The Senate Commerce Committee's aviation subcommittee has five new members, three Republicans and two Democrats. The new Republicans are Sens. Gordon Smith (Ore.), Peter Fitzgerald (Ill.) and John Ensign (Nev.). Smith's presence means that both Oregon Senators are on the aviation subcommittee, as he joins Ron Wyden (D), who is best known for wanting to make the airlines' voluntary passenger service plans legally enforceable. Departing Republicans were Slade Gorton (Wash.), the subcommittee chairman in the last Congress, plus Sen. Bill Frist (R-Tenn.) and former Sens.
DOT Inspector General Kenneth Mead's much-awaited report on airline service plans in the U.S. is expected to evaluate how each of 17 airlines have lived up to their commitments in nine different passenger service categories, congressional sources said yesterday. Sources said the IG's report, which is due to be delivered to Congress next week, essentially is a mixed bag in that it both praises airlines for having made progress in some areas but sites shortcomings in others. The Criteria
Lufthansa Technik's plans to expand its business with AMECO is being hampered by partner Air China's insistence that the airline's fleet maintenance should be given priority. LHT's plan is to secure third-party work from outside China to boost AMECO's current revenue of 16% from non-Chinese airlines to 30% by 2003.
Aeroporti di Roma wants to join Pantares, the airport alliance between Schiphol Group and Fraport, the operator of Frankfurt/Main airport. The three companies announced that they signed a declaration of intent Feb. 1 "to study ways of increasing efficiency in airport operations by joining forces." Last June, Schiphol and Frankfurt lost the bid for the privatization of the company that runs Rome's airport system to an Italian consortium dubbed Leonardo.
DHL Airways and DHL Worldwide Express fired back at charges made by UPS and FedEx over requests that holdings in the two DHL companies by Deutsche Post should prompt DOT review of DHL's foreign freight forwarding license and the DHL Airways' U.S. citizenship. UPS's focus on Deutsche Post's shareholder interests in the forwarding company is "irrelevant," Geoff Cruikshanks, general counsel, DHL Worldwide Network, said. He called the effort a "clumsy attempt to stifle competition," harming U.S. labor and consumers, and an "affront to free trade." He noted that U.S.
Iberia and its subsidiary Air Nostrum have signed a letter of intent to integrate Binter Mediterraneo into the Iberia franchise scheme. Currently only Air Nostrum operates as Iberia Regional. Iberia said details remained to be negotiated, but that is expects an agreement this year.
British Airways yesterday reported a net profit of 58 million pounds (US$85 million) last quarter due to strong cost controls, reduced capacity and higher yields. The carrier easily topped analyst expectations after posting a 71 million pound net loss in 1999. BA's total revenue was up 4.4% to 2.3 billion pounds ($3.4 billion) on 6.6% less capacity. Mainline passenger yields were up a surprising 8.3%.
Delta is in a "difficult spot" as it faces potential airline consolidation in the U.S., says United CEO Jim Goodwin.He told analysts Friday that Delta "has to make a decision" whether it will try to merge, acquire or be acquired by another carrier. Analysts do not expect immediate announcements from Delta, despite recent reports that Continental is contemplating buying Delta.
BAE Systems is selling its 54% investment in BAE Systems Canada to ONCAP, a Toronto-based investment fund, for $398 million. The transaction is subject to Canadian and U.S. regulatory approvals because of the two U.S. subsidiaries of BAE Systems Canada. The transaction is expected to be completed in April.
Qatar Airways signed a deal to implement the PROS 5 Revenue Management System to forecast, manage, and optimize its seat inventory. "At Qatar, we began to realize our increasing need for a revenue management system," said CEO Akbar Al Baker.
An air traffic control trainee's mistake apparently started the chain of events that nearly sent two Japan Airlines widebodies into each other over a Tokyo suburb last week, information released by both the Transport Ministry and the airline show. A Transport Ministry spokesperson told reporters that two controllers were handling the flights at the time of the incident, including one with three years' experience who is still being trained.
