The International Association of Machinists has sent its official rejection of United's concession proposal to the airline. The union had earlier indicated it would take this action after it received the carrier's proposal.
Lloyd Aereo Boliviano renewed operations between Santa Cruz, Bolivia, and Cordoba, Argentina, which were suspended at the end of last year. Nonstop daily service will provide for immediate connections at both ends to Montevideo, Asuncion, Sao Paulo, Santiago (Chile), Lima, Cusco, Bogota, Caracas, Panama, Mexico, Havana and Miami, with Boeing 737s.
Lufthansa's traffic was down 8.5% in the first six months of the year. The airline reduced capacity by 10.8% and improved its load factor to 73.7%. Passenger numbers fell 9.3% for the period, compared with a drop of 11.4% in the first quarter. The carrier reported stronger signs of improvements in its cargo business. Freight carried was down 3.6%, up from a decrease of 6.7% in the first quarter. -JF
American CEO Don Carty told employees yesterday that the airline remains in dire financial straits, and issued another company-wide call for the staff to send any and all suggestions as to how the company can save money. Even though AA has cut more than $2 billion from capital projects and has recalled many employees, "The losses have been terrible, and things are going to be tough for some time to come." However, he reiterated an earlier commitment to keep AA "in the airline business for the long haul and to be the leader."
While major and regional carriers have welcomed FAA's decision to extend the slot lottery system at New York LaGuardia Airport, an industry group representing smaller, niche airlines claims not enough has been done to increase slots available to enhance competition or protect service to small communities.
American Falcon, which a strong track record in Argentina as a charter airline, in 30 days will start daily scheduled services from Buenos Aires to Santiago and Puerto Montt, Chile, as well as Bariloche and Puerto Madryn in Southern Argentina. The route between Buenos Aires Ezeiza Airport and Santiago will be operated under code share with Alitalia and extended to Montevideo, Uruguay. -LZ
KLM is cutting fares on European routes, following similar moves by British Airways and BMI in the U.K. Starting July 15, the Dutch carrier will introduce a new economy fare structure for the 66 European destinations it serves from Amsterdam. The price of economy-class tickets will drop as much as 40% on 13 routes, and more cuts will follow. "KLM has decided to alter its fare structure in response to recent European market developments, which show a sharp increase in leisure traffic," the airline said.
Oman Air this week took delivery of a new Boeing 737-700, part of a five-aircraft order that will replace the carrier's fleet of Airbus A310s and older Boeing aircraft. Last week, the airline announced it would further expand its existing operations to 17 destinations with three new routes: Karachi, Pakistan; Colombo, Sri Lanka, and Cairo, Egypt.
FAA issued a new third-party war risk liability insurance policy that extends coverage to U.S. carriers through Aug. 17. The policy, which became effective June 18, changes the amount and premium basis accounting for passenger, cargo or combination services, with four classes of premiums based on the coverage limit held by the carrier. U.S. carriers' efforts to establish, under the auspices of the Air Transport Association, a risk-retention group -- Equitime -- are "still in process," an ATA spokesman said.
International Lease Finance Corp. yesterday placed 12 new Airbus narrowbody aircraft Air Malta, seven A319s and five A320s. The airline committed to lease terms of 12 years each. The planes are powered by CFM56-5B engines and are scheduled for delivery in December 2003 through March 2008. Air Malta leases two A320s and three Boeing 737-300s from ILFC.
The Thai government, citing an "improved financial performance" in recent months by Thai Airways International (TG), has abandoned plans to shed a 10% stake in the carrier to a strategic partner to raise cash for repaying debt, finance ministry official confirmed. The decision, which did not surprise potential investors, has however driven home a message not to take proposed sell-downs of state-owned enterprises in Thailand seriously.
Samoa will become the first nation to gain open skies with the U.S. without having to negotiate a bilateral when it joins the Asia Pacific Economic Cooperation-based aviation multilateral. It also marks the first time the pact will reach beyond APEC nations; Samoa is not an APEC member. Slated to become the seventh nation to join the APEC accord, Samoa deposited its instrument of accession with New Zealand, a signatory to the agreement along with Brunei, Chile, Singapore and the U.S. Peru is acceding to the agreement.
House lawmakers are expected to vote today on legislation that would establish a trial program allowing pilots to carry guns in the cockpit. The bill, H.R. 4635, has been approved by the House Transportation and Infrastructure Committee.
