The World Trade Organization (WTO) reiterated last week its position that both the Brazilian and Canadian governments stop subsidizing the export of jet aircraft by Embraer and Bombardier, respectively. Friday in Sao Paulo, Henrique Rezinski, Embraer's VP, told the media WTO should not intervene in what is basically a market dispute between two private companies.
The European Commission cleared the creation of a travel agency on the web by Amadeus and Terra, the Internet provider subsidiary of Spanish telecommunications company Telefonica, last week in Brussels. The joint venture triggered concerns from rival companies that denounced the combination of the dominant positions of Telefonica in Spain and Amadeus on the European computer reservations system market. They also expressed concerns about Amadeus' vertical integration policy.
American yesterday resumed service from Dallas Love Field after a 25-year absence. The carrier is using Fokker 100s configured for 56 seats for its nonstops to Los Angeles and Chicago O'Hare. To allow the new flights, American terminated its much-touted service from Love Field to Austin.
Fairchild Aerospace yesterday said Skyway Airlines, a Midwest Express connection carrier, has placed a firm order for five additional 328JETs and converted five options for 428JETs to firm orders; it also placed options on three 328JETs at a value of more than $165 million.
SITA said the 30 airline and air transport organizations comprising its board have decided to "further strengthen" involvement with Aerospan.com, now under development for launch in mid-2000. More than 700 air transport industry members, through their ownership of SITA, currently own 50% of Aerospan.com.
Kenya Airways is taking delivery of two Saab 340Bs from Saab Aircraft Leasing for a new wholly owned subsidiary, Kenya Flamingo Airways serving Malindo, Lamu, Kismu and Eldoret from Nairobi. No date for the start of operations was announced, but the two aircraft will be delivered in May and June. Kenya Flamingo will be a low-fare, no-frills carrier, said Chief Executive Stephen Clarke. Kenya will increase frequencies once the airline is operational. The aircraft will be outfitted with 35 leather-upholstered seats.
TWA and Chautauqua Airlines reached an agreement yesterday to bring expanded Trans World Express service to Waterloo, Iowa, and Fort Wayne, Ind., beginning June 1. The deal includes larger aircraft and more daily flights. From its St. Louis hub, the airline plans to offer four daily roundtrips to Waterloo and a total of five daily frequencies to Fort Wayne. The new TWExpress service will be operated with larger Saab 340 turboprop aircraft and replaces existing TWE service operated by TWA partner airline Trans States Airlines.
The U.S. stopped the intentional degradation of GPS signals as of midnight last night, President Clinton announced yesterday, enabling civil users to pinpoint locations up to 10 times more accurately. The intentional degradation, called Selective Availability (SA), had created headaches for agencies such as FAA, which went to great expense to develop the means to deliver signals with more accuracy and integrity for purposes such as aircraft navigation, approach and landing. Such efforts could now become vastly simpler and cheaper. Although the U.S.
Canadian Transport Minister David Collenette Friday gave Canada 3000 authority to serve France and Royal Aviation authority to serve the U.K. and France. Collenette noted that the designations "provide Canadian travelers and shippers more options when choosing a carrier for service to these significant markets." The Canadian government on Dec. 21 announced a new framework to create a more competitive environment opening markets exceeding 300,000 scheduled passengers annually to any carrier interested in serving them if bilateral rights are in place.
FAA Friday proposed DC-10 thrust reverser modifications that, if mandated, would mean more than $150 million in work to keep some 300 U.S-registered Douglas tri-jets flying. The work involves installation of "provisional" wiring and/or an additional thrust reverser locking system as well as light systems changes to all U.S.-registered DC-10s, including military versions. According to the FAA notice of proposed rulemaking (Docket No.
U.S. Trade and Development Agency awarded a $110,000 grant to Kazakhstan for a feasibility study on upgrading the nation's air traffic control system. Kazakhstan extends through three time zones and has a number of major airports.
American is expanding its stake in the so-called "T-2" travel web site, in which United, Delta, Northwest and Continental also are partners, by becoming a part owner of the site, which is scheduled to launch this summer. American, which did not disclose details of its agreement, and a number of other carriers previously signed letters of intent to participate on a non-equity basis.
KLM finally lost its patience with partner Alitalia Friday and ended its comprehensive partnership with the airline, effective immediately. The breakup, a tremendous blow to Alitalia and the Wings alliance group, follows "continuing uncertainty" about the future of Alitalia's troubled Malpensa hub and the carrier's proposed privatization.
Delta and AeroMexico want to code share on AeroMexico flights between Los Angeles and Durango, Colo., beginning about June 16, and Atlanta and Merida, scheduled to start about Sept. 1. (Docket OST-00-7292)
Japan Airlines will make use of new slot allocations at Tokyo Haneda Airport to boost capacity by adding an extra daily flight on several domestic routes, beginning July 1. The slot increase comes after the completion of a new runway at Haneda. Frequencies will increase from two daily flights to three from Tokyo to Akita, Komatsu, Hiroshima, Matsuyama, Nagasaki and Miyasaki. JAL will increase daily frequency to Osaka's two airports, Kansai and Itami, from five to six. Frequency to Kagoshima will increase from three daily flights to four.
Kitty Hawk, whose chairman was ousted earlier this month, said Friday it will suspend its international operations today but "plans to continue normal operations" at its cargo division. The international division, headquarter in Ypsilanti, Mich., operates 19 aircraft -- seven Boeing 747s, six Lockheed L-1011s and six DC-8s. Kitty Hawk Aircargo, with a hub in Fort Wayne, Ind., provides overnight service to 50 U.S. cities with 727s.
GE Capital Aviation Service ordered 26 Airbus aircraft, including its first for the A330-200 and a repeat order for A320/A321s. The order covers 16 A330s and A320 series aircraft and brings GECAS' Airbus portfolio to more than 200. GE was chosen to power the widebodies, while CFM International will power the single-aisle aircraft. Deliveries of the A330s will begin in early 2002 through 2005.
Midwest Express Holdings re-elected board members VP-Marketing Brenda Skelton; Samuel Skinner, co-chairman of law firm Hopkins&Sutter, and Richard Sonnentag, managing partner of investment firm Cobham Group.
Senate antitrust, business rights and competition subcommittee will hold a hearing tomorrow on competition in the airline industry. Among witnesses are American Chairman Donald Carty, Midway Airlines Chief Executive Robert Ferguson and Sun Country CEO Bill LaMacchia. There also will be a panel from academia.
US Airways does not publicly appear concerned about competing with JetBlue along the U.S. East Coast, with Chief Executive Rakesh Gangwal telling analysts recently, "JetBlue is a very small operation at this stage." The startup offers a "different product" and there is "not a whole lot of overlap," he said. Analysts, however, tell a different story. JetBlue had a 100% completion factor for its first 1,000 flights, and Merrill Lynch analyst Candace Browning said, "JetBlue is starting to make inroads in US Airways' markets."
