FAA announced yesterday it is fining several companies, including FedEx, for alleged violations of hazardous materials regulations. The FAA Southern Region is assessing a $165,000 against FedEx for allegedly improperly shipping a fiberboard box containing a chemical oxygen generator on a flight from Los Angeles to its Memphis sorting facility, where employees discovered the shipment. FAA said FedEx offered the shipment for transportation when it was not packaged, labeled, marked, classed document or in condition for shipment.
American applied for Los Angeles-San Jose del Cabo service, planning seasonal daily nonstops in the U.S.-Mexico market. Alaska Airlines is designated for the dual-designation route, and United filed for authority to serve the market. American requested that DOT institute a carrier selection proceeding to award the designation. United applied for authority to serve San Jose del Cabo and Puerto Vallarta with partner Mexicana on a seasonal basis (DAILY, July 20). American separately filed in opposition to United for San Jose del Cabo.
American wants DOT to act on its request for third-country U.S.-South Africa code sharing with British Airways, arguing that its proposal would maximize service in the market. American, smarting from being closed out of a U.S.-Turkey third-country code-share designation with Sabena and Swissair, said DOT's conclusion in that proceeding on maximizing competition in a limited-entry market should apply to U.S.-South Africa services. American gained rights for a bilateral code share with Turkish Airlines (DAILY, July 26).
TACA Peru will operate normally despite attempts by workers of now-suspended AeroPeru to stop the carrier's international flights. Daniel Ratti, chairman and CEO of TACA Peru, said, "We are flying and will continue to fly normally." He also announced measures being taken to offset the cautionary injunction issued last week by a civil court to ground TACA Peru's international service pending resolution of a claim on this issue filed by former AeroPeru workers.
Malaysia approved a maximum of 45% of foreign ownership in Malaysia Airlines, an increase of 5% from the 40% approved last week. Currently, two parties from Brunei hold 16.57% -- 9.1% by Royal Brunei Airlines and 7.47% by the Brunei Investment Agency. The latest approval paves the way for another 28.43% to be shed. A senior government official told The DAILY that the share could come from MAS Executive Chairman Tajudin Ramli's 29.09% equity through his company, Naluri Holdings, which is financially strapped.
The European Commission is mulling the application of a future airport slot trading system in the European Union to non-EU carriers, in particular U.S. airlines, an EU source said yesterday. The EC's Transport Directorate is working on reviving a proposal to set a legal framework for the secondary trading of slots in the EU, which was shelved in 1997 because it was opposed by former Competition Commissioner Karel Van Miert. He believed airport slots could not become a commercial asset because airlines did not pay for them.
FAA yesterday issued airworthiness directives on Boeing 747 aircraft concerning thrust reverser control and inspections of the aft pressure bulkhead. FAA said it is superseding an AD on 747-200/300 aircraft that requires tests of the thrust reverser control and indication system to mandate installation of a "terminating modification." The action is aimed at preventing inadvertent deployment of a thrust reverser in flight.
Signature Flight Support offers a "first-of-its-kind" fuel tracking system for its commercial airline customers. Airlines can track fuel inventory through Signature's web site, www.signatureflight.com. Previously, airlines received inventory data by telephone or fax.
Embraer will be the dominating manufacturer of regional jets based on units, according to a market study by Forecast International/DMS. The Newtown, Conn.-based research firm sees the company delivering 30.3% of all regional jets in the next 10 years, followed by Bombardier, 23.1%, and Fairchild Dornier, 20.9%. However, Bombardier takes the lead with a slightly higher share in the overall revenues -- 25.2%, compared with 24% for Embraer. According to the study, all manufacturers combined will compete for a market of 4,435 jets worth $95.6 billion in 10 years.
British Airways will expand capacity to Barbados and the Bahamas for the winter to cope with increased demand. The airline currently operates a daily Boeing 777 from London Gatwick to Barbados but will upgrade to a Boeing 747-400 five days per week Oct. 29. BA will add a fourth weekly nonstop to Nassau from Gatwick with 767s. "The move is part of our commitment to develop a profitable leisure business," said Robin Hayes, BA head of leisure.
General aviation aircraft for the first time will be able to get cockpit displays of digital weather graphics and text, FAA said. The agency's Flight Information Service Data Link became operational last week during the Experimental Aircraft Association's Air Venture 2000 in Oshkosh, Wis.
