Deutsche Post must repay 572 million euros plus interest -- more than 800 million euros -- for using government subsidies to fund commercial activities, under the terms of a decision by the European Commission's competition bureau.
European airlines had to cancel up to 90% of their flights to Spain on June 20, as a general 24-hour strike affected public transport. Spain's unions called the strike to protest government plans to restrict unemployment benefits. It also hit the banking, health and retail sectors.
Since June 2001, Fedex has expanded some 68% in Latin American and the Caribbean, opening more than 340 outlets in the region and offering services new to those customers, such as door-to-door delivery worldwide in 24 to 48 hours, customs clearance and guaranteed cash reimbursements.
The Indonesian National Air Carriers Association (INACA) wants its government to restrict the entry of new domestic carriers, as the local market is already flooded with 50 airlines. INACA President Wahyu Hidayat said intense competition in that congested market is forcing airlines to offer huge discounts. Wahyu said this makes profit elusive for the airlines and would only result in problems for the industry, citing the suspension of flights of one private carrier, PT Awair International, in March. He contends there could be more casualties.
Boeing this week delivered its 100th 717 to AirTran during a ceremony at the company's final assembly facility at Long Beach, Calif. AirTran's 717 fleet now numbers 37 aircraft, with 13 additional deliveries scheduled this year. The airline's CEO Joe Leonard said the 717 is 24% more fuel efficient than the carrier's DC-9s and is preferred by passengers. Other customers present at the event included Bavaria International Leasing, Hawaiian Airlines, Midwest Express and QantasLink.
Richard (Dick) Henson, 92, a pioneer in the commuter airline business, died June 12 at his home in Salisbury, Md. Henson, who spent more than 30 years as a test pilot with Fairchild Aircraft, began operating commuter airliner service in 1962 between his hometown of Hagerstown, Md., and Washington, D.C.
Delta named Curtis Robb the permanent senior VP and chief information officer in addition to the position of CEO of its wholly owned subsidiary Delta Technology. Robb has served in these roles in an acting capacity since February. Robb joined Delta Technology in 2000 as chief technology officer.
DHL Worldwide Express promoted Randy Clark to senior VP-sales and marketing for the Americas. Clark was formerly senior VP-customer relations at DHL and replaces Jeff Corbett at DHL's Americas headquarters in San Francisco.
Continental CEO Gordon Bethune, as part of a six-point "call to action" to improve airport security, yesterday urged the federal government to limit its use of explosives detection systems in U.S. airports as they are too expensive and unreliable.
Airline operations were severely disrupted across Europe because of a strike led by French air traffic controllers protesting plans for a "single sky," on June 19. The French stoppage was scheduled to last 16 hours. ATC personnel also went on strike in Greece, for five hours. Their Hungarian and Italian colleagues stopped work for two hours and one hour, respectively. Further chaos is expected today because of a general strike of civil servants in Spain.
Rolls-Royce North America sliced 40% off its pre-Sept. 11 airline business forecast for 2002, but sees slow improvements through the rest of this year and next. "The trend is up," said Ian Aitken, the engine-maker's executive VP for airlines in the Americas and president of the corporate aircraft engine business.
House lawmakers yesterday substantially changed legislation allowing pilots to carry firearms in the cockpit, in order to reach a compromise with opponents of the proposal. Instead of all qualified pilots being allowed to carry guns, a two-year trial program will arm only 2% of pilots.
Aviation in the U.S. may be headed for "chaos and failure" that will damage the economy if U.S. policy isn't changed, Air Transport Association President Carol Hallett told the International Aviation Club this week. Drawing together concerns raised last week by member airline CEOs, Hallett said industry losses of $7.7 billion after federal compensation for Sept. 11-related losses are largely attributable to growing government-imposed fees that the industry can ill afford to shoulder.
America West named Dion Flannery the airline's VP-route planning and scheduling. Flannery's responsibilities include schedule planning, new market assessments, long-range planning, fleet assignment, charter sales and service as well as alliances and partnerships. Prior to joining AWA, Flannery held various positions with Continental, most recently as senior director, long-range schedule planning and charters
Air traffic management services in the European Union will not be transferred to private ownership, according to French Transport Minister Gilles de Robien. His comments came in the wake of today's planned strike by air traffic controllers in Europe. Their protest against the EU's plans to set up a "single sky" in Europe is due to "a misunderstanding," said a spokesman for EU Transport Commissioner Loyola de Palacio.
American named 25-year industry veteran Art Pappas as the new managing director of its Los Angeles Airport operation. Most recently he was regional managing director for customer service and oversaw all of American's airports in the northeastern U.S. Pappas succeeds George Hazy who recently was appointed VP of American's hub in Miami.
The Italian government's plans for a EUR1.4 billion (US$1.34 billion) capital injection into Alitalia is not state aid and therefore authorized, the European Commission ruled yesterday. The decision is likely to spark some controversy because in recent months the commission routinely opposed state support for smaller EU airlines --Olympic Airways, Aer Lingus and Sabena -- prompting the bankruptcy of the Belgian carrier.
Continental signed a multi-year marketing partnership with the new National Football League team Houston Texans signing on as its "official airline." In addition to cooperative marketing and advertising promotions, the deal also includes charter flight services for the team's travel throughout the season. The Texans, who will start their season this August at Reliant Stadium, are bringing professional football back to Houston after a five-year absence. Continental also is the official airline for the city's professional baseball team and the Houston Ballet.
Aeroflot's board this week re-elected Valery Okulov as general director and Sergei Frank, Russia's transport minister, as chairman. Aeroflot did not make changes to the board, but Reuters reported the carrier might still do so at an extraordinary shareholders meeting Sept. 14.
United's meteorologists and flight dispatchers in the carriers' Chicago operations control center recently started testing a new short-term weather forecasting tool to help the carrier better cope with disruptions. The new system predicts thunderstorm movement for the next one to two hours, said Garry Hinds, manager of United's weather center operations. "Initially, it looks like this tool will help us determine when a storm will end, more so than when it will begin," he said in an employee communication.
Transportation Security Administration learned "tremendous lessons" from federalizing screeners at Baltimore/Washington Airport, says Gale Rossides, the agency's training chief. Screeners' slow passenger processing during 60 hours of on-the-job basic training led to long lines, prompting TSA to "reconfigure the curriculum" to include "just" trace detection and X-ray equipment during hands-on training, she said.
