President Bush, as promised, yesterday appointed a Presidential Emergency Board to avert a strike that Machinists had scheduled today at United. Bush appointed Helen Witt of Pittsburgh as chairman and David Twomey of Chestnut Hills, Mass., and Ira Jaffe of Potomac, Md., as members. All are labor arbitrators. Witt, a former chairman of the National Mediation Board, served most recently on the PEB appointed in the dispute between Northwest and its mechanics. The PEB guarantees that United will keep flying for another 60 days.
Grupo TACA last week completed the renewal of its aircraft fleet with the delivery of 28 Airbus 319s and 320s. Now that its transition is complete, TACA boasts Latin America's youngest and most modern fleet. The gradual renewal took five years and has positioned the group, headquartered in El Salvador, to enter the 21st century with better and more efficient service, according to Chairman Alfredo Schildnecht.
Crossair's administrative board has approved a long-term business plan presented by CEO Andre Dose. Under the plan, the airline will add 52 aircraft to its current fleet, half of them widebodies for long-haul service. The approval comes with strings attached, however. It is subject to the successful implementation of planned cost cuts and the favorable outcome of a referendum in the canton of Zurich. The board also stressed that Crossair could not take over any liabilities of its former shareholder, SAirGroup.
Two Qantas maintenance unions endorsed the airline's proposal for a wage freeze and an incentive payment for staff. The package was approved in a secret ballot of 1,700 members of the Australian Licensed Aircraft Engineers Association and 500 members of the Communications, Electrical, Electronic, Plumbing and Allied Services Union. Qantas Chief Financial Officer Peter Gregg said the endorsement came one day after the carrier was informed that the Australian International Pilots Association agreed in principle to a 13-month wage pause.
The Civil Aviation Administration of China has awarded a contract to Raytheon Systems Ltd for the supply of four Monopause Secondary Surveillance Radars. The MSSRs will be installed at the ATM stations of Ganzhou, Xuzhou, Shangrao and Jinan to track the Beijing, Shanghai and Guangzhou air corridors. The first will be commissioned in April, while the remainder is expected to be installed and commissioned by the end of next year.
FAA's Operational Evolution Plan is a positive short-term step, but long-term capacity-enhancing actions are still needed, according to a General Accounting Office report to Sen. John McCain, ranking minority member of the House Commerce Committee. "If the recent economic slump and the challenges posted by the Sept. 11 terrorist attacks turn out to be only a temporary pause in the growth of air traffic, the plan will fall far short of meeting the system's growing needs," the report said.
Air Transport Association says it has "every expectation" of meeting the 60-day deadline for 100% checked baggage screening mandated by federal law despite allegations that the association has been lobbying hard for a 30-day extension. ATA spokesman Michael Wascom refused to comment on lobbying efforts taking place on Capitol Hill, noting, "It's a policy not to comment on discussions that in some cases may be private."
The Hong Kong Aircrew Officers Association, which represents Cathay Pacific's 1,500 pilots, this week announced that its members voted to "reintroduce contract compliance," effective Jan. 2. The union said this means that pilots will not be available for duty on days specifically designated to recover from fatigue and jet lag. The airline in August "unilaterally imposed new rostering practices that reduced a pilot's rest time," the union said. "We cannot work with a system that might compromise the safety of our passengers," said Nigel Demery, union president.
Air Line Pilots Association, citing the drop in air traffic after Sept. 11, the collapse of Canada 3000 and the "considerable loss of revenue for Canadian air carriers," told the Canadian Transportation Agency it should deny attempts by a U.K.-based charter operator to begin service between Canadian cities and the Caribbean. Air 2000's has requested permission to begin service from Toronto and more than a half dozen other Canadian cities.
The American Airbus A300 that crashed Nov. 12 experienced problems before takeoff and, while it crashed shortly after takeoff, there was no indication the problems played a role, NTSB said. The board said a review of the aircraft's maintenance log showed that on the morning of the accident, a pitch trim control and yaw damper would not engage during preflight checks. The computer controlling these components was reset by a mechanic, which resolved the problem, the board said.
Varig and Boeing announced an agreement to restructure aircraft contracts between the two companies that will immediately reduce Varig's total debt by $370 million (880 million reais). The move represents a major positive impact for Varig's financial structure and includes the sale/lease-back of four MD-11s and two 737-300 aircraft, plus the restructuring of existing operating leases.
The House today will take up a supplement to an Appropriations Committee funding proposal for the Department of Defense that would boost funding for Essential Air Service by $50 million. Supporters do not expect any significant opposition and the appropriation is expected to go to the Senate today or tomorrow. While the figure is short of the $57 million EAS supporters were hoping for, they are nonetheless hailing the appropriation as a victory.
AirTran, in an effort to boost traffic to its leisure and new entry markets, dramatically reduced walk-up fares between Atlanta and Myrtle Beach and Savannah, and between Philadelphia and Pittsburgh. The lowest Philadelphia-Pittsburgh walkup fare is $39 one way and $43 one way for Atlanta-Myrtle Beach and Atlanta-Savannah.
Senate Commerce Committee yesterday approved the nominations of Jeffrey Shane to be DOT associate deputy secretary and Emil Frankel to be assistant secretary for transportation policy. The designees' nominations now move to the full Senate, which plans to go out of session Friday. If the nominations are not acted on this week, the next opportunity for Senate confirmation would be in late January.
Boeing is backing moves by Latin American airlines and countries to reach agreement on aid packages that restructure the industry. Referring to a meeting of transportation ministers and airlines in Bogota, Boeing VP-Sales for Latin America Daniel da Silva told The DAILY that Boeing "applauds very strongly" action for overall aid, which would include tax exemptions, lower airport fees and fuel prices and guarantees for loans from international credit institutions (DAILY, Dec. 17).
Belgian investors bid for assets of former Sabena regional unit Delta Air Transport yesterday, in a move considered as one of the last steps prior to the launch of a new airline. Maurice Lippens and Etienne Davignon, the government-recruited financiers, said that at group of public and private investors agreed to inject between EUR190 million and EUR200 million. The investment bodies of two Belgian regional governments are poised to inject EUR30 million.
DOT next year is required to conduct another study of Orbitz's business practices during its first year of full operation. The stipulation was included in the Transportation Appropriations Act, passed by Congress and signed by the President this week. By April 1, DOT must submit its findings to the agency's Inspector General's office. The IG is required to review the findings and report the findings to Congress within 90 days.
DOT fiscal 2002 appropriations act, signed Tuesday by President Bush, provides a budget of $59.6 billion and includes $1.2 billion for the new Transportation Security Administration (TSA) and $10.2 billion for aviation operations and airport improvement grants. President Bush noted that "several provisions of the bill purport to require congressional approval before executive branch execution of the bill. I would interpret such provisions to require notification only," Bush said.
United's new CEO Jack Creighton this week acknowledged that there is a great deal of distrust between employees and senior management, but said he intends to earn back the trust of the staff. In a message to employees, Creighton noted that a Washington Dulles-based employee recently "chided" him for not focusing on the behind-the-scenes staff as much as he should.
