This year will be the "tell-tale" year for air traffic's Wide Area Augmentation System, according to Steve Zaidman, FAA associate administrator for research and acquisitions. Describing FAA's facilities and equipment development budget for the next four years, Zaidman told an Air Traffic Control Association seminar in Washington that an independent review of WAAS is scheduled to go to Administrator Jane Garvey by the end of this month and that "we are going to have to prove that we can do it this year."
Majority shareholders at Colombian airlines Avianca and rival ACES signed a memorandum of understanding to discuss a possible merger of the two carriers. The agreement starts a 60-day discussion period to find "a way to enter into an equity integration of mutual satisfaction." A deal also would include SAM, Avianca's regional affiliate. If the carriers can finalize a merger, "a much brighter future awaits these three Colombian sources of employment and economic development," the airlines said.
After months of rumors and bad news in SAirGroup's airline business, Philippe Bruggisser has stepped down as president and CEO of the Swiss aviation concern. It is understood that he was forced to resign, since the board of directors did not support his strategy of acquisitions any more. "The bottom line of the airline business must be successively improved," the board said. SAirGroup will continue to focus on its "two pillars," airlines and its profitable airline-related activities.
Aviation leaders in both government and industry are in widespread agreement that improvements in capacity will come only in increments unless there is more airport and runway construction. That message was delivered last week to a symposium sponsored by the Air Traffic Control Association.
IATA Director General Pierre Jeanniot, speaking at the European Congress on Participation in Global Infrastructure, called for corporatization of national ATC service providers through bonds. "If the paper of ATC corporatization is to be quoted on the Frankfurt stock exchange, this does not have to be in the form of equity," he said. "In fact, we believe these corporations can be debt financed, and there are some good examples of this working, for example in Canada."
Regional airlines reported continued growth in the third quarter, according to the Regional Airline Association, with passenger miles reaching 6.89 billion in July-September, a 22% jump from the same 1999 period. Passenger enplanements reached 22.31 million. Overall load factor remained static at 60.6%. Figures were based on statistics from AvStat Associates.
Nav Canada said revenues after rate stabilization for its first quarter ending Nov. 30 totaled $230 million, derived primarily from customer service charges. Total operating expenses were $176 million, including salaries and benefits of $122 million. Before rate stabilization, revenue was $7 million higher than last year due to increases in air traffic. Operating expenses rose $5 million on increased employee compensation. Excess of revenues over expenses for the year to date was $6 million, about the same as last year.
AirTran CEO Joe Leonard yesterday launched an aggressive public campaign to acquire valuable East Coast slots and gates to improve low-fare competition in the U.S. in preparation for potential industry consolidation. His first priority is to acquire more than 100 slots at Washington National Airport to develop a second hub for AirTran's growing network. If the American-TWA and United-US Airways mergers are approved in some form this year, AirTran will need to acquire "essential" assets to remain competitive, Leonard said.
FAA and the National Air Traffic Controllers Association, as expected, have signed an understanding covering operational errors and operational deviations (OE/D) that considers errors that maintain 80% separation as a "technical violation," The DAILY has learned. A union representing FAA field supervisors and ATC facility managers said the pact fails to prescribe punishment for controllers that make repeated errors.
Midwest Express unveiled plans to build a new maintenance facility to handle maintenance support for regional subsidiary Skyway Airlines. The project is pending approval by the Milwaukee County Board and the county executive, and is contingent upon obtaining Milwaukee industrial bonds. The 72,000-square-foot facility will be built near Milwaukee's General Mitchell Airport and will include six aircraft bays to support Skyway's expanding regional jet fleet, plus 23,000 square feet of office space.
Management of Lloyd Aereo Boliviano (LAB), in an effort to keep the carrier out of bankruptcy (DAILY, Jan. 12), has designed a financial rescue plan that involves partial sale of assets, including an Airbus 310-300, plus a 10% cut in work force. The workers' unions, meeting on Monday in Cochabamba, rejected layoffs as a means of paying the carrier's "massive debts." They claim the VASP Group, its 50% equity partner, wants to sell the A310 and then lease it out to solve its own financial problems.
