Kiodex, a technology company that provides a web-services platform for risk management and financial reporting, signed separate deals with three companies in the airline industry. Air Jamaica, Grupo TACA and Phoenix Fuel Corp. all reached agreements to use the Risk Workbench product. Air Jamaica CFO Officer Howard Hall said the airline bought the Kiodex system to manage the volatility of fuel prices.
Arnim Lore, named last week to head Brazilian carrier Varig, has started making operational changes at the carrier. They include direct flights between Frankfurt, Lisbon, Madrid, Miami, Paris, Milan and Fortaleza, Recife and Salvador in northeast Brazil and cutting Rio de Janeiro-New York frequencies to four from seven, while keeping daily service to and from Sao Paulo. He also will reduce Brazil-Buenos Aires flights to six from eight a week and suspend service by domestic subsidiary Rio Sul to Cascavel, Chapeco, Juiz de Fora, Maringa and San Jose do Rio Preto.
ShAirForce named Josef Laakso chief financial officer. SkyWest promoted Amy Quinn to director-inflight training. Transat A.T. appointed Louise Piche corporate VP-human resources. Travelocity named Rally Caparas air traffic spokesman. Varig named Arnim Lore CEO, replacing Ozires Silva.
US Airways' 110 flight-crew training instructors, represented by the Transport Workers Union, ratified their concession agreement. The deal represents the last of three agreements with TWU employee groups.
ALPA said a White House decision to reject funding for the purchase of VHF radios for fighter jets "is nothing short of an outrage," and gives fighters no way to communicate with commercial aircraft. The $25 million for the VHF installation was part of a $5.1 billion emergency spending package vetoed by President Bush.
New York jet fuel spot prices ended last week at $0.77 per gallon, up 5.0% from the beginning of the week and down 1.8% from a year ago, according to Deutsche Banc Alex. Brown.
Continental, Northwest and Delta pilot leadership will meet this week to consider their response to the proposed code-share agreement between the three carriers. Delta and Northwest pilots have clauses in their contracts requiring their approval of such a move, but Continental pilots do not. The airlines are also expected to present details of the agreements to pilots this week.
Transport Canada's Director of Commercial and Business Aviation Michel Gaudreau said he is "quite confident" a proposed rule limiting all aircraft speeds to 250 knots below 10,000 feet will be approved, in spite of "a few disagreements in the consultation process." Limiting speed is expected to reduce the effect of bird strikes.
US Airways on Sept. 10 will ask a federal bankruptcy judge in Alexandria, Va., for financial relief from any unratified union contracts as of that date. US Airways' machinists and fleet service workers, represented by IAM, are expected to vote on a deal by Aug. 28. No agreement has been reached with the Communications Workers of America, representing passenger sevice workers
Brazil, in an effort to motivate local aircraft manufacture and maintenance industries, has approved Custom Tax Exemption Policy 189, which provides for fiscal incentives and facilitation of logistics. Import items included are capital goods, repair parts and other components to manufacture aircraft locally for export and maintain foreign aircraft. In logistics, time needed for customs clearance will be minimal and services importer-friendly.
Japan Airlines last week filed with the Japanese aviation authorities for approval to extend its JAL Business Saver fares from Oct. 1 to March 31, 2002, on international routes from Japan. The Business Saver fares, first introduced in October 2001, have a maximum discount of up to 34.4%. The fares have applied on routes to London and seven U.S. cities. Starting in October, the fares will be greatly expanded to 113 cities in the U.S. and Europe.
Air Tahiti Nui reported it has carried a record number of passengers on the Los Angeles-Papeete route this summer. According to Wally Sumner, VP-North America, the increase in demand is a result of the carrier's acquisition of two new Airbus A340-300s, which has enabled the airline to boost its schedule from the three weekly nonstop flights it operated to the U.S. last summer to eight frequencies this year. The airline last week also announced it plans to acquire two additional A340-300s for next summer's schedule.
US Airways' Transport Workers Union (TWU), representing the flight dispatchers and simulator engineers, recently ratified agreements on the company's restructuring plan. The dispatchers voted 133-to-12 to ratify their agreement, and the simulator engineers ratified their pact by a 33-to-13 vote. US Airways' pilots and flight attendants have already ratified their restructuring plan agreements.