Ameriflight will acquire three and possibly more Embraer Brasilia freighters from Bombardier. Cargo conversions are under way on the airplanes at Worldwide Aircraft Services, Springfield, Mo., with deliveries to begin in September.
Fractional Ownership Aviation Rulemaking Committee this month submitted its final document to FAA outlining how the panel believes the agency should regulate fractional aircraft ownership providers under a new Subpart K of Part 91 of the Federal Aviation Regulations. The FOARC completed a draft notice of proposed rulemaking and presented it to FAA Administrator Jane Garvey five months ago.
New York-based Site59.com recently signed agreements with Continental and Delta to provide select inventory as a component of travel packages listed on the startup web site developed by the Boston Consulting Group. Launched in March, Site59.com works with airlines, hotels and other travel vendors to distribute last-minute distressed inventory by creating vacation packages by "mood." The travel packages are all assembled electronically with TRACE, a patent-pending, operating platform developed in conjunction with ArsDigita.
The French civil aviation authority has decided to keep the remaining Air France Concorde fleet grounded until the cause for last week's fatal crash is established. Meanwhile, the British Civil Aviation Administration and British Airways are sticking to their decision to keep BA's Concordes flying despite a series of recent incidents and the Air France crash.
British Airways and KLM are expected to release an update of their merger talks in the next week. One BA official told The DAILY last week that "talks are still ongoing" and the two "haven't reached a point where a decision has been made to go for it." The source said it is "an unrealistic expectation to assume that there will be a bid" revealed with the next update. "Talks are still in an early phase."
FAA proposed civil penalties totaling $1.24 million against Boeing yesterday for two separate incidents involving quality control violations and failure to report cracks on 737s. FAA alleges that, in four separate cases during late 1997 and early 1998, Boeing suppliers did not follow required quality control practices. "Failing to do so might have resulted in Boeing's use of nonconforming materials to build airplanes," FAA said in a statement. There were no direct safety implications on aircraft from the violations.
Continental's top five officers signed new five-year employment agreements with the carrier yesterday. The agreements were signed with CEO Gordon Bethune, President Greg Brenneman, Chief Financial Officer Larry Kellner, Executive VP-Operations C.D. McLean and General Counsel Jeff Smisek.
The report of the independent expert who vetted the controversial issue of Milan Malpensa Airport on behalf of the European Commission upholds the side of the Italian authorities, according to a statement by the Italian Ministry of Transport issued yesterday in Rome. The European Commission immediately dismissed the triumphant declaration of the Italian MOT in Brussels. "For the moment, it is not possible to say whether the report will go one way or another," said a spokesman for European Transport Commissioner Loyola de Palacio.
Varig, Brazil's largest airline, is closing its current Varig Cargo and investing $100 million over five years in a new air freight subsidiary, Varig Logistica, which will compete directly with Brazil's post office. Starting operations in October, Varig Logistica will use a dozen cargo aircraft and some 2,000 delivery trucks, and set up warehouses and distribution centers in strategic locations throughout Brazil. Its goal is to deliver cargo and parcels to all of the country's 5,500 municipalities within six months.
Northwest Airlink carrier Express I will launch regional jet service between Pensacola, Fla., and Memphis Oct. 1. The new RJ service will be aboard 50-passenger Canadair Regional Jets for two of the four daily flights. Previously Express I served Pensacola exclusively with Saab turboprop aircraft.
Southwest received its sixth July aircraft delivery from Boeing Monday, completing its busiest month of the year for 737-700 deliveries. To date, 20 new -700s have been delivered, with plans for 15 more -- and one -200 retirement -- over the final five months of the year.
Liberty Media Corp. and Vulcan Ventures Inc. plan to invest $190 million in Priceline.com stock, providing additional strength to the company. Under the terms of the deal signed yesterday, the two companies have purchased a forward contract to buy eight million shares of Priceline.com common stock for $190 million from Priceline.com founder Jay Walker.
American Eagle exercised options for six more Embraer regional jets but is awaiting the outcome of talks between American and its pilots union to determine the model. The airline said it would prefer to order 50-seat ERJ 145s and will be able to do so if American Airlines pilots ratify a tentative agreement that expands the number of 50-seat Regional jets American Eagle is allowed to operate.