Calgary-based low-fare carrier WestJet says it will begin operating from Toronto Pearson in July, offering twice-daily Calgary-Toronto nonstop service. Further details will be available next month, the carrier said, pending discussions with the Greater Toronto Airport Authority. WestJet confirmed it will operate the route as a result of acquiring new-generation Boeing 737-700s. Hamilton will continue to be its major Ontario hub.
Austrian Airlines will launch a twice-weekly service to Yerevan, the capital of Armenia, as of March 25, 2001, the carrier said last week. AUA stressed that it was "consistently expending his network toward Eastern Europe and the CIS countries." Including Yerevan, the airline serves 33 destinations in Central and Eastern Europe and the Commonwealth of Independent States (CIS).
AIRCRAFT TRANSACTIONS FOR OCT 31 - NOV 2, 2000 Seller/ New Type / Previous Operator Owner Engine Operator Berry GAS/Wilson GAS/Wilson SA227-AC Aviation Metro III/ TPE331- 11U-611G Boeing American First Boeing
The Australian Competition and Consumer Commission last week rejected bids from Ansett Australia and Qantas to purchase a larger stake in regional carrier Hazelton Airlines. Ansett now owns about 23% of Hazelton and Qantas has a 20% stake in the carrier, but both major airlines were in a bidding war to get a controlling holding in Hazelton.
In an effort to save struggling Sabena, Belgium and SAirGroup reached agreement to recapitalize the airline with an additional 250 million euros. Sabena called for an extraordinary shareholder meeting Feb. 8, during which the "Blue Sky" rescue plan and financial recovery will be on the agenda. Both moves were forced by Belgian law.
Myanmar regional carrier Air Mandalay will lease three Boeing 737-400s. Currently operating within the Myanmar, Vietnam, Laos, Cambodia and Thailand region, the airline has secured rights to operate from Yangon, the capital of Myanmar, to Singapore, Kuala Lumpur and Kunming, in south China. Flights will start in March or April 6
Air Botnia has signed a memorandum of understanding with Saab Aircraft Leasing to acquire five Saab 2000 aircraft. Air Botnia is part of Star Alliance member SAS and operates principally from Finland. The 47-seat Saab 2000 operates on longer ranges than regular turboprops. The airline will use the new aircraft to replace older turboprops.
Vanguard Airlines is ending its fuel surcharge on all tickets. CEO Jeff Potter said, "It is time that airlines end the confusion about the cost of airline tickets."
Lufthansa has achieved the highest load factor in its history in 2000. The airline reached 74.4%, an improvement of 1.8 percentage points from 1999. Capacity rose 6.4% and traffic 9.1%. A total of 47 million passengers traveled on the airline, up 7.4%. The growth was especially significant at Lufthansa's regional division CityLine, whose traffic went up 17.3%. Cargo traffic rose 3.2%. The airline plans to announce its financial results for the year 2000 in April.
Cathay Pacific's full-year 2000 traffic jumped 13.6% over 1999, more than double the 6.5% capacity increase for the year. The airline carried almost 12 million passengers, the highest level in the carrier's history and a 12.8% increase from 1999.
Japan Airlines is switching from Pratt&Whitney to General Electric for the engines that it will power its order for eight Boeing 777-200ERs. JAL's current fleet of 777-200s is powered by Pratt engines. JAL also ordered GE engines for three new 767-300ERs.
DOT's Office of Inspector General yesterday, in a broad report on safety issues at FAA, recommended that the agency take several steps to reduce the growing number of runway incursions and operational errors, including completing a rulemaking on flight crew rest requirements. The OIG said runway incursions grew from 200 in 1994 to 321 in 1999 and are likely to surpass 400 for 2000. FAA's goal is not to have more than 248 a year.
