Federal security screeners will have a "safe and nurturing work environment throughout their career at TSA," according to Transportation Security Administration head John Magaw, and while whistleblower protections announ-ced yesterday will help ensure that, Magaw still retains the power to remove screeners from their posts. Magaw, U.S.
Transportation Security Administration yesterday announced the selection of federal security directors (FSDs) for four more airports -- Hartford Bradley, Orange County, Calif., Houston Hobby and Houston Bush, bringing the total number of FSDs named 24. It has been more than two weeks since TSA announced FSDs, who are to lead the agency's security operations at the 429 U.S. commercial airports. TSA named FSDs for Seattle-Tacoma, Las Vegas McCarran, San Antonio, Texas, and Grand Rapids, Mich., on May 16.
Continental over the weekend backed off its attempted $20 fare increase on roundtrip leisure fares. American and Delta matched the increase, but all three airlines reversed course when it was clear that others would not follow suit. The failed increase was third time this year airlines have tried to hike fares.
US Airways, as part of its strategy to form alliances with other airlines, launched a new marketing alliance with three regional Caribbean carriers. Called "GoCaribbean," US Airways will have frequent flyer cooperation with the three airlines -- Caribbean Star Airlines, Nevis Express and WINAIR (Windward Island Airways International) -- and is now working on code-share deals with the airlines in some markets.
SAS plans to hire a new CEO for the airline division in November, President and CEO Joergen Lindegaard told The DAILY in Shanghai. The move comes after the current Chief Operating Officer Marie Ehrling, who has been running the airline operation, decided to resign.
United later this year plans to shut down 23 more city ticket offices in the western U.S. as part of its strategy to further cut operating costs. These new closings, as well as the 32 ticket offices closed last year during the company-wide job cuts, will leave the company with 25 U.S. CTOs open to the public. "Despite the many steps the company already has taken to control expenses, it's clear that our economic situation requires additional action," said Sean Donohue, VP-North American sales.
Star alliance this year plans to add three new members to its network, boosting the system significantly in Europe and North-East Asia. Asiana Airlines, Spanair and LOT Polish Airlines will join within the next 12 months, Star announced at its Chief Executive Board meeting last weekend in Shanghai. Once the new carriers are fully integrated, Star will have 17 airline members and says it has no plans to slow growth. Star has had "very fruitful discussions with Air China in the last few months," said Lufthansa CEO Juergen Weber.
Civil Aviation Administration of China (CAAC) over the weekend made major changes in its management structure following the crash of an Air China Boeing 767-200 May 15 and a China Northern Airlines' MD 83 early last month. Former China Southern Airlines instructor pilot Yang Yuanyuan will become the new minister for CAAC, replacing Liu Jianfeng.
US Airways pilots yesterday presented their counterproposal to the airline's request for $595 million in cost reductions. No details of the proposal were available at press time, but Air Line Pilots Association spokesman Roy Freundlich said it was "definitely concessionary" in nature. It is unlikely to be as concessionary as the airline proposal, which according to details released recently by ALPA, calls for cumulative wage reductions of more than 30%.
The 10 largest U.S. airlines turned in better results on delays, complaints and lost baggage month over month and year over year in April, even as more flights returned to the skies. On-time arrivals averaged 82.6% in April, up from the 78.6% posted in March and 79.3% in April 2001. Continental led the list for the second month, with 87.9% -- more than three percentage points higher than its March record of 84.8%. Southwest was second, 85.0%, followed by America West, 84.9%.
Pan Am begins daily nonstop Newark-Orlando Sanford service June 28. Last week, the carrier began service to the Dominican Republic from Miami and added service to San Juan, Puerto Rico, from Puerto Plata, D.R. It also began jet flights linking Orlando and Miami last week.
Airbus may keep prices for proprietary spare parts and other customer-support services frozen at 2001 levels for the rest of this year. "We hope to do it, but we must revisit it later this year," an Airbus product support source told The DAILY in Toulouse. Airbus froze the prices last fall to help airlines control some costs as they coped with the Sept. 11 fallout.
Star alliance carriers are evaluating ways to keep Air New Zealand as a member of their group following Qantas's recent proposal to take a 25% stake in its Australasian rival. Air Canada President and CEO Robert Milton told The DAILY that "the issue is of great importance for all of us." He hinted that the alliance could respond as it did in the Air Canada case, where Star built in high contractual hurdles for leaving the alliance. At the time, American tried to combine Air Canada with Canadian Airlines and pull it into the oneworld alliance.
Chicago O'Hare expansion opponent Rep. Henry Hyde (R-Ill.) joined a lawsuit to block what the suit calls an "unconstitutional agreement" to reconfigure the runways and add an eighth runway, signed by Illinois Gov. George Ryan (R) and Chicago Mayor Richard Daley (D). Filed in the Circuit Court for the Eighteenth Judicial Circuit, Wheaton, Ill., the suit claims the Illinois constitution permits only the General Assembly to make such a decision.
The Airbus A340-600, which recently received European JAA certification (DAILY, May 30), was put through another "maximum energy" rejected takeoff (RTO) test early last week to show customers that a problem discovered during a prior test was fixed. The second test was not required, but Airbus wanted to alleviate any doubts after the original test -- required for certification -- caused damage to the plane's belly when some tire fuse plugs did not melt, causing them and some wheels to explode (DAILY, March 5).
TSA public affairs chief Jonathan Thompson is leaving the agency, DAILY affiliate Airports has learned. Thompson did not respond to a message from yesterday asking about the change. Thompson will be the second high-ranking executive to depart; Kevin Houlihan, associate undersecretary for aviation operations, left soon after he joined the agency for medical reasons.
BMI British Midland CEO Austin Reid believes European airlines are in the midst of a major structural change, brought on by the emergence of low-fare carriers. In two weeks, BMI will expand its new pricing scheme, until now used only on domestic routes, to its entire system. BMI will get rid of all Saturday night restrictions and base prices mainly on availability, offering one-way fares. Reid told The DAILY in Shanghai that he expects economy-class yields to fall by a double digit percentage. At the same time, he hopes to see new demand.
Austrian Airlines, in the coming weeks, plans to issue a request for proposals (RFP) to regional jet manufacturers in an effort to start harmonizing the group's diverse fleet. Austrian CEO Vagn Soerensen told The DAILY at the Star alliance Chief Executive' Board meeting in Shanghai that the airline wants to place an order for roughly 15 aircraft in the 50- to 100-seat category early next year. Soerensen said he would consider proposals from Bombardier, Embraer and Fairchild Dornier "if the 728/928 program can be saved."
