United last week expanded its code-share link with Star Alliance partner Mexicana by placing the Mexicana code on five weekly United flights between Miami and Buenos Aires. The code-share flights opened for sale Feb. 6, and will begin operations Feb. 22. The code share will expand to daily service as soon as United receives approval from the Argentine government. This cooperation is United's first code share into Argentina.
Merrill Lynch analyst Michael Linenberg, "disheartened," dropped Air Canada ratings from Buy to Sell, citing worries the airline's steady year-over-year operating loss improvements may have stalled. Many had hoped Air Canada would "lead the U.S. carriers to recovery, given its much stronger domestic position," Linenberg says.
The White House proposal to draw a higher percentage from the aviation trust fund every year to cover the FAA budget would cut the fund's surplus from $4.6 billion in fiscal 2003 to $1.2 billion by 2008. DOT Deputy Secretary Michael Jackson says this will "squeeze more value" from the fund, reasonably and carefully.
Sen. Ron Wyden (D-Ore.) plans to introduce legislation to make sure DOT Inspector General Kenneth Mead keeps an oversight role for the Transportation Security Administration while it moves to the Homeland Security Department. Wyden says TSA "cannot have a vacuum of oversight," especially given the close eye the IG has kept on TSA's costs. TSA head Adm. James Loy doesn't object.
Let's Work Together For Airline Recovery By Captain Jon G. Safley, President, Coalition Of Airline Pilots Associations In times of crisis, all elements of our nation need to work together. Nowhere is this truer than in the airline industry. However, rather than promoting cooperation, a small group of airlines is trying to take advantage of the present crisis to destroy collective bargaining. This will be counter-productive and, unless stopped, will divide us when unity is what is needed.
FAA last week told operators of certain Embraer ERJ 135 and 145 regional jets to replace horizontal stabilizer control units (HSCU) to prevent reversing the pilot's pitch trim command. Brazil's airworthiness authority told FAA about the HSCUs after the pitch trim system malfunctioned during a -145 production flight test, and reversed actuation of the horizontal stabilizer surface. "Reversal of the pilot's pitch trim command for the horizontal stabilizer could result in reduced controllability of the airplane," FAA said.
Alaska Airlines last week became the latest U.S. major carrier to starting testing a more simplified fare structure that aims to bring business traffic back to the airline.
CanJet Airlines plans to extend its Halifax-St. Petersburg, Fla., service until May 31, about a month longer than planned. "Customer demand for our Halifax-St. Petersburg nonstop service has been overwhelming, and we have literally received hundreds of requests" to extend its schedule beyond the original May 3 date, said Doug Newson, director of marketing and sales delivery. CanJet is a division of IMP Group Limited. -SL
JetBlue's January load factor grew 5.5% to 82.2%, despite an 80% jump in capacity. Last quarter, the average load factor was 81.8%. JetBlue had just over 5,000 departures in January, up 65% from January 2002. The completion factor was 99.9%, and on-time performance was 80.4%. The airline also reported online sales in January were 71% of its total, the first time JetBlue's online sales surpassed 70% and the highest rate for any U.S. airline. -SL
Cape Air based in Hyannis, Mass. has signed its first code-sharing agreement with Continental Airlines. The carrier is flying as Continental Connection on routes in Florida including Tampa-Sarasota, and Tampa-Fort Myers. Cape Air flies about 49 Cessna 402s. -LR
Loy reports the FY2004 budget covers 59,000 positions in TSA, including air marshals. He projects 29,800 passenger screeners and 18,300 baggage screeners on the agency's payroll by the end of that year.
The European Regions Airline Association says its members fly 1,332 aircraft, reporting in its annual fleet summary that Embraer ERJ145s top the list at 126. That's followed by 99 Fokker 50s, 72 Bombardier CRJ100s and 67 Bombardier Dash 8 Q300s. ERA bases its estimates on Airclaims data.
AirTran recently entered into fixed-price jet fuel contracts for an additional 35% of its estimated fuel needs for February through April, at a price no higher than $1.10 per gallon.
Boeing believes the hardest part of designing and selling its new 250-seat 7E7 aircraft may be making sure the plane has enough staying power to be an effective competitor in 30 years, says CEO Phil Condit.
Boeing delivered only half as many airplanes last month as it did a year ago, handing over 15 aircraft in January -- five 737-800s, five 737-700s, three 767-300ERs, one 717-200 and one 777-200ER. The airframer delivered 30 airplanes in January 2002.
Air France and Alitalia have acquired minority stakes of 2% in each other, the airlines reported. Financial details of the deal, already been approved by the airlines' supervisory boards late last year, were not disclosed. The airlines are partners in the SkyTeam alliance. "The cross-equity scheme, together with the existing reciprocal representation on their boards of directors, reflects the determination of Alitalia and Air France to build a long-term partnership," Air France said in a statement. -JF
Cathay Pacific Cargo, Japan Airlines Cargo, Qantas Freight and Singapore Airlines Cargo last week said they plan to expand their e-business capabilities by partnering with a new Internet-based cargo portal dubbed Air Cargo Exchange. Customers from a single location will be able to make allotment and free-sale bookings, conduct tracking and tracing, and review flight schedules on the four carriers.
Delta this summer will boost Atlanta-New York Kennedy capacity significantly to add flights at the beginning and end of the day. The airline on June 1 will start five flights, for a total of 10 daily frequencies between the two cities. The additional flights will be operated by Delta Connection carrier Comair, using Bombardier CRJ regional jets. -SL
Northwest's mechanics union is willing to listen to a concession request, but says the airline faces a tough task in persuading mechanics to agree to its proposal. Northwest recently said it wants meetings with all its unions to talk about contract restructuring, although no details of the proposal have been announced. The Aircraft Mechanics Fraternal Association (AMFA) said its reaction will be influenced by what it believes are "broken promises" by the carrier.
Air Canada, yesterday reporting a C$364 million (US$239 million) fourth-quarter loss, revealed plans to sell large minority stakes in its technical service and ground-handling businesses, and hinted it might sell its wholly owned regional carrier.
NTSB asked for $71 million in federal funding for fiscal 2004, up slightly from $70 million requested in 2003. Aviation safety will garner about $20 million. Twenty million was set aside for policy and direction. Surface Transportation safety projections are $14 million and research and engineering has been allotted $11 million.
Northwest plans to start seasonal service between Minneapolis/St. Paul and Portland, Maine, beginning June 21. Northwest regional partner Pinnacle Airlines will operate the flight twice daily by affiliate with a 50-passenger Canadair Regional Jet. The daily service will end Sept. 1, but Northwest will continue through Sept. 1, but Saturday-only service will continue until Oct. 18. -SL
More than 300 family and friends of the 88 victims of Alaska Airlines Flight 261 gathered last week at Port Hueneme, Calif., to dedicate a memorial sundial that will cast a shadow across a bronze heart at exactly 4:22 p.m. every Jan. 31, commemorating the exact time of the tragedy.
