Aviation has seen a "reprieve" in the air traffic control system since Sept. 11 and should be using the time to improve infrastructure, David Schaeffer, majority counsel for the House Transportation subcommittee, said last week. He noted that subcommittee Chairman John Mica (R-Fla.) has been "bird dogging" the modernization program. "We're concerned that people will say we don't need that anymore because delays are down but if there is a silver lining, we bought ourselves some time."
U.S. and France today will sign an open-skies accord, with Norman Mineta, DOT secretary, and Jan-Claude Gayssot, French transport minister, signing the agreement, which was reached Oct. 19, 2001. SkyTeam members Delta, Air France, Alitalia and CSA Czech Airlines on Friday gained final DOT approval and antitrust immunity for their alliance. DOT excluded from immunity premium and unrestricted nonstop fares in the Atlanta- and Cincinnati-Paris markets, which Delta dominates.
Pilots of Continental and Continental Express, in reports on their Aviation Safety Action Programs (ASAP), revealed that air traffic control events dominated the reports.
US Airways named Alan Crellin executive VP-operations, Nigel Adams VP-inflight services, Kerry Carstairs VP-customer service centers, John Honor VP-human resources and development, Jennifer McGarey VP, deputy general counsel and secretary, and Michael Scheeringa VP-resource planning.
Tony Davis, currently director of government and corporate relations at BMI British Midland, has been named head of "bmibaby," the airline's newly named no-frills subsidiary. Bmibaby will fly from East Midlands airport to six destinations -- Barcelona, Nice, Palma, Malaga, Faro and Alicante -- starting March 23. One of the main driving forces behind starting the airline were plans by rival Go to set up a base at East Midlands.
Air Canada's regional carrier, operating as Air BC, Air Nova, Air Ontario and Canadian Regional, will introduce six 50-seat Bombardier regional jets to its fleet this spring. Recently concluded agreements with its labor groups will let the airline reinstate its fleet of 10 BAe 146 jets by the beginning of the second quarter. The company has finalized collective bargaining agreements with pilots and maintenance and has a tentative agreement with its flight attendants, allowing it to move ahead with its RJ acquisition.
FAA, citing security concerns expressed by the Secret Service and the Customs Service, has issued a Special Federal Aviation Regulation establishing restrictions for aircraft operations Feb. 8-24 in the vicinity of the 2002 Winter Olympic Games in Salt Lake City. The SFAR also establishes a security process for certain flight arrivals and departures at specified area airports.
FAA submitted to DOT Friday the training plans for the more than 30,000 security screeners to be hired as federal employees. The plan will provide "premium-quality, intense and measurable training" for the screeners, who are to be completely in place by Nov. 19. Training is to include 40 classroom hours, 60 hours of on-the-job training and passing an exam.
U.S. and U.K. aviation negotiators have set aside Jan. 28-30 for possible open-skies negotiations, DOT confirmed Friday, firing up speculation as to whether DOT this week will issue a show cause order in the U.K. Alliance Case that includes American-British Airways and United-BMI British Midland. Whether or not the tentative order is released, commencement of negotiations hinges on whether the "competition process will be far enough along by then," according to a U.K.
Continental CEO Gordon Bethune last week singled out United and US Airways as airlines that cannot survive the current market due to their high costs. "Both are scrambling to do something," he said. "Either the market needs to change or they need to change. They can't continue to operate under current market conditions for long."
Private ATC systems, such as Canada and Great Britain's, are experiencing a "steep financial challenge" following Sept. 11, said the National Air Traffic Controllers Association. Pay freezes and hikes in fees show "privatization's Achilles heel," NATCA says. "Reduced costs, faster modernization and stable funding all disappear rather quickly."
The House aviation subcommittee will hold a hearing to review the status of industry security after the first Aviation and Transportation Security Act deadline. The act mandated that starting Jan. 18, all checked bags must be screened for explosives. Airlines said they met the requirements. DOT Inspector General Kenneth Mead and John Magaw, head of the newly established Transportation Safety Administration are expected to testify along with airline and airport representatives.
