Vanguard, which Friday posted higher-than-anticipated fourth quarter and calendar year losses, has taken delivery of its eighth MD-80 aircraft, now in revenue service. It expects to add more MD-80s to its fleet, which also includes seven Boeing 737s, for increases in frequencies and markets planned in the next few months. The carrier is awaiting a response from the Air Transportation Stabilization Board on its application for a loan guarantee, saying that, without access to capital to fund its 2002 operations, it might have to cease operating (DAILY, April 1).
Regional aircraft manufacturer Fairchild Dornier is expected to file for insolvency today, according to industry sources. Last hopes of a pre-insolvency solution faded after Fairchild Dornier failed to reach an agreement with potential investors over the weekend.
Delta's Technical Operations division signed an MOU to do maintenance on code-share partner Royal Air Maroc's two Boeing 767-300ERs. Heavy checks will be done at Delta's Atlanta and New York Kennedy facilities, while technical support will be provided in Casablanca. The two sides are talking about expanding the deal to include 757-200s and 737-800 components.
Frontier CEO Sam Addoms, 62, who led the airline from precariousness to profitability in the more than eight years since he joined the then-startup carrier doing battle with United at Denver, retired yesterday as CEO, retaining the position of chairman. Jeff Potter, 42, president and COO, will add the post of CEO to his responsibilities. Addoms, who shepherded Frontier's efforts in its failed merger with Western Pacific and the selection of Airbus to build its future fleet, is "still going to be very involved" at Frontier, according to a spokeswoman.
SR Technics will maintain the majority of Swiss's fleet under a seven-year deal signed last week that could help with the sell-off of the aircraft services company. SR Technics will do work on the carrier's Airbus A319s, A320s, A321s, A330s and MD-11s, and possibly its recently ordered A340s, which will replace the MD-11s. The deal makes the airline SR Technics' biggest customer, and may help advance SAirGroup's efforts to spin off its technical unit.
Alaska Airlines does not have any immediate plans to install new inflight entertainment systems on its aircraft despite plans for new long-haul flying. The carrier told employees last week that its market research indicates that about 20% of its passengers are interested in inflight entertainment. "That's not a very high percentage, but we are still looking at a couple of options," said Gregg Saretsky, executive VP-marketing and planning. One option is DVD players, which are now offered in first class on long-haul flights.
Raytheon, in a move that could further delay a critical National Airspace System modernization building block, filed a formal protest on how FAA plans to judge bids for the lucrative En Route Modernization Plan (ERAM) contract, The DAILY has learned. The protest came Friday, the deadline for companies to name team members in their ERAM effort, sources said. Raytheon and Lockheed Martin are the only two companies planning to bid on ERAM (DAILY, March 26). FAA could respond to the protest as early as today.
The European Commission is becoming "opportunistic in growing its influence and control" over aviation issues, Louise Maillett, FAA acting assistant administrator of policy, planning and international aviation told the American Bar Association last week. Maillett said the EC in a couple of months will be moving to create an aviation certification agency similar to FAA.
While economic conditions were forcing airlines to plan service reductions to small communities before Sept. 11, the attacks resulted in deeper cuts than anticipated and came mostly in turboprop service, according to a report released Friday by the General Accounting Office.
The five-member NTSB, in an extremely rare occurrence, came down divided on an FAA recommendation last week, as member John Goglia elected not to endorse the board's suggested course of action because he felt it was too narrow in scope. The urgent recommendation, based on two incidents earlier this month, asked FAA to act on F100 and F28-4000 auxiliary power unit operation during deicing.
Standard&Poor's last week affirmed its corporate credit ratings on Northwest and removed the ratings from CreditWatch, citing the airline's "steady progress in a difficult airline environment." The ratings were placed on CreditWatch with negative implications on Sept. 13, 2001.
Aerospace Industries Association named Thomas Tate special counsel, Jonathan Etherton VP-legislative affairs and Patrick McCartan director-legislative affairs.
Japan Airlines plans to open a new lounge facility -- the Sakura Lounge Annex -- for "special category passengers" on the fourth floor of Tokyo Narita Airport Terminal 2 on April 18. The facility features a British pub-style bar, bedrooms for transit travelers, massage services, a business area equipped with broadband wireless access for free Internet connection, a library and a theater-style audio-visual lounge.
Delta, trying to boost traffic at 13 smaller airports, is offering double frequent flyer miles to passengers flying Atlantic Coast to those cities. The offer is good for travel from April 1 through June 14. The SkyMiles deal applies to trips on flights operated by ACA for Delta Connection flights between Boston, Newark, New York LaGuardia, New York JFK and Charleston and Columbia, S.C.; Columbus and Dayton, Ohio; Greensboro and Raleigh/Durham, N.C.; Indianapolis; Philadelphia; Richmond, Va.; Portland and Bangor, Maine; Montreal, Canada and Halifax, Canada.
Most U.S. major airlines this spring "will not conclude it's necessary" to apply for a federal loan guarantee if revenue recovers at 3-4% per month and they are able to replenish their credit lines, said UBS Warburg analyst Sam Buttrick.US Airways and United remain the most likely candidates to apply, said S&P analyst Philip Baggaley.
Northwest has expanded its code share with Gulfstream International, which flies as Continental Connection. The expanded deal is effective immediately for travel starting April 7. Northwest will place its code on all Continental Connection flights serving Florida and the Bahamas.
April 4, 1962 -- ATA urges preclearance procedures for U.S.-Mexico City passengers, similar to those being used by the U.S. government in Canada, Bermuda and Nassau.
Vanguard Airlines Friday posted fourth quarter loss that was larger than its own estimates of six weeks ago, and issued a blunt warning that it needs more funding to survive the year. The airline in February predicted a net loss of about $2-3 million, including federal grants, but last week it posted a quarterly loss of $4.9 million, compared with an $11 million loss in the same 2000 period. The loss reflects $5 million in federal grants and $3.2 million in costs related to the return of leased Boeing 737-200s. Total operating revenues fell 3% to $29.3 million.
The Malaysian government will invest US$250 million to develop Senai International Airport in Johor Baru into a hub for cargo operations. The plan will include building a cargo complex with the hope of attracting freighter carriers that would move operations from Singapore Changi, 12 miles away with lower operating costs. Senai's passenger facilities also would be enhanced. Currently, the airport is used only by Malaysia Airlines and secondary Indonesian carriers, handling 7,000 tons of cargo a year versus Changi's 1.7 million tons.
