Japan Airlines and Connexion by Boeing yesterday at the Farnborough Air Show signed a Letter of Intent to install the broadband communication service on 10 JAL long-haul aircraft. While model types for the initial service installations and their timing have yet to be determined, the primary focus will be the Japan-Europe route. Financial terms of the agreement were not disclosed.
United, after a four-month self-study of the entire airline, concluded that its one true weakness is "that we are high cost-carrier." President Rono Dutta determined that United cannot completely overhaul the airline with the current cost structure. "It's hard enough to be a high-cost carrier in a high-end business market," he said. "It would be worse to try to be a high-cost carrier in a low-end leisure market."
Progress is being made in two lawsuits filed by the Professional Air Traffic Controllers Organization against the FAA, and both cases could be brought to trial next year, PATCO President Ron Taylor told The DAILY. At a recent hearing in the U.S. Southern District Court in Florida, a judge set PATCO's age discrimination lawsuit for trial in April, 2003. This lawsuit was filed in February, and alleges FAA has unfairly hired younger, less experienced controllers instead of PATCO members.
Swissport airport services company has shown interest in purchasing its Brazilian counterpart, Sata, controlled by the Rubem Berta Foundation, which also holds a majority stake in Varig. While Swissport VP-Latin America Dieter Altenburger spoke to reporters about a letter of intent to be submitted shortly to Sata, the latter's president, Floriano Ribeiro da Silva, said categorically, "Sata is not for sale."
Tax relief is on the way for Brazilian airlines, sources close to the ministry of development and foreign trade report. The carriers, troubled by the latest devaluation of the real, higher fuel prices and years of excessive taxation and regulation, expect tax relief to be the main feature of the aid package, which will be completed this week. Based on suggestions from the airlines involved, the package specifically provides lower taxes on insurance, aircraft leasing, fuel and imports of repair parts.
American on Oct. 1 plans to launch daily nonstop service between New York LaGuardia and New Orleans with an MD-80. New Orleans is American's third new nonstop destination from LGA announced recently. US Airways is the only airline with nonstop service on the route, but AA will surely compete with JetBlue's daily flight from New York Kennedy to New Orleans. The New Orleans service is the latest in an AA LaGuardia service expansion. On Aug. 1, AA begins new nonstop service between LGA and Kansas City, and on Sept.
Europe's leading aerospace and air traffic management (ATM) companies yesterday announced a new alliance aimed at developing ATM systems. The alliance -- EADS, Airbus and Thales -- will initially concentrate on Europe but will ask Boeing and other ATM corporations to join in order to provide common global ATM standards.
Russian aircraft designers Mikoyan-Gurevich (MiG) and Tupolev hope to certify their 102-seat Tupolev Tu-334-100 short-haul airliner in 2004, and have their eyes on a robust export market for the plane. Tupolev expects to sell 350 Tu-334s by 2010 outside the former Soviet Union, while the countries of the CIS have an estimated requirement for 800 during the period. Aeroflot already announced plans to buy 15 to 20 Tu-334s, and Pulkovo Airlines said it's ready to buy the same number.
Revamped Aerolineas Argentinas and subsidiary Austral, so far free of the labor conflicts that plagued its predecessor carriers, were subjected to their first labor protest at Aeroparque Airport in Buenos Aires last Friday. Ariel Basteiro, head of the airline workers union (APA), a fierce opponent of AR before it was taken over by Marsans, Spanair and Air Plus six months ago, led the protest and warned it might continue until 14 ramp baggage handling workers fired last week get their jobs back.
The number of federal air marshals (FAMs) being hired and trained is "in the thousands now," former Transportation Security Administration head John Magaw said just days before resigning. Magaw had strongly resisted discussing FAM headcount -- and total TSA staffing requirements -- in an "open forum," which often put him at odds with Congress. He maintained that the number of FAMs could be calculated if a breakdown of staffing figures were discussed.
