NASA Administrator Dan Goldin this week urged officials attending a Global Navigation Satellite System (GNSS) conference in Edinburgh, Scotland, to back their countries in support of spectrum usage for radionavigation. The spectrum is under threat of encroachment by the rapidly growing mobile satellite industry, he told GNSS 2000, sponsored by the Royal Institute of Navigation and the European Group of Institutes of Navigation. The issue is expected to be addressed next week in Istanbul by the World Radio Conference.
FAA proposed a $195,000 fine against Grand Aire Express, Toledo, Ohio, for allegedly operating an aircraft on 218 Part 135 cargo flights without a required maintenance test after removing and replacing an engine.
Boeing unveiled the first phase of a global advertising campaign aimed at positioning the company as not just an aircraft manufacturer but as the "pre-eminent company in aerospace and emerging technologies in mobility and connectivity." The campaign intends to close the gap between the public's perception of Boeing as an airplane maker and its "true scope as a global aerospace company." The advertising is from Foote, Cone&Belding.
China Southern's rebound continued last year as it showed a 213% jump in operating profits for the year ended Dec. 31, 1999. The airline's revenues grew 12.2% to 13.3 billion renminbi (US$1.6 billion) thanks to growth in its international cargo markets and an "accelerated recovery of Asian economies." Operating profit was RMB1.9 billion ($223 million), the result of an effective cost control policy and a positive response from the carrier's frequent flyer program.
Stung by suggestions the Wide Area Augmentation System (WAAS) may not be needed in the future now that the Pentagon has switched off selective availability on GPS, a business development executive with WAAS contractor Raytheon stressed the ground-based system will continue to be needed as a backstop and enhancement to the satellite constellation. Bob Jackson, business development manager for FAA programs at Raytheon, told The DAILY that WAAS will be needed even when the U.S. Air Force completes launching upgraded GPS satellites in 2012-15.
In order to ensure improved passenger/baggage reconciliation under the proposed application of one-stop security measures, enhanced systems will have to be implemented, according to IATA Director-Security Services Brian Wall. He said in Singapore that stepped-up security is needed to keep abreast with the expected increase in volumes of passenger and baggage and the speed at which they will have to be handled to maintain on-time departures.
Virgin Atlantic still is on track to launch its low-cost Australian airline this summer, and Chairman Richard Branson revealed yesterday the carrier will be named Virgin Blue Airlines. The first of five Boeing 737s will arrive this month from Virgin Express, and Branson will name its launch routes in the near future. The Brisbane-based airline, first announced in November, is projected to serve the majority of Australian cities with a population of more than 50,000 within three years.
Raytheon yesterday was awarded a $270 million contract by FAA to incorporate modifications involving human interface issues in the Standard Terminal Automation Replacement System (STARS). The changes are a result of joint efforts by the company, FAA, National Air Traffic Controllers Association and the Professional Airways Systems Specialists.
Alaska Airlines yesterday confirmed a report that FAA plans to re-interview some of the mechanics who alleged they had been threatened and urged to cut corners while maintaining aircraft. Alaska said it will "cooperate in every possible way." FAA plans to re-interview about half the 64 mechanics questioned previously. "We have gotten indications that some of those who were interviewed felt they were not able to bring out everything they had wanted to bring out," a spokesman said.
Braathens wants to amend its authority to code share with Northwest and KLM, seeking to add London-Norway service. It requested that the exemption be effective through April 30, 2001. The carrier plans to display the Northwest and KLM codes on Gatwick-Oslo/Bergen flights, using Boeing 727 aircraft. (Docket OST-00-7230)
Delta will be the launch customer for new online airline catering partnership called e-gatematrix that aims to reduce Delta's operating costs by $40 million annually. E-gatematrix is a new business-to-business service formed this week by SAirGroup's Gate Gourmet and Dallas-based i2 Technologies. Under the partnership, e-gatematrix will lead catering-related administrative activities for Delta's inflight food service. Delta will still maintain control of customer service, brand management, quality assurance and operational interfaces.
