During a visit to the U.S. last week, Andy Deutsch, founder and president of Argentina's major domestic carrier LAPA, denied suggestions he might be interested in taking over financially troubled Aerolineas Argentinas, which he called "not a viable company." He added LAPA might be interested in Aerolineas' routes and brand name in case the last-minute rescue plan by majority Spanish shareholders should fail. LAPA is on the rebound after a crash last year killed 67.
Argentinean Airline LAPA Purchased six Boeing 737-700s, the manufacturer confirmed. This order was accounted for in totals published recently by Boeing, but the customer was listed only as "unidentified." LAPA has operated the 737-700 since July 1998.
Vanguard's pilots, represented by the Vanguard Airlines Pilots Association, ratified their first contract yesterday. The four-year deal was ratified by "a wide margin" after less than nine months of negotiations.
Canadian Airlines' creditors overwhelmingly approved the company's debt restructuring plan last week. One hundred percent of secured creditors and 65% of unsecured creditors voted in favor. CEO Paul Brotto said the vote was "another important step in the process of restructuring Canadian Airlines." The Alberta Court of Queen's Bench on June 5 will hold a hearing in Calgary to approve the plan formally.
Northwest's flight attendants union, represented by the International Brotherhood of Teamsters, ratified their new contract, ending a bitter dispute with management that lasted more than three years. According to unofficial results, the contract was ratified by a 67%-33% margin. The deal includes higher pension rates, increased from $35 to $65 per month, per year of service. The agreement also boosts base pay with "date of signing" increases of 8%-28%, and 29%-120% over the next four years.
Malaysia Airlines' proposed plan to join the Northwest-KLM Wings alliance has been delayed indefinitely due to a safety audit being performed by FAA. The outcome of the audit will provide the platform for U.S. authorities to decide whether MAS can join the Wings group. The audit also would determine whether MAS would receive restoration of its FAA certification, withdrawn three years ago.
Embraer capped a three-week, six-city China tour this week with a letter of intent from China Aviation Suppliers Import and Export Corp. and Sichuan Airlines for five ERJ145s, the first in the Chinese market. Embraer also staged the grand opening of its Beijing commercial representative office and a private demonstration flight for industry and governments.
United and US Airways believe their proposal to merge their complementary network systems, coupled with a proactive plan for the creation of DC Air to alleviate concerns over concentration in the Washington-area market, will pass market competition analysis by the Justice Department. Representatives of the airlines met with Justice antitrust division officials last week and the carriers are preparing to file their plan to merge the companies.
Alaska Airlines has decided to mete out harsher punishment than FAA to two pilots over an oxygen mask incident. The carrier said it has notified the captain and first officer of the Boeing 737-700 that it intends to terminate their employment for a March 25 flight between Portland and San Jose in which the oxygen masks automatically deployed at about 14,000 feet. The carrier said the flight crew descended to 10,000 feet to assess the situation and ensure cabin pressurization, and then decided to proceed to a cruise altitude of 41,000 feet and continue to San Jose.
Alitalia has been trying to patch up its partnership with KLM, but now "the breakup must be considered definitive," Piero Gnudi, chairman of Alitalia parent company Istituto di Ricostruzione Industriale (IRI) told members of the Italian Parliament Tuesday in Rome. KLM and Alitalia decided to break up their alliance on April 28. The Dutch company was put off by delays in Alitalia's privatization and difficulties with the launch of their new hub at Milan Malpensa Airport. Gnudi deplored that Alitalia and KLM rushed into partnership in the first place.
Aer Lingus and LanChile today officially join oneworld, bringing the alliance to eight members. After training and communications links to the new partners, the eight airlines will fly 215 million passengers to 557 destinations with 266,000 employees and 1,817 aircraft.
South African Airways is about to expand its network across Africa in an effort to become the first pan-African carrier. The airline has it eye on Accra, Ghana, as a potential hub in the West p and Nairobi, Kenya, and Entebbe, Uganda, in the East. This would create a "triangle" network that connects traffic to its Johannesburg hub, according to Mark Ellinger, executive VP of the Americas.
