A decision is expected soon on whether the United flight attendants are eligible for a raise under their existing contract. Even if the arbitration panel finds an increase is required, the AFA does not plan to change its stance and enter concession negotiations management has requested. The United attendants' contract stipulates that wages be adjusted annually to mirror changes in average flight attendant wages at the airline's major competitors. AFA has met with management on the issue, and an arbitration panel will soon announce either an increase or no change.
Delta announced last week that it would furlough another 31 pilots, effective July 1, bringing the furlough total to 805. Earlier this month, the airline announced that it would furlough 30 pilots on June 1. Delta announced last year that it would furlough up to 1,400 pilots.
Mauricio Botelho, president and CEO of Embraer, said Tuesday that the company has decided to establish a plant to manufacture its ERJ-145 regional jet in China, subject to final approval by the host country. Botelho added negotiations with joint-venture partner Avionic 2 and Chinese associates are progressing smoothly. He estimated at 400 China's need for regional jets over the next 10 years.
The National Mediation Board yesterday released Atlas Air employees from arbitration regarding a first labor agreement for pilots and flight engineers. Atlas Air's stock price fell more than 10% following the news of the NMB decision. The parties now enter a 30-day cooling-off period, after which the pilots may strike.
Lufthansa and LOT Polish Airlines will start code sharing on all routes between Germany and Poland on June 1. The introduction of code-sharing flights is part of a more wide-ranging deal signed in April that is expected to lead to LOT joining the Star alliance.
Korean Air yesterday signed a deal worth $20.3 million with Boeing in Busan, South Korea, to design and produce the extended wing-parts for its 777-300ERs. Under the deal, Korean will take up the design and production of the 3- by 6-meter wing parts. Boeing started developing the upgraded 777 model in February 2000 and plans to launch sales in 2003.
With stakes getting higher for the future shape and direction of Chicago-area airport capacity, supporters and opponents of the legislative proposal to ensure capacity expansion at Chicago O'Hare, as agreed to by Chicago Mayor Richard Daley and Illinois Gov. George Ryan, and other options for increasing capacity in the region, yesterday sparred over safety issues.
The fifth early display configuration version of the Standard Terminal Automation Replacement System became operational at Birmingham International Airport recently, according to Raytheon. Eight more of the early configuration versions of STARS will be installed in U.S. airports by the end of the year.
Small-jet developer Eclipse Aviation this week landed its second major order for its Eclipse 500 jet, a 112-aircraft deal from Switzerland-based flying club Aviace AG, the company said. Aviace placed a deposit to secure the agreement, which could have a potential value of almost $100 million, and deliveries are slated to begin in 2004, Eclipse said. Calling flying clubs an "emerging phenomenon," Eclipse said Aviace is planning to use the Eclipse 500 jet to establish jet clubs throughout Europe, hoping to attract customers who find private travel more convenient.
The International Association of Machinists yesterday announced a pilot program at Detroit to address passenger rage incidents. With support from Northwest and airport authorities, IAM hopes the program will lead to zero tolerance for passenger rage incidents at the airport. According to IAM, the program may be expanded to cover other airports. It includes revised training, an incident reporting system, and swift prosecution of offenders. -AS
World Airways received word from Nasdaq that its stock could again be listed on the market. Earlier this year, World's share price closed below $1.00 per share for 30 straight days, making it ineligible to be listed according to Nasdaq rules. But the stock recently closed at $1.00 or more for 10 straight days, allowing it to get back on the market.
Pan American Airways, in its third version based in Portsmouth, N.H., will return to Miami tomorrow with two nonstop flights a week to Puerto Plata, Dominican Republic, and beyond to San Juan, P.R., operated with Boeing 727-200s. This will be the start of future service from Portsmouth, Miami, Newark and San Juan to Latin America and the Caribbean.
JetBlue yesterday unveiled the additional cities its plans to serve when it launches its Long Beach, Calif., expansion. Starting Sept. 6, the carrier will serve Oakland with nine daily flights. Beginning Oct. 10, the airline will add six daily flights to Las Vegas, a daily flight to Salt Lake City and fifth to New York Kennedy. JetBlue currently operates five slots of its 27 at Long Beach with two daily roundtrips between Long Beach and Washington Dulles and three daily flights between Long Beach and JFK.
Beirut-based Middle East Airlines (MEA) has selected SITA to provide a high-speed global Internet Protocol network to connect 46 of the carrier's sites around the world. The three-year contract involves the supply and installation of SITA's Intranet Connect, which provides connectivity for staff at all MEA locations. The system will help MEA share operational and financial applications that will contribute to improved customer services and lower costs. SITA and MEA declined to say how much the airline invested for the connectivity.
Michel Leblanc, former head of the now-defunct Canadian carrier Royal Airlines, yesterday unveiled the name and business strategy of his new low-cost carrier that will take aim at Air Canada. Leblanc said in January that he was planning to start his own independent carrier after his failed merger with Canada 3000 (DAILY, Jan. 9). C3 shut its doors abruptly in November after declaring bankruptcy and creditors began seizing assets outside the U.S.
Europe's biggest tourism group, Preussag AG, is considering setting up a no-frills airline to compete with scheduled airlines. Many flights in the charter business are sold without additional hotel arrangements, Preussag CEO Michael Frenzel told journalists. Also, "we have structures in place that are comparable to low-cost airlines.'" Frenzel did not comment on whether he was interested in buying Deutsche BA. EasyJet already agreed to an option to buy the airline within one year.
FLS Aerospace signed a four-year extension for C-checks on Falcon Air's three Boeing 737-300s. Heavy maintenance for Falcon has been done at FLS's Dublin facility since 1994. The Malmo, Sweden-based airline hauls mail at night and flies passenger charters during the day.
An international team of investigators is combing through evidence to determine what caused a China Airlines (CAL) Boeing 747-200B to break apart with apparently little warning Saturday night over the Taiwan Straight, about 180 miles from Taipei. Flight 611, with 206 passengers and 19 crew on board, was about 20 minutes into an oft-run trip between Taipei and Hong Kong when it disappeared from radar at about 3:29 p.m. local time. CAL operates 15 flights a day on the lucrative route.
Starting Dec. 7, Qantas will launch three Perth-Rome and three Perth-Paris flights a week, using Boeing 747-400s. On the same day, the airline will add three more flights on the Australia-London route for a total of 21 a week. The flights to be operated via Singapore will use similar aircraft. As part of its expansion, the airline will add five services on the Sydney-Singapore run, raising the total to 16 flights weekly and five on the Singapore-Melbourne for a total of 12. The additional services will be operated Boeing 767-300s.
Virgin Express yesterday reported a net loss of EUR6.7 million in the first quarter of 2002, compared with a EUR3.8 million deficit in the same period of 2001. "A year ago, over 40% of our revenues were accounted for by an agreement with Sabena, and the first two months of the quarter were in the period where direct sales were still being grown to fully replace the lost Sabena revenue," Executive Chairman David Hoare said. Total revenue fell 15% to EUR45.1 million in the first quarter, from EUR53.1 million in the first three months of 2001.
