DOT may put out a show cause order today in the U.S.-U.K. Alliance Case -- in advance of U.S.-U.K. formal talks that might take place Monday or Tuesday in Washington -- that would provide a prescriptive remedy for market dominance by American and British Airways, several sources told The DAILY.
The White House has withdrawn without explanation a directive that would have established an interagency working group to develop a national transportation plan.
Delta's board yesterday declared a cash dividend of 2.5 cents per common share at its regular meeting in Atlanta. The dividend is payable March 1, to shareowners of record on Feb. 6. Separately, the airline announced that Joan Spero, president of the Doris Duke Charitable Foundation, has been elected to its board of directors, effective immediately. She previously served as U.S. under secretary of State and worked 13 years as an American Express executive.
Security concerns have led India to scrap its bidding process when soliciting tenders for ground-handling services at major Indian airports. The process had raised questions since some bidders were found to have business connections with dubious political groups.
In a bid to enhance security on international flights, Thai Airways will install a dead-bolt metal and bulletproof flight deck door on its entire fleet of 16 Boeing 747-400s. Boeing Airplane Services would supply the doors. According to a carrier spokeswoman, the exercise will be completed by April next year. The spokeswoman said the security enhancement gradually will be extended to cover the 777 and Airbus A330 fleets. Thai also upgraded its air traffic control transponders to enable the pilot to alert controllers on the ground of an emergency on board.
American Hub Profile Dallas/Fort Worth Origin and Destinations, Segment Summary and Top Nonstop Markets Origination and Destination Data 12 Months 12 Months Ended June Ended June 2001 1997 Dallas/Fort Worth Total (All Carriers) O&D Passengers 19,752,820 17,739,210 11.4%
Mesaba yesterday reported a $1.3 million quarterly loss, including the recognition of the $7.2 million federal grant. The loss in its fiscal third quarter compares with a $2.3 million profit in the same period last year. Excluding the one-time gain, the airline's loss was in line with analyst estimates, and CEO Paul Foley said he expects Mesaba to obtain "near break-even" results in the current quarter.
Standard&Poor's is keeping Boeing on CreditWatch with negative implications, where the company was placed on Sept. 21. S&P said that while Boeing reported solid operating performance last year, it expects weakness in commercial aerospace to outweigh growth in other business lines this year and next. Jetliner deliveries are expected to decline from 527 in 2001 to about 380 this year and 275-300 next year, S&P said. The CreditWatch stems from the "severe impact that the Sept. 11 terrorist attacks have had on commercial aviation," S&P said.
Airlines' recent fleet impairment write-downs will not result in tax refunds, as suggested by consultants Morten Beyer&Agnew (DAILY, Jan. 22). The write-downs have no impact on carriers' profits or losses for federal tax purposes, the Air Transport Association said.
Ryanair, providing Boeing with a much-needed orderbook boost, signed a landmark deal to acquire up 150 new 737-800s for its aggressive expansion plans. The order includes 100 firm aircraft and 50 options over an eight-year period, with deliveries starting this year. The Ryanair deal is the largest, single, firm order ever made for Next Generation 737s and has a catalog value of $9.1 billion, including options.
Listing the $2.50-per-segment security fee that will appear on airline tickets Feb. 1 as the "9-11 security fee" is a suggestion before DOT, Undersecretary John Magaw told the U.S. Conference of Mayors. He called the proposal a "good idea" that would remind the traveling public of what caused the increase in ticket prices, while vowing to make travel safe, secure and as non-disruptive as possible.
The gradual implementation of the Reduced Vertical Separation Minimum (RVSM), which was initiated yesterday in 41 countries, will increase European upper airspace capacity by 20% by September, announced Eurocontrol, the European air traffic control organization, yesterday. Eurocontrol claims the move will cut airlines' annual costs by EUR3.9 billion (US$3.45 billion). "Inflight delays will be reduced... Reduced congestion will also allow more aircraft to fly their preferred routes, meaning lower fuel use," said Eurocontrol.
Creditors of AeroContinente Chile agreed to place the carrier under protection from bankruptcy so it may continue to operate while restructuring the $17.1 million it owes several creditors, among them Chilean governmental agencies for airport services, Shell for fuel and former workers for back salaries and benefits.
