Afghanistan and ICAO last week agreed to a program under which the organization will manage the rebuilding of Kabul Airport, Afghanistan, and the development of air traffic control services. The $8.2 million Kabul project is part of a larger ICAO initiative to rehabilitate Afghanistan's civil air transport system at an overall cost of $37 million. ICAO and other nations are working to return the aviation system to the hands of civil authorities.
An advisory committee working on an ETOPS/LROPS rule is expected to present recommendations to FAA this fall, an Airbus A330/A340 program executive said, adding that such a timetable could produce a proposed rule by yearend, though early 2003 is more realistic.
Aircraft Owners and Pilots Association urged FAA to act faster on its proposal that all GA pilots be required to carry photo identification along with their pilot licenses. FAA plans to issue a formal notice soon calling for comment on the proposal, but AOPA President Phil Boyer said, "Bureaucratic delays shouldn't delay a common-sense approach that can be implemented immediately."
Airbus is on track to meet its cost-savings goal of EUR350 million in 2004 -- an objective set as part of last year's transformation from a consortium to a company, CEO Noel Forgeard said. This year's savings goal is EUR130 million, which Airbus is "set to achieve," the company's top executive said last week in Toulouse. In 2001, Airbus shaved about EUR85 million in costs through different productivity gains, more than doubling its original goal.
A petition by airline industry groups against an FAA interpretation of pilot duty-time rules was dismissed on Friday by the U.S. Court of Appeals for the District of Columbia. The Air Line Pilot Association immediately called on FAA to enforce its interpretation, which changes the way airlines calculate rest period "look-back" requirements.
Over the next 10 years, demand for pilots in the Asia/Pacific region is projected to grow at about 5% a year, with more than 22,000 new hires required by 2012, said a new study by the Center for Asia Pacific Aviation. Most in demand will be pilots of twin-aisle and single-aisle jets, as the need for 747 crews will slow during the period.
FedEx on Friday declared an initial quarterly dividend of $0.05 per share on the company's common stock, the first time it will make such a payment in the company's history. The dividend is payable July 8 to shareholders of record at the close of business on June 17. "The company has reached a significant milestone as it expects to produce positive free cash flow in fiscal year 2002 and in future years," said CEO Fred Smith.
Continental Connection affiliate CommutAir plans to start nonstop service June 17 between CommutAir's hub in Albany, N.Y., and Montreal with up to four flights per day. A modified schedule may be operated during off-peak periods, the carrier said. Flights between Albany and Montreal will be operated with 19-seat Beech 1900 turboprops.
30 years ago June 8, 1972 -- Dallas/Fort Worth Airport board, by resolution and a court filing, seeks to ensure that all carriers serving the two cities shift operations to DFW when it opens in mid-1973, while intrastate carrier Southwest will fight to remain at Dallas Love Field. 10 years ago June 8, 1992 -- As DOT receives comments while it formulates an open-skies policy, Singapore urges the U.S. not to limit its discussions to Europe, where "it looks like there will be few takers," and to open skies with all qualified nations.
Alaska Air on Friday named industry veteran Don Garvett its new VP-planning. Most recently executive VP-strategy and planning at South African Airways, Garvett will be responsible for planning and revenue management. He will report directly to Gregg Saretsky, the carrier's executive VP-marketing and planning, and will join the company in August.
Singapore Aircraft Leasing Enterprise (S.A.L.E.) will lease a Boeing 737-300 to second-tier Malaysian carrier Air Asia for delivery this month. Air Asia currently operates four such aircraft, all leased. In another development, S.A.L.E. concluded an agreement with Lotus Air, a North African charter airline, for the lease of an Airbus A320. This is the first contract secured by S.A.L.E. from a North African carrier.
U.S. House aviation subcommittee has tentatively set July 19 as the date for a hearing that will focus on FAA restructuring. FAA Administrator Jane Garvey has been asked to testify. The White House is expected to release its own proposal for FAA restructuring at about the same time as the hearing. One of the key elements will be the creation of a performance-based organization to manage air traffic control.
New York jet fuel spot prices ended last week at $0.69 per gallon, down 1.6% from the beginning of the week and down 18.3% from a year ago, according to Deutsche Banc Alex. Brown.
Hawaiian Airlines announced last week it would start a tender offer to purchase up to 5.9 million shares of its own common stock at $4.25 per share. The amount represents about 17.5% of the company's outstanding stock. The offer started on Friday and will expire June 27. The closing price of the stock on May 30 on the American Stock Exchange was $3.25.
Frontier Airlines eliminated travel agent commissions for tickets sold in the U.S. and Canada for travel throughout its network, effective immediately. The change also applies to commissions paid on change fees. Frontier's action follows similar moves by the U.S. major airlines earlier this year. Frontier for several months maintained a 5% commission with the hope that revenue from travel agents would increase enough to justify keeping the payments.
American plans to introduce daily nonstop service between Los Angeles and Tokyo April 1, 2003. The new service, which requires government approvals, will be the carrier's second new service to Tokyo announced this year. The airline began flying nonstop to Tokyo from New York Kennedy in April. AA also provides daily service to Tokyo from Chicago and Dallas/Fort Worth, as well as from San Jose, Calif. All flights are operated with three-class Boeing 777s.
Federal aviation screeners will have whistleblower protection ensured under an MOU, to be unveiled today, between DOT and the U.S. Office of Special Counsel, who will handle complaints. The MOU resolves a discrepancy between the Conference Report on the Aviation and Transportation Security Act and the Act itself, which gave authority over terms of employment to the under secretary of transportation.
Airlines planning to apply to the Air Transportation Stabilization Board for loan guarantees will be watching today as the full Senate takes up the House-passed supplemental appropriation. While applications are to be filed with the board by June 28, the House version would delay availability of the guarantee until fiscal 2003, dismaying carriers who would need the backing for loans from private lenders. An even more alarming prospect is the Senate plan to reduce the guarantee from $10 billion to $4 billion.
American on Friday warned that it expects to post a "significant loss" in the second quarter, "representing a slower sequential rate of earnings recovery than experienced in the first quarter." In a securities filing, AA said its second quarter unit cost would come in 3% higher than last year, which is consistent with the high end of estimates previously provided. AA's unit revenue performance "remains under pressure."
US Airways last weekend started requiring passengers to check in with their baggage and arrive at the gate further ahead of the scheduled departure time in order to improve the airline's on-time performance. Customers are required to check their bags a minimum of 30 minutes before departure, instead of the current 20-minute minimum. The extra 10 minutes allow extra time to complete the necessary security procedures and for the loading of aircraft, the airline claims.
U.S. aviation negotiators hold talks this month in Washington with three nations about expanding bilateral agreements. Negotiations are to begin tomorrow with Uganda on a full open-skies pact. All-cargo, open-skies negotiations with Thailand, which had postponed talks scheduled earlier this spring, are scheduled to begin June 11. And another round of discussions with Hong Kong on liberalizing the current accord is likely to take place June 18-19. Hong Kong has exhibited "some willingness to address" certain U.S.
Alaska Air plans to exercise options with Boeing for two new 737-700s for delivery next year, CEO Bill Ayer said last week in Fairbanks. At the same time, the board approved changing a previous order for a 737-700 to a larger 737-900. As a result, Alaska's fleet will total 109 aircraft by yearend 2003, seven more than the current total.
