FedEx CEO Frederick Smith said yesterday that the "uniqueness" of the Airbus A380 in terms of payload and payback led the company to become the U.S. launch customer for the aircraft and the first customer for the freighter version. FedEx's orders, subject to a definitive purchase agreement, were for 30 A380Fs to be delivered between 2008 and 2011.
With Singapore Airlines slated to be the first carrier in the world to operate the Airbus A380, the airline's engineering subsidiary is poised to lead in the maintenance, repair and overhaul of the aircraft in the Asia/Pacific region.
Southwest yesterday proved it is financially the strongest U.S. airline, posting its best fourth quarter operating margin in more than 20 years at a time when many U.S. carriers are limping through difficult labor relations and high fuel costs. Kicking off a week of major airline earnings results yesterday, Southwest's quarterly income soared 64.9% to $154.7 million thanks to strong demand, high yields and disciplined cost-control efforts.
Rep. John Mica (R-Fla.) is considered the frontrunner for chairman of the House Transportation aviation subcommittee, but the decision has not yet been settled, congressional sources said yesterday. Sources noted that two other contenders have taken other subcommittee chairmanships The aviation subcommittee chairmanship is expected to be settled by the end of this week or early next week. Mica has made no secret of his interest in chairing the aviation subcommittee.
LanChile ended a stalemate with LanPeru after signing an agreement with Peruval yesterday. This ended LanChile's and Peruval's pending lawsuits. Peruval sold its 30% stake in LanPeru to Emilio Rodriguez-Larrain, a Peruvian lawyer. As a result, LanChile and Inversiones Aereas, which have 49% and 21% stakes, respectively, in LanPeru, signed a shareholders' agreement with Rodriguez-Larrain. Sergio Purcell reassumes his position as CEO of LanPeru, effective immediately, and the carrier plans to resume domestic service immediately.
Legend Airlines plans to resume scheduled service from Dallas to New York LaGuardia and Washington Dulles on Jan. 22, according to Airlines Reporting Corp., which said Legend resumed ARC participation. Legend reportedly will a begin flights to San Jose on March 5.
Northwest pilot union leaders have begun strategizing for early contract talks, and the union hopes to have a deal in place by the current contract's September 2002 amendable date. Both sides have agreed to limit the number of items brought to negotiations and to start talks five months early. ALPA next month will survey rank-and-file to give negotiators a baseline for openers.
AIRCRAFT TRANSACTIONS FOR OCT 1 - 18, 2000 Seller/ New Type / Previous Operator Owner Engine Operator Eurowings Balkan ATR ATR-42-300 Airlines PW120 China Vietnam GECAS Airbus Northwest Airlines A300B4-600R CF6-80C2A5
Southwest yesterday unveiled a new livery to celebrate its 30th anniversary. The new color scheme keeps Southwest's traditional orange and yellow tail but turns the fuselage "canyon blue." Interiors will be refitted with all-leather seats.
FAA has given the Bahamas a Category 2 safety rating following an assessment of the country's civil aviation authority. The rating means the Bahamas does not comply with international safety standards set by ICAO. FAA said the Bahamas is taking "important steps" toward correcting deficiencies.
U.S. Major Carriers Traffic December 2000 (000) December December % 2000 1999 Change Alaska Revenue Passenger Miles 1,044,000 990,000 5.5 Available Seat Miles 1,512,000 1,488,000 1.6 Load Factor (%) 69.0 66.5
Grupo TACA returned to regular operations Monday after a severe weekend earthquake shut down its operations from San Salvador, El Salvador. The main international airport in El Salvador was closed from Saturday through Sunday afternoon. It resumed some flights as of Sunday at 2 p.m. from its hub, after using Guatemala City as an alternate hub for some flights.
To some of the key players in the European airline industry, it is not yet clear if they should be happy about or afraid of what is happening across the Atlantic. The takeover of TWA by American and the proposed merger of United and US Airways represents a degree of consolidation in the industry that is still unthinkable in Europe. There is a marked difference between the two markets and their respective regulatory environments.
SkyWest ordered 64 Canadair Regional Jets that will boost its operations for Delta and United. The order is worth $1.4 billion. Delivery is scheduled through 2004, when SkyWest will operate 46 CRJs for Delta and 84 for United. SkyWest holds options on 119 CRJs.
Varig and TAM, which together control 70% of the domestic market as the two most successful of the country's Big Four, are talking about a possible alliance to operate their international routes together. There is good personal and professional chemistry between their CEOs -- Varig's Ozires Silva and TAM's Rolim Amaro -- and industry analysts see a possible timetable involving at first operational areas such maintenance, airport services and reservations systems, to be followed later by financial areas, including joint purchases of fuel and other supplies and services.
Impulse Airlines of Australia has taken delivery of its sixth Boeing 717, with two more on order. The startup carrier is flying the 717s on one-hour hops between Sydney, Melbourne and Brisbane.
Space Commission warned last week that increased U.S. reliance on space-based technology for numerous civil and military uses makes U.S. space systems potentially attractive targets. "The advantage we have in space becomes a vulnerability for the United States," according to Adm. David Jeremiah (USN-ret.), the acting commission chair. He cited the example of Chinese micro-satellites currently being tested on the ground that may deploy and affix to satellites in orbit to destroy communications during hostilities.
Shelley Longmuir, United senior VP-regulatory and government affairs, has been offered the position of DOT deputy secretary, sources tell The DAILY. Longmuir held senior DOT positions in the elder Bush administration, including chief of staff to then-secretary Andrew Card, who now is President-elect Bush's chief of staff. Also mentioned for the No. 2 post at DOT is David Laney, member of the Texas Transportation Commission and its former chairman. Laney is chairman and president of Jenkens&Gilchrist, one of the largest law firms in Texas.
1996 Jan. 17 -- Industry veteran Stephen Wolf, who presided over United's 1994 employee buyout, is named chairman of struggling USAir, which has said it is no longer interested in a merger with United, although Wolf's appointment is rekindling merger speculation. 1991 Jan. 14 -- Pan Am looks to develop Latin America routes to compete there with American after the sale of some transatlantic routes to United, including London Heathrow rights still to be approved by the U.K. 1966
The TWA-American deal could cause big headaches for flight attendant unions at both carriers when the time comes to merge seniority lists. Both have large numbers of senior flight attendants. TWA, where flight attendants are represented by IAM, has nearly 1,000 crew with 31-36 years of seniority. American's Association of Professional Flight Attendants has 2,000 with 31-36 years.