Bombardier is designing two new aircraft that will expand its presence in the light business jet market already anchored by its Learjet 45, the company announced at the Farnborough Air Show. The Canadian plane-maker plans to flank the Learjet 45 with a Learjet 40, a smaller version of the 45 that will use the same wing, cockpit, major systems, and engines, and a Learjet 45 XR, an enhanced version of the 45 with a roomier cabin and improved performance. Bombardier hopes to bring its new Learjet 40 to market in the first quarter of 2004.
Transportation Security Administration named 24 federal security directors (FSDs), responsible for security at 63 airports, bringing the total FSDs announced to 71. Former TSA head John Magaw said last week that TSA has "identified" 104 of 158 FSDs, who will oversee TSA operations at the 429 U.S. commercial airports. Seven or eight are expected to be women, Magaw said -- two are in place already -- but none was included in Friday's announcement. Washington Dulles airport, where one of the Sept. 11 flights originated, is still without an FSD.
Bombardier Aerospace's President Pierre Beaudoin sees "a need for a five-abreast product" in the large regional jet market but is not yet ready to for any firm commitment. Beaudoin said at the Farnborough Air Show that Bombardier continues to look at the market, but that it was a very difficult business case.
Leaders of the Texcoco protest movement last week accused the government of the state of Mexico of "maneuvers and tricks" in prosecuting seven protesting landholders for criminal charges. Representatives of land holders from the community of San Salvador Atenco, located in the Texcoco area, are preparing to meet with government authorities tomorrow to discuss and possibly settle the sometimes violent conflict over the construction of Mexico City's new international airport in the Texcoco area (DAILY, 22 July).
Argentine carrier American Falcon is shopping around to buy an airline in Argentina to expand domestic and regional operations. Falcon approached Southern Winds, AIRG and Dinar, but the latter was the only company interested in a potential sale or partnership. According to Alberto Desimone, Dinar's CEO, his goal is to keep the company flying and salvage its "valuable human resources" in the face of Argentina's poor economy.
Airbus over the weekend delivered the 3000th Airbus aircraft, an A320 from the Toulouse final assembly to JetBlue. It took Airbus 23 years to deliver its first 1,000 airliners, just six to deliver the next thousand, and a mere three to reach the latest milestone. The aircraft is the 171st Airbus delivery so far this year, which puts the company on track to deliver 300 aircraft in 2002, a level which it expects to maintain in 2003, the company said.
Ecuador's national congress approved on Thursday a draft bill providing for TAME to become jointly owned and operated by public and private capital and known as "TAME Linea Aerea del Ecuador CEM." The nation's air force, which has operated TAME as a commercial airline for over three decades, will hold 51% of the shares with management and operational functions being assumed by its strategic partner, even if it holds less than 49% equity.
Walter Mauricio, Delta's sales manager for Mexico and Central America, said last week the U.S. carrier was following closely the divestment process at Cintra and its two main assets, AeroMexico and Mexicana, and reiterated potential interest in participating, even if control remains with Mexican investors. According to Mauricio, Delta's interest is due to the fact that Mexico is a major market in the region and also quite "competitive."
Northwest regional partner Mesaba Holdings last week became the latest carrier to drop Arthur Andersen as its independent auditor. At the recommendation of the board's audit committee, Mesaba appointed Deloitte & Touche as the new auditor. Deloitte & Touche will perform the audit of the Mesaba's financial statements for the fiscal year ended March 31, 2003.
Cathay Pacific signed a deal with Goodrich-Messier Inc. to provide wheels and brakes for its fleet of Airbus A340-600s. Cathay Pacific Airways plans to operate three leased A340-600s, with deliveries starting in the fall. Goodrich-Messier Inc. is a joint venture company supplying wheels and brakes for A321, A330 and A340s jointly designed by Goodrich and Messier-Bugatti.
Shenzhen Airlines plans to list on the Shanghai Stock Exchange next year, with an initial public offering targeted for second quarter. The airline, which has made a profit every year since it started operations in 1993, plans to use IPO proceeds to expand its fleet from 16 to 30 aircraft by the end of 2004. The airline operates seven Boeing 737-300s and eight 737-800s, and wants more -800s.