Delta's web site in January topped its own monthly sales record by more than 7% last month. The site posted more than $88 million in ticket sales in January, beating the September 2000 record of $82 million.
The overall DOT budget has grown at a faster rate than the FAA component, 98% versus 76% over the last 10 years, according to Beverly Pheto, director of DOT's Office of Budget. Pheto told the recent Air Traffic Control Association symposium in Washington that legislation has been enacted protecting transit and highways form being reduced in favor of other DOT functions. She said that while proponents of AIR-21 tried to do the same thing of aviation spending, they did not succeed.
ORIGINATION AND DESTINATION DATA YE 2Q00 YE 2Q95 Atlanta Total (All Carriers) O&D Passengers 27,077,100 19,636,820 37.9% Passengers Per 37,092 26,900 Day Each Way Average Fare $152.42 $144.64 5.4% Yield (cents) 18.58 17.91 3.7%
SAirGroup and South Africa's Ministry for Public Enterprises have agreed on extending the deadline for taking another 10% stake in South African Airways. SAirGroup had asked to postpone a decision in October. The deal was due Feb. 19. SAirGroup currently is evaluating all of its investments. The firm holds 20% of SAA. Moritz Suter, head of the group's SAirLines division, said SAirGroup "believes strongly in the successful future of SAA as well as in the beneficial partnership of the two companies." SAA expected to make a profit in 2000.
Northwest plans to start service between San Jose and Detroit on May 1. The carrier will offer two daily nonstops with Airbus A319s. Northwest currently serves San Jose with three daily flights from Minneapolis/St. Paul.
Aer Lingus canceled most scheduled flights Wednesday because of a planned 24-hour strike by its cabin crew union. The two sides were in negotiations last weekend but talks broke off Sunday without an agreement. The airline called the strike a "totally unwarranted action" by IMPACT, the largest public sector union in Ireland. Last November, the airline agreed to negotiations under the auspices of the Labor Court (DAILY, Nov. 1).
Oman Air yesterday is acquiring four Boeing 737-700s and one 737-800, plus two 737-700 options. Oman Air will begin service with two 737-700s in December. Two more will join the fleet in mid-2002 with the final aircraft delivered in May 2004.
After weeks of speculation, Alitalia's CEO Domenico Cempella resigned Friday. The move may clear the carrier's way to attempt joining a global alliance. Chairman Fausto Cereti said the carrier is "very close to the conditions for a deal." A board meeting is scheduled Wednesday. Alitalia or the Italian government has been rumored to be in talks with KLM, its partner in an alliance that split up last spring.
Star Alliance named William Meaney CEO of its Alliance Management Team; Louise McKenven VP-marketing; Rick Merkatz VP-sales; Horst Findeisen VP-global network, and Brock Friesen VP-strategy.
Grounded for almost three months, LanPeru renewed domestic operations Feb. 1 and plans to fly from Lima to Miami on March 5 and shortly thereafter to Los Angeles, New York and Santiago under code-sharing agreements. The carrier's financial restructuring also took flight as CEO Sergio Purcell announced an investment timetable providing $2.8 million initially, followed by a capital increase combining cash and debt-for-equity. The plan is subject to review in March, first by management and then by stockholders.
The National Mediation Board may be close to releasing Northwest and its Aircraft Mechanics Fraternal Association from mediation, bringing closer the possibility of a strike. NMB recessed talks between the two last week after both sides failed to come up with a compromise on major issues, including pay. Northwest offered a 17% pay raise and AMFA asked for 48%, according to reports from DAILY affiliate AvaitionNow.com. Talks resumed Jan.
The Greek government said it has received six non-binding offers for a majority stake in troubled carrier Olympic Airways. "The Hellenic Republic announces that the privatization of Olympic Airways Group is proceeding on schedule," the government said. "Binding offers are expected to be requested {from short-listed candidates} by the end of March 2001," said the statement, which was issued by privatization adviser Credit Suisse First Boston.
