Former Professional Air Traffic Controllers Organization (PATCO) members believe a recent decision against FAA by the U.S. Equal Employment Opportunity Commission (EEOC) is a positive sign for the success of another, larger suit. The EEOC said FAA violated age discrimination regulations by not hiring back a former PATCO member, and ordered the agency to reinstate the controller and award back pay. This controller was one of 20 PATCO members from Minnesota who challenged FAA individually. The other 19 settled with the agency earlier.
Varig yesterday named Arnim Lore its new CEO, as part of a plan to restructure the airline. Lore, financial director of Varig subsidiary Rio Sul, replaces Ozires Silva, who was pressured to leave by creditors and the Rubem Berta Foundation, which controls Varig.
FedEx board last week declared a quarterly cash dividend of $0.05 per share on the company's common stock. The dividend is payable Oct. 1 to stockholders of record at the close of business on Sept. 9.
American Eagle pilots are asking the National Mediation Board to intervene in its dispute with the carrier about its plans to transfer 14 regional jets to Trans States. The Air Line Pilots Association (ALPA) claims the transfer represents a large enough deviation from its contract to be designated a major dispute.
United's regional partners could occupy a position of strength if United files for Chapter 11 bankruptcy protection, as regional jet flying is critical for United to remain competitive with other U.S. major carriers.
The financial restructuring process being implemented by Varig and the Rubem Berta Foundation, which controls it eased somewhat Friday, when judicial authorities in the state of Rio Grande do Sur revoked an injunction to freeze the assets of both organizations, as well as those of 12 key management officers. Considered a legal victory by management, withdrawal of the injunction, which had been requested by Varig's pilots union, Apvar, came at a time when Varig's current president, Ozires Silva, was ready to resign.
Peru's union of air traffic controllers (ACTA) is ready to call a 48-hour strike between Aug. 22 and 24 if government authorities ignore their demand for renewal of obsolete radar and communications equipment that they are forced to operate. Luis Rivera, ACTA president, labels officers at relevant government agencies "indifferent" and "irresponsible."-LZ
Mexico President Vicente Fox last week told government and business leaders that Mexico City's new international airport would be built before his mandate ends in 2006. The statement came after a meeting attended by Fox, Transportation Secretary Pedro Cerisola, Mexico state Gov. Arturo Montiel, and 50 local business leaders.
The bilateral air agreement between Peru and Chile might be injeopardy, sources close to Peru's foreign office said. The item is not included on the agenda of Peruvian President Alejandro Toledo's forthcoming official visit to Chile, an omission the sources attribute to the current instrument's "lack of reciprocity."
Fifty pilots at Switzerland's airline Swiss were grounded after the government learned that examiners hired by the airline did not have the appropriate qualifications. The pilots were initially tested to fly the 50-seat Embraer ERJ-145. The airline said it adopted a different set of requirements for examiners than the Swiss Federal Office for Civil Aviation. Swiss said the three examiners in question had several years of experience as regional aircraft instructors.
Southwest pilots ratified a contract extension that will postpone for two years negotiations for a new contract. According to the Southwest Airlines Pilots Association (SWAPA), the agreement was approved by 68.5% of those voting. The agreement extends the current contract to Sept. 1, 2006. It contains minimum pay raises of 20% above current rates, or up to 23.8%, depending on profitability. SWAPA stressed again that it will seek an industry-leading contract in 2006.
US Airways on Friday told an organizational meeting of its creditors in Washington that it had $10.65 billion in liabilities as of March 31. Its top liabilities include $3.6 billion in long-term debt, $2 billion in employee benefits and more than $1 billion in traffic balances payable and unused tickets. The airline expects to hold a proposed creditor committee meeting this week.
United this week will present new concession proposals to its employees, which could be less palatable to unions than those already rejected. Because the Air Transportation Stabilization Board (ATSB) said United's application for federal loan guarantees did not cut costs enough, the carrier will initiate talks with all labor groups, including its pilots, who have already reached a concession agreement.
Meeting the Dec. 31 deadline for 100% explosives screening of checked baggage could have "significant adverse impacts on the entire aviation system," officials responsible for 133 U.S. airports that handle 74% of passengers in the U.S., told members of the U.S. Senate, even if the Transportation Security Administration's problems meeting the deadline are mostly at larger airports. In a letter signed by 124 representatives of airport authorities from 46 states, U.S.
British Airways and Virgin Atlantic, in letters to the British Civil Aviation Authority, said the U.K.'s partly privatized national air traffic control system (NATS) must be allowed to hike charges or it will be renationalized to avoid collapse, as reported in The Independent last Sunday. "Without a modification to the price cap, there is a significant risk of air traffic administration with the subsequent discontinuation of the [public-private partnership] model," BA wrote.
American expects to cut its booking fee costs by 75% on tickets booked through Orbitz thanks to the launch of the web site's new supplier link technology. AA, part owner of Orbitz, this month, became the launch customer for the new service, which Orbitz has been developing and discussing since last year. AA will have full direct connect capability within 30 days, and three more U.S. carriers, including US Airways, Northwest and Continental, are expected to have similar links established by yearend (DAILY, May 23).
US Airways Shuttle extended its "20 Minutes or $200" check-in-to-gate guarantee and triple-miles bonus through Dec. 31. The program is similar to Delta Shuttle's "20 Minutes or 20,000 miles" promotion.
Embraer's net income for the second quarter ending June 30 fell to US$36.8 million from $93 million for same 2001 period. Quarterly net sales totaled $589.7 million, down 28% from $823 million. Operating margins slid to 20.3% from 22.7%. Embraer attributed the decreases to reduced aircraft deliveries in the regional market after the terrorist attacks. The U.S. was Embraer's largest sales market at 78%, followed by Europe at 19% and Brazil at 3%. The manufacturer delivered 30 aircraft during the quarter -- 18 ERJ-145s, 10 ERJ-140s and two Legacy corporate jets.
Ryanair plans to open new maintenance center at Prestwick Airport in 2004. The airline said the building would be large enough to handle two Boeing 737-800s. Ryanair is scheduled to take delivery of 150 737s in the next eight years. Airline CEO Michael O'Leary said 180 new jobs would be created once the center opens. Ryanair received US$3 million from the Scottish government to develop the center. -LR
Thai Airways International posted a net profit of 9.23 billion baht (US$230.62 million) for the first nine months of the current fiscal year ended June 30. This was a dramatic turnaround from a loss of 195 million baht for the same period last year. Operating revenue was 94.36 billion baht. Profit for the third quarter alone was 3.45 billion baht, a massive jump of 365.92%. The airline has forecast a profit of US$305 million for the year. -WD
AIR, Inc. reported this week that 549 new pilot jobs were created in July. Of the 198 airlines tracked, 101 hired pilots. Of the major carriers, Alaska Airlines hired eight, ATA 12, FedEx 24 and Southwest 21. These four are expected to continue hiring over the next several months. As of the end of June, 7,406 pilots of 94,571 were on furlough.