KLM and Air France said they were in talks for an alliance that could complement the commercial agreement between their respective partners in the U.S. "In light of the developments in the United States, there is increasing scope for cooperation between KLM and Air France in Europe," KLM said Friday. "Talks between Air France and KLM are continuing and will take into account the agreement which has just been concluded in the U.S. between KLM's partners [Northwest and Continental] and Air France's partner Delta," Air France confirmed in Paris.
To list an event, fax information to Donna Thomas at 202-383-2438. (Blue, Bold-faced type indicates new calendar listing.) SEPT. 4-6 -- Northwestern University's Transportation Center 2002/2003 Executive Programs In Transportation and Logistics, "Strategic Management for Aviation Service Firms," 847-491-3226, www.nutc.northwestern.edu/executive.htm SEPT. 9-10 -- Postponed, Air Transport World, Third Annual Managing Technology & Information for Profit (see Feb. 13-14, 2003)
Transport Canada next month will present for industry comment its proposed safety management system (SMS) rule for airports, according to Aerodrome Safety Director John Maxwell. The rule will be implemented late in 2004. Maxwell said the rule has been developed with two years of "advance consultation" with the airport industry. It will be "fairly general "in nature, and will give industry extensive flexibility in how it will be met. Larger airports will already be meeting about 80% of the rules requirements before it is implemented, he said. -AS
20 years ago Aug. 25, 1982 -- American Society of Travel Agents policy statement condemns the "increasing bias" in CRSs pointing to the "deliberate suppression" of competing airlines' information and "concurrent superior placement of the host's...information." 10 years ago Aug. 26, 1992 -- Governments that "cling to outmoded and restrictive regulatory practices" hurt their carriers' ability to respond to market demand, DOT Assistant Secretary Jeffrey Shane said, taking aim at France, which renounced its U.S. bilateral.
Continental pilots are preparing to open negotiations for a new contract Sept. 10, as prospects for an extension of their current contract continue to fade. The airline was discussing a contract extension with its pilots but suspended the talks Aug. 13. The current contract becomes amendable Oct. 10. Air Line Pilots Association Continental spokesman Jim Moody said the union is now proceeding under the assumption that a new contract will be negotiated.
American, left out of the "arranged marriages" between U.S. majors, is reportedly in discussions with AirTran about a domestic code-share agreement, industry observers tell The DAILY, with one quipping that AA may be aiming for a "shotgun wedding" with the national carrier.
IAM said Boeing delivered 290 airplanes in 1990 and employed 44,000 IAM members. Last year, Boeing delivered 450 aircraft and employed 28,000 union members. "No wonder surveys show 95% of the IAM work force believes their jobs are not secure at all or only somewhat secure," IAM said.
Air Canada plans to cut its work force by 1,300 jobs on a "temporary basis" in line with its normal seasonal reduction of capacity because of the expected drop in demand during the fall and winter period. The job reductions, affecting about 900 flight attendants (about 300 of whom were hired as summer temporaries) and 400 airport ramp service personnel, will be implemented on a gradual basis, starting on Sept. 30. The airline vowed to work with the unions to reduce the number of seasonal layoffs through various mitigation programs.
While 90% of Americans are traveling more or at about the same level as before Sept. 11, frequent business travelers continue to make fewer trips, according to a new survey commissioned by Orbitz for the Travel Business Roundtable. The Aug. 14-15 survey results of interviews with 700 respondents follow two surveys administered by TBR in October 2001 that touched on many of the same issues.
Troubled Portuguese flag carrier TAP Air Portugal is negotiating the sale of its 20% share in Air Macau to the Macau government. Talks revolve around the price, a Macau official said last week. Portuguese media reported that TAP wants to sell the stake for twice its book value. Air Macau reported a EUR9.8 million profit in 2001.
The Sri Lankan government is debating upgrading the status of the Palaly domestic airport in North Jaffna to an international facility. According to the director general of the Department of Civil Aviation in Colombo, Lal Llyanaarachchi, a need exists for another international airport in Sri Lanka. Lal said Palaly is being considered because it is one of the 14 domestic airports in the country with more and better facilities. A decision will be made before the yearend. The Bandarnaike Airport in Colombo is the only international facility in Sri Lanka.
