America West would like to have a new frequent flyer deal with a larger airline in place by yearend, according to CEO Doug Parker. Continental earlier this year broke off its cooperation with AWA, but Parker would still like to offer international service through a partner. "It's a customer service issue more than a financial one," he said in Phoenix.
New York LaGuardia's congestion-related delay problem has almost disappeared, the Air Transport Association said recently. According to the ATA, LGA had 24 congestion delays in January, 74 in February, and 69 in March. in contrast, there were about 300 a month in 1999, 1,500 a month in 2000, and 600 a month in 2001 before Sept. 11.
Aircraft Owners and Pilots Association said federal officials have confirmed that discussions are being held about possible changes to the Washington, D.C., temporary flight restriction (TFR) in the wake of the recent GA aircraft incursion into the restricted area. One option reportedly under discussion is the expansion of the TFR. The administration recently shelved plans to lift the restrictions.
Brazil's low-cost, no-frills Gol has overtaken weakened Vasp in local market share, attaining 67% in May to Vasp's 53% while maintaining its bargain fares.
Air Canada last week decided to follow U.S. major airlines in adopting a capacity purchase model as a new method to pay its regional airline, Jazz. Starting Aug. 1, Air Canada Jazz will be paid per flight operated on behalf of Air Canada. This replaces the current revenue-sharing arrangement, whereby a percentage of ticket revenues from passengers traveling on both Air Canada and Air Canada Jazz is allocated to each of the operating carriers.
Eight local and foreign consulting firms submitted to Mexico's agency in charge of airports and related services (ASA) technical proposals on the master plan for the construction of Mexico City's new international airport at Texcoco. Bidders are Grupo de Ingenieros en Consultoria en Obra; Louis Berger Group, Inc.; Spain's Ingenieria y Economia de Transporte; Desarrollo y Servicios de Ingenieria y Arquitectura; Proyectos, Estudios y Consultoria Corporativa; Grober Consultants; BM Equipos, Productos y Servicios para la Construccion.
FedEx Freight plans to implement a 5.9% general rate increase, effective July 22, because it needs the funds to improve its customer service. The increase will cover the company's two independent operating units, FedEx Freight East and FedEx Freight West. "It will also be used to partially offset substantial increases in health care costs and insurance premiums in fiscal year 2003," said Dennie Carey, FedEx Freight's senior VP-marketing.
Regional aircraft manufacturer Fairchild Dornier needs clearance for a social measure funded by creditors and state authorities today or it will have to furlough more than 2,000 staff on Monday. According to industry sources, most parties have declared they are willing to support the measure, but a final decision has yet to be reached.
Spanish carrier Iberia has ordered three Airbus A340-600s to replace its aging Boeing 747-300s. Airbus and Boeing had been in negotiations with Iberia for months over the fleet renewal and Boeing hoped to place the Boeing 777-200 with the airline. However, Iberia already has a fleet of 17 A340-300s and 63 A320 series aircraft. Iberia said it would use the aircraft on its key Latin American routes to Mexico City and Buenos Aires. The airline will operate them in a 342-seat layout with 10 seats in first, 42 in business and 249 in economy class.
DOT yesterday told Congress that it still has some concerns about Orbitz but said the site has mostly fulfilled what was promised in its business plan and has provided competition in the online travel marketplace. Congress authorized the informal investigation of Orbitz as part of the Fiscal 2002 appropriations bill. That bill specifically required DOT to report to the Inspector General, who in turn was directed to provide his evaluation and submit his findings to Congress later this summer.
Nav Canada said this week it will implement the Reduced Vertical Separation Minimum (RVSM) program in southern Canadian airspace in December 2004, to coincide with FAA's introduction of RVSM in U.S. airspace. RVSM will be a cost-effective method of increasing airspace capacity and reducing fuel consumption, according to Nav Canada. The system involves reducing the vertical distance between aircraft from 2,000 feet to 1,000 feet at certain altitudes. The move follows the successful implementation of RVSM in northern Canadian airspace in April..
American yesterday joined the Allied Pilots Association in requesting the National Mediation Board to arbitrate negotiations for a new pilot contract. Both sides say that the move should speed the negotiations. The contract negotiations began in July 2001, and talks have held as recently as this week. In a statement, American said that while the negotiations have not yet met the requirements for NMB arbitration, as an impasse has not been reached, "we believe that any assistance in expediting the process is beneficial and worthwhile."
