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.
Aviation Partners appointed Michael Marino CEO of its joint venture with Boeing, Aviation Partners Boeing. Colorado Springs Airport Director Gary Green will retire May 31, after 15 years of service. Ecuador's government named retired air force Col. Rafael Davila civil aviation director. Export-Import Bank former board member Dan Renberg has become a partner at Arent Fox law firm. Frontier Airlines named Gregory Aretakis senior director-planning and scheduling.
US Airways on Friday said it reached an agreement with Airbus to alter its orders for A330s and A320s. The carrier said it wants to replace current orders for one A330-300 and 37 A320s for 10 A330-200s and 19 A320s. A date to finalize the deal has not been set. Airline CEO David Siegel said the latest agreement demonstrated the great partnership US Airways has with Airbus. US Airways also is seeking relief from lease obligations for about 29 A320s in a motion filed with the bankruptcy court. -LR
The Association of European Airlines and Airports Council International (ACI) Europe asked their governments for a "stable framework of security and insurance measures in the event of a war or terrorist attack." They especially want the governments "to absorb the direct and indirect costs" of tightened anti-terrorist security stemming from a war, and demanded "decisive action" on third-party war and terrorism insurance. -MT
While United partners SkyWest and Atlantic Coast Airlines (ACA) ponder their fate over the next couple of months, Houston-based ExpressJet has rates set with Continental through 2004.
ExpressJet CEO Jim Ream told analysts in New York late last week that he doesn't foresee adding larger regional jets like the Embraer 170 and 190 to the airline's fleet of 30- to 50-seat Embraer regional jets. "It would mean almost moving to another fleet type," he said. Continental is also restricted by a scope clause agreement with its pilots.
In a surprising move, Ryanair Friday moved to buy KLM's no-frills subsidiary buzz for EUR23.9 million (US$25.7 million). By integrating buzz, Ryanair adds another 21 European destinations to its largest base at London Stansed Airport, 12 aircraft and about several million annual passengers. Separately, Ryanair also ordered 22 firm Boeing 737-800s and took options on another 78.
Norfolk, Va., Airport last week reported a 14.7% increase in passenger activity for December, with a total of 296,348 passengers. For the full year, NIA served a total of nearly 3.5 million passengers, up 17% from 2001. For the year, the airport handled 72.4 million pounds of cargo, up 14.1% from 2001. -SL
International Lease Finance Corp. seized a Boeing 777-2Q8ER from Varig Airlines for lack of payments. A court in Paris authorized the seizure at Paris Charles de Gaulle Airport. -LR
New York fuel spot prices ended last week at $0.95 per gallon, which had increased from the beginning of the week and up 64.0% from a year ago, according to Deutsche Bank Securities.
American found $4.7 million in savings from simple weight reductions on its MD-80 fleet. It will likely cut inflight phones, coach ovens, excess potable water and some galley equipment. Just shaving one pound can save more than $11,000 in annual fuel burn; an MD-80 500 pounds lighter can save almost $6 million, the airline told employees.
WestJet, in "growth mode," expanding about 50% per year, expects to continue boosting its network to Eastern Canada and plans to introduce flights to Montreal by yearend, according to CEO Clive Beddoe. Once its Canadian network is built, WestJet will start service south of the border.
The National Air Traffic Controllers Association won 24 Senators' signatures on a letter urging the White House to reverse plans to list air traffic control as a commercial activity. The letter will likely be sent this week after FAA's budget is released. NATCA is watching to see if the budget includes language advocating study of ATC privatization.
The Belgian parliament asserts Swissair was "directly and immediately responsible for the bankruptcy of Sabena" because it did not inject capital in the Belgian affiliate on Oct. 1, 2001, according to a just-released 323-page report, Swissair and former CEO Paul Reutlinger are slammed throughout the report for defending the Swiss carrier's own interests over Sabena's (DAILY, Jan. 30) and not consulting with Sabena's shareholders -- including the 50.5% shareholding Belgian government -- in decisions that were later damaging.
Brazil's financial airline crisis has turned up one bright spot -- smaller carriers are developing profitable niches in the void left by the majors as they downsize route structures. Of 10 regionals now operating, Pantanal, Total and Trip -- none of them household names -- have risen to the top.
US Airways yesterday submitted a plan to replace its existing defined benefit pension plan for pilots with a defined contribution plan that would involve investing $850 million during the next seven years. If the Pension Benefit Guaranty Corp. and the bankruptcy court approve, US Airways will start a 60-day clock to terminate the current plan on March 31, the day the airline hopes to emerge from bankruptcy protection. PBGC suggested it won't oppose the proposed replacement plan, US Airways CEO David Siegel said. -AS
Mexico's Pacific Airports Group expects the traffic to increase about 3% this year, based on the country's projected economic growth. Sister group North Central Airports estimates a 3.2% increase in passengers and 2.9% in operations. Southeast Airports did not quote specific figures but said traffic would recover meaningfully from 2002 levels. As for Mexico City Airport, a spokesman said optimistic estimates call for 2% growth in 2002, depending on the economy. -LZ
SkyWest Airlines and Comair increased Delta Connection flights from Salt Lake City to Albuquerque, N.M., Helena, Mont., and Santa Barbara, Calif., using Bombardier CRJs. SkyWest is adding one roundtrip to Albuquerque, and Comair an additional flight to both Helena and Santa Barbara. Delta and Delta Connection now offer three daily roundtrips from Salt Lake City to Helena and Santa Barbara, and five to Albuquerque. -LR
By Brad Bartholomew, President, The Newfoundland Group United and US Airways union employees face horrific choices. They can shed a third of their fellow workers; a third of their wages, benefits, work rules, and a portion of their pensions -- or their airlines will perish. These employees are now frantically trying to shove golden eggs back up their respective geese. It was just a few summers ago that their unions -- in an act of solidarity -- were urging these same workers to strangle their golden geese.
KLM will pay Alitalia EUR171.5 million (US$185.3 million) in compensation for canceling alliance plans, the Dutch carrier said Jan. 30 in Amstelveen. Last December, an arbitration court in The Hague ruled KLM owed Alitalia compensation. The payment does not jeopardize KLM's cash position -- which stands at EUR1.3 billion (US$1.4 billion) -- and will not affect KLM's current talks with the SkyTeam alliance, a company spokesman said. -MT
JetBlue yesterday reported a $15.2 million fourth-quarter profit, up 37.2% from last year, as it joined an elite group of U.S. low-fare airlines that have stayed in the black thanks to shrewd cost controls. JetBlue managed its growth carefully as its total departures soared 72% to 13,370 in the fourth quarter. The airline posted a $31.4 million operating profit for the quarter, resulting in an impressive 16.8% operating margin, more than double AirTran's 7.2% and Southwest's 6.3% margins. Every U.S. major airline has reported negative margins.
The top executives of Delta's main low-fare competition -- AirTran, Southwest and JetBlue -- yesterday all skeptically brushed off the recent marketing launch of its Song subsidiary, contending it will be unable to live up to its aggressive marketing and cost promises.
Runways may be even harder to build today than in years past, concludes a new General Accounting Office report. Submitted by GAO's Gerald Dillingham to House Transportation's aviation panel yesterday, the report said the time required averaged 10 years or less for runways already completed, but 10 years or more for 16 out of 17 not yet done. Airports blame familiar obstacles -- community opposition and environmental rules -- though partly through FAA's prodding, the report acknowledges a variety of streamlining initiatives launched in recent years.