As part of its recapitalization plan, Air New Zealand issued 2.17 billion new ordinary shares Friday, which will be listed on the New Zealand Stock Exchange. Priced at NZ$0.27 per share, the listing will raise NZ$585 million (US$247.6 million). The airline would use the proceeds to repay outstanding unsecured bank loans. The new shares rank equally for all other ANZ such shares on issue.
Three airlines wrote down or off a large part of their fleets in the form of "impairment" of future values after Sept. 11, according to consultants Morten Beyer&Agnew. United wrote off $788 million, American $496 million and US Airways $576 million. The total write-off for all carriers is $2.3 billion and they will get back tax refunds checks of 40% or $920 million.
China Southern Airlines in December posted near record-breaking passenger loads on its transpacific service between China and the U.S. The carrier had a 90% load factor in December from Los Angeles to Guangzhou, China. "From all reports, inbound traffic from China was as strong or better than the 90% departing from Los Angeles," said Bernhard Clever, director-sales and product development. In 2001, the airline operated 365,000 flight hours, 208,000 takeoffs/landings and carried 19 million passengers.
The timing for starting an airline couldn't be better, despite the poor economic outlook, according to Darryl Jenkins, director of The Aviation Institute at George Washington University. Jenkins said last week that he has "never seen conditions long-term more favorable for starting an airline," joking that he was considering launching one of his own.
Airbus does not expect the civil aircraft business to recover before 2004, and the consortium will cut 6,000 positions because of it. CEO Noel Forgeard said deliveries will remain at around 300 in 2002 and could be fewer than that in 2003. The industry as a whole is likely to receive between 300 and 350 orders, according to John Leahy, Airbus head of sales. Airbus will cut more than EUR1 billion in costs this year and reduce the work force by the equivalent of 6,000 jobs, but it does not plan any forced layoffs.
Open skies with the U.K. is a long-standing U.S. policy goal that is now within reach, Samuel Skinner, DOT secretary during the first Bush administration, told current DOT Secretary Norman Mineta, urging Mineta success in U.S.-U.K. negotiations expected in late January. Linking antitrust immunity to open skies "has proven to be an invaluable carrel" to encourage foreign governments to open their protected markets to the proven benefits of international aviation competition, Skinner said, pointing to fully liberalized markets with other European nations.
Alitalia and other carriers serving Italy were forced to cancel hundreds of flights Friday after air transport workers went on an eight-hour strike that was scheduled to end at 6 p.m. local time. Alitalia alone said it had to cancel 300 flights and Lufthansa 47. The workers protested layoffs at Alitalia announced last week, as well as planned changes to the Italian labor and pension laws.
Financial difficulties faced by the major carriers could spell opportunities for low-fare and niche carriers to expand their markets, Bill Swelbar, managing director of Eclat Consulting, said at the ESI-Sloan Aviation Forum last week. Swelbar predicted low-fare/niche airlines, which suffered less from the economic downturn and effects of Sept. 11 than the majors, would penetrate into network carriers' route systems as majors pull back and rethink their revenue-generating strategies.
Lufthansa's traffic for the year 2001 declined by 1.9%, reflecting a weaker world economy and the consequences of Sept. 11. The airline offered 2.1% more capacity, compared with 2000, which resulted in a load factor decrease of 2.9%. Lufthansa flew 45.7 million passengers, 2.7% fewer than in 2000. Lufthansa will publish financial results for the year 2001 on April 25.
30 years ago Jan. 21, 1972: With the political climate too hostile to permit construction of more airports, FAA Administrator John Shaffer said upgrading existing facilities to "unload the hubs...might postpone the urgency of expansion." 10 years ago Jan. 23, 1992 : President Bush's nomination of Andrew Card to be DOT secretary surprised industry insiders, who expected Bush to name Customs Commissioner Carol Hallett. 5 years ago
U.S. Airports Change in Air Service Index September 1-7, 2001 vs. January 1-7, 2002 Top 200 U.S. Airports Air Service Index Sept. 1-7, 2001 vs. Jan. 1-7, 2002 Airport Total Nonstop Onestop Twostop Abilene -22.0% -18.1% -25.2% -22.3% Akron/Canton -8.8% -9.0% -5.1% -17.8% Albany, NY -18.8% -17.4% -14.5% -31.3%
