The European Union Commission yesterday approved a three-month German government guarantee linked to a EUR94 million (US$89.98 million) loan package for bankrupt aircraft manufacturer Fairchild Dornier. The guarantee covers 50% of the lifeline, which is meant to keep Dornier afloat while it looks for an investor.
The Bush Administration's Commission on the Future of the Aerospace Industry plans to get input from airlines and European regulators as it drafts its final report, Commission Chairman Robert Walker said yesterday. The Commission was created by the White House in 2001, and must issue a final report to the President by Nov. 27. The Commission will publish its third interim report on June 26, and has scheduled one more public meeting on August 22.
The odds of survival for Fairchild Dornier and its 728/928 regional jet took a turn for the worse yesterday after Bombardier decided not to buy the regional jet programs. Bombardier spent about five weeks in talks with customers, suppliers and related stakeholders but "did not achieve the results required for these programs to meet Bombardier's investment standards," the Canadian company said.
After more than two years of talks, ATA has reached a tentative deal with its pilots for a new contract, the carrier announced yesterday. The ATA Master Executive Council of the Air Line Pilots Association is meeting today to consider the four-year agreement, and is expected to approve it. No details, however, will be released until its presented to the membership, ALPA's ATA spokesman Matt Ellis said. If approved by the MEC, a ratification vote could be completed within six weeks.
The Transportation Security Administration yesterday named a 40-year veteran of the New York City police department to be the federal security director at New York LaGuardia airport. Allan Hoehl is the 29th FSD to be announced by TSA. About 50 FSDs are "in process," Deputy Under Secretary for Transportation Security Stephen McHale said yesterday.
The Minneapolis Metropolitan Airports Commission (MAC) is proposing special departure procedures for a new runway under construction at the city's airport.
Brazil's Embraer opened new facilities last week at Gaviao Peixoto, 300 kilometers (186 miles) from Sao Paulo, for making military aircraft and its Legacy corporate jet. In partnership with France's Dassault, Embraer will concentrate on bidding to secure an order from the Brazilian air force (FAB) for its new Mirage BR supersonic fighter.
Qantas is investing US$5 million in new screening equipment to enhance security at 20 domestic and regional airports in Australia where the airline is the appointed security authority. The airline will buy, install and commission 69 walk-through metal detectors and explosive trace detection systems, and 39 X-ray machines. The new equipment would be operational by the end of the month.
Czech Airports Authority chief Milos Stastny will likely be dismissed over apparent disagreements on the future privatization of Prague-Ruzyne International Airport. Transport Minister Jaromir Schling last week signaled his intention to give Stastny his marching orders "relatively soon."
The National Air Traffic Controllers Association yesterday warned U.S. travelers of "long delays and travel disruptions" due to a series of coordinated controller strikes planned throughout Europe today. Controllers are protesting the Single Sky proposal for air traffic management.
The Airline Association of Venezuela (ALAV) reports domestic air traffic has dropped 30% this year below 2001 levels. Apart from the world-wide aviation slowdown, ALAV blames Venezuela's unfavorable image of political, social and financial unrest for seriously jeopardizing business and leisure travel both at home and abroad. ALAV also singled out higher airfares and the growing cost of airport services.
British Airways slashed some European leisure fares by as much as 80% on 42 routes to better compete with the region's low-cost carriers. BA also scrapped Saturday night stay and advance purchase restrictions for tickets on flights from the U.K. to France, Italy, Portugal, Holland, Sweden, Norway and Denmark. "We are adopting what the no-frills carriers do well and combining this with what our customers tell us we do better than anyone else," said Martin George, director of marketing.
European Union transport ministers have formally adopted the regulation creating the European Aviation Safety Agency (EASA), Europe's equivalent of the U.S. FAA. The agency is scheduled to be fully operational in 2004 with a staff of 200 and an annual budget of some EUR29 million (US$27.5 million). Its location has yet to be decided -- Amsterdam and Cologne are being considered, according to diplomatic sources.
Singapore Technologies Electronics Limited (ST Elect) and Honeywell International signed an agreement to work together on airport and aircraft security systems. The companies did not identify specific products, but said they would combine ST Elect's capabilities in mobile real-time communications, info security, RFID (radio frequency identification), image processing and resource management with Honeywell's expertise in airport and aircraft safety systems.
Boullioun Aviation Services recently closed its first Export Credit Agencies-supported financing covering two new Airbus A319s. Boullioun delivered the aircraft in April and May on long-term lease to Mexicana. The European Export Credit Facility was combined with a commercial facility, both of which were arranged by Crédit Lyonnais as Facility Agent, French and British National Agents, HypoVereinsbank as German National Agent, and KfW as German Parallel Lender. Separately, Boullioun named two to senior roles on its finance and marketing departments.
United's senior officers, non-union management and administrative employees yesterday agreed to $430 million in concessions as part of the carrier's recovery plan. The airline's officers will take a 5% salary reduction and an overall cut in cash compensation in the first year of 42%. They will forgo a scheduled April 1, 2002, performance-based merit salary increase and payment from the 2002 incentive plan. CEO Jack Creighton will continue to forgo any salary. U.S.-based salaried and management employees also will take a 5% salary cut.
FAA's controller hiring plans are inadequate, and the widely publicized problem of controller retirements is going to be even worse than FAA predicts, the General Accounting Office concluded. Congressional aviation leaders and the National Air Traffic Controllers Association called for the FAA to take action to prevent controller shortages causing disruption to air traffic.
Rockwell Collins recently reached a deal to acquire Airshow, Inc., a wholly-owned subsidiary of Acterna Corp., for about $160 million. Airshow provides cabin electronics systems for business aircraft, including cabin environmental controls, and passenger information and entertainment. The company also provides the "moving map" system for many commercial airlines and manufacturers, which displays an aircraft on its flight path.
Security screener rollout is kicking into high gear after a period of planning, Transportation Security Administration said yesterday, countering critics who question whether TSA will meet deadlines for federalizing screeners and screening all checked baggage for explosives. TSA yesterday unveiled several efforts aimed at accomplishing the congressionally mandated federalization.
Revenue for international carriers operating in Argentina have plunged this year at the hands of monetary devaluation and all-time record declines in air traffic, according to figures in a report by the Argentine Board of Airline Representatives to be issued this week. Sales fell some US$230 million in relation to the same period last year. In May alone domestic traffic shrunk by 60%, or 350,000 passengers.
Transport Canada yesterday told CanJet Airlines it has met all the requirements to start service and will be issued its operating certificate today. "This is a key and most critical piece of the puzzle for re-launching the low-cost discount carrier," said Julie Gossen, parent company IMP's chief operating officer, commercial aviation. Thanks to the government approval, CanJet will start service between Toronto, Halifax and St. John's this Thursday with Boeing 737-200s.
Northwest's capacity and unit revenue figures continue to improve, CEO Richard Anderson said at the Merrill Lynch Global Transportation Conference Wednesday. Capacity, as measured by Available Seat Miles (ASM), will likely be down 11% from last year's levels for the second quarter, after being down 13% in the first quarter. For the full year, capacity will be down about 5%, Anderson said. In 2003, capacity will likely increase 3% from 2002 levels. The airline decided to defer the delivery of six narrowbody Airbus aircraft in 2003.
