Prices of older 737s, MD-80s and older A320s "will approach distress levels before recovering significantly in two years or so," aircraft valuation specialists Morten Beyer&Agnew predicts.
Pan American Airways is finalizing an aggressive growth plan that will start this year, thanks to a new deal with United Services that will see its fleet grow fourfold over the next six months. The airline, also known within the industry as Pan Am 3, last week signed a deal to acquire 24 former United Boeing 727-200s. PA has an existing fleet of seven 727s.
Oswaldo Dominguez, commanding general of Ecuador's air force, last week defended TAME, operated by the air force as a commercial airline and which has experienced four serious accidents in the last few years, the latest in January. He said TAME has "now spanned two generations with a 39-year record to become what it is today. While its four accidents should be thoroughly investigated to determine their causes, they should not be an excuse for those who would deny our air force's legitimate property rights to TAME."
Microsoft Chairman Bill Gates now owns 3% of Alaska Airlines stock after recently selling more than 600,000 shares, according to a securities filing. Since 2000, Gates has owned 5.3% of the airline though his Cascade Investment fund, but now holds 792,400 shares.
Under new ownership and management, Aerolineas Argentinas next month will resume service from Buenos Aires to key domestic points that had been suspended during the carrier's long financial and labor crisis last year. Daily all-economy, no-frills flights will start March 4 to Catamarca and La Rioja, in the northwest region of the country, and later March to Rosario and Santa Fe, on the northeastern coast. Both routes will be served with frequencies during the week and on the weekend.
50 years ago Feb. 20, 1952: President Truman announced a commission, headed by Lt. Gen. James Doolittle, to study methods of relieving airport congestion near big cities, with an "objective and realistic" survey aimed at hazard reduction. 10 years ago Feb. 20, 1992: FAA continues to actively and openly support peak-hour pricing, with Deputy Administrator Joseph Del Balzo telling a House subcommittee the idea should be tested because "we won't know until we try" what the impact will be. Five years ago
Delta Air Transport, the surviving subsidiary of bankrupt Sabena, has been renamed SN Brussels Airlines, the company's CEO announced Friday. The new logo keeps both the blue color and the "S" of Sabena's livery. SN was Sabena's company code. The first aircraft bearing the new company name will fly Feb. 25. The choice of SN Brussels Airlines will help keep costs down, as creating entirely new identification and visuals would have been far more expensive, explained Kuijpers.
British Airways last week issued a stern denial that headhunters were about to be appointed to find a replacement for Colin Marshall as BA's chairman. Despite reports in the British press that non-executive directors were attempting to thwart his re-election, the carrier said Marshall, 68, the former CEO, "has the full confidence and support of the board" and will stand for re-election at the annual general meeting in July. Marshall has been chairman since 1993, non-executive chairman since 1996.
Top priority of Peru's ministry of transportation is to upgrade in 45 days the country's current conditioned FAA safety oversight Category 1 so that all aircraft licensed in Peru may freely operate to the U.S. Now LanPeru, TACA-Peru and AeroContinente must wet-lease from their parent companies or others in Cat 1, Gustavo Guerra-Garcia, undersecretary of transportation, said last week. He recalled that, from eight observations made previously by FAA, all but one were lifted when a mission from the agency inspected Peru recently.
TSA head John Magaw, who, like DOT Secretary Norman Mineta, has an artificial hip that could trigger security alarms, said he is "attentive" to passenger screening concerns, pledging that the process will be conducted with "dignity." TSA may provide chairs and shoehorns for passengers who have to remove their shoes.
U.S. airlines are expected to lose $3 billion this year, according to Merrill Lynch. "We think the industry will be profitable by the September 2002 quarter," said analyst Michael Linenberg. But a recovery during the next year could result in only an $860 million net profit on U.S. industry sales of $94 billion for 2003.
FAA is seeking contractors to build three indoor-outdoor firing ranges at its Technical Center in Atlantic City. The facilities will cost $5-10 million, and FAA appears to be in a hurry, setting a response deadline of Feb. 12.
Raytheon Technical Services was selected by the FAA Technical Center for help on a project with the Navy on wire degradation. The company was selected due for its "capability to perform virtually every test required." Because of the "sensitivity of the research project," FAA "precludes wire suppliers and aircraft manufacturers."
The Aviation Workers' Rights Foundation has filed a complaint with the National Mediation Board charging that the Air Line Pilots Association was actively trying to recruit pilots from American's Allied Pilots Association into ALPA membership while representing TWA pilots in its seniority integration battle with APA.
Irish no-frills carrier Ryanair will expand its second continental European base today at Frankfurt-Hahn Airport. Ryanair will fly to a total of 10 destinations: London-Stansted, Milan, Pescara, Pisa, Oslo, Montpellier, Perpignan, Glasgow, Bournemouth and Shannon. The carrier has also announced plans to start services between Friedrichshafen and London-Stansted. Frankfurt-Hahn is Ryanair's second base on the continent after Brussels-Charleroi.
Air Canada and Thai Airways next month plan to launch their code-share partnership between Toronto, Montreal and Bangkok, subject to government approval. Starting March 1, Thai will add its code one of Air Canada's daily flights from London to both Toronto and Montreal. Air Canada will add its code to Thai's service from London to Bangkok.
Qantas will invest A$50million (US$27 million) over the next 12 months in its biggest ever airport lounge development program. The airline's domestic terminals in Sydney, Melbourne and Brisbane would be the first to undergo the upgrade exercise. In Sydney, a second Qantas Club Lounge also would be built. Features of the upgrade program in Sydney, the airline's base, would include introducing communications capability throughout the lounge allowing customers to plug in their lap top computers, change their cell phone or access e-mail.
Fomento de Construcciones Contratas (FCC) will take over Sabena's ground-handling operations at Brussels Airport by March 11, as Brussels International Airport Company (BIAC) yesterday granted the Spanish construction and services company the right to supply baggage, ramp, mail and freight handling services. Sabena's current authorization runs until October 2004. "The transfer of this authorization ensures the continuity of the granted services in compliance with the obligations contracted at the time by the retained providers," BIAC said.
Federal Communications Commission, as feared by aviation interests, yesterday said it would permit the marketing and operating of new ultra-wideband products that the aviation interests say could interfere with safety of flight. "The FCC is taking a chance," said Bruce Mahone, director of space policy at Aerospace Industries Association. Air Transport Association President Carol Hallett asked the FCC to allow UWB devices that operate above 6 GHZ "and avoid restricted safety-of-life aviation frequencies."