CSA Czech Airlines will undertake C- and D-Checks on Air Berlin's fleet of Boeing 737-400s and -800s. The two sides have signed a contract that has already taken effect. CSA also will perform modifications and other maintenance work for the German leisure carrier. CSA has specialized in 737 checks and offers 737NG winglet retrofit work, among other services. -JF
Great Lakes Aviation received notice from Nasdaq that the exchange intends to delist the company's securities from the Nasdaq SmallCap Market at the opening of business June 28 due to non-compliance with criteria for the minimum net tangible assets or minimum stockholders' equity. In response to the notice, Great Lakes requested a hearing before a Nasdaq Listings Qualification Panel to contest the delisting. "The hearing request will stay" the delisting of its shares pending the panel's decision.
Southwest plans to start new Saturday-only service on two routes starting Nov. 2. The carrier will add one Saturday-only nonstop flight between Houston Hobby and San Diego and one Saturday-only nonstop flight between Baltimore/Washington and Oklahoma City. A spokeswoman told The DAILY the carrier has offered Saturday-only flights on an occasional basis for several years. She added that Saturdays have lighter schedules and, as a result, extra aircraft capacity is available to add flights.
FAA's new air traffic control display tool experienced glitches in El Paso and Syracuse over the weekend, but controllers and agency officials said they were not significant enough to cause safety issues or new concerns about the system's deployment. Interim versions of the Standard Terminal Automation Replacement System (STARS) have been installed at both locations in preparation for the beginning of the full national deployment of the system in November.
Several U.S. major airlines, including American, Delta, Northwest and Continental, confirmed yesterday they would not seek federal loan guarantees, for which applications are due at the Air Transportation Stabilization Board today. AA Chief Financial Officer Jeffrey Campbell said the airline would not qualify for a loan under the guidelines of the ATSB. "We are fortunate to be among the carriers that have sufficient cash, unencumbered assets and continuing access to external capital to operate without federal assistance," he said.
The European Commission has cleared airlines to coordinate fares on interline services. The commission renewed the exemption from competition barriers for three years, instead of the usual five. The ruling applies for airlines operating within Europe. IATA welcomed the decision.
Passengers may not carry liquids in containers through security checkpoints unless the containers are resealable, and all containers must go through X-ray machines, the Transportation Security Administration said. Open cans or fast food cups have spilled on people and machines, causing screening delays and requiring equipment maintenance or replacement, a TSA spokeswoman said.
Delta and its SkyTeam partner Korean Air yesterday received antitrust immunity from the DOT that will allow the alliance to proceed with its Asia/Pacific growth plans. The approval was expected, as there was little objection from other airlines. Delta already has immunity with its European SkyTeam partners -- Air France, Alitalia, and CSA Czech Airlines. "With this approval, the hub airports of Paris, Milan, Rome, Prague, Seoul and Atlanta will be linked by carriers with antitrust immunity," said Delta CEO Leo Mullin.
US Airways plans to eliminate its mainline jet service to Asheville, N.C., starting Sept. 8 due to "poor market performance." The airline operates four daily Boeing 737-300 flights between Asheville and its Charlotte hub, but with an average load factor of only 33% in the first quarter, according to Andrew Nocella, VP-planning and scheduling. As part of its scheduling change, the airline will add three daily US Airways Express flights for a total of eight roundtrips between Asheville and Charlotte.
GE Aircraft Engines (GEAE) this week selected Southern California Logistics Airport (SCLA) in Victorville as the site for the company's flight test operation. GEAE will build a 161,700-square-foot complex that will include a Boeing 747-sized hangar, offices and various aircraft and engine maintenance shops. The new facility will be completed in about one year. GEAE will consolidate its operations to the single facility.
Bush administration, facing congressional recess, is being urged by the Commission on the Future of the U.S. Aerospace Industry to fill quickly the post of FAA administrator before Congress takes its summer recess. "The President should ensure that a new FAA administrator be recruited without delay" -- Administrator Jane Garvey's five-year term ends Aug. 4 -- "and assign him or her a mandate to achieve substantial long-term ATC capacity growth," the commission said in its third interim report, released this week.