FAA is proposing changes to FAR Part 25 that would harmonize standards on lower-deck service compartments, such as crew rest areas, with tougher requirements in Europe's Joint Aviation Requirement 25. The biggest change would require that two-way voice communication between the lower deck and cockpit be provided by an essential bus, and therefore guaranteed during loss of "normal" electrical power. Most U.S.
Germany's competition authority Bundeskartellamt accused Luft-hansa of predatory pricing on the highly important route between Frankfurt and Berlin. The authority said its conclusion was preliminary, but it would not tolerate predatory conduct if the investigation's results were confirmed. Lufthansa has to reply to the accusations by the end of January. Germania, the airline's rival, filed a complaint with the Bundeskartellamt late last year after entering the Berlin-Frankfurt market with four daily roundtrips.
Association of Flight Attendants President Patricia Friend said yesterday a number of regional airlines are using untrained flight attendants to carry out aircraft security searches in violation of a recommendation from the DOT Rapid Response Team that airlines not use flight or cabin crew for these searches.
Dallas/Forth Worth Airport next week plans to begin testing a face-recognition product designed to add another layer of security at checkpoints with minimal disruption to passenger flow. The Visionics FaceIt system scans faces and matches them with a "watch-list" maintained by the airport and fed by the FBI. When a match is found, an alarm alerts security personnel and the passenger is subjected to a more detailed level of security.
Delta this spring plans to start nonstop service between Atlanta and Milan Malpensa and add a second nonstop between New York Kennedy and Paris. SkyTeam partner Air France will offer code-share service on the JFK-Paris flight that will begin March 15, while Alitalia will put its code on Atlanta-Milan flights beginning April 1. The Milan flight will be operated with a Boeing 767-300ER and the second Paris frequency with a 777. Also this spring, Delta will again offer seasonal nonstops to Barcelona from Atlanta and JFK.
Panama's Copa Airlines, linked to Continental by a strategic alliance, has increased to 13 its weekly frequencies between Caracas and Panama, using Boeing 737-700 equipment. To offer business travelers better options, a second evening flight has been added on Monday, Thursday and Saturday.
Delta Connection carriers will expand regional jet service on April 7, replacing some 50-seat Canadair Regional Jet and turboprop service with 70-seat CRJs. Atlantic Southeast Airlines will take its first CRJ-700 on Tuesday. ASA will begin operating CRJ service from Atlanta to six markets -- Augusta, Ga.; Huntsville, Ala.; Fort Wayne, Ind.; Toledo, Ohio; Sarasota, Fla., and Tallahassee, Fla. On May 1, it will add CRJ-700 service to Daytona Beach, Fla., Long Island/Islip, N.Y., and Mobile, Ala.
Ariana Airlines, Afganistan's national airline, yesterday made its first international flight since 1999. The airline operated a flight from Kabul to New Delhi as a symbol of a political alliance with India that lasted through the years of Taliban rule, according to the Associated Press. Ariana stopped flying to India in 1998. Most of its international flights were grounded a year later when the United Nations imposed sanctions against the Taliban regime. The AP reported that Iran's national airline, Mahan Air, also plans to resume flights to New Delhi via Kabul.
America West next month plans to recall 75 furloughed pilots as plans to start ramping up its capacity in preparation for the expected increase in summer travel demand. The pilots will return starting mid-February through early March. The airline has noticed consistent growth in demand for air travel and it is responding by adding back flights to its schedule, according to Jeff McClelland, executive VP-operations. Shortly after the Sept. 11 attacks, America West furloughed 179 pilots and cut its schedule by 20%.
The most serious types of runway incursions occurred less frequently in 2001, leading FAA officials to conclude that efforts to focus on the nagging problem during the past few years are starting to pay off in the form of a safer system. Out of 381 total incursions at U.S. towered airports in 2001, 50 of them (13%) were Class A or B events (accidents or the most serious incidents), preliminary data released by FAA yesterday show. In 2000, 431 events included 68 Class As and Bs (19%).
A senior DOT official said yesterday that the White House has withdrawn its directive on an interagency and intermodal transportation system policy review. The directive would have established a working group to develop a national transportation plan (DAILY, Jan. 23).
