Denver International Airport this week launched its participation in the Transportation Security Administration's "Selectee Checkpoint" program, which requires passengers to have boarding passes at the security checkpoint. The TSA reported 84 U.S. airports are participating in the program with more being added every week. Security checkpoints at DIA have been reconfigured to accommodate passengers who are selectees with a special lane, TSA said. -SL
The German government's proposed tax reform would slash EUR250 million (US$264 million) from Lufthansa's 2002 profits, the German airline said in a letter to the finance committee of the Bundestag, the federal parliament.
Continental yesterday reported a $109 million fourth quarter loss, smaller than analysts had expected, but only three weeks into the year, executives predicted the airline would post a first-quarter loss and would remain in the red for full-year 2003.
Incoming Senate Commerce aviation subcommittee Chair Sen. Trent Lott (R-Miss.) has already begun meeting with aviation executives to see how Congress can help the industry survive its troubled economy.
JAL Group, including Japan Airlines and Japan Air System, reported international passenger traffic jumped 11.1% during the 18-day winter holiday travel season, just shy of the 12.3% capacity gain. The overall international load factor for JAL and its subsidiaries was 70%, "close" to last's year's results. Traffic on routes to Hawaii jumped nearly 40%, "a big improvement" from last year considering 111 extra flights were added to the regular schedule.
Airline service disruptions stemming from labor action pose the potential for serious economic damage, concludes a detailed state-by-state analysis released yesterday by an airline-backed lobbying group. The Campbell-Hill Aviation Group conducted the study on behalf of Communities for Economic Strength Through Aviation (CESTA), whose major aim is to push for changes to the Railway Labor Act (RLA). Economic Threat
FAA is requiring multiple inspections of rotor disks in the high-pressure turbine (HPT) sections of General Electric CF6-80A engines after an Air New Zealand Boeing 767-200 had an uncontained engine failure and made an emergency landing Dec. 8, 2002 (DAILY, Dec. 11, 2002). "The results of the investigation indicate that the Stage 1 high-pressure turbine rotor disk failure was the result of a crack that initiated in an aft corner of the dovetail slot," FAA said. The crack grew to a critical size, ruptured and separated, the agency said.
The European Commission decided to ignore the current dispute among European Union nations on Galileo and said yesterday it would continue preparatory work to launch Europe's satellite positioning services on schedule in 2008.
Lufthansa Deputy Chairman Wolfgang Mayrhuber yesterday made clear Lufthansa was prepared to help its alliance partner United but not financially. Chairman Juergen Weber earlier did not rule out that option. However, Mayrhuber said he has observed a "momentum of change" at United that needs to be kept up.
The union representing American's mechanics says the airline's vague hints that it will soon seek further contract concessions could make labor groups even less inclined to agree to the wage rise cancellation American has proposed.
Most major airlines during the next week are expected to beat analysts' already deeply depressed consensus loss estimates for the fourth quarter, but the industry is still likely to report a cumulative loss of roughly $2.5 billion due to weak revenues in October and November.
The French government is seeking arbitration to hammer out an acceptable plan for the rescue of ailing carrier Air Lib, the French transport ministry said this week.
Panama's civil aviation department is making strong efforts to regain Category 1 status in the FAA's safety oversight program "by March or April." The country was downgraded from Category 1 to 2 last year, following an ICAO operational safety audit on airworthiness, operations and personnel compliances -- an audit supported by an FAA inspectors' evaluation.
The Pension Benefit Guaranty Corp. is legislatively hamstrung from making changes that will allow US Airways to terminate, then reinstate on more flexible terms, its pilots pension plan, lawyers for PBGC told a Senate Appropriations labor subcommittee yesterday.
Airports Council International-North America has elected the first female chair of its board of directors, former Port of Seattle Director of Aviation Gina Marie Lindsey. She replaces Richard Vacar, director of the Houston Airport System. ACI-NA will hold its Winter Leadership meeting Jan. 24-26, where it will discuss lobbying efforts, including government funding of security programs and full funding of the Airport Improvement Program.
AirTran relaunched its "X-Fares" standby program this week for young travelers. The program lets young adults between 18 and 22 travel standby-only to any of the airline's 41 destinations for $52 per travel segment. To participate, travelers choose the destination, dates and times they want to travel, and arrive at the AirTran Airways counter at least 90 minutes before the scheduled time of departure. AirTran first created X-Fares in June 1997 and more than 500,000 young adults have participated in the program.
Oscar Rueda, CEO of the Colombian travel agents association (ANATO), reported a 14% decrease in international air traffic in 2002, a $150 million blow to local airlines and travel agencies. Rueda blamed the country's political, security and economic troubles -- which have led 40 governments to advice their citizens not to travel to Colombia -- as well as more stringent visa requirements for Colombians to vacation abroad.
Midwest Express in December reported that its unit revenue fell 4.9%, compared with last year, and is down 11.1% year-to-date. A 3.4-point load factor increase wasn't enough to offset a 10% drop in December yields. Fuel prices were 25.4% higher in December than a year ago and 9.4% lower for the full year. At current prices, "the first quarter comparison to the prior year will be unfavorable," the airline said.
Brazil's two leading airlines, Varig and TAM, denied press reports they were considering a possible merger to alleviate financial difficulties, according to published reports. Varig President Manuel Guedes told Jornal do Brasil that while he wasn't discarding any prospect that might improve the carrier's plight, at this time there are no feasibility studies to support such a merger. -LZ
KLM is adding $3 per ticket to its already existing security surcharge. The airline said the initial surcharge of $5 did not provide sufficient coverage for the increase in insurance and security costs. The charge becomes effective Feb. 1.
After obtaining its operational license in February 2002, Colombian startup Aerolineas Universal said it would begin operating 11 domestic trunk routes by the end of the first quarter. Its critical path calls for expansion within two years to regional routes in Andean Pact countries, Central America and the Caribbean. Based in Bogota and made up entirely of Colombian investors, Universal will start with a fleet of five leased Airbus aircraft and create 750 new jobs, among them 64 pilots and 120 flight attendants.
The White House yesterday said it intends to name National Transportation Safety Board (NTSB) member John Hammerschmidt to become vice chair for a two-year term, only days before current Vice Chair Carol Carmody's term expires. "John is very low key and I think you need that approach for the serious safety issues the board has to deal with," said Sarah MacLeod, executive director of the Aeronautical Repair Station Association. "He's probably worked hard enough to earn this rank."
