Days after the industrial launch of the new Airbus A380, the manufacturer has replaced Juergen Thomas as head of the program. Thomas had been appointed special adviser to Airbus CEO Noel Forgeard, effective Jan. 1. His successor is Charles Champion, who has been responsible for the Airbus single-aisle programs.
U.S. regulators last week mandated inspections on a critical area of the Boeing 747-400's fuselage after 11 in-service reports turned up cracking on the same area in older models. The FAA rule containing the mandates -- a draft of which was proposed in June -- calls for checks of longeron splice fittings that carry loads generated by the plane's tail.
Thai domestic carrier PB Air has filed suit against rival domestic airline Angel Air to recover 20 million baht (US$477,000) for the lease of two Fokker 50 jets last year. PB Air, whose chairman, Chatrachai Bunyaananta, is a former president of Thai Airways, accuses Angel of issuing six bad checks. Last year, an Angel Boeing 737-400 was repossessed by Malaysia Airlines because Angel failed to pay fees related to the rental. The leasing problems have made it difficult for Angel to acquire or lease aircraft.
The Malaysian government has taken back control of national flag carrier, Malaysia Airlines, buying back the 29.09% stake sold to the airline's executive chairman, Tajudin Ramli for M$1.792 billion in 1994, worth $717 million in U.S. currency at the time. The same will be paid for the 224 million shares at $M8 a piece. With the airline's share price closing at M$3.68 on the Kuala Lumpur Stock Exchange on Dec. 20 when the agreement was signed, the M$8 to be paid per share involves a premium of M$4.32. This premium surprised even senior government officials.
Beijing-based AMECO is dismissing a media report that the company's two partners, Air China and Lufthansa Technik (LHT), have fallen out of favor over the future strategy of the otherwise successful joint venture. In response to questions from The DAILY, AMECO General Manager Walter Heerdt said there is no time rush, but the two partners already are in constructive talks for the long term.
Finnair has applied for a license for air traffic operations in Estonia for a subsidiary airline dubbed "Aero Airlines AS." Finnair said the aim was "to act as a significant airline operator in the Baltic area and from Estonia to Finland." The carrier, which could start operations next summer "at the earliest," is planned to fly to Scandinavia and other European countries later. Finnair expects the application to be approved of in January or February of next year.
Sabena will ground two additional long-haul aircraft in January. The airline will discontinue daily flights to Johannesburg and Newark that it planned to operate until April. The move is part of the "Blue Sky" initiative through which the financially struggling carrier hopes to be able to save about 350 million euros.
Air Canada Regional's 950 flight attendants have voted to join the Teamsters. Most flight attendants at the regionals that make up Air Canada Regional were represented by the Canadian Union of Public Employees.
Today Aviation Daily introduces a new annual feature, our list of the 20 Most Influential People in Aviation. It's our list, and many of the selections are debatable, but the overall theory is that inclusion means the individual has affected aviation either positively or negatively during 2000. Therefore, because of the United-US Airways merger and the United pilot contract -- and massive ripple effect from both -- leads the Aviation Daily staff to select United CEO Jim Goodwin as the No. 1 Most Influential person for 2000. -- Michael Miller, Editor
Northwest and its Aircraft Mechanics Fraternal Association will resume contract talks under the auspices of the National Mediation Board the week of Jan. 8th. Both sides met with the NMB yesterday in Washington to present new proposals.
Swiss aircraft manufacturer Pilatus has been sold by its owner Unaxis to a group of Swiss investors. Unaxis had been divesting subsidiaries in the last few years to concentrate on information technology. Investors have promised to keep Pilatus going under the same management. The transaction is expected to be completed by the end of January.
Cheap Tickets Inc. selected J. Walter Thompson to manage its more than $20 million advertising account. The ad firm is charged with developing a new national advertising campaign for Cheap Tickets and helping to generate consumer traffic.
British Airways started nonstop services between London Gatwick and Abuja, the federal capital of Nigeria, three times a week. The existing services to Abuja via Lagos have been replaced by new nonstop flights and will operate on Mondays, Wednesdays and Saturdays. The three weekly services will be operated by Boeing 777s and the airline said the new nonstop route will cut travel times by two hours.
United yesterday finalized agreement with Pennsylvania and Allegheny County on its $160 million plan to expand US Airways maintenance operations and overhaul existing US Airways facilities in Pittsburgh should the merger gain approval. In July, United said it would proceed with the Pittsburgh plan subject to the successful outcome of negotiations with local authorities (DAILY, July 21). The base will consist of two new hangars with four aircraft maintenance bays and will cost $130 million.
SAS ordered three additional Boeing 737s, as the carrier exercised options for three -600s. The airline has substitution rights that would allow it to get larger -700s or -800s instead. The three are scheduled for delivery in 2002. The aircraft are existing orders, but Boeing did not identify the customer.
Midwest Express yesterday painted a dismal picture of its fourth quarter, announcing it will post a loss for the period. The carrier predicted a loss of between $0.40-$0.50 per share, compared with a profit of $0.53 in 1999. It blamed poor weather and higher maintenance expenses for the decline. For full-year 2000, the company expects earnings of $0.32-$0.42 per share, a severe drop from $2.71 last year. The airline will release earnings Jan. 22.
U.S.'s multilateral open-skies initiative, begun among four Asia-Pacific Economic Cooperation (APEC) nations, is facing opposition in the face of DOT's proposed reporting requirements. Carriers from the APEC member states -- Brunei, Chile, New Zealand, Singapore and the U.S. -- that signed on to the pact, touted by the White House and DOT as a template for beyond open-skies efforts, are continuing to call for DOT to withdraw its proposal.
Mesaba and Northwest are in active discussions over Northwest's proposal to buy out Mesaba's stock. Northwest already owns more than 20% of Mesaba. No other bidders have come forward to bid on the stock, and Mesaba has formed a committee of its board members to consider Northwest's offer. Merrill Lynch analyst Michael Linenberg lowered his December earnings estimate from 43 cents per share to 13 cents because of inclement weather in Minneapolis/St. Paul, increased pilot retention costs and a dispute with Northwest regarding payment for jet services.
Airline analyst James Parker of Raymond James lowered Ryanair's rating to "buy" from "strong buy" this week because the airline is "adequately priced." Parker said there is no change in earnings estimates or a very positive outlook, predicting Ryanair will grow 20%-25% annually for the near future.
Airbus wants to decide whether it will go ahead with the launch of the A330-500 in the first quarter of next year, Chief Operating Officer Gustav Humbert told The DAILY. The aircraft is a shrunken version of the A330, which is currently available in the -200 and -300 versions. Humbert said the decision will depend not only on customer interest, but also on the availability of sufficient engineering resources.
Computer reservations systems rules and competition guidelines are among yet-to-be-completed initiatives that DOT "would like to conclude in this administration," Secretary Rodney Slater said this week in a review of his tenure as head of the department.
Aerospace giant Northrop Grumman yesterday announced plans to acquire Litton Industries for $5.1 billion, including the assumption of Litton's $1.3 billion debt. Boards of both companies unanimously approved the transaction, which is expected to close in the first quarter. As part of the deal, Northrop Grumman will acquire all of Litton's outstanding shares for $80 per common share and $35 per Series B preferred share.
