Belgium's SN Brussels Airlines and American will code share on American's daily Brussels-Chicago frequency, as well as on a number of connecting services in the U.S., starting this summer, the Belgian carrier said. In return, American will code share on European and African routes from Brussels operated by SN Brussels Airlines. "This first transatlantic destination marks a milestone in the company's development," said the Belgian carrier, which was created one year ago.
Continental's systemwide unit revenue in February is estimated to be between flat and down 2% from last year, as the mainline load factor sank 3.2 points to 68.9%. Breakeven load factor, however, was roughly 83% and is estimated to be 75% in March. The actual domestic load was 71%, and the international flights were nearly 66% full. Traffic in February was down 6.6% on a capacity decrease of 2.3%, compared with last year. Essentially all of the systemwide ASM decline was due to the winter storm around the U.S. Presidents' Day holiday.
Thomas Cook AG has taken delivery of the first Airbus A320 with the Thomas Cook livery. Thomas Cook Airlines Belgium will operate the CFM56-B4-powered aircraft from Brussels Zaventem Airport to holiday destinations in the Mediterranean.
United, for the second month in a row, had the best on-time arrival performance of the U.S. major carriers in January, but also lost the most bags during the same period. According to the latest DOT Air Travel Consumer Report, the major airlines posted an average 84.9% on-time arrival rate in January, better than the same month last year and December's 78.3% performance. United had the best rate in January at 88%, followed by Southwest at 87.5% and American at 86.3%. America West had the lowest rate of on-time arrivals at 77.8%.
AirTran plans to expand its burgeoning West Coast service with summer launch of flights from Atlanta to Los Angeles and Las Vegas with wet-leased Airbus A320s. The announcement was expected after President Bob Fornaro told analysts in January the airline would start service to the two cities to balance its Florida flying, which is weaker between August and October (DAILY, Jan. 29). The Los Angeles flights will start June 4 and the Las Vegas service June 11.
Bolivia's aviation fuel prices, as of Feb. 26, increased from $1.45 to $1.50 per gallon, reflecting the latest quotations per barrel in the international market. This is expected to generate protests from labor unions and airline passengers, if ticket prices are raised again.
Colombia's Summa Alliance (Avianca, subsidiary SAM and Aces) reports the group posted a record 92.7% on-time performance in January. Summa's on-time performance for 2002 was 84.2%, and its 2002 market share was 62.3% domestically and 50.4% internationally.
Argentine domestic carrier Dinar was forced to cancel all flights and left dozens of passengers stranded, blaming the government's commercial aviation authority (TAN) for systematically delaying flight authorizations. Industry analysts referred to the carrier's financial, legal, equipment and labor troubles as probable cause. Aerolineas Argentinas, Southern Winds and LAPA, in an agreement with Dinar and TAN, have agreed to operate provisionally on Dinar's routes from Buenos Aires to Salta, Jujuy and Tucuman. -LZ
US Airways missed payments on 23 Airbus aircraft worth about $44.5 million, the airline said yesterday. Last month, the airline failed to make payments of $19.7 million on five Airbus A330s (DAILY, Feb. 24). Airbus said its share of the financing of the 23 aircraft was 15%, and the payments would be recovered as part of the reorganization of US Airways. The airline said it expects to reach agreements on the payments during the five-business-day cure period. -LR
Even though Rolls-Royce's engines went from being on four civil airframes in the late 1980s to 30 in the 1990s, "over the next decade we're simply not going to see that pace of new product entry," allows CEO John Rose. The aftermarket represents 44% of sales versus 25% for civil original equipment sales.
Spain's Spanair intends to return to Latin America after joining the Star Alliance on April 1. Carrier President Gonzalo Pascual said, "The time has come to take a new look" at some Latin American markets like Brazil, Argentina and Cuba. Spanair already has code-sharing agreements with Varig and Aerolineas Argentinas.