Expedia's loss widened last quarter, but revenues tripled as the company dramatically reduced its reliance on airline ticket commissions and launched its first national branding campaign. Gross travel bookings on its branded sites were $401 million, up 60% from the previous quarter and revenues grew 212% year over year. The company's net loss before amortization of stock compensation and one-time charges was $17.3 million. That compares with a loss of $6.8 million in the March 1999 quarter, and $10.3 million in the December 1999 quarter.
BACK Associates, BACK Information Services and AvSolutions renamed the company under a single brand called BACK Aviation Solutions. James Jackson was named president of the unified company, replacing Cam Kobllish, who will become president of sister company, Skyfish.com. Jackson previously was managing director of AvSolutions. BACK Aviation Solutions is a joint venture partner with Aviation DAILY on four regional aircraft forecasts.
American followed United into a fortune cookie war over U.S.-China frequencies, sending cookie-filled Chinese food take-out boxes to business and political leaders in Washington and Chicago this week. United's fortune touted its April 2001 launch of Chicago-Shanghai nonstops, which it plans to start selling this weekend. Market hopeful American predicts "A flight to China on American Airlines is in your future."
Aircraft Owners and Pilots Association has offered FAA a "radical" new plan - the creation of an Aeronautical Information Service (AIS) to improve the delivery of safety-critical National Airspace System data, including aeronautical charts. Dennis Roberts, VP, said the responsibility for aeronautical and navigation data is "fragmented between six different federal agencies and offices inside FAA.
Frontier plans to open a new call center in Las Cruces, N.M., Aug. 1. The center will employ 100 by yearend and will replace the airline's current outsource company, Oasis, located in Miami.
Lufthansa is expected to report a 36% increase in first quarter operating profits today, according to Salomon Smith Barney analyst Andrew Light. Despite slower capacity growth and flat yields, he said, "This business is recovering strongly." The March load factor was up about 0.9 percentage points and the U.S. and Asia "were particularly strong regions." The airline will also provide detailed full-year 1999 results and shed some light on its capacity plans for remainder of 2000.
Lufthansa Commercial Holding is acquiring a 10% share in the new Internet-based wholesale air cargo marketplace Global Freight Exchange (GFX). GFX, based in London, plans to link airlines offering air cargo capacity and forwarders via the Internet.
Northwest wants DOT to act on its long-standing request to code share with Continental on flights to Bogota, Colombia, from Newark and Houston. The liberalized U.S.-Colombia bilateral allows same-country code sharing. Northwest requested that the authority be effective through Feb. 17, 2001, concurrent with its U.S.-South America authority. (Docket OST-98-4833)
American Eagle, the regional affiliate of American, plans to offer an all-jet operation from its Chicago O'Hare hub by yearend. "We have anticipated having an all-jet operation at O'Hare for some time," said Peter Bowler, American Eagle president. "With the continuing delivery of Embraer regional jet aircraft and ongoing improvements at our O'Hare Concourse G facilities the time is now right to make this move." American Eagle operates the 37-seat ERJ135 and the 50-seat ERJ145.
Professional Airways Systems Specialists, after three years of negotiations, approved a new five-year contract with FAA that the union said "dramatically changes how technicians do their jobs and how they will be trained for the future." The contract provides guaranteed job security for 7,300 employees and improves pay and benefits, said PASS President Michael Fanfalone. The new training system calls for a labor-management committee and will be the "driving force behind the new pay system," the union said.
Hawaiian Airlines reported a first quarter loss of $2.6 million that mushroomed from the 1999 period, when it posted a $169,000 loss. Operating a fleet of 13 aging DC-10s, the airline paid 104% more for fuel, and its maintenance costs for the fleet rose 19.1%. "We are disappointed with the operating loss for the quarter and the dramatic impact fuel price continued to have on our results," said Chief Executive Paul Casey. Hawaiian operates nine DC-10-10s on lease from American and four DC-10-30s, all with an average age over 20 years.
