United and Singapore Airlines (SIA) applied at DOT for blanket authority, available under U.S.-Singapore open skies, for reciprocal code sharing between the U.S. and Singapore, via intermediate and beyond points, beginning Nov. 6. United would display SIA's code on flights between the U.S. and Singapore via intermediate and beyond points; between any points in the U.S. in conjunction with SIA's U.S.-Singapore services, and between points in the two countries and any third country. SIA would similarly display United's code.
Malaysia Airlines will be allowed to sell a maximum 40% stake to a foreign partner, according to the ministry of finance. A change in the Memorandum of Articles of the Companies Act (MOA) for local public listed companies has raised the maximum foreign equity allowed to 40% from 30%. In a telephone interview, a ministry official told The DAILY that the change opens the door for Qantas to negotiate more than the 13% it earlier proposed to acquire in the Malaysian national flag carrier. Qantas initially indicated it was interested in 16-18%.
America West, in an attempt to improve its operation, said yesterday it will reduce scheduled flying beginning immediately. It will reduce the number of scheduled aircraft by four to provide spare aircraft to substitute for aircraft that may be under maintenance or unavailable because of weather or air traffic control, and to increase access to aircraft for reliability-related maintenance. America West's schedule will shrink from 880 flights to 863, or 3.5% of daily capacity.
The United Air Line Pilots Association Master Executive Council this week activated its strike preparation committee at its meeting in Chicago, although negotiations have a long way to go before the union considers any job action. Company and union negotiators, however, reached agreement on a crucial retirement and insurance benefits portion of the pilot contract. United spokesman Herb Hunter said activating the strike preparation committee does not indicate the union plans to take job action soon.
Varig President Ozires Silva, who took the carrier's helm a month ago, said that despite "public hostility against airlines," he wants to make Varig competitive. In addition to resolving problems posed by high debts and unprofitable routes, he must convince lawmakers to liberalize rigid controls on airlines. "Until such restrictions are eliminated, Varig and other carriers won't be able to fill seats or make money," Ozires said.
Lufthansa will decide in the next six to eight weeks whether it will launch daily nonstop service from Frankfurt to either Denver or Phoenix, or both. Karl-Ulrich Garnadt, director of network management, said the airline has considered several gateways, including San Diego, Seattle and Portland. Nonstop service would begin at the end of March 2001 with Airbus A340 aircraft.
Boeing was awarded a contract by Venezuela to explore the use of spaced-based architecture to modernize the nation's ground-based air traffic management, a development the company said "will make flying safer and more efficient around the world." Boeing will assist in developing the Communication, Navigation and Surveillance/Air Traffic Management transition plan for Venezuela's Ministry of Infrastructure.
Boeing confirmed several orders by Turkmenistan Airlines and Korean Air as the Farnborough Air Show drew to a close this week. Turkmenistan Airlines signed an agreement for three Boeing 717-200s, and Korean Air was revealed to have previously ordered one new Boeing 747-400 freighter. The orders are valued at approximately $291 million. The Korean Air order was already been included in cumulative order totals published by Boeing, attributed to an unidentified customer. Delivery of the first Turkmenistan 717 will be in July 2001, continuing through October 2001.
Triumph Group said yesterday it has acquired Chem-Fab Corp., manufacturer of aerospace structural parts and assemblies, and Airborne Nacelle Services, which repairs and overhauls complex including thrust reversers.
Peru Transport Minister Alberto Pandolfi announced "satisfactory progress" in the country's safety oversight program after a two-week visit by a technical mission from FAA which, jointly with the Peruvian Civil Aeronautics Board, evaluated the country's aeronautical and airport services. The minister called the visit "fruitful and constructive," and while the findings still are subject to a final report from FAA, industry observers predict Peru will remain in Category 1.
The General Electric-Pratt&Whitney Engine Alliance venture made a strong showing at the Farnborough Air Show this week after Airbus and Boeing continued hyping their respective new large aircraft. The joint venture is working on its sole product -- the GP7000 turbofan, which must be ready to power either the Airbus A3XX or Boeing 747X by 2005. Engine Alliance President Lloyd Thompson has been meeting potential buyers of both aircraft at the air show to discuss specific operating data and persuade them to select the GP7000 over the Rolls-Royce Trent 900.
