Delta CEO Leo Mullin, acknowledging that airlines must further cut costs, this week again urged the government to lower taxes and pay for aviation security costs to help the industry recover. "I believe that Delta will survive and ultimately even thrive," he told the Economic Club of Chicago. "Moreover, the same is possible for the rest of the industry that is currently solvent." But Mullin believes recovery is only possible if airlines follow his three-point plan.
The Aircraft Mechanics Fraternal Association (AMFA) is raising safety concerns about Mesaba's inspection practices after the carrier furloughed 11 Quality Control Inspectors at line stations in Minneapolis, Minn., and Detroit, Mich. AMFA claims Required Inspection Item (RII) staff lack proper training to inspect complete aircraft. FAA told AMFA it has no safety concerns about Mesaba's inspectors and has approved changes at the line stations.
Varig and Tam will now code share on the busy Rio/Sao Paulo shuttle, as well as other heavily-traveled Brazilian domestic routes between Rio and Sao Paulo and Belo Horizonte, Curitiba, Brasilia and Porto Alegre, a first step in their planned joint venture.
Irish no-frills carrier Ryanair plans to close down its new subsidiary Buzz, if staff do not agree to new work rules and pay suggestions within two weeks. In that case, Ryanair said yesterday, it will take over part of the Buzz route network as of May 1, having won all of its slots at London's Stansted airport. Ryanair claims Buzz's financial situation is precarious, with the airline losing more than 1 million euros (US$1.079 million) per week and having lost around 30 million euros (US$32.38 million) last year.
Rep. James Oberstar (D-Minn.) plans to introduce an amendment to the AIR 21 FAA reauthorization to help airlines with fuel cost relief, and to give carriers more time to tap the $10 billion federal loan guarantee program if the U.S. goes to war with Iraq. He told The DAILY AIR 21 should be a Transportation Committee priority and could be accomplished by the end of March.
The European Commission yesterday proposed to scrap so-called nationality clauses from air agreements with non-EU countries, but backed off from earlier plans to try to abolish all bilateral open-skies deals.
Airbus Industrie recently lifted the large metal roof in place for its new A380 final assembly building in Toulouse. The roof-lift -- the roof was hoisted in a single piece to its final height of 151 feet at a rate of less than one mile per hour -- is a first for a structure of its size and weight, the company said. The roof measures 377 feet by 820 feet and weighs about 7,500 tons.
Spanair expanded its contract with Lufthansa Technik Malta to include all C-checks for its Airbus fleet. Spanair is adding six aircraft this year and projects adding between 33 and 45 jets during the next several years.
British Airways is looking at its Concorde operation as business travel dwindles in the economic slump. "The business market is quite tough," said BA spokesman Richard Goodfellow. BA hasn't said when it might scrap its Concorde fleet, saying the review was continues. The carrier stressed that no safety issues are part of the review. "It's much more about the commercial side," Goodfellow said. The airline flies five of its seven Concorde aircraft to New York daily Sunday-Friday, and offers one flight on Saturday to Barbados. -LR
Lufthansa plans to introduce a fuel surcharge on passenger services, boosting fares by about 4.5% "as soon as possible," the airline said. KLM yesterday announced plans to add a $10 roundtrip surcharge on European flights and a $20 fee to its intercontinental flights (DAILY, Feb. 26). KLM and Lufthansa were the first European carriers to initiate a fuel surcharge. Jet fuel spot prices in Rotterdam have risen some 75% since mid-November. -MT
Rolls-Royce has launched a website specifically targeted to its business in North America. The site, http://www.rolls-royce.com/northamerica, offers information about North American facilities and contact details, joint venture profiles and career opportunities. Rolls-Royce has more than 8,000 employees based at 78 sites in the U.S. and Canada.
American recently expanded the use of self-service check-in kiosks at U.S. domestic airports across the system. Self-service machines were recently introduced in Colorado Springs, Oakland, Portland and Kahului. Additional machines also have been installed in Boston, Fort Lauderdale and Chicago O'Hare. Including the additions, AA has 632 machines installed systemwide at 79 airports.
A year after moving to its Detroit WorldGateway terminal, Northwest is finding its one-time rates are rising strongly and customer complaints are down. The main terminal, with 66 jet aircraft gates, connects to a commuter concourse with eight jet gates and 25 commuter aircraft gates. The entire complex is a mile long and covers about two million square feet.
Northwest proposed extensive concessions for its pilots that would roll wages back to pre-1996 levels, provide scope relief, and alter work rules and benefits. The Air Line Pilots Association's (ALPA) Northwest unit is expected to release a detailed summary of the proposal today, but an ALPA spokesman told The DAILY the wage cuts "are in the ballpark" of 20%. Northwest also wants "considerably more flexibility" in the regional jet limitations in the contract, the spokesman said.
The Association of Flight Attendants (AFA) yesterday gave United a concession proposal worth about $1 billion over six years, which AFA says will lower United's flight attendant costs to the level of lower-cost carriers. The proposal includes wage, work rule, and scheduling changes. The current contract includes a clause tying flight attendant wages to an industry average, but AFA said its proposal would "enable the airline to operate even more efficiently." AFA has already agreed to interim concessions, but permanent cost reductions are being negotiated.
Alaska Airlines this spring plans to launch daily service from Seattle to Orlando, the airline's sixth transcontinental route and second Florida destination.
EasyJet's average yields dropped 6% during the past few months, reflecting the low fare airline's strategy to boost traffic by lowering fares. In a regulatory filing easyJet said yields could be under further pressure and get in line with the reduction at rival Ryanair. Analysts expect yields to decline by up to 10%. The airline's Janaury load factor improved from 76% to 77.5%.
Unions have lodged a complaint against Austrian Airlines for using "cheap external labor," in breach of an agreement last year that said at least 43% of the group's operations should be carried out by AUA staff. Austrian Airlines hopes to cut costs by developing the operations of its lower-cost subsidiaries, Lauda Air and Tyrolean Airways.
TAME, Ecuador's air force-operated commercial airline, cut several flights due to shortage of equipment as two of its Boeing 727s and one Fokker aircraft are being overhauled. The government has yet to earmark funds for fleet expansion, nor has a private partner found been to partially privatize the carrier. Flights from Ecuador to Lima and Havana have been temporarily suspended. Domestic flights from Guayaquil to Cuenca and Loja were suspended, and the noontime Guayaquil-Quito flight stopped flying due to insufficient traffic.
Airborne Express pilots warn the cargo carrier may face strikes as early as this summer if prolonged contract negotiations are not resolved. The Teamsters union says Airborne pilots have been working without a contract for 18 months.
