Air France, TAP Air Portugal, Luxair, Adria Airways, Iberia, Cyprus Airways, BMI British Midland and Finnair were the only members of the Association of European Airlines (AEA) that posted a traffic increase in January, compared with January 2001. All other AEA carriers continued to suffer from weak demand, with several airlines still showing dramatic declines. The biggest exception to the trend was BMI British Midland, whose traffic was up 11.1%. Also, TAP posted strong 6.6% growth.
SN Brussels Airlines and Virgin Express are discontinuing their merger talks after they failed to reach an agreement by today's self-imposed deadline. The two Belgian airlines will continue to operate as two separate carriers but could deepen their existing commercial relationship. SN Brussels, formerly Delta Air Transport (DAT), and Virgin Express, had been in exclusive negotiations since late December 2001.
AirTran said yesterday it is accelerating its fleet modernization program with delivery of 20 Boeing 717 aircraft in 2002 financed by Boeing Capital Corp. In conjunction with the deliveries, AirTran will retire 14 DC-9s, achieving a seat-mile growth rate of more than 20% for the year. AirTran is the launch customer for the 717 and the largest operator with 32 in the current fleet.
U.S. Attorney for the District of Massachusetts charged 20 individuals working for six private firms at Boston Logan Airport with providing false information to "obtain employment and access badges to secure areas" at the airport. The Secure Identification Display Area (SIDA) badges, property of the Massachusetts Port Authority (Massport), are issued once FAA guidelines regarding the completion of Form UA1 are followed, including a background history check as well as a criminal history check by the Massachusetts State Police.
American parent AMR Corp. said in a Securities and Exchange Commission filing yesterday that it expects a "sizable" first quarter loss and "will likely incur a loss for 2002." The carrier joins US Airways and Continental, which have already braced investors for difficult quarterly, and likely full-year, returns.
Boeing Co. will use its Wichita facility and work force if it gets an Air Force contract to convert 767s to tankers. Congress late last year granted the Air Force authority to negotiate a lease for up to 100 tankers to replace its aging KC-135 tanker fleet. Boeing produced 732 KC-135s, of which 540 are still in service.
National Business Aircraft Association this week asked members of Congress to help restore general aviation access to Washington National Airport, which "to date, "remains the only airport in the country closed to general aviation." The association expressed confidence that "procedures for general aviation can be implemented that are comparable to the levels of security imposed for the airlines."
Korean Air expects this year to be the turning point in the airline's history and one, which the carrier is viewing with optimism. The airline, which celebrates its 30th anniversary in the U.S., forecasts revenue of US$4.6 billion with a profit of US$77 million. According to Korean's CEO, Y. H. Cho, code-share flights with Delta and Air France will be reinstated in time for passengers to book flights for the World Cup soccer tournament, which starts in June in Seoul and Tokyo.
For the past two years, Colombia's national petroleum conglomerate, Ecopetrol, has been quietly becoming a dependable exporter of high-quality jet fuel made in Cartagena or Barrancabermeja. In 2001, exports to the U.S. and several Latin American and Caribbean countries totaled $100 million and are expected to grow 44% this year. The profit-making star of the petroleum business for its multiplier effect among many segments of the business sells a barrel of jet fuel for up to $29, while regular oil goes for $21.
WEAeroMexico on March 5 will offer the first daily nonstop flight in the morning from Miami to Cancun, a schedule adjustment that will add almost two full days of vacation time for passengers, "just the thing for spring break travel," according to Rolf Hoehn, AeroMexico's VP in charge of the U.S. Division.
China's airline industry reported a massive loss of 2.99 billion yuan (US$383.3 million) last year after losing US$285.89 in the first six months. This is the third loss in four years for the industry, which saw a profit of US$111 million only in 2000. Despite the ban on discounts on airfares imposed in April 2000 and a stern warning issued to the carriers' top executives that they would be removed if their companies remainedunprofitable, the industry continues to bleed.
