House and Senate conferees agreed last week to emergency supplemental funding for homeland security initiatives that would provide $3.85 billion for the Transportation Security Administration -- $550 million less than requested by the administration. The bill, which is expected to clear Congress this week, includes $75 million for FAA -- $42 million in new funding and $33 million in authority to transfer funds. FAA risks furloughing air traffic controllers without at least $46 million (DAILY, July 15).
Saudi Arabia agreed to let Malaysia Airlines boost its three-times-weekly flights between Kuala Lumpur and Jeddah to four. The frequency can be stepped up to daily should demand warrant. Saudi Arabian Airlines has reciprocal rights on the route.
BAE Systems Regional Aircraft and West Air Sweden recently made the first flight of the large cargo door ATP freighter from West Air Sweden's Linkoping facility. The "shake-down" flight was followed by the main test flight the next day lasting just under three hours, with all performance parameters reported as being "well within their envelopes." The aircraft is now scheduled to make its international debut at the Farnborough Air Show. BAE Systems and West Air Sweden jointly funded a full conversion program for the ATPF at Linkoping.
Frontier yesterday accepted delivery of its 10th Airbus A319, which will be available for service this week. With the new delivery, Frontier will have 17 Boeing 737-300s, seven 737-200s and 10 A319s.
United next month plans to lay off 226 surplus base and line mechanics, the company told the International Association of Machinists. "These reductions in manpower are necessary because of maintenance program changes, fewer aircraft modification projects and reductions in the amount of project work," said Chief Operating Officer Andy Studdert. The cuts will save the carrier $20 million.
Airbus Industrie is eyeing further inroads into the Australian and New Zealand markets after breaking Boeing's dominance in Australia with an order for 13 A330s from Qantas. The Toulouse-based airframer is in talks with Australian domestic private carrier Virgin Blue for A320 narrowbody twins. John Leahy, Airbus executive VP for customer services and CEO, was willing to say only that talks are on with Virgin Blue.
FAA yesterday awarded Boeing a $23 million contract to examine the feasibility of incorporating satellite-based communications and air traffic management systems into the National Airspace System. It's the first significant FAA contract for Boeing's new Air Traffic Management division.
The White House wants to get NTSB head Marion Blakey's confirmation as new FAA Administrator moving as quickly as possible, and congressional observers expect little opposition to her nomination on Capitol Hill. Outgoing FAA Administrator Jane Garvey, industry groups and lawmakers all welcomed the administration's choice of Blakey as the new FAA chief.
Bombardier this week delivered a second 50-seat Q300 turboprop to Cairo-based Petroleum Air Services. The first of two firm-ordered aircraft was delivered in May. PAS flies from Cairo to 11 sites within a 380-nautical-mile radius on behalf of 12 Egyptian and multi-national companies. It also operates charter flights within Egypt and to surrounding countries.
Site59.com recently signed new supplier partnership deals with Air Canada and Hawaiian Airlines. The last-minute online travel site now has partnerships with seven carriers, including Continental, Delta, American, Northwest and National. Under the deals, the airlines supply distressed inventory at a specially negotiated rate. Because Site59 sells last-minute travel packages, the company tells airlines that it is able to protect the brand and they "don't dilute the yields," a spokeswoman said. Site59 has seen "huge" month-to-month sales growth.
Lufthansa and Expedia recently signed a cooperation agreement to boost the airline's online presence in the U.S., Canada, the U.K., France and Germany. Through the new deal, travelers visiting the various international Expedia sites will have access to the "savings and value that Lufthansa provides, as well as special promotional offers." Lufthansa will also use the local Expedia web sites to communicate detailed information on services and marketing offers to Expedia users.
Northwest yesterday posted a $93 million second quarter net loss, deeper than last year's $55 million deficit, but CEO Richard Anderson declared Northwest "will be the first carrier to reach profitability." He couldn't predict when Northwest will get back to positive results, however, due to the slow yield recovery. Revenues were down 11.4% to $2.4 billion, but officials highlighted that the airline operated at a double-digit, domestic unit revenue premium to the industry in May and continues to report the industry's highest load factors.
