FAA will continue to collect overflight fees based on an Aug. 20, 2001, rule that has been protested by several carriers and an association, but refunds triggered by the rule's retroactive fee reduction won't be paid until the protest is settled by the Washington, D.C., court of appeals. The agency clarified its policies in a March 25 letter to "overflight fee customers." It also said that bills for the June 1 through Aug. 19, 2001, time period would not be sent until a final ruling is issued.
LOT Polish Airlines has made a significant step towards joining the Star alliance after it signed a memorandum of understanding that will put it into a close partnership with Lufthansa. The move would represent a significant strengthening of the alliance in Eastern Europe, where, unlike the Delta-Air France-Czech SkyTeam alliance, it did not have a member carrier.
FAA, formalizing a long-communicated plan of ensuring one level of flight-deck security on airliners serving U.S. airports, plans to order short- and long-term cockpit door upgrades for non-U.S. operators that fly to the U.S.
American CEO Don Carty plans to focus more of his time on planning for the future of the company after Gerard Arpey becomes president and chief operating officer. Arpey previously was executive VP-operations and was appointed to the new post this week.
Washington-based Air Exchange signed a deal with Icelandair to market wet-lease service to other airlines. With "Planned Maintenance Subservice," Icleandair will provide pre-planned and pre-paid short-term capacity to replace aircraft that are out of service during scheduled maintenance.
EVA Air recently purchased an Airbus A330 full-flight simulator in preparation for delivery of eight of the new Airbus aircraft the carrier plans to add to its fleet, starting in May 2003. The order with Canada-based CAE includes an A330 flight simulator equipped with CAE TroposT, an image generator designed to achieve FAA's highest-level certification, Level D. The order also includes upgraded visual systems options for the airline's existing Boeing 747-400 and MD-11 simulator equipment.
Cargo carrier Alpine Air Express is negotiating to buy 23 planes it currently leases, including 17 Beech 99s and six Beech 1900s. CEO Eugene Mallette said buying the planes "would generate significant cost savings and allow us to increase earnings" for the year. The Provo, Utah-based company's goal is to grow 2001's $1.8 million in net earnings by 40% in 2002, despite a weak fiscal first quarter due to soft demand.
Small-aircraft operators are wondering how much reinforcing cockpit doors beyond what they've already done is going to cost and how to accomplish it. Douglas Voss, CEO of Great Lakes Aviation, which operates 40 1900D aircraft, said that shortly after Sept. 11 he installed latching mechanisms on the doors of his planes so that they open only from inside the cockpit and are tough to penetrate, but they are not bullet-proof and may not meet revised specifications. "There are a number of issues that FAA has to address," Voss noted.
IATA appointed David O'Conner corporate secretary, effective immediately. O'Conner will be based in Montreal and replace Lorne Clark, who recently retired. O'Conner will continue to represent IATA as senior director-U.S. government and industry affairs in Washington.
With a little more than a year to go until the deadline for having upgraded cockpit doors installed on all aircraft, U.S. airlines are growing increasingly concerned about the shrinking amount of modification time and rising costs associated with the immense effort. FAA continues to work on getting kits certified, and the resulting changes will be far more extensive than the interim fix.
U.S. carriers in February improved their on-time and mishandled baggage rates, with America West leading the 10 largest carriers in on-time arrivals for the third month in a row, according to DOT's Air Carrier Consumer Report. The average for February was 84.7%. America West saw 88.5% of its flights arrive within 14 minutes of the scheduled time -- a 30% increase in performance from the 68% it posted in February 2001.
Airlines around the world this week watched nervously as U.S. crude oil prices hit a new six-month high. While dipping slightly yesterday, oil prices topped $28 per barrel on Tuesday for the first time since September due to intensified fighting in the Middle East. To offset higher fuel costs, American Airlines Cargo yesterday added a fuel surcharge effective April 17. The surcharge was first applied in February 2000 when fuel prices reached similar levels. In December 2001, the surcharge was withdrawn as oil prices fell.
Boeing Air Traffic Management named Francisco Escarti VP-business development-Europe, and Tim Neale director-communications. Escarti will have offices in Madrid and in Brussels, while Neale will be based in McLean, Va.
The FAA office managing the En Route Automation Modernization (ERAM) program will decide today whether it agrees with Raytheon's request that procurement be suspended until the company's dispute filed last week is resolved. The office is expected to recommend that procurement continues while the dispute is resolved, sources indicated. The program office recommendation is made to FAA's Office of Dispute Resolution for Acquisition (ODRA), which also will handle the protest itself. ODRA is scheduled to meet Friday to begin work on Raytheon's objections.
Insolvent regional jet maker Fairchild Dornier has laid off 240 of its 680 U.S.-based staff after following the preliminary administrator's request to cut its North American work force to a core team. Affected by the layoffs are 180 employees in FD's San Antonio wing production and maintenance facility and 60 of 80 staff members in Herndon, Virginia.
German regional carrier Augsburg Airways said last week it would cut 144 of 560 jobs and reduce the fleet from the current 16 to a maximum of 12 aircraft in a desperate effort to survive. Also, the company's owners, the Haindl family, has decided to replace longtime Managing Director Olaf Dlugi with Manfred Scholz, a former chief financial officer for the Haindl family business and newcomer to the airline industry. Augsburg said it is in negotiations with Lufthansa on a new contract.
Northwest's top two executives, Richard Anderson and Doug Steenland, last April did not receive base salary increases after they were named CEO and president, respectively. The executives were promoted April 1, 2001, after then-CEO John Dasburg resigned. According to the carrier's proxy filing, Anderson's base salary remained at $500,000 in 2001, the level established in April 2000, when he was an executive-VP.
Northwest Airlink will have CRJ200 and CRJ440 C checks and other major maintenance done by Bombardier for the next five years, the manufacturer said. Work will be done at Bombardier's Bridgeport, W.Va., Air Center. Airlink is slated to have 129 CRJs by the end of the contract period.
National Mediation Board yesterday ruled that American's Allied Pilots Association is the legal representative for collective bargaining for TWA pilots, who are currently represented by the Air Line Pilots Association. TWA pilots last month asked the NMB for a six-month delay on the certification ruling.
United's fleet operations reliability index (FORI) hit a monthly record high of 96.3% in February, the airline told employees this week. The February index is the highest FORI ever recorded in the eight years since the company began tracking it in January 1994. The year-to-date number also remains ahead of goal, the airline said. The index measures how many delays and cancellations are attributed to maintenance and engineering.
Japanese sources report that Kawasaki Heavy Industries Inc. will construct a plant in Brazil to assemble the wings of 108-seat Embraer 195's for medium-range routes. Embraer has firmed up 102 orders for this model, which has developed important markets in Europe and North America and will be in full production by July 2004.
Air Transport Association Cargo Traffic February 2002 Revenue Ton Miles (000) February February % 2002 2001 Change Domestic Freight 786,284 742,113 6.0 Mail 74,806 151,108 (50.5) Total 861,090 893,221 (3.6) International
FlightSafety Boeing Training International recently cut the ribbon on its expanded Long Beach, Calif., training center. The facility now has eight full-flight simulators covering the Boeing 717-200 (two simulators), 737-200/-300, MD-82, MD-87/-88, MD-90 (two) and the MD-11.
