On his first day in office, Ozires Silva, 69, Varig's new president and CEO, said one of his first tasks is to approach Brazil's Bank of Economic and Social Reconstruction (BNDES) in order to negotiate longer repayment terms for the estimated l billion Reis (about US$175 million) owed by the carrier. This arrangement would cover minor short-term debts that cannot be financed abroad. Silva also spoke of the need to liberalize domestic airfares and to exercise better control of access to Brazil by foreign carriers.
Thai Airways International has narrowed its long-haul new aircraft choice to the Boeing 777-200X and the Airbus A340-500. Thai President Thamnoon Wanglee told The DAILY in Bangkok that Airbus already has made its presentation, while Boeing has yet to do so. Thamnoon said the aircraft would be used on nonstops to New York, Los Angeles and Chicago. The decision to opt for ultra long-range aircraft is part of the airline's objective to offer more point-to-point flights and develop the efficiency of its fleet.
The biggest future challenge facing regional carriers tied to major airline won't be crew shortages or air traffic control delays but hub bypass issues, predicts Express I CEO Philip Trenary. "All the RJs on order cannot go to hubs," he noted, and defining the respective roles of regionals and major partners "will become a real issue for RJs taking feed away from the mainline."
Chalk's Ocean Airways' new website, www.chalksoceanairways.com, has had 700 hits each day since it was launched over a week ago, even though the company hasn't publicized it, said consultant Stuart Klaskin. "We just don't know where these guys are coming from," he told The DAILY, noting that the site tallied 3,000 hits.
United will resume "Round-the-World" service April 1, 2001, becoming the only airline in the world to offer single-carrier service that spans the globe. The flights will link Washington Dulles, Los Angeles, Hong Kong, Delhi and London and will cover 19,705 miles. United first launched Round-the-World service in December 1995, but in fall 1999, the company temporarily suspended Delhi service due the Asian economic recession.
The House on Friday approved by a vast majority a fiscal 2001 transportation appropriations bill that includes $12 billion for FAA after disposing of several challenges. The vote was 395-13. An amendment to strike funding for an FAA Doppler radar at Gateway National Park, N.Y., offered by Rep. Anthony Weiner (D-N.Y.), whose New York City district borders on Kennedy Airport, was withdrawn in the face of a withering attack. Rep.
U.S. major airlines, particularly United and American, were hurt by a large number weather cancellations at their respective hubs late last week, leading to recovery efforts over the weekend. Strong storms rolled over Chicago O'Hare last Thursday, leading United to cancel 500 flights systemwide and American to cancel 314 flights. At its Dallas/Fort Worth hub, American also was hit with severe thunderstorms and a subsequent staffing shortage of air traffic controllers in the FAA's control tower, the airline said.
Mesaba Airlines reported fourth quarter earnings totaling $6.8 million, up 6% over last year, and net earnings for the fiscal year ended March 31 of $31.1 million, a 46% jump from the previous year's results. CEO Paul Foley said that fiscal 2000 saw the company meet or exceed all its financial objectives. Mesaba plans to pull back flying about 1-2% in May and June while two Saab aircraft undergo repairs, which the company expects will affect the first quarter 2001.
U.S Major Carriers Productivity, In RPMs And ASMs Per Employee Fourth Quarter 1999 Revenue Available Passenger Seat Miles Miles Total (000) (000) Employees Alaska 2,833,965 4,316,290 9,310 America West 4,540,770 6,582,814 12,430
United's board declared a quarterly dividend of $0.3125 per share of UAL common stock, to be paid June 15 to shareholders of record May 30. This dividend, the first cash payment declared on UAL common stock since 1987, is part of a dividend program the board announced in November last year. The program was contingent on a stockholder vote, which was finalized yesterday at the company's annual stockholders meeting. "This dividend program marks a significant step for United," said CEO James Goodwin.
JetBlue Airways is expected to announce today that it will launch service to Rochester, N.Y., this summer from its New York Kennedy base. The startup airline will hold a news conference this morning with Sen. Charles Schumer (D-N.Y.) and Rep. Louise Slaughter (D-N.Y.) in attendance in addition to officials from Kodak and Xerox, both headquartered in Rochester.
Air New Zealand expanded its code-share partnership with United last week. United began code sharing May 8 on Air New Zealand's domestic operations between Auckland and Wellington, Christchurch, Dunedin and Queenstown. Both Star Alliance partners, the airlines' code share is scheduled to be extended to include other New Zealand destinations later in the year. ANZ code shares with United to 18 cities in the U.S., including Los Angeles.
Atlantic Southeast Airlines this winter will introduce expanded service at Montgomery. On Dec. 1 it will expand the number of Montgomery-Atlanta flights to nine, replacing three daily flights Delta now offers between the cities. On Jan. 1, it will introduce nonstop service from Montgomery to Dallas/Fort Worth with two daily roundtrip flights, Delta's first nonstop service on the route. Combined, the new nonstop flights offered by ASA will increase Delta service from nine to 11 flights daily.
Japan Airlines unveiled further reorganization plans of the JAL Group's sales and marketing structure in Japan. The group will be "amalgamating" the airline's sales branches for Eastern, Western Japan and Kyushu with its head office passenger and marketing department. The JAL Group soon will be supervised by JAL Sales Network Company Ltd., a 100% JAL-owned subsidiary which started operations last month. The latest reorganization aims to improve cost-efficiency and accountability of the JAL Group's travel product sales and marketing.
Clarification: Pilots at Air Canada and Canadian are considering arbitration to merge the two pilot groups. Air Canada has sought federal conciliation for its contract talks with the company. A headline May 18 in The DAILY incorrectly stated pilots were seeking conciliation for the merger talks.
