Jet fuel spot prices in New York last week were $0.80 per gallon, down 6.9% from the beginning of the prior week and but up 91.3% from a year ago, according to Deutsche Banc Alex. Brown. Crude oil futures for July continued to climb, trading at roughly $30.20 per barrel, nearing a nine-year high of $34.13 reached in early March.
Lax security at Davao Airport in the Philippines led a passenger to smuggle a hand grenade and a pistol onto a Philippine Airlines Airbus 330 bound for Manila. Investigations conducted by the airport authorities and the Civil Aeronautics Board (CAB) revealed that weapons placed in a hand bag had gone through the necessary security check before the passenger was cleared to go through the departure gate.
FAA will begin charging fees Aug. 1 for operations that overfly U.S. airspace but do not begin or end in the U.S. Under an interim file rule required by a provision of AIR-21, fees will be based on the distance flown through U.S.-controlled airspace. FAA will hold a public meeting, soliciting comments, on June 29 and will accept comments through Oct. 4. Flights that begin and end in Canada will not be assessed a charge.
A judicial lien on the personal assets for $33 million has been levied against Wagner Canhedo, president of Brazil's financially ailing VASP, for unpaid contributions to the airline's Aeros pension fund. Aeros may be unable to pay workers future pensions and other social benefits. A commission was appointed some time ago to investigate pension irregularities, but Aeros went before a Sao Paulo court to impound a ranch in Goais with 200,000 head of cattle Canhedo owns.
Cheap Tickets, Inc. reported yesterday that the number of registered users on its web site now exceeds 5 million, a company record. Cheap Tickets also announced that its registered user base grew by 25% since the beginning of April, largely due to its current branding campaign, which targets select markets with specific travel deals geared to local audiences.
Acting CEO of Trip.com, Brian Thomson, resigned from his position last week "to pursue other opportunities." Thomson was in place during the company's acquisition by Galileo International, a $215 million deal that closed March 10. Trip.com appointed Mark Mastrini, former CEO of 800 Travel Systems Inc., to replace Thomson, effective immediately.
Iberia confirmed yesterday that it is holding talks with Air France aimed at a code-sharing agreement on one Asian route. A spokeswoman for the Spanish airline said the route had yet to be identified. British Airways, which owns 9% of Iberia, said it was kept fully informed of Iberia's moves. The Spanish airline insisted that a possible code-sharing agreement with Air France would "in no way" affect its commitment to oneworld, BA's and American's global alliance.
GE Capital Aviation Services (GECAS) yesterday signed a long-term re-fleeting plan with Frontier Airlines that includes leasing 15 previously ordered Airbus A319 aircraft over five years. The first aircraft will be delivered in 2001, and terms of the deal were not disclosed. Earlier this year, Frontier agreed to lease four used Boeing 737-300 aircraft from GECAS. The plan also includes financing for spare parts and a flight simulator, plus leveraged lease equity financing for Frontier on additional aircraft Frontier has purchased directly from the manufacturer.
Cusco Airport, Peru, has nearly completed adding five new gates to its boarding area and moving its five domestic gates to the second level. Each area will get two boarding ramps, and the upper facility will have three baggage conveyor belts and mobile passenger walks.
New Jet Aircraft Deliveries For November 1999 Last 12 Months Carrier # Type Engine Delivery Aegean Aviation 1 Avro RJ-100 LF507-1F 3 Aeroflot RIA 2 767-300ER CF6-80C2B6F 2 Air Berlin 1 737-800 CFM56-7B27 3
While American is considering to bid for a controlling stake in Northwest, its European alliance partners British Airways and KLM are allegedly in preliminary discussions about a merger. However, BA and KLM declined comment on the rumors that started out with reports in the British press on Sunday. Sources in The Netherlands had already hinted at such talks three weeks ago. KLM said it wanted to find a new partner in Europe within a year.