Midway Airlines yesterday temporarily suspended operations and started laying off its staff of 400 as it surrendered to tremendous competition and mounting cost pressures. However, if the airline is able to jump several significant hurdles in the coming weeks, it plans to restart operations in 60 days with an all-regional fleet operating as US Airways Express. The Ra-leigh/Durham, N.C.-based carrier has been operating under Chapter 11 bankruptcy protection since August 2001 and has struggled to grow amid numerous low-cost competitors on the East Coast.
Delta customer check-ins through the carrier's web site and self-service airport kiosks jumped more than 230% from the first to the second quarter. Ticket sales at Delta.com grew 30% in the second quarter over the same period last year. "Leveraging technology to deliver a superior travel experience for our customers is a core component of Delta's business strategy," said Steve Scheper, managing director of e-business, business-to-consumer.
FAA this week announced five airports to be added to its Military Airports Program (MAP), through which the agency provides funding for military airports that are converting -- or have already converted -- to civilian use. The new funding will be used for utility rehabilitation at Guam Airport; maintenance hangar upgrades at San Bernardino Airport, Calif.; hangar rehabilitation and fuel farm upgrades at Sawyer Airport, Marquette, Mich.; a new cargo facility at Mid America Airport, Belleville, Ill., and terminal and hangar renovation at Plattsburgh Airport, N.Y. -AS
Royal Jordanian Airlines yesterday took delivery of the first of two leased Airbus A340-200s that will boost its long-haul network. After takes delivery of the second A340 later this month, Royal Jordanian will use its A340s to start nonstop services to North America and flights to Asia. Royal Jordanian operates an all-Airbus passenger fleet on services to Asia, Europe, North America and throughout the Middle East.
Northwest this week takes delivery of two new Boeing 757s. One of the aircraft is the airline's first 757-300 to replace retiring DC-10-40s. The -300 will be powered by Pratt & Whitney engines. The second delivery is the airline's 57th 757-200. Separately, CEO Richard Anderson told employees this week that the carrier's July on-time performance is "very strong" and has a 78% load factor in the first half of the month.
National Airlines and Expedia launched a two-for-one ticket promotion for travel between Seattle and Las Vegas. Travel on the qualifying ticket must be purchased by Aug. 31, and completed by Sept. 30. Qualifying customers get an electronic coupon in their Expedia.com account good for a free roundtrip, coach/economy ticket on National for the Seattle-Las Vegas route. Travel on the free ticket is available between Sept. 3 and Feb. 13, 2003.
Southwest's aggressive cost control paid off again last quarter as it posted a $102.3 million net profit, but officials warned that the weak revenue environment is not expected to improve any time soon. Excluding the effect of the reduction in air traffic liability, net income for the quarter was $84.5 million, a 51.9% decline from last year. Although load factors are at "satisfactory levels," yields were down 9.3% because the airline is carrying a "significantly greater proportion" of customers traveling on lower-yielding discounted fares.
Colombia's Summa Alliance -- Avianca, its subsidiary SAM and Aces -- had a stormy start after launching joint operations on May 10: the weather was bad, a long weekend overloaded systems, and employees not fully familiar with operations could not respond quickly enough. "We had to implement an emergency plan in which all employees participated, including VPs," says President Juan Emilio Posada in retrospect. "But now, with less pressures in low season, we expect to enjoy the first honeymoon with our users."
Brazilian officials met this week with top airline executives hoping for tax relief at a time of economic difficulties, including fuel increases and a monetary devaluation that has swelled the carriers' dollar-denominated obligations. Varig President Ozires Silva, TAM CEO Daniel Mandeli Martin and Vasp founder and Chairman Wagner Canhedo met in Brasilia with Minister of Development Sergio Amaral and members of a congressional commission discussing a bill to revamp Brazil's civil aviation department and place it under civilian control.
British Airways is continuing its risky fare structure relaunch in the European network with the addition of routes to Germany, Switzerland and Austria as of yesterday. BA will cut fares by up to 80%, the carrier said in a statement, its latest effort to respond to low-fare airlines. The airline is extending the plan to 38 more routes, with 20 of them operated by regional subsidiary CitiExpress. BA dropped advance booking and minimum stay restrictions, with some exceptions in U.K. inbound traffic.
Delta Connection plans to start nonstop regional jet service between Chicago O'Hare and Dallas/Fort Worth Sept. 1. Delta Connection carrier Comair will operate five daily roundtrips between the cities using Canadair RJs.
