovered the shipment was leaking.
Continental plans to boost its service to Hawaii, adding a daily non-stop flight between Houston and Kahului, Maui effective June 28. The carrier will use a Boeing 767-400 configured for 35 BusinessFirst and 200 coach seats for the new service.
