Aviation Daily

Staff
DOT may have to slow or stop building up the Transportation Security Administration if Congress fails to provide supplemental funding, putting congressionally mandated TSA deadlines at risk, DOT Secretary Norman Mineta warned yesterday. "Truly draconian steps" will be required if funding is not assured, Mineta said at a conference on excellence in government.

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A standoff in Mexico between police and farmers protesting plans for Mexico City's new international airport in the Texcoco area ended yesterday with the farmers releasing all 19 hostages and the government in turn releasing protesting farmers arrested last week.

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German regional carrier Eurowings is looking at setting up a separate no-frills entity serving European destinations, possibly from Cologne/Bonn Airport. CEO Friedrich-Wilhelm Weitholz said a decision on whether to go ahead with the plan could come early next month. Lufthansa did not comment, saying only the decision is up to Eurowings.

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A bill introduced last week by Rep. Kay Granger (R-Texas) would provide flexibility for 25% of U.S. airports -- the largest airports, which process 80% of all passengers -- to develop long-term security solutions that result in "efficient final security plans that bypass costly interim solutions," Granger said. The bill "clarifies that current screening methods are acceptable until the final solutions can be installed." Granger said she was approached by Dallas/Fort Worth Airport, which, having to meet the Aviation and Transportation Security Act's Dec.

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Transportation Security Administration likely would be transferred into the yet-to-be-created Department of Homeland Security in mid-2003, DOT Secretary Norman Mineta said, in order not to "disrupt" the build-up of TSA. Mineta said he intends to move TSA over as an "intact [and] fully operational agency," ready to be integrated into the proposed Cabinet agency. The administration's legislative proposal provides up to a year for agencies to be shifted into the new department.

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Transportation Security Administration is accepting applicants for jobs at 222 airports, from Merle K. (Mudhole) Smith in Cordova, Alaska, to Key West International in Key West, Fla., and has sent site assessment teams to over 250 airports, the agency said on Friday. "TSA will continue its commitment to meeting the mandates of the Aviation and Transportation Security Act," TSA head John Magaw said.

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Boullioun Aviation Services yesterday signed two medium-term lease deals with two U.K.-based low-cost carriers. Boullioun has already started leasing one new Boeing 737-700 to EasyJet, the leading U.K.-based low-cost carrier. Boullioun delivered the aircraft to EasyJet in mid-June, and it is Boullioun's first transaction with EasyJet. The new aircraft brings EasyJet's fleet to 17 737-700s and 18 737-300s. Boullioun also an-nounced a medium-term lease of four Boeing 737-300s, including one aircraft placed by Boullioun on behalf of a Japanese investor, to Go.

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United Airlines won't pay base commissions to travel agents outside the U.S. and Canada for travel originating in the U.S., effective Oct. 15.

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Continental plans to start nonstop service between Northwest Arkansas Regional Airport and Houston, effective Oct. 1. The new Continental Express service will be operated three times per day with an Embraer ERJ-145.

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Chinese airlines, which since 1990 have been plagued by the government's mandate to contribute a portion of annual revenues to the country's airport construction and development fund (ACF,) will soon be relieved of this requirement when the State Council scraps the policy. No date has been fixed for the ruling to be implemented, but airlines expect the waiver to be in place by Jan. 1.

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Orbitz yesterday launched a new "Orbitz for Business" product that it claims will save companies of all sizes up to 75% on transaction costs. "Since Orbitz launched, many of our customers have been using the site for business travel because Orbitz offers more flight options and access to web fares from the most airlines," said Rick Weber, VP-business services.

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FedEx yesterday finalized its definitive purchase agreement to acquire the Airbus A380 Freighter, nearly 20 months after FedEx first announced its intent to acquire the aircraft. FedEx will take delivery of 10 A380-800Fs, three each in 2008 and one in 2011. FedEx also holds options from Airbus for 10 additional A380s. FedEx will now become the U.S. launch airline customer for the A380 and the largest customer for the new freighter aircraft. International Lease Finance Corp. also has signaled its intent to acquire the aircraft.

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America West plans to expand its network this fall with new nonstop flights from Phoenix to Washington Dulles, Pittsburgh and Calgary. The carrier is also starting flights from Las Vegas to Dulles and regional jet service from Phoenix to Medford, Ore. and Billings, Mont. Flights to Medford and Billings are set to start on Oct. 1, and will be operated with Canadair Regional Jets flown by Mesa Air. The two daily Calgary and Pittsburgh flights will begin Oct. 27, and both will be flown with A319s. The two daily Dulles flights will start Dec.

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US Airways reached a tentative agreement with its pilots over a concession package after concluding job security and equity sections on the weekend. The agreement triggered a clause in the airline's earlier deal with its flight attendants that will lead to a slight reduction in the attendants' annual concessions.

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Rep. Jim Oberstar (D-Minn.), a key architect of the law providing grants and loan guarantees to U.S. airlines, recently urged the Air Transportation Stabilization Board to give "fair and expeditious consideration" to United's application for a loan guarantee.

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Willis Lease Finance Corp. named Monica Burke as its chief financial officer and executive VP, effective immediately. Most recently, Burke served as chief operating officer at Rosewood Stone Group, a private investment and venture capital firm.

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American Trans Air this year plans to start new nonstop service from Chicago Midway to Montego Bay, Jamaica, and Puerto Vallarta, Mexico.

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Horizon Air plans to start operating a 70-seat Bombardier Q400 turboprop in place of 37-seat Q200s on some of its flights from Bellingham, Eugene and Pasco, Wash., to Seattle, starting Sept. 1. "The larger aircraft will be used to better accommodate customer demand at the most popular departure times," the carrier said. For the Bellingham-Seattle route, two flights each way will be upgraded to the Q400, reducing total flights each way from eight to seven.

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Boeing expects to gain certification for several of its so-called Phase II cockpit door kits in the coming weeks, clearing the way for a ramp-up in kit shipments to eager airline customers. The 757 kit could be certified today, with the 737 Classic kit close behind. Prototype kits have been shipped for the 747 and 767, while 777 final testing and approval is slated for next month. Among Douglas-designed products, the DC-9/MD-80/MD-90 kit could be approved in the last week of July, while DC-10 and MD-11 kit approvals will come next month.

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Honduran-based airlines Sol Air recently started service from Miami to several cities in Honduras. Sol Air will operate two daily flights from Miami to Tegucigalpa and two to San Pedro Sula. All four flights will use Boeing 727-200s.

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Lufthansa has achieved load factors averaging around 60% on its first all-business class services from Duesseldorf to New York in the two weeks since they were launched. The flights are operated with a Private Air Boeing Business Jet (BBJ).

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French air transport and Paris airport authorities, security firms and unions agreed last week to deploy 100 additional agents to screen baggage at Orly and Charles de Gaulle airports, starting over last weekend. In spite of this concession to union demands, the representatives of security staff did not suspend their "unlimited" work-to-rule action, which started June 27. They still demand a substantial pay increase, for which talks started Friday. The action caused an average delay of some 30 minutes for flights departing from Orly and CDG last Friday. -MT