Lufthansa plans to place two more Airbus A340s into its growing Munich hub. Ralf Teckentrup, head of network management and marketing for the airline, said a decision is due in the summer. Teckentrup declined comment on which routes Lufthansa is considering but said that the airline will only fly to points that are already being served from Frankfurt. Teckentrup confirmed that Lufthansa also is considering placing a significant number of new short-haul jets at the Munich hub.
It was remarkable to see how a simple commodity such as jet fuel could separate the "men from the boys" in the cyclical airline industry during the first quarter. U.S. carriers had little choice but to swallow the bitter pill that brought a fuel price spike of 61%. Those who effectively hedged their fuel requirements, however, forged ahead thanks to surprising revenue growth late in the quarter that appears to be continuing through much of the second quarter.
Washington National handled 291,765 operations in 1999, 6.6% less than the 312,216 in 1974, according to the Metropolitan Washington Airport Authority.DCA's passengers have grown just 1% annually in each of the last 25 years, culminating in 15. 2 million last year.
British Midland CEO Austin Reid is convinced that "deregulation is inevitable" in the transatlantic market. He told the recent Global Airline Conference in London that U.K. business travelers pay up to 172% more for trips to North America than their continental European counterparts. Reid said British Midland experienced the highest growth rates on routes with the most intense competition from low-fare airlines. British Midland's traffic rose 32% between London and Amsterdam and 18% between London and Nice.
Greater Washington Aviation Open raised a record $70,000 for the Corporate Angel Network (CAN) at this year's event. Since it began, GWAO raised $441,000 for charities. Thomas Robertazzi, CAN's executive director, said this year's contribution would finance one-third of the organization's annual budget.
All Nippon Airways, for the first time in its history, proposed company-wide wage cuts yesterday after its net loss tripled last year due to cutthroat competition and weak yields. ANA anticipates cost benefits of 4.3 billion yen (US$40 million) per year, totaling roughly 10 billion yen in cost benefits over the three-year period. In a proposal submitted to its labor union and crew association, ANA said the wage cuts will help secure funds needed for future development, outlined in its medium-term plan.
Following Singapore Airlines' expression of interest in buying the Airbus A3XX, a high-profile Boeing team was in Singapore late last week to make its pitch on its proposed new product offering. Led by Senior VP-Sales and Marketing Larry Dickensen, the team made a string of presentations on the 747X, a stretched version of the existing 747-400, the 747-400X, the 777-200X and the 777-300X. The other members of the team included Joseph, Sutter, the engineer who designed the 747, and Deputy Director-Product Communications Doug Webb.
Only a week after announcing the creation of DC Air, Chairman Robert Johnson hired US Airways executive Bruce Ashby as DC Air's acting president. Ashby had been with US Airways for roughly four years and is currently senior VP of corporate development. He previously held positions with Delta and United. Johnson said Ashby will be tasked with beginning "immediate discussions" with aircraft manufacturers to develop an all-jet fleet for DC Air, as well as "development of other strategic plans" for the airline's structure.
Air New Zealand extended its code-share relationship with Air Canada and Canadian Airlines on several routes this week. Canadian will code share between Auckland and Honolulu on three ANZ flights, and ANZ will code share on three Canadian flights between Honolulu and Vancouver and between Honolulu and Toronto. Beginning June 10, Air Canada will carry the ANZ code on its daily flights between Los Angeles and Vancouver.
House Transportation Committee ranking Democrat James Oberstar (Minn.) yesterday warned DOT Secretary Rodney Slater that the United-US Airways merger could touch off a wave of consolidation among airlines that could lead to three carriers controlling 85% of U.S. traffic. Oberstar, widely considered the leading aviation authority in Congress, urged Slater to determine whether such a result would be in the public interest.
