20 years ago Aug. 23, 1982 -- NTSB may furlough employees in mid-September if President Reagan vetoes the $14.2 billion supplemental that includes $103 million for FAA and $585,000 for NTSB because it cuts military spending by $1.8 billion. 10 years ago Aug. 19, 1992 -- Air Canada, after failing to merge with Canadian, signed a commercial agreement with United while Canadian considers an equity stake by American. Five years ago
DOT Secretary Norman Mineta, speaking to a group of women in government relations, touted hiring by the Transportation Security Administration as being nearly 30% women, saying the agency will "make sure that it reflects the face of America." He expressed confidence that "those numbers will increase," and he outlined the responsibilities of TSA's federal security directors without mentioning that of the 118 FSDs announced only four are women.
U.S.-U.K. "mini-deal" proposal presented last week in Washington by British negotiators to their U.S. counterparts does not appeal to U.S. carriers, according to U.S. industry sources who attended a briefing for airlines, airports and labor interests following the one-day informal government-to-government meeting. Presented as a "take it or leave it offer," a senior U.S. official told The DAILY, the U.K.'s limited-liberalization plan proposes to open access to London Heathrow for non-incumbent passenger carriers.
American expects inflation of health care costs to total an additional $120 million in 2003, of which the company plans to absorb about $100 million. Employees will have to pay higher prescription co-payments. AA this year spends about $1.7 million per day on coverage, an annual average of $5,580 per active employee, up 14.7% from 2001.
FAA's estimated cost of $17,000 to $36,000 per plane for reinforced cockpit doors is looking more and more ludicrous as designs are finalized. Martinair told FAA it expects 747 Classic door retrofits to run $190,000 per plane, excluding installation and downtime costs.
Delta last week took action to limit the number of bags passengers will be allowed to check. Delta passengers can check a maximum of two bags free of charge. Previously, customers could check three bags free if they did not have a carry-on. Delta's revised baggage policy still will allow each ticketed customer three bags free, but only two of the three bags may be checked. "Delta is changing its free checked baggage allowance to better manage the dramatic rise in checked baggage in our system," said Rob Maruster, director-Airport Strategy and Services. "Since Sept.
Aircraft manufacturers are turning their attention to Asia as traffic in the region increases and carriers post better profits than their North American counterparts. In its most recent market forecast, Boeing said more than 70% of large jets will serve Asian markets by the end of 2021. "There are a lot of replacement opportunities in Asia for cost-saving aircraft," said Richard Aboulafia, analyst at the Fairfax, Va.-based Teal Group. "There's a good value proposition in replacing a Boeing 747 with a 777."
GE Aircraft Engines parent company General Electric has made US$5 billion in secured loans to the airline industry since Sept. 11, said spokesman Rick Kennedy. The engine manufacturer also tried to help its airline customers in other ways, such as buying spare engines in airline inventories and leasing them back to the carriers.
A number of prominent U.S. aerospace companies are taking part in a trade mission to Vietnam to assess market opportunities in airport and air traffic control development. They are scheduled to meet key government officials and potential business partners.
Delta's Technical Operations Center in Atlanta is the site of a test program for new identification requirements mandated by the Transportation Security Administration, the carrier told employees. Contract workers who want unescorted access at the TOC now must display a new ID badge that designates the badge's expiration date and areas of authorized access. Without the new badge, which is required only at the TOC so far, eligible personnel must escort contractors. The beta test applies only to contract workers and only at the TOC.
Direct operating costs of the Fokker 100s owned by American and US Airways are 50% higher than those of Boeing 737s operated by those carriers, said Mort Beyer of Morten Beyer and Agnew. Operating costs of 50-seat regional jets are 100% higher than those of the 737s.
In negotiations between creditors and the Rubem Berta Foundation (RBF), which controls Varig, to restructure the carrier's US$900 million debt with assistance from public sector development bank BNDES (DAILY, Aug. 16), the creditors demanded that current management be changed. Last week, Ozires Silva, president of Varig, said he was ready to step down if it would help the negotiations.
