Austrian Airlines stepped up control over its subsidiaries Tyrolean Airways and Lauda Air at a board meeting yesterday in Vienna. The new "concept" will generate combined annual revenue of about 1 billion Austrian shillings (US$64.35 million), Austrian said. "The model chosen, a group consisting of a parent operating company running the subsidiaries under tight managements, has already been proven successful, both in the airline and other industries," Austrian said.
The aviation director of the New York and New Jersey Port Authority favors holding down air traffic at New York LaGuardia Airport through a demand management approach that would use fees to curb the growth of air traffic since the enactment of AIR-21. Bill DeCota, Port Authority aviation director, told the House aviation subcommittee in his Dec. 5 testimony, "Our preferred alternative would be some kind of demand management approach that would be market based, but also accommodate the needs of new entrants, small communities and regional jets."
DOT Likely Will Issue A Tentative Decision Awarding 14 U.S.-Argentina Frequencies Before ChristmasDOT likely will issue a tentative decision awarding 14 U.S.-Argentina frequencies before Christmas, according to DOT Assistant Secretary Francisco Sanchez. Under last month's agreement between the two countries deferring open skies, the frequencies become available in 2001 in two tranches -- April 1 and Dec. 1 -- with new entrants Continental and Delta vying with market incumbent United for daily nonstops to Buenos Aires. (Docket OST-00-6210)
United and American canceled hundreds of flights from Chicago O'Hare yesterday, and Northwest canceled flights from Detroit after a winter blizzard pummeled the Midwest, dumping up to an inch of snow hourly in some locations. American said it canceled more than 60% of its flights from O'Hare but noted that planes leaving Chicago were not bound for other American hubs, thereby "fencing" O'Hare and having little impact on American's other cities. United yesterday said it would cancel as many as 75% of it departures from O'Hare.
British Airways yesterday confirmed it has no intension to increase or decrease its shareholding in Qantas, refuting a report in the London Sunday Times. "Both parties are happy with the current level of equity held by British Airways in Qantas and with the wide-ranging cooperative agreements which support that," said CEO Rod Eddington. "We see no reason to seek to change the size of our stake in Qantas."
FAA Technical Center plans to solicit proposals from airlines and leasing companies to supply a Boeing 747 aircraft that will serve as a test bed for various ground-based fuel tank inerting studies. The agency says it will award a firm fixed-price contract to the lowest offeror to broaden research efforts related to fuel tank flammability and fuel tank inerting investigations.
Japan Airlines next year plans to start a wholly owned subsidiary company, JAL Cargo Sales, to handle air cargo sales and marketing activity in Japan. The company will be incorporated in January and start operating in April.
FAA Administrator Jane Garvey yesterday invited airports and airlines to participate in a cost-sharing pilot program to speed up air traffic modernization projects at 10 selected airports. Garvey said FAA will choose the projects that improve airport capacity and airspace control procedures. She said the Pilot Program to Permit Cost-Sharing of Air Traffic Modernization Projects "offers exciting new opportunities to accelerate vital modernization projects at specific airports and should increase efficiency and reduce delays throughout our nation's airways."
European airports association ACI Europe has welcomed the European Commission's announcement that it will launch wide consultation with the aviation industry before deciding how it should implement a new set of service quality indicators that will highlight the best and worst airports and airlines.
Thailand's second-tier carrier, Angel Air, is evaluating the possibility of buying three Airbus A300-600s to operate international flights and major domestic routes. This follows Taiwan's warning that Angel's leased A300-600s from China Northern Airlines (CNAL) would not be given permission to land in Taiwan on the Thai carrier's scheduled or charter flights to Taipei and Kaohsiung. Under Taiwan's Civil Aeronautics Administration (CAA) existing regulations, China-registered aircraft are barred from landing there.
DOT, in requiring carriers from Brunei, Chile, New Zealand and Singapore to report 30 days in advance 5% changes in stock ownership, may be jeopardizing not only the future growth of the accord to include other nations but its entry into force by the charter members, carriers told DOT. Singapore Airlines (SIA), LanChile, Royal Brunei Airlines and Ansett New Zealand, as well as U.S. carriers FedEx, United and UPS, have weighed in expressing concern and dismay at DOT's order proposing the requirement and questioning DOT's quick press for responses.
Basel-Mulhouse-Freiburg Airport, France's largest cargo airport outside the Paris region that also handles 3.6 million passengers a year, announced a series of steps to curb night-time noise. Starting April 1 next year, the ban on flights by Chapter 2 aircraft will be widened to include the hours between 8 p.m. and 7 a.m., and starting in November, the noisiest Chapter 3 aircraft will be banned between 10 p.m. and 6 a.m. Parallel measures will make it obligatory to use tractors for night-time aircraft movements off the runway.
FAA's Southwest Division said yesterday it plans to fine AeroMexico for aircraft maintenance record-keeping violations on three U.S. registered aircraft. The division alleged that on one aircraft, deferred maintenance was not properly recorded as required by the carrier's general maintenance manual.
JetBlue is predicting a string of profitable quarters in 2001 based on current load factors and financial performance. CEO David Neele-man, in an interview with The DAILY, said the company's priorities for the upcoming year will be much the same as this year -- continuing and expanding service out of New York Kennedy. "As we get more airplanes in this year costs will come down, and profit margins will get wider," he predicted.
Aircraft Owners&Pilots Association rejected President Clinton's call to begin user fees within the air traffic system. AOPA opposes user fees "on any segment of aviation." AOPA President Phil Boyer noted that there is "no financial crisis" in aviation.
FAA expects to announce its first airport capacity benchmarks by the end of the year. The agency plans to establish capacity benchmarks for the 30 busiest airports.
Thousands of passengers are being held up on arrival at Kuala Lumpur International Airport (KLIA) because of a strike staged by 600 limousine drivers who work for the company providing the transport service. The company, which is owned by a politician, was until Nov. 15 the only operator of the service before the government permitted city taxis to pick up passengers from the airport, following pressure from the public. While the workers demand better working conditions, others have said that the strike was initiated to protest the new competition.
Royal Brunei Airlines will resume services to Beijing and Shanghai in April, using Boeing 767-300 aircraft. This followed an agreement signed between China and the oil-rich sultanate state of Brunei, which gives the latter "tourism status" in China. The flights were suspended during the Asian economic crisis in April. To receive outbound tourists from China, the Beijing government has made it mandatory that the country in question be designated an official tourist destination.
Airports should be allowed to charge what the market will bear for peak-hour services and use the money to expand facilities, Airports Council International-North America President David Plavin said, commenting on President Clinton's ATC order.Under peak pricing, some space could be carved out for general aviation, niche carriers and new entrants, he said.
