America West this week launched a new airport "Hub Club" membership product for its passengers. Hub Club members have access to all five club locations -- three in Phoenix, one in Las Vegas and one in Columbus, Ohio. A one-year membership costs $300, compared with $400 for a Standard Club membership. Either club product can be purchased for one-year or three-year terms. FlightFund Elite members can save $75 on the one-year individual rates.
Lufthansa has made a new pay offer to ver.di, the transport and service union representing ground and cabin staff, the airline reported. Talks resumed following a warning strike on Jan. 16, which grounded about 40 flights. -MT
United's pilots hinted they will fight any attempt by the airline to create a low-cost subsidiary. "We will oppose management's break-up plans by every lawful means available to us," Paul Whiteford, chairman of the Air Line Pilots Association's United unit, pledged yesterday. The airline is scheduled to unveil a detailed business plan today.
Senate Minority Leader Sen. Tom Daschle (D-S.D.) is forming a National Security Advisory Group, chaired by former U.S. Defense Secretary William Perry, to offer recommendations to the Senate Democratic Caucus on issues such as the war on terrorism, homeland security and the deployment of armed forces at home and abroad.
American expanded the number of self-service check-in kiosks at domestic airports across its system. The carrier recently introduced machines in Baltimore/Washington; Lubbock, Texas; Madison, Wis.; Pittsburgh, and Ontario, Calif. Additional machines were installed in Atlanta, Orlando and St. Louis. American now has 601 self-service units in 75 airports systemwide. -SL
UPS this week reported a $670 million fourth quarter profit, up nearly 4% from the year earlier thanks to strong international results. Revenues grew 3.3% to $8.26 billion and operating profit jumped 4.4% to $1 billion, excluding one-time items. Operating profit specifically for the international division more than doubled as export revenue climbed 20%, compared with the prior year. Revenue and operating net income for the non-package segment increased "substantially" after excluding non-recurring items.
Revamped Aerolineas Argentinas last week won a court injunction against the National Appeals Chamber resolution backing Aeropuertos Argentina 2000's position that airport fees and taxes should continue to be charged in dollars. Aerolineas maintains airport fees and taxes should continue to be charged in pesos.
Thai Airways International and Myanmar Airways International will each fly 23 frequencies per week between Bangkok and Yangon, the capital of Myanmar, under a new code-sharing agreement. The increased frequencies begin Feb. 1 without restriction on aircraft type. Currently, Thai operates twice-daily flights using an Airbus 300-600, while Myanmar Airways flies daily service with a Boeing 737-300. -WD
LanChile subsidiary LanEcuador has yet to receive U.S. DOT authorization to start service to the U.S. on March 1, putting a kink in LanChile's plans for mass expansion through its subsidiaries, according to reports in DAILY affiliate AvNews Latin America & Caribbean. DOT has not given authorization because it does not accept ownership and control by non-nationals of both countries.
Atlantic Coast Airlines yesterday reported a slim $970,000 fourth quarter net loss, including one-time items, which equaled its $1 million deficit of the period last year. The results included $21.5 million in pre-tax charges for its continuing turboprop early retirement program, $2.6 million in bad debt expense attributed to the potential write-off of net amounts due to United's bankruptcy filing, and $1.8 million in credits from the reversal of accruals from prior periods for estimated costs under the company's code share deals.
In March Grupo TACA will increase to six frequencies on the Lima/Sao Paulo route, adding one flight on Saturday to those on Monday, Tuesday, Thursday, Friday and Sunday with Airbus equipment. Connections will be available at TACA's Lima hub to the U.S., Central America, Mexico, Caracas, Quito, Guayaquil and San Jose. -LZ
Erik De Vlieger, CEO of Dutch investor Imca said yesterday his company no longer intends to invest in Air Lib, the troubled French carrier. De Vlieger's statement came the morning after a meeting with the company's trade union representatives. "The response I got was unacceptable," wrote De Vlieger in a letter to Air Lib's personnel. "You have led me to decide to leave. And I must say very clearly that some of you bear the full responsibility of this," he added.
Observers expect a Belgian parliamentary report today to slam Swissair as the main culprit in Sabena's collapse, further fueling legal challenges from both the Belgian government and Sabena curator Christian van Buggenhout. Most of the defunct carrier's Belgian stockholders already blamed 49.5% stakeholder Swissair for Sabena's demise. Belgium is now suing Swissair for EUR2 billion (US$2.2 billion), while van Buggenhout plans to claim EUR2.4 billion (US$2.6 billion) from Swissair Group and its shareholders.
Parsons Brinckerhoff won a contract from U.K. airports operator BAA to provide management system and product auditing for the $4.0 billion Heathrow Terminal 5 project. The T5 5 project will comprise a core terminal building and two satellites, a parking facility and a hotel. Parsons' quality services group will take full management control of the auditing process, including developing and maintaining a custom-made computerized audit control system, the London-based management company said. -SL
Goodrich Corp. signed a multi-year contract with Boeing Commercial Airplanes to supply spoiler assemblies for Next-Generation (NG) 737s. Goodrich also signed a follow-on contract to continue providing nacelle components for the planes.
Lufthansa is cutting 102 weekly domestic and European services from its summer timetable, taking nine planes out of service, saying yesterday it "is adjusting services to changes in customer demand."
Northwest has announced plans to furlough an additional 60 pilots, and has also asked its pilots union for permission to postpone payments to its pension plan. The airline said it will cut 35 pilots in April and 25 in May, which will bring the furlough total to 693. The total includes the 63 furloughs planned for February.
Fiji's national carrier Air Pacific will lease two Boeing 747-400s, with delivery expected in March and June. One aircraft will operate the daily Nadi-Sydney service, while the other would be used for the three-times-weekly Nadi-Los Angeles route. Air Pacific hopes to add a fourth flight to Los Angeles in October.
GE Engine Services (GEES) has signed at 10-year $26 million maintenance contract with J-AIR to service the CF34 engines powering the airline's fleet of four Bombardier CRJ200s. The agreement is based on a flat rate per engine flight hour. J-AIR is a wholly-owned subsidiary of Japan Airlines Company, Ltd.
Delta yesterday promised to raise the bar on domestic inflight entertainment after it released additional details on its new "Song" low-fare subsidiary, but analysts and observers still wonder how it will compete with other low-cost airlines or how the unit may affect its mainline operation.
House Appropriations Chair Bill Young (R-Fla.) yesterday said he wants to shift leadership roles and subcommittee responsibility for overseeing homeland security appropriations. The subcommittee will incorporate Transportation Security Administration and aviation security, he noted.
The Association of European Airlines will postpone its Feb. 3-4 Congress on the Future of Transatlantic Transport until this summer. "The prospect of conflict in the Middle East means that industry and regulators on both sides of the Atlantic need to face other priorities at this time in order to cope with a possible emergency situation," wrote AEA Secretary General Ulrich Schulte-Strathaus in a letter to participants. -MT
State-owned Vietnam Airlines plans to start a new domestic airline, which will also double as a regional carrier. Called Express Airlines, the subsidiary would assume all of Vietnam's short-haul domestic and regional routes throughout Vietnam, Laos and Cambodia, allowing Vietnam to concentrate on expanding its international network. Though the agreement is close to being completed, Myanmar will be included in the regional network later. ATRs would be deployed on the routes. Vietnam is aiming for a late second quarter launch date. -WD