Northwest last week extended the time window for customers checking in for a roundtrip flight using the airline's Internet site from 24 to 30 hours before scheduled departure. The site also expanded its customer support to include a link where customers can ask questions of a Northwest Airlines service representative during the online check-in process.
United last week confirmed details of its 9% fall schedule reduction that it hopes will better match capacity to demand. The schedule change on Oct. 31 will reduce daily departures and available seat miles by 9%, compared with summer levels. The daily departures will drop from 1,989 today to 1,809, a greater decrease than the typical annual fall reduction in service, because of weak demand.
Aviall elected Alberto Fernandez to the board. Blaylock & Partners named Raymond Neidl senior airline and transportation analyst. CAE SimuFlite named Gary Freeman regional sales manager-maintenance; Bill Hogate regional sales manager-northern region, and Glenn MacDonald regional sales manager-northeast region. Delta appointed Paul Graves VP-global diversity. Eclipse Aviation named Don Burtis VP-avionics and electronics. EDS named Michael Hulley president-Transportation Global Industry Solutions.
To list an event, fax information to Donna Thomas at 202-383-2438. (Blue, Bold-faced type indicates new calendar listing.) AUG. 21-23 -- 2002 Virginia Aviation Conference, Aviation's Evolution From Cloth to Composites, Ramada Plaza Resort Oceanfront, Virginia Beach, Va. SEPT. 9-10 -- Postponed, Air Transport World, Third Annual Managing Technology & Information for Profit (see Feb. 13-14, 2003)
The Civil Aviation Administration of China (CAAC) over three years plans to phase out all aging aircraft of the nine airlines it backs. The move is in line with CAAC's latest fleet modernization program and aims to enhance safety and comfort in the local aviation industry. The fleets of the nine carriers came under review after the China Northern Airlines MD-82 crash on May 8 that killed all 103 on board. The crash took place just 22 days after an Air China Boeing 767-200 crashed on April 15 in the Korean city of Busan.
Engine manufacturers, while not totally dependent on their airline customers, may not escape fallout from the efforts of three U.S. major carriers to return to profitability through aircraft deferments or restructuring.
Seventy-seven percent of United's passengers faced security line waits of 10 minutes or less, up from 55% of passengers last November. According to Marketrak survey results for June, 92% of passengers said the security wait is acceptable, up from 86% last November.
Air Canada Technical Services has won a US$65 million, five-year contract with Canada's Department of National Defence to maintain its five Airbus A310s. Terms of the contract include the option of extending the contract to 10 years. Heavy maintenance will be handled at the Vancouver facilities of Air Canada Technical Services, while component maintenance will be completed at the Montreal base.
Pratt & Whitney Canada's customer service center in Europe has signed an eight-year agreement with Norway-based Wideroe to manage maintenance and inventory tracking on the airline's PW121 and PW123 engines. Pratt guaranteed fixed operating cost per hour to Wideroe for the duration of the agreement. Wideroe's fleet is a mix of de Havilland Dash 8 aircraft. The airline recently placed an order for three Dash 8-Q400s and has taken delivery of the first aircraft. -LR
KLM has reached an agreement in principle with Dutch pilots union Vereniging van Nederlandse Verkeersvliegers (VNV) on the harmonization of conditions within the group and introduction of new aircraft. The agreement, hammered out in 15 rounds of talks, has "significant advantages for both parties," the airline said. The accord ensures greater flexibility of fleet and crew deployment and gives pilots improved employment and career opportunities.
EDITOR'S NOTE: The DAILY today begins a new series of monthly charts showing aircraft value and operational data. Each month, the series will profile a different aircraft type, starting with the Boeing 777 (see Pages 7 and 8). Aircraft value data, provided by Spectrum Aviation Services' Jet Appraisal Guide, include current, base and future values, as well as aircraft specifications and engine ratings. An accompanying page, provided by DAILY partner ECLAT Consulting, shows block hour costs, utilization, regional deployment and worldwide operators.
The Wayne County commission and a new airport authority created to run Detroit's airports are negotiating an interim agreement that would allow airport contracts to be approved while the legal fight over control of the airports continues. FAA awarded the airport authority operating certificates recently, but its position remains uncertain until the county commission's legal challenge is resolved. The dispute began when Michigan Gov.
