Swiss International Air Lines, taking drastic steps to cut costs and stem losses in the face of an abrupt traffic slump, will ground 20 aircraft, cut 700 jobs and drop service on more than 20 routes, mainly from its hubs in Zurich and Basel. In an announcement late Tuesday after the close of the Zurich stock market, the carrier also made clear that -- contrary to prior forecasts -- it won't break even this year. Swiss confirmed earlier this month that deep restructuring was in the works (DAILY, Feb. 7).
Mexico's national air transport chamber (Canaero) is working jointly with the federal department of transportation on a master plan for Mexico City's new international airport, to be completed by the end of 2005, the agency said.
The Phillippines' Department of Transportation and Communications (DoTC) has recommended the government revoke Laoag International Airlines (LIA) air operating certificate, as investigations into a crash last November revealed the engines were starved of fuel. DoTC also said the carrier has failed to comply with safety regulations.
America West yesterday unveiled an employee cash incentive program in an attempt to further boost its operational performance. "While our service levels and reliability have improved dramatically, we all know there is always room for improvement," Jeff McClelland, executive VP-operations, said in a letter to staff.
Effective immediately, SIA passengers in all three classes can choose to watch the latest Hollywood hits in up to four languages, including English. Previously there were two language choices. The expanded language option varies from film to film, and includes German, French, Italian, Japanese, Spanish, Korean and Mandarin. Besides the expanded language option, the airline's customers can also enjoy movies "on demand," allowing them to pause, fast-forward or rewind a movie anytime, and select and compile music CDs of their choice.
Orbitz displays more airline choices and almost three times more "valid" flight itineraries per search, according to a new Orbitz-backed study to be released today by two Massachusetts Institute of Technology professors.
FAA certified a new UPS Aviation Technologies product that will enable the UPS fleet to be the first equipped with an automatic dependent surveillance-broadcast (ADS-B) traffic display system. The Cockpit Display of Traffic Information (CDTI) system adds the capabilities of ADS-B to the traffic alert and collision avoidance system (TCAS) that is already used extensively in airline fleets. The CDTI system will enable pilots to use the Wide Area Augmentation System (WAAS) signal when it becomes available later this year.
New voices in Latin America's two largest markets joined those of public and private officials who foresee disastrous effects of a war in Iraq on their already beleaguered airlines.
LSG Sky Chefs subsidiary LSG Asia recently signed a 30-year contract for a new customer service center in Sanya, Hainan, China, with joint venture partners Sanya Phoenix International Airport Co. and Hainan Airlines Group.
Santa Barbara Airlines plans international expansion with new flights to Lima, Peru; Miami, and Bogota and Quito/Guayaquil. Carrier President Francisco Gonzalez said Santa Barbara switched airports at its main destination, Tenerife in the Canary Islands, to Los Rodeos, in the northern part of the island, to cater to passenger demand. He also reported a 60% load factor on the weekly 325-seat DC-10 flight from Caracas to Tenerife, and plans to create first-class service on the route.
After almost five years in operation, Kuala Lumpur International Airport's (KLIA) baggage system will be upgraded because of several breakdowns over the past six months that have caused delays to outgoing international flights. Transport Minister Ling Liong Sik said approval from the Treasury is expected any time, and a restricted tender will be called immediately. Bidding will be opened to local and foreign companies.
Lockheed Martin said the U.K.'s National Air Traffic Services (NATS) will be a major subcontractor in Lockheed's $32 million project to modernize Albanian airspace. NATS will provide its expertise in capacity gains and airspace restructuring. NATS will also link the Albanian air traffic system to other airports in the region, build a new control tower at Tirana airport and a new control center, train Albanian controllers and engineers, forecast air traffic and assess operations.
FAA last week proposed a $75,000 fine against Bloomington, Minn.-based Grand Holdings Inc. after the agency found that its charter airline subsidiary Champion Air failed to maintain a tracking system for maintenance issues. FAA requires tracking as part of its Continuing Analysis and Surveillance Program (CASP). The agency said it discovered more than 160 open and overdue discrepancies on formal audits. Champion flies 12 Boeing 727-200s.
AtlanticJet, a proposed startup airline based in Hartford, Conn., indefinitely postponed plans to launch transatlantic flights this summer from Hartford Bradley Airport to London Stansted.
British Airways cut one of two daily flights to Dubai and the daily service to Muscat/Oman after the U.K. Foreign Office advised against nonessential travel in the region. The airline will also route flights to Kuwait, Abu Dhabi, Doha, Dubai, Jeddah and Riyadh via Cyprus so that flight and cabin crew will not have to stay overnight in those cities.
Europe's third largest airline, Lufthansa, asked Boeing to look at developing a bigger, more modern 747-400, as the airline starts looking at its long-term fleet plans. "We would like to see a stretched version of the 747, somewhat lower operating cost and incorporating some systems changes," Lufthansa's Senior VP- Corporate Fleet Nico Buchholz told The DAILY. The airline expects it would need a 450-seat aircraft with the same range as today's -400.
SilkAir ordered International Aero Engines (IAE) V2500 medium turbofans to power four Airbus A320s and two A319s on order, with options to power two additional A320s. The order is worth about US$100 million. SilkAir is the regional subsidiary of Singapore Airlines, and plans to fly the aircraft on routes to China, India and Indochina (DAILY, Oct. 16, 2002).
Boeing's 777-300ER began flight-testing yesterday after delays in start dates for testing and deliveries prompted by customers sliding orders under economic pressure. A scheduled three-hour flight from Everett, Wash., to Boeing Field in Seattle kicks off a 1,600-hour -300ER flight-test program. Testing was originally scheduled for completion in October, but Boeing pushed that to the first quarter of 2004. "Customers requested delivery changes," said Boeing 777 Long Range Program Manager Lars Andersen, "so we modified the test program."
Swiss International Air Lines plans to disclose severe cost-cutting measures at a press conference scheduled tomorrow morning. The airline's board of directors meets today to discuss ways of reducing mounting losses. The airline, as reported in The DAILY, is understood to be looking at reducing the work force by up to 1,000 and grounding 15 aircraft from the European fleet.
IATA has suggested the Thai government extend the two runways being constructed at the New Bangkok International Airport (NBIA), though airport officials say an extension would further delay the airport's opening. The runways currently under construction will be 60 meters wide and 3,700 meters long, and will be separated by 2,200 meters. IATA asked that the runways be extended by 300 meters to 4,000 meters, which would be safer and enable the airport to handle bigger aircraft, like the Airbus A380, which goes into commercial service in March 2006.
Lufthansa is enjoying a massive boost in passenger numbers in its domestic system, after the airline late last year introduced a revamped fare structure along the lines of low-fare airlines. The carrier's head of network management and marketing, Ralf Teckentrup, told The DAILY in Frankfurt that January passenger numbers were up by 300,000, or almost 30% on average. On some routes, the increase was more than 100%.