In the wake of the crash of an Aerocaribe jet which killed 19 people July 8 in Chiapas, Roberto Gillen, governor of that Mexican state, demanded that the carrier be grounded until a full technical investigation has been conducted. Juan Antonio Barges, head of the Civil Aviation Department (DGAC), said, however, that an investigation had been made just before the accident as part of a nationwide effort and had found no possible cause for the accident.
The special commission, headed by Minister of Infrastructure Alberto Esqueda, which assessed the crisis at financially crippled Avensa/Servivensa, said it will be up to the carrier's stockholders to find a solution because the state will not assume any further commitments for the airline. It also recommended an extraordinary stockholders meeting to decide the Avensa's future. The state, holder of 20% equity, will participate in those decisions.
While safety is the top priority in incident investigations, panelists at a House Transportation aviation subcommittee hearing yesterday differed on the value of criminal prosecution when weighed against losing valuable information from those connected to accidents. Ken Quinn, former FAA counsel who recently represented SabreTech in the ValuJet crash case, said the current trend toward prosecution is "chilling" and it is "borderline malpractice" for attorneys not to advise their clients to consider taking the Fifth Amendment to avoid incrimination.
Pending a final decision by the treasury minister, Brazil is set to approve an increase of up to 19.03% in domestic air fares, to compensate for higher dollar fuel prices and other financial fallout from currency devaluation in January 1999. Each carrier will be expected to manage the latest increase according to its own fare and marketing policies.
Malaysia Airlines has evaluated the Boeing 777-200X/300X and is in the final stages of responding to an engine proposal from General Electric for its GE90 powerplant, the only engine available for the aircraft. Before making its recommendation, the evaluation team wants to resolve issues that include financing, purchase incentive, engine performance retention and guarantees on dispatch reliability, replacement parts cost, inflight shutdown, remote site removal, turbine gas temperature, extended-range twin operations (ETOPS) and aircraft on ground.
South Africa Airways won the bid for a partnership with Nigeria Airways on the Lagos-New York Kennedy route, setting the stage for the Nigerian national airline to resume service to New York next month after a seven-year break. SAA beat Ghana Airways for the deal due to its technical strength and fleet size, according to African media reports.
The Ministry of Transport and Communications will open up all domestic routes and international routes to local carriers at the end of the year and in November 2001, respectively. MTC also is evaluating sharing new traffic rights for international routes between flag carrier Thai Airways and private airlines that have the necessary aircraft. MTC Assistant Director Norranit Lersakvanitchakul said the new policy would create a new and level playing field for the private carriers.
Assistant Attorney General Joel Klein, head of the Justice Department's Antitrust Division, yesterday stressed to Congress the role low-cost carriers could play in injecting competition into markets that could have fewer competitors if the United-US Airways merger is approved and triggers consolidations. In testimony before the Senate Commerce Committee, Klein gave a brief glimpse of an issue that could be factored into how his division will rule on the proposed United-US Airways merger.
DOT granted Delta's request to amend its U.S.-France frequency application over objections by American and United that Delta's day-late filing gave it the advantage of reviewing competing applications. Delta amended its request, seeking seven frequencies to add a second daily roundtrip from New York to Paris -- a market United seeks to enter -- to include an additional seven frequencies for Atlanta-Paris service. Delta shifted the start date on New York-Paris and told DOT that the Atlanta service is its first priority (DAILY, July 21).
U.S. Carriers Commission Expense First Quarter 2000 MAJOR CARRIERS Cost Per ASM Commission % Expenses 1Q00 1Q99 Change Alaska $ 15,639,000 0.37 0.54 -31.1% America West 22,470,336 0.35 0.47 -26.6% American 241,786,000 0.60 0.73 -17.4%
A just-released study says there is a "large disparity" in the regulatory oversight of the express package industry and recommends that the entire industry be placed under the Railway Labor Act. The Usery Center, affiliated with Georgia State University, says different labor laws now regulate the express package industry. UPS is primarily regulated under the National Labor Relations Act and the RLA, FedEx under the RLA and USPS under the Postal Reorganization Act and the Fair Labor Standards Act.
