Raytheon said it signed an agreement to unite its fractional aircraft ownership business, Raytheon Travel Air, with Flight Options, to form a new company, Flight Options LLC. It said the partnership will allow the new company to capitalize on the rapidly growing demand for fractional aircraft ownership services. The new company will have more than 1,600 customers and a fleet of over 200 aircraft. Flight Options will hold 50.1% of the new unit.
Orbitz has signed a deal to license FareChase's new MarketView Software that proactively monitors all fares listed on the Internet. Orbitz will use MarketView to gauge "how robust its search engine performs in delivering 'best-priced' itineraries" versus the competition. Manual searching web sites to monitor airfares and availability "usually provide inaccurate data."
The fuselage sections of the 728JET have been mated and the program is on schedule for first flight this spring, Fairchild Dornier said. Deliveries are planned to begin in mid-2003. While the prototype still is in production, the first functional tests on major systems are underway. The fly-by-wire system has completed 1,200 hours of operations. Two new hangars are under construction, one for final assembly and the second for fitting out the aircraft, the company said.
The Air Line Pilots Association unit at US Airways praised a letter signed Dec. 19 by 15 congressmen from Pennsylvania and Massachusetts, which expressed concern that job-saving discussions have been at an impasse. US Airways senior management the same day agreed to meet with ALPA tomorrow to "discuss small-jet issues," the union said.
Swiss government said it is not extending third-party liability coverage for Swiss airlines beyond December 25. The Bundesrat decided to cut support. The decision came as a surprise, since many had expected Switzerland to follow EU countries, which have decided to back airlines until March 2002. Crossair said it has already agreed on a new contract with a consortium comprising of 14 insurance companies. Insurance costs are 5-6 times higher than before Sept. 11. Crossair plans to add a $5 surcharge per ticket to recover the cost.
Atlantic Southeast Airlines signed a lease with the Baton Rouge Airport Authority to build a 39,000 square foot regional jet maintenance facility at Baton Rouge Airport. The facility will be ASA's primary overnight maintenance base for Canadair Regional Jet aircraft serving the Dallas/Fort Worth hub.
Iberia expects to make a net profit for 2001, but said that it is likely to post an operating loss of between EUR24 million and EUR48 million. The airline anticipated operating revenues to be up 5%.
United this quarter plans to launch a new cabin and flight deck security-training program. Officials said the program would focus on how crewmembers should evaluate and respond to potentially threatening situations. Once approved by FAA, the first phase of training for pilots and flight attendants will introduce techniques to maintain onboard safety for crew and passengers. The second phase will give flight attendants hands-on practice in these techniques. All flight attendants and pilots will participate in Phase One, the airline told employees.
US Airways, meeting with its pilots, has once again asked its ALPA leadership to allow the carrier to operate a "competitive number of regional jets." The pilot contract now restricts the number of RJs the carrier can operate to 70.
Northwest would be the primary beneficiary from an Air Canada's "open-skies plus" proposal, but officials are not ready to endorse the plan.President Doug Steenland said in Detroit this week that he is "studying and looking at the numbers to make sure it's a positive."
The European Commission has cleared a EUR125 million loan guarantee that the German state of North Rhine Westphalia has granted to LTU International Airways. LTU was close to bankruptcy when its main shareholder, SAirGroup, collapsed in October. The airline will have to find new investors in the coming months.
Lufthansa yesterday signed a firm contract with Airbus to buy 15 A380s, bringing the total number of firm orders and commitments to nearly 100. Deliveries to Lufthansa are to begin in 2007 for operation on high-density routes. The carrier said its two main hubs, Frankfurt and Munich, will be ready for the A380 by the time it enters service.
Delta pilots' union leaders voted to approve a company proposal under which certain pilots could take a month off at reduced pay (DAILY, Dec. 18). Pilots would be paid for 55 hours of flying instead of the 75 hours in their contract, but they would not have to work or be on call. Delta saw the proposal as a cost-cutting measure following its huge losses since Sept. 11.
Hawaiian Airlines and Aloha Air hope to merge their two struggling carriers under a new holding company, Aloha Holdings, to "ensure the continued viability" of Hawaii's inter-island air service, a move likely draw regulatory attention. Greg Brenneman, the former president and chief operating officer of Continental, will return to the industry after several months' absence to head the new company. Brenneman left Continental in May, noting at the time that he did not plan to jump to another airline (DAILY, May 8).
FAA awarded a four-year, $481.5 million contract for technical support to Parsons Corp.'s Infrastructure&Technology Group. The company will help FAA design and build new facilities and upgrade existing ones. The contract covers a wide range of equipment and structures, including computers, radars and landing aids that support the national airspace system. The agreement has two three-year options that would boost its value to $1.25 billion.
FAA said it will restore general aviation access to airspace in 30 major metropolitan areas. The restrictions in Class B airspace had been in place since Sept. 11. DOT Secretary Norman Mineta said the action "reinforces our commitment to getting America back to business." In three of the areas -- Washington, New York and Boston -- some local restrictions will remain around specific sensitive areas.
Since CEO Simeon Garcia acquired Aserca in 1990, the Valencia-based carrier has evolved from a small air taxi service to a full-fledged international airline. The latest phase of its development began last week with two daily flights between Caracas and Miami using Boeing 737-200s configured for business and economy classes. One daily Miami flight also serves Valencia, Barquisimeto and Barcelona in Venezuela. Aserca operates from Venezuela to several Caribbean destinations and plans an air cargo alliance with LanChile Cargo.
Cambodia and Macau signed an air services agreement that paves the way for Air Macau and a flag carrier of Cambodia to operate flights between the two countries. There is no restriction on capacity or aircraft type.
China Southern Airlines this week launch a new trucking system to move Asia-based cargo flown into the U.S. by placing airline flight numbers on secured and bonded trucks. Placing airline flight numbers on trucks moving freight across the country will enable Asia-based customers to track their packages through to the final U.S. destination. China Southern offers Boeing 747-400 cargo flights from Chicago O'Hare to Shenzhen with a cargo stop in Shanghai three days per week. The return flight from Shenzhen to Chicago is a direct flight.
London Heathrow access remains as the focus of concern that an immunized American-British Airways alliance would reduce competition and result in higher U.S.-London fares, two former top DOT officials told DOT this week.
It comes as no surprise that the airline industry and our country have had to completely and radically rethink decades-old security practices since Sept. 11. Unfortunately, the actions implemented by the government thus far, and future ones suggested by the government, the airline industry and many hungry vendors of expensive "security" technology simply miss the point.
