Delta defended its use of its U.S.-India code-share designation, countering claims by American the designation as been dormant since 1998. Delta "was forced by circumstances beyond its control" to suspend service with Swissair but has used the designation to code share with Austrian and now wants to use it for service with Air France, slated to start July 22. American "conveniently overlooks" those circumstances, which involved overflight of Afghanistan, prohibited under FAA regulations that have since expired.
Canada 3000 completed its previously announced initial public offering, raising gross proceeds of C$30 million (US$20.3 million). Trading of the airline's common shares started last week on The Toronto Stock Exchange under the symbol "CCC." Three million shares were sold at C$10 per share ($6.70). CIBC World Markets was lead underwriter for the IPO. "As a result of this offering, Canada 3000 is even better positioned to increase its appeal to the Canadian public," said Don Kennedy, chief financial officer.
FAA audit teams start work at United and America West today, with a team slated to get busy at Continental tomorrow, the DAILY has learned. The audits, announced June 2, will look at each U.S. major's safety oversight and reliability programs. Each probe is expected to last about two weeks on site followed by a week of wrap-up and report writing. A final summary report will be issued in about 120 days.
Snecma Sabena Engine Services (SSES) has signed a 10-year contract with South African Airways for the airline's 42 JT9D-7R4G2 engines. The contract includes 36 engines on wing and six spare units. SSES did not comment specifically on the volume of the deal but said it was the largest ever signed. SSES is a 50-50 joint venture between Sabena Technics and engine manufacturer Snecma. The company's backlog is 80% third-party work and 20% for Sabena. It has recently signed an agreement with Virgin Express to maintain 42 CFM 56-3 engines.
Spirit Airlines will offer new service at Washington National with four daily flights to three Florida cities within the next few months, the result of slot awards from DOT announced earlier this month. Spirit also will expand its Midwest service with entry into Chicago O'Hare and the launch of eight daily flights to three Florida cities in early October.
American Trans Air launched a new web site yesterday at www.ata.com. The company said the site makes it easier to book flights and check schedules. Customers can book travel and subscribe to special weekly ATA Net Fares from the home page. ATA also has partnered with Right Now Web Technologies to offer an enhanced Frequently Asked Question section, where visitors can access FAQs, search for key words and contact ATA via e-mail. Planned future enhancements include seat assignments, e-mail confirmations and wireless access.
Sun Country requested a waiver of five days from the 90-day dormancy condition on its exemption for Dallas/Fort Worth-Cozumel, Mexico, service, where it will be a new entrant. The dormancy period began May 22, the carrier's original proposed startup date, and runs through Aug. 20. Sun Country wants to delay startup until Aug. 25, noting that it is keeping two aircraft as standby reserves to "assure equipment availability throughout its route system" during the summer season. (Docket OST-00-6911)
Royal Brunei Airlines (RBA) will review its operations at the end of the month with plans to resume flights to Osaka and Beijing. RBA also plans to increase capacity to Hong Kong, Perth and Brisbane. Osaka and Beijing were dropped at the height of the Asian economic crisis in October 1998. According to RBA Executive Director Pengiran Ali Ahmad, the plans would be effective with the winter schedule. Hong Kong and Perth service would be doubled to four flights weekly, using Boeing 757s, while Brisbane would be increased to four times from three, using 767-300s.
China Airlines of Taiwan recently took delivery of two Boeing 747-400 freighters, the first of 13 freighters Boeing will Deliver to the carrier by 2007. The order for cargo aircraft, placed in 1999, was Boeing's largest to date.
Air Canada yesterday said it was worried that the pilots union will encourage members to work to the rule, significantly disrupting operations. ACPA today is expected to issue its members a bulletin that is "tantamount to the start of a work to rule campaign" after it rejected Air Canada's offer for third-party arbitration to settle the contract negotiation dispute.
TWA yesterday said Los Angeles will become its second "focus city," partnering with American Eagle to support LAX with Trans World Connection regional service to seven California cities as part of TWA's 75th anniversary. TWA already has begun adding service and as of Sept. 10 will have increased service 70% year-over-year, the company said. TWA will increase nonstop LAX-New York Kennedy service and will launch nonstop service to Washington National. The St. Louis carrier launched its first focus city -- San Juan, Puerto Rico --last November.
FAA is proposing a $240,000 fine against Mexicana Airlines for allegedly violating hazardous materials shipment rules involving improper acceptance of a shipment of dangerous goods on a passenger aircraft. FAA alleges the carrier knowingly offered for air transport six separate shipments containing hazardous materials. The shipments, all from Brownsville, Texas, or Yorba Linda, Calif., contained protective breathing equipment that contained oxygen generators.
