American CEO Don Carty last week decided to step down from his board position at restaurant owner Brinker International, which he has held since June 1998. Brinker said Carty is leaving the board to "devote more time to managing the recovery of American."
U.S. Major Carriers Traffic February 2002 (000) Febraury Febraury % 2002 2001 Change Alaska Revenue Passenger Miles 925,800 898,400 3.0 Available Seat Miles 1,413,000 1,371,000 3.1 Load Factor (%) 65.5 65.5 America West
Lufthansa is in talks with LOT Polish Airlines that could lead to the latter becoming a member of Star Alliance. Lufthansa's Executive VP-Sales Thierry Antinori said at the International Tourism Exchange (ITB) in Berlin that a tie-up between the two airlines and Star "would make sense." LOT has been a member of the now dismantling Qualiflyer alliance but is searching for a new strategic partner after the collapse of Swissair. Meanwhile, Lufthansa plans to reactivate for the summer timetable 10 aircraft that had been grounded since late last year.
Qantas next month plans to boost its Perth capacity, offering roughly 8,800 additional seats each week on new flights from Brisbane, Sydney and Melbourne. The carrier plans to add a new daily Perth-Brisbane flight, doubling capacity on the route to 14 weekly frequencies using 737s. Qantas also expects to add a new daily Perth-Sydney flight and a new daily Perth-Melbourne service.
American Vice Chairman Robert Baker plans to retire at the end of the month. Baker, 57, has been with AA for 35 years, rising from marketing associate to head of airline operations. He also served as CEO of TWA during the integration with AA. "Bob Baker is one of the people who has shaped aviation as we know it today," said American CEO Don Carty.
Swiss, the newly formed national carrier of Switzerland, will post a significantly smaller loss than expected for the year 2002, according to CEO Andre Dose. The airline's load factor on long-haul routes is far ahead of projections, Dose said at the International Tourism Exchange (ITB) in Berlin. The Swiss business plan was based on the assumption that the airline would report a CHF1 billion loss. Also, Swissair is likely not to use up the CHF1 billion that the Swiss government injected so that flight operations could be continued until April.
DOT has issued a wide-ranging request for information to Orbitz, its airline owners, charter associates and competing online travel agencies as part of a congressionally mandated study of the sector. In a revival of the agency's interest in online travel agencies, DOT Assistant Secretary for Aviation and International Affairs Read Van de Water sent a letter to Orbitz, Travelocity, Expedia and several U.S. major airlines with a list of more than a dozen different documents that need to be submitted to DOT by April 1.
Charlotte-based CCAIR is threatening to shut down operations in July if its pilot union turns down its final contract proposal, which is out for ratification. Management last week sent out a Warn Act that tells pilots it will shut down in July without a signed deal. CCAIR, a division of Mesa Air Group, whose pilots are represented by the Air Line Pilots Association, faces rising costs and wants a vote on a proposal that caps salaries and lets the airline keep its costs in line. Mesa spokeswoman Benet Wilson declined comment, saying the issue is a company matter.
KLM, which recently broke off talks on a maintenance joint venture with Pratt&Whitney parent UTC, will build a new engine overhaul center and expand third-party engine services business through a deal with GE Engine Services. The plans, part of KLM's goal of generating third-party nose-to-tail maintenance revenue through its Engineering&Maintenance unit, call for the airline to invest 75 million euros (US$66 million) in a new shop at Amsterdam Schiphol Airport.
American plans to pull its codes from selected Chautaqua and Trans States flights but will continue working with the two carriers under the existing financial relationships. The change is being made to accommodate regional flying under American pilot scope restrictions, which cap the number of available seat miles AA is allowed to fly under its code-share arrangements. Chautauqua spokesman Warren Wilkinson said American has not yet specified from which routes it plans to remove the AA code, but the process will be gradual.
British Airways and Iberia will seek antitrust immunity from the European Union for a joint venture in the U.K.-Spain market, according to the Financial Times.
