Air Lib's management, unions, the French government and Dutch investment company Imca have reached an agreement over productivity increases and the reimbursement of the company's outstanding debt to the French state, sources close to the talks said. Imca now seeks to secure a favorable deal with Airbus for the purchase of 29 Airbus A319s to replace the company's less fuel-efficient McDonnell Douglas fleet. In the meantime, the French Transport Ministry again extended Air Lib's operating certificate, until tomorrow. -MT
JetBlue topped U.S. airlines in fourth-quarter on-line bookings, which soared 17.3 points to 68.6% of all tickets booked through jetblue.com. A promotion of its TrueBlue frequent flyer program offering double points for online ticket bookings drove much of the growth. Only seven months old, TrueBlue has more than 480,000 members.
United parent UAL Corp., one day after management received unanimous support from its board on its new recovery plan, reported on Friday a dismal $1.5 billion loss for the quarter and a $3.2 billion deficit for the full-year, including special items.
Atlantic Coast Airlines (ACA) is still being paid at rates it negotiated with United in 2002, while the carrier's unit costs on regional jets are rising after a drop in aircraft utilization. CEO Kerry Skeen told analysts last week in New York the average daily utilization of the jets has fallen from 9.8 hours to 9 hours. "We should be covered for the rise in unit costs," Skeen said. "If we don't get relief, our results could be hurt." Continuing to fly at 2002 contract rates makes it difficult to recoup escalating expenses, he stressed.
Passenger traffic would increase dramatically and transatlantic fares would drop with creation of a European Union-U.S. open aviation area, according to a report commissioned by the EU. The report, from the Brattle Group, contends the area would boost transatlantic traffic 24%, up to 11 million passengers a year. Intra-European traffic would rise 14%, or 35.7 million passengers a year, the report said.
Delta on Friday launched its new daily nonstop service between Washington National and Salt Lake City, after years of attempting to win slots to start the service. The carrier is operating a single roundtrip flight on the route with a Boeing 757. DOT in December awarded Delta the highly coveted beyond-perimeter slots that were up for grabs after National Airlines ceased service (DAILY, Dec. 2). Seven airlines applied for the slots, but DOT ruled Delta's proposed service would "provide network benefits and increase competition in multiple markets." -SL
Mesa Air is expected to take delivery this week of its first Bombardier CRJ900 to operate for America West in shuttle markets to California. Mesa will be the North American launch customer for the two-class 86-seat RJ. Mesa began flying the 70-seat CRJ700 last October.
Northwest's pilots union says the airline will have to wait for a response to its request for contract restructuring, but flight attendants say they would not consider a similar request. The Air Line Pilots Association (ALPA) said Northwest has requested a series of meetings to discuss contract restructuring. No details of the proposal were given, but an ALPA Northwest spokesman said more information should be available within weeks.
FAA has spent $69 million on national airspace redesign to date and plans to spend $35 million a year between fiscal 2003 and 2008. Officials estimate total user savings at $117 million a year now, rising to $364 million a year by 2008.
Brazil's Varig and its tour subsidiary Varig Travel, in conjunction with charter companies, will start operating next week from Brazil to seven resort destinations beyond Buenos Aires. The points are Salta, Mendoza, Puerto Madryn, El Calafate, Ushuaia, Bariloche and San Martin de los Andes. Supported by a $468,000 promotional budget, Varig hopes to carry 10,000 vacationers to Argentina during the southern fall season under an all-inclusive tour program called "Total Argentina," being sold through 2,700 travel agencies in Brazil. -LZ
FAA approved low-visibility flights for American Trans Air at Chicago Midway Airport. ATA's Boeing 737-800s and -300s are equipped with auto flight systems and head-up guidance systems that reduce runway visual range of 3/4 of a mile to 5/8 of a mile.
Air France Group expects to cancel 15% of its flights from Feb. 2 to Feb. 5 because Syndicat National des Pilotes de Lignes (SNPL), the majority pilot union, is joining a strike called by two smaller unions in support of their pay demands. Air France reopened talks with unions on Jan. 22, after an agreement negotiated last autumn with SNPL was rejected in a referendum by 83% of pilots.
Iberia ordered nine Airbus A340-600s to replace its fleet of six Boeing 747-200s, and it holds options on another three, the Spanish airline said last week. The first three A340-600s will be delivered in 2004, with five to follow in 2005 and the ninth in 2006. The agreement with Airbus "allows a significant improvement of Iberia's profitability on long-range operations," the airline said. The 777 had also been considered. -MT
Alaska Air reported another fourth-quarter loss, but said it is beating industry averages in performance indicators and has a "strong cash position." The airline's net loss, including special items, was $43.1 million for the fourth quarter 2002, compared with a $37.4 million net loss for the same period a year ago. The loss was $63.9 million without the special items. For the full year, Alaska lost $118.6 million including special items. The airline finished the year with $636 million in cash and securities, and a debt-to-capital ratio of 77%.
To list an event, fax information to Donna Thomas at 202-383-2438. (Bold type indicates new calendar listing.) FEB. 4-6 -- Flight Safety Foundation, SAE Aerospace, North American Aviation Safety Conference, Westin Peachtree Hotel, Atlanta, Ga., 1-877-606-7323, www.sae.org/aviationsafety FEB. 9-11 -- Helicopter Association International HELI-EXPO 2003, Dallas Convention Center, Dallas, Texas, 703-683-4646, email [email protected], www.rotor.com
The Coalition of Airline Pilots Associations (CAPA) said last week it is considering taking legal action against a Transportation Security Administration rule giving it the power to revoke an airman certificate if the holder is deemed a security threat.
Air Transport Association's new CEO Jim May starts his new job today with a strong mandate from the group's board to increase its focus on Congress and public policy concerns.
Departing ATA President Carol Hallett reports that by April a "full bore" Transportation Security Administration test will be in progress of its second-generation Computer Assisted Passenger Prescreening System (CAPPS II). Several airlines should be working with the system by yearend; Delta started testing CAPPS II in December.
