The merger between Canada 3000 and Royal Aviation faces few government hurdles, but analysts are divided on what the deal will mean for the merged airline and how it will affect Air Canada and WestJet. Airline analyst Claude Proulx of Nesbitt Burns said the deal is surprising in light of the fleet mix, labor and cultural problems. Canada 3000 could have opted for internal growth. Proulx said the main rationale behind the merger appears to be quickly building critical mass to compete with Air Canada.
SkyWest yesterday began new service from Salt Lake City on behalf of Delta. SkyWest will offer twice-daily service to Sacramento and twice-daily service to Phoenix, using 50-seat Canadair Regional Jet.
Three Scottish judges yesterday unanimously convicted a Libyan intelligence officer of murder and acquitted a second man, 12 years after the bombing of Pan Am Flight 103 over Lockerbie, Scotland. The verdict concluded the $80 million trial and nearly nine months of hearings at a special court in The Netherlands. The White House said U.N. sanctions on Libya would remain in place. According to the Associated Press, Abdel Basset Ali Al-Megrahi maintained his innocence.
Air Wisconsin plans to place an order with Bombardier for Canadair Regional Jets worth close to $3 billion. President Geoffrey Crowley told The DAILY yesterday that the carrier is in talks with partner United to amend its current agreement to make room for the new aircraft. Crowley said that if the two sides reach an accord, Air Wisconsin will complete talks with Bombardier for 50-75 CRJs, which would be mix of firm and conditional orders, plus 75 options. Crowley said some of the aircraft would replace the company's 23 Dornier 328 turboprops.
DOT Inspector General auditors are finalizing their report evaluating major carriers' implementation of their airline customer service plans, with transmission of the 12-month review to Capitol Hill expected next week, according to an IG staffer. Industry and observers do not expect the report to be favorable.
New Senate aviation subcommittee Chairman Sen. Kay Bailey Hutchison (R-Texas) said yesterday that the first item the subcommittee will undertake will be airline overscheduling at peak times, and the overburdened air traffic control system "demands our early attention."
FAA plans to fine Air Midwest, a US Airways Express carrier, $85,000 for allegedly failing to complete required maintenance to the left engine on a Beech 1900. It "then failed to record the damage and repair in the aircraft's maintenance record."
German regional carrier Eurowings has placed an order for 15 50-seat CRJ200 regional jets plus 30 options. The order is linked to Lufthansa's 24.9% investment in the carrier. Eurowings intends to build up a stronger regional presence for Lufthansa in the Western part of Germany. Orders by other regional carriers associated with Lufthansa are likely to follow as the aviation concern is currently discussing a revamped regional strategy with its partners.
Pan Am will launch daily service between Orlando and San Juan, beginning in the spring. The flights will be operated in conjunction with Carlson Wagonlit Travel/Turavia. Pan Am and Carlson also will offer charter service between San Juan and Punta Cana in the Dominican Republic, starting May 24.
Correction: Jet Airways is taking delivery this week of its first of 10 Boeing 737 New Generation aircraft. The carrier is not acquiring any 737-200s, as was reported (DAILY, Jan. 29).
Senator Kay Bailey Hutchison (R-Texas) has been named chairman of the Senate Commerce aviation subcommittee, a committee spokeswoman said yesterday. Hutchison served as vice chairman of the National Transportation Safety Board in 1976.
AirTran yesterday reached a tentative five-year agreement with its National Pilots Association. The tentative deal comes an unprecedented two months before the contract becomes amendable. It includes improvements in pay and benefits, the company said. DOT Rejects British Midland Bid; Carrier May Challenge Bermuda
American, Delta and United increased their charge to passengers making voluntary changes to non-refundable tickets. Delta and United increase the fee to $100 per ticket from $75 and American increased its charge to $90. All hiked the fee after Continental increased its fee (DAILY, Jan. 23). Continental remains the only carrier that reduced the commission it gives to travel agents for changing the ticket.
AIRCRAFT TRANSACTIONS FOR NOV 14 - NOV 15, 2000 Seller/ New Type / Previous Operator Owner Engine Operator Airbus LanChile LanChile Airbus A320-200/ V25257E-A5 Boeing Polynesian ILFC Boeing Airlines 737-500/
Southwest is "going to have a maintenance presence on the East Coast" in the next four to five years, despite recently expanding its Texas maintenance facilities, said EVP and Chief Operations Officer Jim Wimberly. The airline plans to nearly double its maintenance capability and is looking at Florida and BWI airports for a new facility.
American Trans Air parent Amtran posted a deep fourth quarter loss of $22.2 million due to soaring fuel costs and weather-related cancellations. For the full year, the airline posted a net loss of $15.3 million, compared with a $47.3 million profit in 1999. American Trans Air's unit revenue improved 3% to 7.59 cents but was far outpaced by a cost per available seat mile increase of 16.4%.
Cathay Pacific, one of the five airlines being approached to take a stake in Air Nuigini (ANU), has turned down the offer. According to Swire Group Finance Director Martin Cubbon, the conglomerate is not eager to acquire small stakes in regional carriers, which would not permit it to exercise overall management control.
FAA, in tackling one of the core airline delay factors, yesterday presented four "concepts" it will introduce to the public at a year-long series of meetings to relieve airspace congestion and aircraft noise generated by Newark, New York Kennedy, LaGuardia, Philadelphia and several regional and general aviation airports in the New York metropolitan area. Frank Hatfield, Eastern Region air traffic division manager, said a fifth option of "doing nothing" is not under serious consideration. Public meetings begin next month.
DOT denied an extrabilateral request by British Midland and United for code-share service between London Heathrow and the U.S. The action may lead British Midland to challenge "in the European courts" the restrictive Bermuda 2 agreement that governs the aviation relationship, according to The Guardian, which yesterday said the carrier confirmed it is "seriously considering" seeking to overturn the pact. Bad Relations
Saudi Arabian Airlines has awarded a contract to BAE Systems Canada for navigation upgrades of its 12 older Boeing 747 series aircraft with GPS-based flight management systems.
Sens. Mike DeWine (R-Ohio) and Herb Kohl (Wis.), the chairman and ranking Democrat of the Senate antitrust subcommittee, have asked the Federal Trade Commission and the Justice Department's Antitrust Division to review the operations of Orbitz because of "competitive Orbitz concerns" about the viability of competing Internet exchanges.
Air Transport Association today will press for use of several technologies being developed by FAA that could be used to ameliorate flight delays and other causes of customer dissatisfaction detailed in the DOT Inspector General's report, expected this week, on the majors' customer service records.
European Union Research Commissioner pledged to help the EU aerospace industry reach its objective of global leadership through better coordination of research, in a strategy unveiled at the three-day Hamburg Aeronautics Days conference, which ends today. "If Europe wants to stay a global player in the aeronautics world, it cannot afford to fragment its research effort or to waste resources through duplication or lack of coordination," said Busquin.
