The European air travel market "remains depressed," according to the Association of European Airlines (AEA). Passenger traffic in May was down 9.5%, compared with May 2001. North Atlantic routes continued to be most affected with a decrease of 16.2% and "no signs of improving." Intra-European traffic was down 4.2% and traffic to Asia 2.6%. Airlines reduced capacity by 12%. While passenger figures look less than promising, one of the early indicators of improvement -- freight volume -- looks more positive.
Emirates plans to double its services between Dubai and Munich due to "rapid' growth in tourism and trade between the two countries. It will add five flights per week from Oct. 27 and two more on March 31, 2003, to make the service double daily. "We're increasing our German business and supporting the Dubai Government's efforts to attract 15 million visitors a year by 2010," said Ghaith Al Ghaith, Emirates' commercial operations director. Roughly 150,000 Germans flew with Emirates to Dubai last year, up 14% from the year before.
The FAA this week certified Honeywell's new AS907 turbofan engine, 44 months after the product was first launched. The AS907 will power Bombardier's new super-midsized Continental business jet and will enter service next summer. Honeywell will begin building the first production AS907 engines in September with deliveries to Bombardier in December. The AS900 program has accumulated more than 18,000 hours of test operation, and Honeywell expects to accumulate more than 20,000 test hours by the time the engine enters service in 2003.
The German government expects the European Commission to clear a EUR71 million (US$70.3 million) aid package to the German airline industry next Tuesday. The money is meant to cover losses incurred during the four-day closure of North American airspace following Sept. 11. Most other European countries have paid out the money already. Lufthansa is expected to receive most of the amount, with smaller sums going to charter carriers, such as LTU International Airways. -JF
NTSB determined yesterday that the probable cause of a Southwest accident in March 2000 was the flight crew's "excessive airspeed and flight path angle" during an approach and landing at Burbank, California. The Boeing 737-300 overran the departure end of Runway 8 after initially touching down at about 182 knots, faster than normal. About 20 seconds later, at about 32 knots, the airplane collided with a metal blast fence and an airport perimeter wall. The airplane came to rest on a city street near a gas station off the airport property.
Priceline.com yesterday warned that its second quarter revenues would be 5% below the low end of its previous estimates of $320 million, largely due to some airlines' recent decision to slash inventory from the site. The revised revenue target represents a 16% sequential increase over first quarter revenues, but its net profit is now estimated to be at the low end of earlier predictions. "Our earlier guidance was premised on steady monthly increases which we have historically experienced in airline ticket revenue throughout the quarter," said CEO Richard Braddock.
Germany's tourism giant Preussag AG has denied reports it is close to setting up a low-cost airline together with Germania, a Berlin-based charter and scheduled airline. The company -- which was renamed TUI AG yesterday -- confirmed, however, that it will decide whether to go into the no-frills business within weeks. According to media reports, Preussag and Germania were to set up a new company 80% owned by Germania's founder Hinrich Bischoff. The new airline would initially operate five aircraft and expand to a fleet of more than 50 within three years.
Standard & Poor's this week lowered its corporate credit ratings on US Airways to selective default from triple-'C'-plus and removed those ratings from CreditWatch, following the company's decision to defer various lessor payments (DAILY, June 26). Selected other ratings on equipment trust certificates were lowered, as well, and remain on CreditWatch, where they were placed Sept. 13, 2001.
House Transportation Committee yesterday approved legislation that would let up to 1,400 airline pilots carry firearms in the cockpit under a two-year trial. The Arming Pilots Against Terrorism Act (H.R. 4635) is expected to go to the floor after the July 4 recess. The act passed through committee with a manager's amendment offered by aviation subcommittee Chair John Mica (R-Fla.), who with Committee Chair Don Young (R-Alaska) co-sponsored the bill.
Continental Connection yesterday launched nonstop service between Albany and Montreal. Connection carrier CommutAir, which has its hub in Albany, will offer up to four daily flights with a modified schedule during off-peak periods. Service will be aboard 19-seat Beech 1900 turboprop aircraft. Continental Express also offers daily service to Quebec, Ottawa, Toronto, Calgary and Vancouver.
KLM placed an estimated $250 million order with General Electric Aircraft Engines (GEAE) to power 13 new Boeing widebodies that are planned to be delivered in 2003. KLM ordered GE's GE90-94B engine to power 10 777-200ER aircraft -- six of which will be leased from International Lease Finance Corp. In addition, KLM ordered GE's CF6-80C2B5F engines to power three Boeing 747-400ER freighters. "The performance of GE engines, related to the price, gave KLM the best deal," said a KLM spokesman on June 26 in Amsterdam.
Continental says its infrared aircraft-deicing program at Newark airport is producing significant savings in deicing fluid and is also reducing deicing turnaround times. The carrier hopes to enhance the effectiveness of the system even more this winter if it can win approval to use air blower trucks with the system. Newark is the only U.S. hub airport where infrared deicing is used, although system manufacturer Radiant Aviation Services suggested announcements regarding other major airports would be made this year.
Airlease Ltd. this week filed a lawsuit against US Airways seeking to recover damages for the airline's failure to return three MD-82 aircraft leased to US Airways following lease expiration on Sept. 30, 2001, and to pay rent due on the aircraft. The lawsuit was filed in California court by First Union National Bank, as trustee for Airlease, the beneficial owner of the aircraft.
American employees, including pilots and flight attendants, frustrated by the lack of consistency among airport screening procedures, are asking the Transportation Security Administration to set up a task force that would standardize airport screening search procedures already covered under federal law. American employees met with members of Congress yesterday to gather support for eliminating the type of extensive and sometimes invasive searches of employees who previously underwent thorough background checks.
United's global distribution system fees have soared more than 350% over the past 20 years, according to Greg Taylor, senior VP-planning. In the same period, average domestic revenue per passenger increased less than 14%. "Given the high GDS booking fees, there is a clear need for United to realign our distribution plan," Taylor told an airline consumer commission in Chicago.
A four-hour strike by Italian air traffic controllers led to the cancellation of more than 100 frequencies yesterday and will be followed by additional actions in the Italian air transport sector. The ATC stoppage, caused by a dispute in current labor contract talks, prompted Alitalia to cancel 106 flights -- 64 domestic and 42 international -- and to reschedule 209 services. Air France had to scrap three flights and Meridiana eight.
EasyJet could place this year's largest order for commercial aircraft next month, with a competition between Airbus and Boeing drawing to a close. A spokesman for the airline confirmed both manufacturers have submitted documentation detailing conditions of a deal. While EasyJet declined to say how many aircraft it will order, analysts speculated the carrier might go for as many as 120 firm orders and a similar number of options.
The Civil Aviation Administration of China (CAAC) has ordered all local carriers to upgrade their training and proficiency check programs under a major safety program. This follows the crash of an Air China Boeing 767-200 April 15 in Busan, Korea, which killed 129 of the 155 on board, and the China Northern Airlines MD-82 crash in Dalian May 7. Both carriers are CAAC-owned and -managed. CAAC told its airlines that pilots who fail the checks, which started June 17, should be suspended and sent for refresher courses before they are assessed again.
FAA is today scheduled to begin using two new oceanic radar sectors off the East Coast that are expected to provide alternate north-south routes for airlines to use to avoid congestion and ground stops caused by severe weather delays.
International Brotherhood of Teamsters yesterday announced the details of a tentative contract agreement between Comair and its flight attendants. The union described the five-year contract as industry-leading, and members will vote on it during the next month. Highlights of the contract are 45-66% salary growth over the five years, a signing bonus of $400 per year of service, improved scheduling rules, and increased sick and vacation leave.
