Midwest Express flight attendants yesterday signaled their willingness to take strike action if a contract agreement is not reached soon by sending out strike ballots and picketing the airline's annual shareholder meeting. The National Mediation Board will hold a hearing April 30 to consider a request by the Association of Flight Attendants' Midwest Express Master Executive Council to be released from negotiations with management.
Mongolian Airlines plans to acquire its first Boeing 737-800 under a deal between the airline and GATX Financial Corp. "We are making a tremendous step forward with this acquisition, and the 737-800 is the ideal replacement for Mongolian Airlines' 727-200s," said President J. Bayarsaikhan. The leased 737 is expected to enter service with the Ulan Bator-based carrier in July, serving destinations in China, Japan and Korea.
Two-dozen members of Congress yesterday submitted a letter to the Department of Justice resurrecting the debate over whether Orbitz has anti-competitive effects on the travel industry.
AeroMexico on May 6 will add another daily nonstop from Mexico City to Dallas/Fort Worth. At that time, the carrier will offer 21 weekly frequencies using MD-87 aircraft.
Hamilton Sundstrand's Frankfurt-based Nord-Micro business unit will supply the Airbus A380 cabin pressure control, ventilation control and avionics ventilation systems in a deal that could be worth more than $200 million. Nord-Micro supplies similar systems for other Airbus programs. The deal gives Hamilton Sundstrand three contracts on the new superjumbo. The company's Ratier-Figeac subsidiary will provide the horizontal stabilizer trim actuator, while the parent company has been tapped to supply the A380 air management system.
Regional Chinese carrier Sichuan Airlines is looking to shed up to 30% to a local partner. The airline, which reported a loss last year, wants to improve its cash flow following, a poor first quarter. Company officials would not comment on its financial standing. One official was willing to say only that the carrier is in negotiations with Chinese regional carrier Shandong Airlines and Shanghai-based China Eastern Airlines. The DAILY has learned, however, that Shandong wants only an 18% stake. It could not be determined what equity China Eastern was considering.
Atlantic Coast Airlines, despite posting a $14.3 million first quarter profit, faces a cloudy near-term growth plan as officials raised the possibility that the airline may not take any new aircraft deliveries this quarter. The airline's two suppliers, Fairchild Dornier and Bombardier, are not producing any aircraft due to insolvency and a labor strike, respectively, leaving ACA scrambling to develop contingency plans. CEO Kerry Skeen said there "is a lot of uncertainty" about potential aircraft deliveries this quarter and for the remainder of the year.
Atlantic Coast Airlines, despite posting a $14.3 million first quarter profit, faces a cloudy near-term growth plan as officials raised the possibility that the airline may not take any new aircraft deliveries this quarter. The airline's two suppliers, Fairchild Dornier and Bombardier, are not producing any aircraft due to insolvency and a labor strike, respectively, leaving ACA scrambling to develop contingency plans. CEO Kerry Skeen said there "is a lot of uncertainty" about potential aircraft deliveries this quarter and for the remainder of the year.
Regional Chinese carrier Sichuan Airlines is looking to shed up to 30% to a local partner. The airline, which reported a loss last year, wants to improve its cash flow following, a poor first quarter. Company officials would not comment on its financial standing. One official was willing to say only that the carrier is in negotiations with Chinese regional carrier Shandong Airlines and Shanghai-based China Eastern Airlines. The DAILY has learned, however, that Shandong wants only an 18% stake. It could not be determined what equity China Eastern was considering.
FLS Aerospace will do C maintenance checks and other services for five Thomas Cook Airbus A320s, including two that will join the fleet temporarily. Heavy work will be done at FLS's Dublin facility, while FLS Stansted will handle component requirements. Thomas Cook subsidiary JMC Airlines, another FLS customer, owned the A320s.
Air Lib Express has operated at load factors of about 50% in the first week of April, according to Air Lib Chairman Jean-Charles Corbet. A week later, the load factor rose 65%. Air Lib Express began operations on French domestic routes as a no-frills competitor to Air France. Corbet said in an interview that he wanted to catch 10% of the 10 million annual TGV high-speed train passengers between Paris and Marseille.
Expedia yesterday reported a $5.7 million net profit for the first quarter as its revenues doubled from a year ago. The company's results easily topped analyst expectations as its profit compares with a $17.6 million loss last year. Adjusting for one-time items, Expedia posted a $28.4 million profit. Expedia's gross bookings were $1.1 billion, an increase of more than $425 million over the year-ago quarter.
By Christian Nuehlen, Senior Analyst, Morten Beyer&Agnew, Inc.
The recent move by the European Commission to introduce legislation that would allow it to investigate and sanction alleged unfair pricing practices by airlines of non European Union origin is a much-needed step towards a more harmonized regulatory framework for EU aviation. By no means does it draw its primary justification from the attempt to punish U.S. carriers for the financial aid received under the Air Transportation Safety and System Stabilization Act.
American Trans Air reported that reservations made online through the company's web site rose 57% on April 8, compared with the previous record, reached in January. Largely the result of widespread fare sales, the number of average bookings per day for the year to date is 46% higher than the number for all of 2001. The first two weeks of April have shown "significant growth," with average bookings for April 1-9 65% higher than the average in 2001. -SL
The House Transportation Committee yesterday passed two bills -- one to make construction of air traffic control towers eligible for funding under the Airport Improvement Program and the other to reauthorize funding for NTSB, including an amendment giving the safety board extra emergency funds.
Aeropuertos Argentina 2000, which holds the concession contracts for 33 airports, received good news last week from the fledgling Duhalde administration, which decided to charge international departure taxes in U.S. dollars. AA2000 CEO Ernesto Gutierrez said, "This was the only way out of a deadlock. As in previous years, we'll be collecting $50 million, which would have been only $16 million if charged in devalued pesos." Some airlines are less than enthusiastic about the move, however.
Singapore Airlines will operate two supplementary flights from Singapore to Christchurch, N.Z., Sept. 2, 2002-March 31 2003, using an Airbus A340-300 to met seasonal demand. SIA currently operates three flights a week on the route.
Varig has invested another $14.5 million to pay immediate obligations for Uruguayan national carrier Pluna. Varig owns 49% of Pluna, with the majority owned by the Uruguay government and several small shareholders. The money was needed for aircraft maintenance and leasing and to stave off possible bankruptcy.
The House Transportation Committee sent legislation designed to speed runway construction to the House floor yesterday. The bill included an amendment that strengthens language guaranteeing that the bill will not impinge on the power of state and local authorities to review runway projects. The issue of Congress usurping local authority has been one of the major concerns with this legislation. Some observers noted that while the bill language may assuage local concerns, it also leaves a large part of the project delay problem untouched.
Mongolian Airlines plans to acquire its first Boeing 737-800 under a deal between the airline and GATX Financial Corp. "We are making a tremendous step forward with this acquisition, and the 737-800 is the ideal replacement for Mongolian Airlines' 727-200s," said President J. Bayarsaikhan. The leased 737 is expected to enter service with the Ulan Bator-based carrier in July, serving destinations in China, Japan and Korea.
Two-dozen members of Congress yesterday submitted a letter to the Department of Justice resurrecting the debate over whether Orbitz has anti-competitive effects on the travel industry.
Southern Winds has suspended night flights from Buenos Aires to Catamarca in Argentina due to "lack of security at the airport," the airline said. The Argentine air force said only day flights will be allowed in Catamarca because "Aeropuertos Argentina 2000 has failed to construct a security wall to protect the runway."