The municipal government of Mexico City's Federal District (DF) will play a key role in hearings to be held by Mexico's supreme court on constitutional issues arising from the government's decision to build an airport at Texcoco. Maria Estela Rios, legal counsel to the DF, said she would submit arguments on behalf of third parties who have been jeopardized by this decision, such as residents of certain areas to be expropriated. She will also defend DF's arguments against the damaging ecological and other consequences of constructing the airport.
Boullioun Aviation Services this week bought four new Boeing 737-700s for lease to Virgin Blue. The Australian carrier is scheduled to take delivery of the aircraft during the third quarter of this year. The transaction is Boullioun's second with Virgin Blue, following the lease of two 737-800s from an Australian-based affiliate of Boullioun in December 2001. This latest transaction will bring Virgin Blue's fleet to 26 Boeing 737s, used to serve 14 Australian points.
Everette Webb, one of the four engineers who designed and created the Boeing 747, died last week at the age of 80. According to the Associated Press, Webb retired from Boeing in 1987 after a 46-year career. He was part of the award-winning 747-design team with Joseph Sutter, Kenneth Holtby and Robert Davis. Webb also helped design and engineer the Boeing 727, 707 and 767. At Boeing, he served as VP-engineering for the 767 program, VP-engineering for commercial airplanes and general manager of the Everett division, where the 747 and 767 were built, AP said.
American Eagle next month plans to upgrade all of its remaining Boston turboprop flights to regional jets. Beginning Aug. 1, the airline will offer RJ service on its six daily roundtrip flights between Boston and White Plains, N.Y., three daily flights to Quebec City, Canada, and four daily services to Islip, N.Y. These new markets will be served with Embraer ERJ-135s to go along with the ERJ-140s that already fly to some existing Boston destinations. In addition to the upgraded service, American Eagle offers RJ flights from Boston to about 12 other cities.
Unions representing the employees of several security subcontractors at Aeroports de Paris have issued an "unlimited strike" warning for July, union sources said yesterday. Airport sources expect a work-to-rule action, as well as stoppages of up to two hours, which could affect traffic at Charles de Gaulle and Orly airports. Work-to-rule actions have been causing substantial delays to flights departing from Orly since June 27. Security workers are demanding pay raises and additional staff to face the increased work load following Sept. 11.
Japan Airlines this week introduced new business-class amenities that include a "shell flat seat" with 62-inch pitch and 170-degree recline. The shell form "enhances passenger relaxation and privacy," the carrier said. The seat has a built-in massage function and when fully extended in bed mode is 75 inches long. The new Shell Flat Seat replaces the original Skyluxe seat introduced in 1996. The shell seat will enter service gradually on the Tokyo-London route, starting July 25, and will be available on a daily basis this fall.
Air China and Sabre last week signed a three-month information technology consulting agreement under which Sabre Consulting Services will conduct an extensive IT audit "critical in helping the airline determine its future IT infrastructure and applications needs."
Northwest CEO Richard Anderson told employees this week that he has no interest in becoming United's top executive. "I'm not going to go work at United," he said in response to reports he was being considered. "I might as well put that rumor behind us." Separately, United's stock price hit a new 52-week low, closing at $8.93 per share.
SkyWest Airlines plans to continue its expansion by opening a new crew base in Tucson, Ariz. The "crew domicile," SkyWest's 11th, will begin dispatching scheduled crews Nov. 1 and will be fully functional by Dec. 1. Last month, SkyWest announced the opening of a maintenance base in Tucson that will service its fleet of Canadair Regional Jets. SkyWest projects that more than 145 employees will staff these two facilities.
FAA yesterday extended New York LaGuardia Airport's slot lottery system for two years, delaying the implementation of a long-term demand management policy for the airport. Although the airport industry wants demand management introduced as soon as possible, the Port Authority of New York and New Jersey welcomed the decision to extend the lottery.
Mexico's airlines in the past few months have recovered to traffic levels registered before the terrorist attacks against the U.S. on Sept. 11, according to Mexico's department transportation (SCT). Through May this year, they carried an average of 2.4 million passengers per month, or an increase of 30%. The gain represents 16% on scheduled domestic routes by national carriers, 34% on international routes by domestic carriers and 63% on international routes by foreign airlines. All figures are expected to improve during the impending vacation season.