The much-publicized $200 million merger between Hawaiian and Aloha died over the weekend as a Hawaiian executive apparently attempted to gain control of the merged entity by ousting Greg Brenneman, who had worked on the deal for several months and was slated to take over as chief of the merged company.
American and Continental, effective immediately, will no longer pay a base commission for tickets issued by travel agents in the U.S and Canada. The decisions follow Delta's similar announcement of last week that brought a firestorm of criticism from U.S. travel agents (DAILY, March 15). The change applies to all tickets for both domestic and international travel, miscellaneous charges orders, prepaid ticket advices and bookings made via the Internet. The change does not affect the base commission policy for tickets purchased outside the U.S.
Norway's Competition Authority is banning the use of SAS's frequent flyer program on Norwegian domestic routes, in an attempt to revive competition. Norway said SAS and its Norwegian subsidiaries Braathens and Wideroe would no longer be allowed to award frequent flyer miles for domestic flights, starting May 1.
ATA Connection, operated by Chicago Express Airlines, plans to offer daily, nonstop roundtrip service between Chicago Midway and Moline, Ill. Beginning May 28, ATA Connection will operate five daily flights Sunday through Friday and four flights on Saturday.
U.S. Major Carriers Traffic Results By Month Change in Traffic, Capacity and Load Factor Percent Chnage From Previous Year - Revenue Passenger Miles October November December January February 2001 2001 2001 2002 2002 Alaska -10.5 -4.4 -3.1 -4.9 3.1 America West -12.1 -18.4 -14.0 -16.3 -16.4 American -15.4 -20.2 -15.3 -17.8 -17.2
American reported yesterday that the voluntary inspections of two Airbus A300-600 vertical stabilizers and tails "revealed no findings." The airline chose the two aircraft in consultation with Airbus and FAA after records showed these planes had experienced the next highest lateral air loads after the A300 (N070) involved in the previously reported May 1997 inflight upset of AA Flight 903 (DAILY, March 12).
A Minnesota bankruptcy judge last week gave Sun Country final approval to let MN Airlines LLC invest $1.5 million to bail the carrier out of Chapter 11. The court also gave U.S. Bank, Sun Country's lender, the right to sell certain assets to MNA for $2.9 million and to begin selling their unwanted assets to other purchasers. MNA is asking DOT and FAA for an exemption to allow Sun Country to continue flights under its existing operating certificate while awaiting final approval of the certificate transfer to new ownership.
Air Canada Regional, comprising Air Nova, Air Ontario, Air BC and Canadian Regional, is expected to unveil a new name this week, sources tell The DAILY. The branding of Air Canada's regional operations could be a precursor to a spin-off, said Merrill Lynch analyst Michael Linenberg.
The consortium Aeropuertos Argentina 2000, which holds the concession for development and management of 33 airports throughout the nation, is about to diversify by acquiring from Ogden Corp. management and control of La Rural cattle fairgrounds in the Palermo suburb of Buenos Aires. Ogden would remain a minority stockholder, a position it also holds in AA2000.
US Airways' unit of the Air Line Pilots Association re-elected its officers to two-year terms beginning March 22. Following a vote by the Master Executive Council, Chris Beebe was re-elected to a third term as chairman, Bill Pollock was re-elected to a second term as vice chairman and Philip Osterhus was re-elected to a fifth term as secretary-treasurer. All three ran unopposed. Separately, US Airways new CEO David Siegel addressed the MEC in a closed session.
The regional airline industry is awaiting DOT's guidance on requirements for the third tranche of payments coming under the federal bailout provisions of the Air Transportation System Safety Stabilization Act that reimburses airlines for losses post-Sept. 11, Regional Airline Association President Deborah McElroy said last week.
FAA last week proposed a $1 million civil penalty against American Eagle for operating nine aircraft on more than 514 flights during 1998 when they were not in compliance with the company's oil consumption monitoring program. Specifications require daily engine oil level checks for Saab 340Bs and FAA alleged that company did not follow procedures. In the May 1-Aug. 24 period, 11 takeoffs were aborted due to low oil pressure caused by low oil quantity. Eagle has 30 days to respond.
