A potentially lengthy and expensive legal battle erupted yesterday when DOT said it would launch a formal enforcement action against Delta, Northwest and Continental after the airlines told DOT they would go ahead with a code-share plan, ignoring many of the conditions DOT imposed on the deal last week. After poring over DOT's Friday decision, the three said they were willing to accept "most" of the conditions, but declared that some "are unacceptable, and we will not agree to them."
Lufthansa plans to ground nine more aircraft to reduce capacity in its European network, the most drastic sign of emerging weakness in Lufthansa's traffic.
America West launched a new boarding process, including revised boarding passes, in 28 cities and expects to have all its stations on line in about 30 days. Passengers still have an assigned seat but are asked to board the aircraft by a "group number" located on the boarding pass. The row number determines the group assignment.
Brazil's Embraer revealed Express Jet Holdings, which operates scheduled flights for Continental Airlines, in 2003 may consider acquiring 48 extended range regional jets -- among them, 18 Embraer 50-seat ERJ-145XRs -- to replace 12 aging turboprops retired last year. Through Express Jet, Continental recently opened routes from Newark to Oklahoma City, Omaha and Daytona Beach, and from Houston to Charleston, Palm Springs, Richmond and Vistahermosa, Mexico.
Qantas plans to add about 70 aircraft maintenance apprentices based in Sydney. Airline executives said the new positions were on top of 170 apprenticeships offered in both Sydney and Melbourne. The apprenticeships last for four years, and are slated to start between February and June 2003. Qantas also said future apprentices would be based in Brisbane after the airline opens a maintenance base in 2004.
House and Senate leaders are laying the groundwork for developing a new comprehensive aviation bill to authorize FAA funding programs beyond fiscal 2003 and likely cover a host of issues such as security and environmental streamlining. The last authorization bill, AIR-21, was considered landmark legislation because it dramatically boosted FAA funding levels and essentially guaranteed revenues channeled into the Airport and Airways Trust Fund would be used for their intended purpose -- aviation. AIR-21 authorized programs through the end of fiscal 2003.
Northwest yesterday posted a $488 million fourth-quarter net loss, including one-time items, and warned of additional job cuts and furloughs this year. Separately, the airline reached an agreement with Airbus to defer deliveries of 13 new aircraft and convert part of its order for A330-300s to smaller A330-200s.
Pemco Aviation Group signed a contract with GE Capital Aviation Services (GECAS) to convert 10 Boeing 737-300s from passenger to freight configuration. Six aircraft are firm orders and four are options. Pemco holds the only FAA-approved supplemental type certificate (STC) for 737-300 cargo conversions. The company said it plans to start converting the GECAS aircraft immediately at its Dothan, Ala., Pemco World Air Services subsidiary.
After failing in December to refinance some of its short-term debts, Brazilian carrier Varig is renewing negotiations and starting new talks with potential U.S. and European investors to obtain $350 million as a first step to restructure the company.
US Airways late last week received approval from an Alexandria, Va., bankruptcy court to request approval from its creditors on its reorganization plan, a key decision of the airline's plan to emerge from Chapter 11 by March 31.
Nav Canada yesterday reported traffic for the quarter ending Nov. 30 was down even further than what it anticipated compared to pre-Sept. 11, 2001 levels, and expects the traffic outlook to remain gloomy for the near future.
American began contract restructuring meetings with its labor groups, and while unions say they will continue to participate, they called on American to back off lobbying for changes to collective bargaining laws. The first meeting was Monday, and another is scheduled Friday. American wants weekly meetings, which spokesman Bruce Hicks said would lead to collaborative development of the contract restructuring the airline wants.
Cathay Pacific Airways plans to add a third weekly flight from Hong Kong to the northern Japanese city of Sapporo and deploy larger-capacity aircraft on existing daily flights to Fukuoka and Nagoya.
Caribbean Sun Airlines launched operations yesterday on an inaugural flight from San Juan, Puerto Rico, to Tortola in the British Virgin Islands using a deHavilland Dash 8 turboprop. The airline plans to offer flights from San Juan to St. Maarten, St. Kitts, Tortola and Antigua. Caribbean Sun is an affiliate of Caribbean Star, and the carriers plan to link their service throughout the Caribbean.
FedEx Express -- an operating company of FedEx Corp. -- said the first of eight ATR 42-320 turboprop aircraft is scheduled to arrive at the carrier Jan. 27. The airline bought the aircraft from Continental Airlines. FedEx Express said the turboprops would be used on U.S. domestic routes to support the FedEx system, and on international scheduled routes. Pratt & Whitney PW121 engines power the ATR 42s. -LR
Korean Air plans to add charter flights on its popular Hong Kong and Bangkok routes for a total of 20 extra flights between Jan. 27 and Feb. 10. Of the 20 flights, 15 will be operated with Boeing 747-400s and the rest with 777-200s. Charter flights to Bangkok started on Jan. 5 and are scheduled to continue operation until Feb. 2. With two weekly flights, a total of seven flights will be operated with the 747-400.
The deadline for Mesa Air to give US Airways assurances that the Phoenix, Ariz.-based carrier would comply with the "Jets for Jobs" program passed yesterday as pilots and management at Mesa continued contract negotiations.
CEO Leo Mullin says right now Delta doesn't plan to modify its pilots' contract, but "we are evaluating that issue quite actively." Delta believes its pilots contract is the only one not in line with industry standards. Mullin also said events surrounding the 2001 Comair strike make Delta "the poster child" for the airlines' Railway Labor Act reform effort.
French aircraft engine manufacturer Snecma last week said its net result would remain positive for 2002 despite EUR100 million to 200 million (US$106 to US$211 million) in provisions to compensate for the demise of its Belgian subsidiary following the collapse of Sabena.
Higher costs discourage airlines from using blast-resistant aircraft cargo containers, according to the U.S. General Accounting Office. Blast-resistant containers cost about $15,000 versus about $1,000 for a standard unit. Hardened containers also weigh about 150 pounds more each, and have a considerably shorter lifespan. FAA is spending about $3 million a year researching hardened aircraft hulls and containers.