During their summit June 13 in Washington, Argentine President Fernando De La Rua is expected to ask President Bill Clinton to postpone full implementation of the open-skies agreement signed by the two countries until 2005, according to DAILY affiliate Aviation Latin America&Caribbean. The approach already has been cleared with the Argentine Congress and labor unions directly involved. The open-skies agreement was signed by former Argentine President Carlos Menem last November, four days before leaving office.
American's pilots are nonplussed over the company's potential bid for Northwest, noting that the deal bears no resemblance to the Reno Air takeover that spurred a sickout, lawsuit and long-term acrimony between pilots and management. "The problems we encountered with Reno were unique to that transaction," said Allied Pilots Association spokesman Gregg Overman. APA was not told ahead of time that the company planned to acquire Northwest, a move that reportedly has been rebuffed.
Comair's maintenance and related personnel have ratified a new four-year agreement. Employees, represented by the International Association of Machinists, began contract negotiations in May 1999. The deal includes increased base pay rates and a signing bonus.
If United and US Airways merge and DC Air starts, resulting total daily capacity for the carriers at Washington National would fall 16% and daily flights would drop 8%, says PaineWebber research."DC Air may evolve into a meaningful United competitor over time, but it's sure not starting out that way," said analyst Sam Buttrick. "Hard to chalk this up as a win for consumers -- though it should help DC Air's bottom line."
Sources in Buenos Aires report that Spanish state holding firm SEPI's revival plan for troubled Aerolineas Argentinas calls for $1.2 billion in investments, including last October's $498 million capital injection. The airline is losing $20-30 million per month, and the $1.2 billion investment would need to be made this year to save Aerolineas from bankruptcy. The government's share would come to $60 million.
International Lease Finance Corp. became the fourth company to publicly express an interest in becoming a launch customer for the proposed Airbus A3XX yesterday. At a conference in Sydney, John Leahy, Airbus senior VP-commercial, said there is "an expression of interest" for five A3XXs by ILFC. The lessor did not return calls seeking comment. Airbus's announcement follows Air France's statement last week that it could require about 10 of the large jumbo aircraft for its high-capacity markets (DAILY, June 5).
SATA Air Acores is leasing two ATP turboprops from BAE Systems Regional Aircraft. The Azore Islands-based carrier received the first aircraft in late May, with the second to follow this month. Both aircraft are on long-term leases. Air Acores owns two ATPs and lost a third in an accident late last year.
United and its pilot union entered the first day of mediated contract talks yesterday, facing a United-US Airways merger that United pilots believe could short-change their seniority. But United pilots denied reports that they are opposed to the company's plans to acquire US Airways but want the deal structured in a way that assures United pilots' seniority is not neglected. United reportedly approached US Airways after carefully working up a fair plan that would merge the two carriers' pilot groups, which are both members of the Air Line Pilots Association.
Successful bus line entrepreneur Constantino de Oliveira is ready to diversify his investments to commercial aviation with plans for a "no-frills" airline a la Southwest. The startup, which would have to purchase 20 Boeing 737-500s, would charge fares that are 50% lower than those of traditional carriers. Oliveira has mustered support from the Congressional Committee on Air and Land Transportation and the Department of Civil Aviation.
Ghana Airways wants comprehensive behind and beyond rights for U.S.-Ghana service, as well as implementation of seventh-freedom cargo rights available now under its phased open-skies agreement with the U.S. The carrier requested approval by June 16 for its proposed intermediate service via Banjul, Gambia, as part of its Accra-New York/Baltimore-Washington flights. It plans to begin the first-ever nonstops between Gambia and the U.S. around July 1. Ghana and Gambia each agreed to open skies with the U.S.
Crossair has released an audit that was conducted externally after the Jan. 10 crash of one of the airline's Saab 340s. The audit concludes that Crossair needs to strengthen its internal organization and review some maintenance procedures. None of the weaknesses that were found affects flight safety, Crossair said. The airline said it agrees with the proposals and in some instances already has taken steps to change the situation.
