IAM members of Signature Flight Support voted last week to ratify a tentative agreement reached earlier in the month. The contract passed by a 2-1 margin. The three-year deal offers improved wages, pension, vacation accruals and maintains overtime, paid lunch and health insurance premium benefits.
Continental's pilot union last week said Continental's $215 million bid for the assets of DC Air "will not be an acceptable deal until we have satisfied ourselves that it observes the job protections spelled out in our contract." The union's concerns may be moot since neither US Airways or United plans to respond to the offer because the DC Air assents are locked into an accord with BET Holdings chief and DC Air Chairman Robert Johnson.
DOT last week approved the code-share agreement between Delta and Royal Air Maroc, following the signing of the U.S.-Morocco open-skies accord. Delta is authorized to put its code on Royal Air Maroc Boeing 747-400 flights from New York Kennedy to Casablanca and from Casablanca to Agadir, Marrakech and Tangier. Royal Air Maroc may place its code on Delta flights from New York to nine U.S. cities. The two carriers will start code sharing on Oct. 29.
Rep. Jim Gibbons (R-Nev.), a former pilot with Western and Delta, has introduced a bill in the House that would permit anyone buying a roundtrip ticket to transfer it to another party by simply endorsing it. Regulations and the requirement for photo identification preclude such transfers at present. A spokeswoman for Gibbons acknowledged Friday that with adjournment of Congress in about a week, passage of the bill this year is not the object, but that its aim is to build support for next year. "The big push will be next session," the spokeswoman added.
US Airways Chairman Stephen Wolf told shareholders last week he has not decided on his future plans if the merger with United is approved. He will leave the airline but "hasn't given it a moment's worth of thought" where he will turn next. Wolf did put to rest any speculation that he would return to his previous employer, United. "There is no way in the world I would run United again," he told one shareholder.
TRAFFIC DATA FOR SEPTEMBER 2000 RPMs Change ASMs Change In From In From Load Airline Millions 9/99 Millions 9/99 Factor Great Lakes 9.9 -8.6% 44.7 +7.3% 46.7% Mesa 136.6 +21.9% 255.1 +14.0% 53.6% Midway 112.3 +57.0% 171.9 42.0% 65.4%
The U.S. and Argentina are "very close" to achieving an understanding on their stalled open-skies pact, according to a senior U.S. official. An agreement on implementing the accord that "takes into account [Argentina's] present circumstances" should be concluded in "under four weeks," he said.
DOT Secretary Rodney Slater may be strategizing to negotiate another U.S.-China designation for U.S. carriers during meetings next week with Chinese government officials visiting the U.S., industry insiders told The DAILY last week. American, Delta, UPS and Polar Air Cargo are vying for the April 1, 2001, designation, which Slater told The DAILY in August would be awarded by the end of September.
Correction: British Airways is not reducing service to Miami (DAILY, Oct. 13). In fact, BA will alter its two daily flights to London, one of which goes to Gatwick and the other to Heathrow. In future, both Miami flights will land at Heathrow.
AIRCRAFT TRANSACTIONS FOR JULY 11 - AUGUST 1, 2000 Seller/ New Type / Previous Operator Owner Engine Operator Cessna Air Amsouth Cessna 208B Carriers Inc Leasing Grand Caravan/ PT6A-114A
United today will begin marketing its next-generation interline electronic ticketing product to other carriers. The E-Ticket II interline product was introduced in June to link United and Air Canada e-tickets. Fourteen airlines have licensed United's first generation e-ticket product that was first launched in 1994.
ICAO Council President Assad Kotaite says 85% of his members have adopted "some form of liberalization" and that "we at ICAO support" the movement. However, he says, ICAO has to take into account the different means of its members. If "access to markets is not equal, the strong can crush the weak." Equal access could mean code-sharing or another arrangement with a stronger carrier, he said.
Transportation ministers from Western Hemisphere countries agreed to a Partnership for Safer Skies in the region, building on the work of existing national, regional and local institutions to improve safety and security, develop civil aviation and grow international aviation services throughout North, Central and South America and the Caribbean. The ministers from two dozen nations met Friday in a one-day conference in Washington hosted by DOT Secretary Rodney Slater, who established a similar initiative in sub-Saharan Africa.
Continental expects to report "robust" third quarter earnings today due to strong traffic, higher yields and a strong on-time performance. "Our company has never run better than it is now," Continental CEO Gordon Bethune told The DAILY last week. The airline placed first and second in July and August in DOT's on-time report, which led to increased trust among passengers. "We are statistically the most predictable, reliable and dependable airline in the U.S.," Bethune said.
Europe's air traffic control system is understaffed by 12.4%, according to a survey of 23 European Union member states. The European Regions Airline Association reported that the 2001 expected staff increase will be only 2-3%. Causes include insufficient training capacity, trouble recruiting, loss of staff from high retirement rates and lack of planning. Germany, France and Italy did not submit data.
Southwest yesterday revealed plans to add daily nonstop service between Baltimore/Washington and Little Rock, between Little Rock and Las Vegas, and between Manchester and Tampa Bay, starting early next year. The first two routes will begin Feb. 11 and the third March 11. The carrier also will add frequencies on Phoenix-Providence, Manchester-Orlando, Ontario-San Jose and Ontario-Sacramento. Southwest will add nonstop service on Saturday and Sunday only between Orlando and Houston, beginning Jan. 21.
The Airports Authority of India (AAI) will increase air cargo terminal storage and processing charges by 18% at four airports in the country where it operates. Citing high operational costs and investments to upgrade cargo facilities, AAI said the hike is necessary. AAI operates the Chennai, New Delhi, Calcutta and Tiruvananthapuram airports. In April, it proposed a 28% increase, which came under flak from the Cargo Agents Association of India.
Pratt&Whitney Canada will invest an average of $10 million a year over the next five years to continue developing its business activities in Russia's aerospace sector. Gilles Quimet, president, said the company is pleased with the progress of its Russian engine programs and will pursue other opportunities. PW&C specializes in engines powering regional and business aircraft and helicopters.
US Airways shareholders may be overwhelmingly in favor of the proposed merger with United, but Capitol Hill sources say it is likely both airlines will have to make significant concessions to get Department of Justice's approval, including divesting assets planned for DC Air. Congress can not proactively approve the merger, but sources agreed that Congressional support could be critical in getting the merger past DOJ and DOT.