Austrian Airlines will increase fares 5% on March 15 to compensate for increased fuel prices. The airline will exclude promotional campaigns on routes to Germany, the U.K. and Ireland from the increases. Austrian hedged half of its monthly fuel needs until the end of April and one-third until the end of the year. Without the hedging policy, it would have been forced to raise fares earlier and more significantly, the airline said. -JF
Formerly bankrupt Aerolineas Argentinas (AR) posted a $13.2 million profit for 2002, despite Argentina's monetary devaluation and economic depression. Revamped under a consortium led by Spanish groups Marsans and Air Plus, the former flag carrier renegotiated its debt at a 36% discount, and had its bankruptcy protection status lifted last October.
The redistribution of Air Lib's 48,000 slots at Paris Orly Airport will start March 5, said the Comite de Coordination des Horaires (Cohor), the French slot allocation authority. Redistribution is expected to last about one month and will begin regardless of the outcome of Air Lib's latest appeal, Cohor said.
Japan Airlines will have to wait until June 15 to start its code-share flight with American on the Tokyo-Los Angeles route that was originally scheduled to launch April 2 because AA has not finished its marketing plans for the route.
U.K. Secretary of State Alistair Darling last week reissued a set of alternatives for airport expansion in the Southeast, and has added options for one or two new runways at Gatwick Airport. The move came in response to a High Court ruling that new Gatwick runways could not be excluded from the original alternatives. Options for expansion at the other Southeast airports, and a new airport at Cliffe, have not been changed. The consultation period was extended to June 30.
US Airways General Counsel Michelle Bryan plans to resign from her position shortly after the airline emerges from bankruptcy protection on March 31. Bryan served 20 years with the airline and also was executive VP-corporate affairs. Bryan did not say why she is leaving the carrier. Her replacement will be Elizabeth Lanier, who held a similar position at Trizec Properties, one of the largest commercial property investment companies in the U.S. -SL
The Air Line Pilots Association said Northwest's proposal for pilot concessions represents a 37% reduction in pilot costs and would be worth about $442 million in annual savings. Under Northwest's 6.5-year proposal, pay rates would be reduced 17.4% from current levels, and a 5.5% increase scheduled for Sept. 12 would be canceled. There would be no increase until July 1, 2006, when an annual 2% raise would begin.
Hill lawmakers and lobbyists say they will fight to continue the small community air service pilot program, whose funds were zeroed in the Bush Administration's fiscal 2004 budget proposal. Todd Hauptli, senior VP-legislative affairs for the American Association of Airport Executives (AAAE), said yesterday airport lobbyists will push for more than the $20 million appropriated in fiscal 2003.
British Airways and Virgin Atlantic lashed out at a U.K. Civil Aviation Authority (CAA) decision to relax price controls at London-area airports, but airport operator BAA says the move will enable the construction needed to accommodate traffic growth.
The American Federation of Government Employees (AFGE) yesterday unveiled a new chapter for TSA baggage and passenger screeners, although how much power it will have in dealing with the agency will not be known until a number of legal challenges are resolved. AFGE President Bobby Harnage said he would serve as interim president of the new Local, which will cover all screeners nationwide. The White House declared screeners will not be allowed to engage in collective bargaining, but AFGE has challenged that position in court.
The Civil Aviation Safety Authority of Australia (CASA) has asked Virgin Blue to conduct refresher training on visual turnaround inspections for its pilots, after concluding they weren't following the proper procedures. CASA made the discovery during a recent audit and ongoing surveillance of the carrier. "Part of the problem is Virgin Blue's short turnaround times and pilots being pressured to rush inspections," CASA spokesman Peter Gibson told The DAILY. "Virgin Blue has moved very quickly to address the problem, and we are happy with their response."
Lufthansa's maintenance, repair and overhaul subsidiary Lufthansa Technik has taken a majority stake in Condor/Cargo Technik, the Frankfurt-based maintenance firm specializing in Boeing 757, 767 and MD-11 work. LHT will hold 90% in the company, while Thomas Cook's share will be reduced to 10%. Thomas Cook is the parent for Condor Flugdienst, Lufthansa's former charter carrier now flying under the Thomas Cook livery. Condor/Cargo Technik's work base comprises about 60 aircraft, among them the Condor 757s/767s and Lufthansa Cargo MD-11s. -JF