In KLM's winter schedule, capacity "will be maintained at practically the same level as in the current summer schedule," the Dutch airline said yesterday in Amstelveen. "On many European routes, the type of aircraft deployed will change, and services operated at a loss, especially in the weekends, will be terminated," KLM said. The airline also said frequencies would increase on profitable intercontinental routes. For instance, KLM will expand the service level to Mexico, raising it to daily frequency.
Pilot groups gave the green light to all land-and-hold short (LAHSO) clearances in U.S. airspace, a move the Air Transport Association said "will start reducing delays relatively quickly." The flight delays this summer, although most are weather-related, have generated headlines across the nation. FAA said it will "shortly issue an order implementing changes to LAHSO." While the agency said its order will not go into effect until Aug. 14, pilots unions immediately rescinded their recommendations that pilots not participate in LAHSO operations.
Continental Information Systems Corp. last week placed its economic aircraft engine portfolio up for competitive bid in preparation for exiting the aviation business. The company in June sold a portion of its engine portfolio, using the proceeds to pay down associated debt. Continental said its CIS Aircraft Partners subsidiary completed the sale of all but one of the aircraft under its managed portfolio and is awaiting resolution of legal issues to sell the remaining aircraft, at which point the portfolios will be liquidated.
PT Airfast Indonesia, a Jakarta-based charter carrier, applied at DOT for authority to operate service between Timika, Indonesia, and Guam. The carrier wants to operate charters exclusively for New Orleans-based Freeport McMoRan Copper&Gold Inc. and its subsidiary PT Freeport Indonesia, carrying Freeport employees and contractors and their families -- which number 14,000 -- as well as "mail and some cargo," to and from the company's Timika work sites. It would operate 26 to 30 charters a year using Boeing 737 aircraft.
The Canadian Transportation Agency has ruled in favor of the Canadian Standard Travel Agent Registry in its fare discrimination suit against Air Canada, Canadian and IATA. CSTAR charged that IATA and the airlines discriminated against Canadian consumers and the travel agents who served them by arbitrarily constructing rules on international fares. CTA agreed that components of IATA's fare construction rules, including the proposed Pricing Unit Concept (PUC) were anti-consumer and would result in the traveling public being barred from accessing lower priced fares.
Qantas is finalizing talks with Malaysia Airlines to acquire a 13% stake in the carrier from largest majority shareholder Naluri Holdings. Naluri holds 29.09% in MAS, and a foreign party 16.57%. The asking price is M$7.50 (US$1.97) per share at the time of the deal's closing, The DAILY has learned. MAS shares closed at M$3.84 on the Kuala Lumpur Stock Exchange over the weekend. Last month, the government Debt Restructuring Committee told Naluri it has to sell off part of its assets under the company's debt-restructuring scheme.
Star Alliance member airlines are shifting their focus from adding more carriers to deepening the degree of cooperation among them. The alliance has steadily been creating an organization of full-time employees from all parts of the world to manage the new joint efforts. Lufthansa's Friedel Roedig and United's Bruce Harris are developing the new organization. Roedig, who led the alliance for the past three years, is CEO. Harris is deputy CEO and chief administrative officer. The new management was named last month (DAILY, June 28).
U.S. Major Carriers Traffic June 2000 (000) June June % 2000 1999 Change Alaska Revenue Passenger Miles 1,071,000 1,069,000 0.2 Available Seat Miles 1,408,000 1,495,000 -5.8 Load Factor (%) 76.1 71.5
Legacy Airlines is the new name of startup Oneida Airlines. Serving Central New York and the Northeast, it expects to continue "the proud traditions of Mohawk Airlines and Empire Airlines," says Legacy's web site, www.flylegacy.com. The carrier wants to link Northeast communities to points in the U.S., Mexico, Canada and the Caribbean. Legacy is completing negotiations with investors and will file financing information requested by DOT by July 20.
Five labor unions directly involved last week submitted to minister of infrastructure Nicolas Gallo their own salvage plan for financially troubled Aerolineas Argentinas as an alternative to that proposed by SEPI, the Spanish public sector majority shareholders. In broad terms, it calls for redistributing equity among creditors, a new strategic partner and local investors, including the unions. The Argentine state would be left out. No salary cuts or layoffs would be made.
DOT Office of Inspector General is auditing FAA's new approach to inspecting the nation's air carriers, the Air Transportation Oversight System (ATOS)."The objectives of our audit are to assess FAA's progress in implementing ATOS and identify any barriers to successfully implementing the system," says the IG.
