US Airways has about two months to decide the fate of its leased aircraft now that the carrier has filed for Chapter 11 bankruptcy protection. Under U.S. bankruptcy laws, US Airways would not be protected from lessors repossessing its aircraft if the airline fails make payments or cut a deal with lessors within 60 days of the bankruptcy filing on Aug. 11, said attorney John Karesh.
US Airways' decision to file for bankruptcy protection has not disrupted efforts to conclude concession agreements with its employees, and the airline plans to present new concession proposals to both its mechanics and ramp workers. The carrier said it would not seek to alter agreements already reached with pilots and flight attendants, although the pacts give the company leeway for additional furloughs.
Airports that want the Dec. 31 deadline extended for 100% screening of checked baggage may find it hard to convince Sen. Barbara Boxer (D-Calif.) it's necessary. "We sent our troops halfway around the world and utilized such sophisticated weapons that we are able to go into caves and bunkers. No one can convince me that by the end of this year we can't detect a bomb in a suitcase right in front of us," she said at a Senate Commerce Committee hearing in California last week.
30 years ago Aug. 12, 1972 -- U.S. may lose out on the benefits of wide-ranging agreements if it opts for "little quick fixes" -- favored by DOT -- in bilateral accords, said Matthew Scocozza, State Department, cautioning that each country's rights must "mirror" the other's. 10 years ago
UPS wants DOT to make clear, in a public proceeding, its determination of DHL Airways' citizenship, and to take note of "on-the-record statements" and documents filed with the U.S. government by DHL and affiliates, whose "complex corporate structure... raise[s] serious grounds to question" its U.S. citizenship. DOT has not made public its determination of DHL's citizenship, UPS said.
US Airways flight attendants voted late Friday to accept the concession package proposed by airline management. The Association of Flight Attendants said 80% of attendants cast ballots, with 73% of these voting in favor of ratification. -AS
Funding shortfalls for the Transportation Security Administration in the emergency supplemental appropriation are causing the agency to look at "whether TSA will have sufficient resources to meet the [Dec. 31] baggage screening mandate set by Congress," TSA Deputy Undersecretary Stephen McHale told a congressional panel last week.
Correction: Direct operating costs per block hour of the Boeing 777 are $3,288 and $3,288 for the 757. The per-block-hour DOCs of the Airbus A319 are $2,122. Incorrect statistics were listed in The DAILY Aug. 1.
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)
Thai Airways will launch three-times-weekly nonstop flights to Bahrain Nov. 2, using Airbus A300-600 aircraft. The city will be the airline's fifth Middle East destination after Dubai, Muscat, Kuwait and Jeddah.
U.K. no-frills carrier easyJet will cut four daily flights to return operations to normal. The number of cancellations had reached an unacceptably high level in July due to the airline's rapid expansion. EasyJet's traffic was up 62% in July.
Air New Zealand will upgrade its finance, human resources and payroll infrastructure systems. Air NZ has engaged US software provider Peoplesoft for a two-month detailed design process, which started last week and will continue through to the end of next month. According to ANZ CEO Ralph Norris, the project, to be spread over six years, will cost an estimated NZ$37 million (US$16.9 million). This will include the software, hardware and implementation costs.
ATA Holdings named George Mikelsons CEO and president following the resignation of John Tague. America West named Shirley Kaufman VP-employee relations and human resources. Boeing Co. appointed Anne Eisele director-media relations and Sergey Kravchenko president of Boeing-Russia/CIS. Dominican Republic named Carlos Guzman director general of the civil aviation department. EADS named Ralph Crosby chairman and CEO of EADS North America. eBizJets appointed Michael Johnston director-operations.
NTSB said it detected no obvious signs of mechanical failure in the crash of FedEx Flight 1478 on approach to Tallahassee Regional Airport on a flight from Memphis, Tennessee July 26, according to the safety board's latest update on the incident. The Boeing 727-232's engines showed no signs of uncontained failure, inflight fire, bird strike or pre-impact failure, the safety board said.
Projected revenues for Boeing from commercial aircraft could decline by 24% to $26.8 billion this year, compared with 2001, said JSA Research President Paul Nisbet in a recent research report. JSA data indicate sales for 2003 could drop an additional 16%, bringing revenue down to $22.6 billion. For the last six months, Boeing has worked to reduce its yearly production rates to 275 units from 525.
Insourcing revenue for Delta's maintenance business TechOps increased from $36 million in 1999 to $50 million in 2000 to $104 million in 2001. TechOps offers airframe, engine and component services at eight U.S. locations.
Germany's competition authority Bundeskartellamt has cleared the way for Lufthansa to increase its stake in BMI British Midland to 30%. The authority stated it was not concerned the shareholding would lead to a dominant market position. Lufthansa holds 20% in the airline that it bought from Star alliance partner SAS in 2000. At the time, BMI majority owner Michael Bishop secured a put option for a further 10%. Increasing the stake would give Lufthansa an additional seat on the board of directors. It was not immediately clear if and when Bishop would use his right.
Contract negotiations between Midwest Express and its flight attendants have broken down, according to the Association of Flight Attendants (AFA). The union said this heightens the prospects of strike action after Aug. 30. The National Mediation Board (NMB) has released the parties from arbitration, but negotiations have been continuing during the mandatory 30-day, cooling-off period. After the latest stalemate, no further talks are scheduled, AFA said.
Italy's antitrust authority last week fined Alitalia EUR1.58 million (US$1.53 million) for applying fuel surcharges on domestic routes in coordination with smaller carriers between June 2000 and April 2001. The carriers initially introduced a EUR5 ($4.80) surcharge, which they later increased to EUR12 ($11.60). The surcharge came about "after an intense exchange of information, in which Alitalia played a central role of promotion and coordination," the authority said.
Although FAA's proposed introduction of reduced vertical separation minimums (RVSM) enjoys widespread support, many groups have called for changes to the implementation deadline. Pilot groups have also expressed safety concerns.
LanChile launched an advertising campaign directed at women, who make up 30% of its domestic passengers. Under its "Three Fly, Two Pay" plan, three women traveling together pay only for two tickets.