Stockholm-based Volvo Aero Engine Services (VAES), after concentrating on the European and U.S. aviation markets for 36 years, plans to expand its business in Asia with the formation of an overhaul engine facility. It is currently looking for a partner to set up the facility in Southeast Asia or China. With two customers in China already -- Air China and China Northern -- VAES sees China as an ideal location for the new set-up. Goran Norden, VP-marketing and technical sales, said China, a growing market, has tremendous potential.
After twice bringing forward the phaseout date of its Airbus A340-300 fleet -- first by seven months from October 2003, and then by another month -- Singapore Airlines now plans to delay the phaseout. No date has been fixed for the phaseout because the airline has proposed to use the existing fleet of nine A340s to operate the A310 routes after February next year. According to a SIA official in Singapore, the carrier is evaluating the plan to phase out the 13-aircraft A310 fleet, replacing the aircraft with A340s.
After almost a decade, Air-India has kicked off the process of buying new aircraft. The Ministry of Civil Aviation asked Air-India to submit an expansion plan within three months. This follows a letter from Boeing offering aircraft on reduced prices along with attractive self-financing. Air-India, which will bounce back into black at the end of 2001-02 for the first time since 1994-95, has appointed an in-house committee to decide on the types of aircraft required for the expansion program. A key strategy is to step up operations to the U.S.
FAA yesterday awarded MCI WorldCom a sole-source contract, worth up to $604 million, for MCI to continue providing, for up to five more years, telecommunications infrastructure services for air traffic controllers at the 20 en route centers. The MCI systems would enable controllers to communicate by voice and data with each other and with pilots, according to an FAA spokesman. MCI's present contract for the Leased Interfacility NAS Communications System (LINCS), competitively awarded in 1992, expires in March.
Schedule adjustments made by Brazilian and U.S. carriers have increased the latter's capacity advantage over the former by as much as 69%, according to a study issued last week by Brazil's Civil Aviation Department. While Varig and TAM operate 42 weekly Brazil-U.S. flights, American, United, Continental and Delta have 93. Although U.S. megacarriers cut down flights immediately after Sept. 11, they are quickly regaining lost market share. On Feb. 17, American increased weekly flights by five, and United has been operating at 80% plus load factors.
Some sort of passenger profiling that includes race and nationality is constitutional and should be implemented as part of aviation security, as long as the two characteristics are not the sole criteria under which passengers are screened, security experts told the House Transportation aviation subcommittee yesterday.
Copri, the agency in charge of airport development in Peru, has chosen four international consulting firms from a prequalified bid to work on two projects: final feasibility studies for the new Chincheros Airport to serve the Cusco resort area, and a master plan for the concession of regional airports. The companies are Consorcio Typsa/OIST S.A./Vector Management; Currie&Brown; MPD, and the consortium made up by IMG Infrastructure Group and Lagesa.
Japan Airline yesterday in at the Asian Aerospace show placed a firm order for one 50-seat Bombardier CRJ200 regional jet on behalf of its J-Air subsidiary. JAL now has five of the CRJs on order and this week's announcement in Singapore represents the conversion of one of three options taken by JAL when it ordered two aircraft in October 2000. J-Air has since taken delivery of the first two planes. J-Air is based in Hiroshima and provides domestic service. Separately, Air Nippon signed a follow-on order for two 56-seat Bombardier Q300 turboprops.
Transportation Security Administration (TSA) expects to continue to meet deadlines outlined in the Aviation and Transportation Security Administration Act (ATSA), TSA Deputy Under Secretary Stephen McHale said yesterday at a Washington conference. Several industry experts voiced concerns over the new DOT agency's means of meeting those deadlines.
Allied Pilots Association representing American's pilots yesterday asked Transportation Secretary Norman Mineta to protect the "basic rights" of Cathay Pacific pilots in discussions of a new air services agreements.
Boeing now believes that the Mach 0.98 Sonic Cruiser will need advanced technology -- all-new engines and an all-composite airframe -- in order to meet its performance, economic and environmental targets, according to Dan Mooney, VP-product development. Mooney said at the Asian Aerospace show in Singapore that there was "some early optimism" among Boeing leaders who suggested that the radical aircraft could work with simple derivative engines and a conventional structure.
