FAA issued an emergency order requiring detailed inspections for cracking of the main deck cargo door frames on Boeing 737-200/300 aircraft. Cracking of the lower door frames "could result in sudden depressurization loss or opening of the main deck cargo door during flight, and loss of control of the airplane." FAA's order was prompted by a report indicating that three aircraft had "multiple cracks." The "exact cause of the cracking is unknown at this time," FAA said. The order also requires that operators report the result of their inspections.
Ryanair plans to introduce a fourth daily flight between Shannon and London Stansted for the peak period travel period Aug. 4-24. Since the route was launched two years ago, the airline said it has enjoyed "phenomenal success" and decided to begin the new daily service with Boeing 737-800 equipment for the three-week peak period.
SITA received a $75 million, seven-year contract from Amadeus to manage AMANET, which provides the computer reservations system's customers with access to all its mainframe applications, based in Erding, Germany. Full network integration is expected by the end of 2001.
United, which experienced a "significant change" in operations over five days last week, is asking mechanics to return to efficient fleet maintenance as contract negotiations continue. In a message to mechanics, Ron Utrecht, senior VP-maintenance operations and chief negotiator, said United has three choices in dealing with maintenance cancellations and delays.
European's regional airlines reported 9% growth in traffic for the first quarter 2000, down 2% over the same period last year, according to the European Regions Airline Association. ERA said 51% of reporting carriers grew more than 10%. On-time departures improved two percentage points but remain unsatisfactory at only 59%. Air traffic control was the primary reason for delays. Flights departing within 15 minutes improved by 3 points to 80%, with ATC directly accountable for 31% of delays. Average load factors decreased 0.7 points to 52%.
Air Carrier Association of America asked FAA to withdraw and reallocate by lottery eight slots at Washington National Airport that have been allocated to American, Midway, Delta, United, Northwest (2) and Midwest Express (2). The last lottery to distribute DCA slots among new entrants was held more than 15 years ago, ACAA said, while some of the temporary slots have been used by dominant carriers for more than seven years. Only two of the slots have been allocated in the past three years.
Financially troubled government-owned airlines or national carriers in the Asia/Pacific region should consider choosing a strong foreign strategic partner as part of their plan to recover, according to Association of Asia Pacific Airlines Director General Richard Stirland. He noted that most government-owned carriers in general tend not to be as efficient and proactive as privately owned airlines.
Global Airlines, which seeks to buy TWA and 450 regional jets at the same time, has yet to reveal its funding sources, prompting some in industry to question its viability."This could well be the emperor's new clothes being replayed," said a longtime aviation expert who witnessed Global's leadership in the mid-1990s, when it wanted to buy Pan Am and hundreds of Airbus and Douglas aircraft.
US Airways signed a partnership with Thrifty Car Rental offering miles to members of its Dividend Miles frequent flyer program, beginning Aug. 1. Members earn 250 miles on qualifying worldwide rentals, whether or not a US Airways flight is involved.
Delta is offering frequent flyer members bonus miles for travel between the U.S. or Canada and Caracas, Venezuela, Guadalajara, Mexico or Panama City via Atlanta. Business passengers on nonstop roundtrip travel can earn 30,000 bonus miles through Aug. 31, and economy-class passengers earn double miles for nonstop travel to Guadalajara.
Bombardier's 70-seat Canadair CRJ700 regional jet made its international air show debut at Farnborough in the colors of launch customer Brit Air, which is based in Morlaix, France. The aircraft is due to enter service in the first quarter next year. Orders for the CRJ700 total 104 firm sales even before service entry. Options could run as high as another 500, as major regional airlines have signed deals for hundreds of aircraft that will let them select from Bombardier's range of regional jets.
Deutsche Bank has initiated coverage of the integrated express market with a strong buy rating for FedEx and a buy rating for UPS. Airborne Freight, DHL, CNF Transportation, Pittston and TNT were not rated.
Vanguard Airlines yesterday reported a second quarter net loss of $2.7 million, compared with a net profit of $2 million in the second quarter of 1999. Revenues grew 12% to $37.6 million and operating expenses jumped 27% to $40.1 million. CEO Jeff Potter said that while the second quarter was not profitable, the company saw improvements in several areas, including a 9.2% decrease in cost per available seat mile, from 10 cents to 9.1 cents.
Mercury Air Group will acquire a fixed-base operation in Birmingham, Ala., from Raytheon Aircraft Services. The FBO will be the 19th for the Mercury chain.
AirTran has not entered into a partnership with Orbitz, the airline said yesterday. Orbitz CEO Jeffrey Katz last week named AirTran, Vanguard and Spirit as the three low-fare carriers that have signed partnership deals with the company (DAILY, July 21) but an AirTran executive said his airline has signed only a non-binding letter.
A World Trade Organization appeals panel rejected Brazil's claim that regional aircraft rival Canada failed to carry out a previous WTO order to withdraw its export subsidies, while also finding that Brazil itself has yet to comply with a similar WTO order covering its own subsidies, according to separate rulings. Canada's Bombardier regional aircraft portfolio competes with that from Embraer of Brazil.
Airbus plans to reveal orders for at least 200 new aircraft at the Farnborough Air Show this week, highlighted by the first firm commitment for the proposed A3XX by Emirates, signed yesterday. The manufacturer sold 229 aircraft during the six months ended June 30, and CEO Noel Forgeard said the carrier will boost its 2000 orders during the week to put his company "on par" with rival Boeing. Airbus estimates it will have more than 500 new orders this year and gain further market share on Boeing.
Berkshire Securities filed at DOT for an exemption to operate charters to any points in the U.S. from Hamilton, Ontario, Canada. The Canadian carrier told DOT it has been operating commercially for a year, using one leased Challenger 601-3R. (Docket OST-00-7665)
Alaska Airlines' parent Alaska Air Group reported a second quarter profit of $8.8 million, down 79.1% from 1999, largely due to soaring fuel prices and higher maintenance costs. The results include a special charge related to a change in accounting for frequent flyer miles. Excluding the one-time event, the group's results beat lowered analyst expectations as the airline paid an average fuel cost per gallon of 91.2 cents, up 39.3% from last year. As a result, operating expenses jumped 16% to $539 million and unit costs rose 18.5%.
Qantas's proposed 13% acquisition of Malaysia Airlines would boost the airline's cash flow and help reduce its huge debt. According to a senior official in the prime minister's department in Kuala Lumpur, if the offer is lucrative to Naluri Holdings, which holds 29.09% in MAS, there is no reason the government should not approve the sale. The official, who spoke to The DAILY on condition of anonymity, said the acquisition by Qantas would not only help boost the airline's coffers but also reduce its debt of M$9.2 billion (US$2.4 billion).
NASA Langley researchers have developed a "revolutionary new technology" that will predict aircraft wake turbulence on final approach, "so airliners can be spaced more safely and efficiently." The technology is called AVOSS or Aircraft Vortex Spacing System. AVOSS determines how winds and other atmospheric conditions affect the wake vortex patterns of different types of aircraft. It uses laser radar or lidar technology to confirm the accuracy of the forecasts.
