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."
Frontier signed a deal to amend leases on two Boeing 737-200s, which will allow the carrier to return the planes to the lessor close to two years earlier than original termination dates. The aircraft will be returned on Nov. 30, 2002 and Jan. 31, 2003. Following the announcement, Frontier plans to have three 737-200s in its fleet at the end of its fiscal year 2003. As part of the early return, the carrier will take a $3.1 million one-time charge against earnings in its current fiscal fourth quarter.
South Africa's state holding Transnet has agreed to buy back the 20% stake in South African Airways (SAA) previously held by SAirGroup. The deal came after months of negotiations following the financial collapse of SAirGroup. Transnet paid 382 million rand (US$33 million) for the stake, only a fraction of what it got in 1999. At the time, SAirGroup bought the 20% for 1.38 billion rand, $210 million at the 1999 exchange rate. Transnet had to agree, however, that it would pay SAirGroup 50% of the profit should it sell a stake of 10% or more within the next 18 months.
Air Jamaica this summer plans to re-introduce nonstop service from New York Kennedy to Antigua. The service will start June 20 and will operate three times a week with an Airbus A320.
Korean Air today is expected to announce plans to reinstate its code share this spring with SkyTeam alliance partners Delta and Air France, nearly three years after the ties were broken.
The European airline industry will recover from the current crisis as early as next year, but will structurally have changed, Holger Haetty, Lufthansa's Senior Vice President Corporate Strategy believes. Haetty said at the Hamburg Aviation Conference that the recovery of traffic at his airline resembles almost exactly the pattern of 1991/92 and the Gulf Crisis. Immediately after Sept. 11, the airline had studied three scenarios in which the baseline expectation was that the recovery would be significantly slower than 10 years ago.
The Norwegian government is close to selling its stake in SAS, according to a report in Norwegian daily Verdens Gang. Industry Minister Ansgar Gabrielsen said in a radio interview, "It is not our wish to weaken the airline. It is our wish to strengthen it. And I think bringing in other owners than the state will strengthen it." Norway and Denmark own 14.3% each in SAS, and Sweden holds 22%. Observers noted that the current crisis was not a good time to sell the airline. A decision in principle could nevertheless come as early as April, according to Verdens Gang.
Boeing this week began final assembly of the first 747-400ER, laying forward fuselage seat tracks and floor beams. The model will have a max gross takeoff weight of 910,000 lbs., or 35,000 lbs. more than the 747-400. Structural and fuel-capacity boosts enable the -400ER to carry 15,000 lbs. more payload or fly 435 more miles than the standard -400. The frames in the forward section that surround a new, lower-deck auxiliary fuel tank have been strengthened, and each one is machined from a single piece of aluminum -- a 747-line first.
Germany's Finance Ministry has made clear that it does not intend to extend insurance coverage backing for German airlines beyond the March 31 deadline, while no industry-wide solution for war risk insurance seems to be in sight. A Lufthansa official was quoted in the German press as saying that the airline might be forced to halt operations if no solution is found. A European Commission spokesman said the issue will be on the agenda in early March and that threats of this kind were not helpful.
NTSB this week said FAA should order immediate inspections of certain Hamilton Sundstrand (HS) propeller blades that power six-bladed engines on ATR turboprops. Among 1,300 blades built before a certain modification, the oldest blades (six years or 11,700 hours in service) should be checked for corrosion and have new corrosion protection applied, the board said. A similar plan should be laid out for the remaining 1,300. NTSB labeled both recommendations "urgent."
Dutch charter carrier Transavia has ordered four Boeing 737-700s. The aircraft are intended to replace 737-300s in the fleet and are due to be delivered starting in early 2003. Transavia is a KLM Royal Dutch Airlines subsidiary.
Correction: A Qantas Boeing 767 was involved in an incident with a BAe 146 at Brisbane last year. Wednesday's story misidentified the 767 operator. Also, the incident happened on Nov. 4, not April 11.
Boeing yesterday delivered its 1,000th 757 -- to long-time customer American. It's the fifth Boeing-designed and -built jet to reach the milestone, joining the 707, 727, 737, and 747. The Airbus A320 and McDonnell Douglas MD-80 are the only other commercial jets to hit the 1,000 mark.
The House Appropriations transportation subcommittee yesterday told DOT Deputy Secretary of Transportation Michael Jackson it is looking for some indication soon of how much in the way of a supplemental appropriation the Transportation Security Administration (TSA) will need to finish out Fiscal 2002. Subcommittee Chair Rep. Harold Rogers (R-Ky.) said DOT's $59 billion budget contained "gimmicks" to disguise funding sources such as $230 million in new user fees, which Congress has repeatedly turned down. Rep.
BMI British Midland's new no-frills division Bmibaby appears to be attracting more passengers than expected. The airline received about 100,000 bookings in two weeks, according to Managing Director Tony Davies. He said at the Hamburg Aviation Conference this week that the original target was to reach 500,000 bookings the first year. Bmibaby plans to serve Dublin, Nice, Barcelona, Palma, Faro, Prague, Alicante and Malaga with 126 weekly flights from East Midlands Airport.
DOT Inspector General Kenneth Mead this week told the House Appropriations transportation subcommittee that the deadline for installing explosives detection systems (EDS) at all airports will likely not be met, and that EDS manufacturers cannot produce the equipment fast enough to meet the Dec. 31 deadline. Mead said capital costs for EDS equipment would be $1.9 billion-$1.5 billion, which does not include the cost to integrate the equipment at airports, which could be more than $2.3 billion.
GAMA President Ed Bolen reported record billings of $8.65 billion in 2001 for aircraft built in the U.S., up about 1% from the previous year. Worldwide industry billings topped $14 billion, a gain of roughly 4%. Industry officials, however, including GAMA Chairman Ray Siegfried, CEO of the NORDAM group, did not predict another record year in 2002, although he noted that a number of new models are coming to the market and "are going to stimulate demand and increase industry shipments" over the next 24 to 36 months.
Sun Country yesterday said it found an investor and filed in U.S. District Court in Minneapolis to suspend proceedings that would force the carrier into liquidation. A hearing is set for March 11, and the bankruptcy stay will remain in effect until the court makes a decision.
FAA placed a $13.7 million order with InVision Technologies for "multiple" CTX 9000DSi explosives detection systems, the company announced. The systems, which list for about $1.5 million each, will go to San Francisco International Airport. U.S. airports are operating about 165 explosives detection systems, and would need about 2,000 more to meet the Dec. 31 deadline to screen all checked baggage.
Transportation Security Administration (TSA), which takes over responsibility for most airport security screening on Sunday, is finalizing contracts with 60 firms now screening customers and checked baggage under contract with the airlines. The initial agreements create a "legal obligation," DOT Deputy Secretary Michael Jackson said yesterday, and pricing specifics can be perfected in the next 30 days.
JetBlue late last year dismissed KPMG as its independent accountants, according to this week's securities filing. The board audit committee engaged Ernst&Young as of Dec. 7. "There have been no disagreements with KPMG LLP on any matter of accounting principles or practices," the carrier said. A spokesman had no comment.
