Delta's cargo division Delta Air Logistics plans to make its Equation product -- an airport-to-airport express service for packages that do not exceed 150 lbs. -- available to its U.S. domestic network for all SkyTeam Cargo partners through the New York Kennedy gateway. Tony Charaf, Delta Air Logistics senior VP, said the move is part of SkyTeam Cargo's larger strategy "to make our common product offering available worldwide through our extensive alliance network later this year."
US Airways plans immediately to start deferring payments on public debt relating to aircraft that have already been grounded, as well as some older Boeing aircraft in service that have been "targeted for debt modification" as part of its restructuring plan. The company said yesterday it is negotiating with various creditors to "reduce and restructure" its costs and payment obligations under existing agreements, and these discussions will now include indenture trustees of the public debt issues affected.
The apparent steady progress that US Airways was making in its concession negotiations with its pilots hit a bump on the weekend, with pilots walking out of discussions. Although the Air Line Pilots Association has accused the airline of reversing a tentative agreement on small jet numbers, US Airways believes the deal still stands.
Port Authority of New York and New Jersey signed a $46.5 million lease deal with JetBlue that will enable the carrier to expand at New York Kennedy. The agreement provides JetBlue with access to all 13 gates at JFK's Terminal 6 through November 2006. It also allows the Port Authority and JetBlue to finish more than $10 million worth of improvements to Terminal 6, including wider access roads, improved signage, new ticket counters, refurbished restrooms and baggage systems, and enhanced shops and restaurants.
Former Ansett regional subsidiaries Hazleton Airlines and Kendell Airlines have been acquired by Australianwide Airlines, putting to rest the earlier speculation, which had dragged on for several months, that the deal would be called off. According to Australianwide CEO Michael Jones in Sydney, negotiations with the Ansett administrators were tough, which gave rise to speculation that the deal would not go through. A contract technicality at the last minute caused a further delay.
Frontier last week accepted delivery of its ninth Airbus A319. The airline purchased the aircraft with financing arranged through New York-based SkyBlue Capital and offered by LB Kiel in Kiel, Germany, and Commerzbank AG in Frankfurt, Germany. The aircraft was slated to enter service over the weekend. Frontier's fleet now consists of 17 737-300s, seven 737-200s and nine Airbus A319s, for a total of 33 aircraft.
Transportation Security Administration this week opens one-day job application centers in eight cities -- Cincinnati, Cleveland, Philadelphia, Pittsburgh, Minneapolis/St. Paul, Tampa, Charlotte and Raleigh -- aimed at filling about 3,600 federal screener positions at the eight airports. Additionally, applicants may apply for screener positions at a total of 26 airports -- down from 30 -- online or by calling a toll-free number.
Malaysia Airlines yesterday resumed its three-times-weekly flights to Vienna, using Boeing 777-200s. The flights, which were suspended on May 27 as part of the airline's plan to reduce its international network due to losses suffered the past six years, will operate via Rome. The DAILY learned that the government had ordered all suspended services to be resumed, including Auckland, Beirut, Cairo and New York.
Regional Airline Association last week released statistics showing that revenue passenger miles, available seat miles and enplanements for U.S. regional airlines increased during the first quarter. Regional airline traffic jumped 19% and enplanements rose 8%. Available seat miles were up 12% to 12.3 billion. The industry completed 1.0 million departures, with an overall average load factor of 57.8%. The average passenger trip length in the U.S. for regional airlines was 333 miles, an increase of 10%, compared with the first quarter of 2001.
Pan Am affiliate Boston-Maine Airways on July 29 will begin daily roundtrips to St. John, New Brunswick, Canada, from Bangor, Maine. The morning flight continues on to Portsmouth, N.H., returning to Bangor via St. John. Passengers can connect to Baltimore/Washington and Orlando Sanford from Portsmouth. St. John Airport, as well as the St. John Board of Trade and Enterprise, provided support and guidance in establishing the carrier's service to the community, Pan Am CEO David Fink said.
Southwest mechanics, represented by the International Brotherhood of Teamsters, are seeking federal mediation for their contract negotiations with the airline. Mechanics rejected the company's latest offer by a 98% margin. This is the first time in 15 years of representation that the Teamsters have sought federal arbitration for Southwest mechanics, the union said.
Grounded Transbrasil's last-minute effort to transfer majority equity to the Transbrasil Foundation in order to restructure its $400 million debt and avoid bankruptcy was further denied yesterday by prosecutor Paulo Jose de Palma of the Sao Paulo State Attorney's Office. In his ruling, de Palma said this transfer was illegal because it involved a debt-ridden company that also faces numerous lawsuits from creditors. Another factor was entrepreneur Dilson Prado's legal claim that he acquired control of the carrier last year for the symbolic price of one real.
Cessna Aircraft Company, facing decreased aircraft orders due to the slumping economy, launched a "voluntary separation" program designed to pare its work force by about 900 positions by the end of the year. A brief announcement noted Cessna's "16 years of revenue and employment growth, the longest in our 75-year history.
National Airlines yesterday joined a growing group of U.S. low-fare carriers that are reforming their pricing structures in an attempt to boost revenues and gain market share from the struggling major carriers. National introduced its FareSavers promotion, which cuts many main cabin fares, particularly unrestricted, walk-up prices. FareSavers also offers low first-class fares, advance purchase first class web fares and other lower fare categories.
United's reported that its own Flight 850 from Beijing to Chicago last week became the first flight to operate from Asia to the U.S. over a polar route. The actual flight time was 12 hours and three minutes, saving about 28 minutes and 8,000 pounds of fuel, compared with the normal routing the airline uses over the Russian Far East.
American plans to eliminate all base commissions for tickets issued by travel agents located outside the U.S. and Canada for flights on itineraries originating within North America. The policy change, effective Oct. 1, is an "expansion" of the change AA implemented in March, when it announced it would no longer pay commissions within the U.S. The change applies to all tickets, miscellaneous charge orders, prepaid ticket advices and bookings made via the Internet for travel originating within the United States and Canada.
Mesa Air subsidiary Air Midwest will soon be awarded seven new essential air service cities in Arkansas, Oklahoma and Texas. Obtained by The DAILY, the cities included in the DOT award are El Dorado/Camden, Jonesboro, Harrison and Hot Springs, Ark.; Enid and Ponca City, Okla., and Brownwood, Texas. The cities were previously served by Big Sky and will now go to Air Midwest under a two-year deal at subsidy rates totaling nearly $6.7 million annually.
Aircraft Mechanics Fraternal Association won the right to represent Horizon mechanics after a ballot yesterday. AMFA received 187 votes from the 441 eligible voters.
Moody's Investors Service on Friday downgraded its ratings of US Airways due to the "continued deterioration in the company's financial performance" and its decision to defer some aircraft lease payments. The rating was downgraded to "Caa2" from "Caa1" and remains on review for possible downgrade, while the ratings for various secured aircraft financings were also lowered.
Lockheed Martin and Raytheon say a deal the companies struck to resolve an FAA contract dispute will allow work to begin soon on replacing en route air traffic control systems and could also bring forward crucial ATC display modernization at the largest terminal control centers. FAA formalized the agreement last week, when it announced the first stage of the en route contract.
