British Airways" newly appointed Chief Executive Rod Eddington plans to keep the senior management of the airline as it is. Eddington told a staff meeting in London yesterday that BA has a competent management team. At the meeting, Chairman Colin Marshall admitted that BA has made mistakes in communicating its new strategy. He said the airline will focus not only on high-yield business traffic but regards economy travel an important market too.
A study by Los Angeles World Airports (LAWA) says that LAX and other area airports will jeopardize future growth and economic prosperity if they cannot accommodate growth. The study also says LAX should handle international growth, with the remainder of demand going to regional airports. The Los Angeles region, now the principal U.S. gateway for Asia/Pacific Rim commerce, could see those economic benefits slip away to Dallas, Denver or Chicago of the region fails to improve its air transportation capabilities, the study speculates.
Two of the world's largest cargo carriers, Lufthansa Cargo and Singapore Airlines, will partner with SAS Cargo to form powerful alliance. The carriers yesterday launched a project dubbed "New Global Cargo," in which they want to link their networks (DAILY, April 24). In 1998, Lufthansa was the largest cargo airline in terms of scheduled ton kilometers flown and SIA was third. The combined volume of the two carriers in 1998 was 11 billion ton kilometers flown, according to IATA statistics.
UPS wants an exemption for Los Angeles-Guadalajara service. The carrier would operate cargo flights five times weekly using Boeing 757 aircraft, with the capability of increasing capacity with a 767 should traffic warrant. (OST-00-7282)
American Eagle yesterday launched Baton Rouge-Chicago O'Hare regional jet service. The twice-daily nonstop service is operated with 37-seat Embraer ERJ135 and 50-seat ERJ145 aircraft.
FAA seeks to replace its current e-mail system with a next-generation messaging capability. The agency said it is wants an "enterprise-wide solution to its electronic messaging requirements." It plans to issue a screening information request, including an operational capability demonstration, to determine which products and services are now commercially available. Comments should be submitted to [email protected].
Precision Standard reported earnings of $3.7 million for the March quarter on sales of $40.5 million versus earnings of $2 million on sales of $39.9 million in the comparable previous quarter. The company said it is negotiating a refinancing that would provide "significant additional capital for expansion. Our expansion plans include possible acquisitions and joint ventures."
The Department of Civil Aviation (DCA) has turned down an appeal from Pelangi Air to reinstate the carrier's operating certificate, which was revoked April 21. DCA also grounded one of the carrier's Fokker 50s for failing to keep to the required maintenance schedule. A senior official at DCA, Mohd Dhari Ahmad, told The DAILY that the airline's certificate had to be terminated for safety reasons because the carrier did not have an engineering department.
Ozark Air Lines, which flies two Fairchild Dornier 328 regional jets to Chicago Midway and Dallas/Fort Worth from its Columbia, Mo., base, wants 10 Chicago O'Hare slots for nonstops to Columbia and Joplin, Mo. Ozark has options for three more of the 32-seat RJs. (Docket OST-7279)
Amtran Inc., parent company of American Trans Air, predicts better financial results for the next quarter following the high fuel prices that caused a huge rise in expenses. Amtran plans to order 10 Boeing 757-300s and 30 737 aircraft, a Boeing official confirmed.
Air Namibia wants a foreign air carrier permit and exemption to operate U.S.-Namibia service via intermediate points, consistent with the U.S.-Namibia open-skies pact. The carrier wants to provide the first direct service in the market, with initial own-aircraft service, using a Boeing 747-400, from Windhoek to New York Kennedy. It proposed additional gateways at Miami, Atlanta, Houston and Washington. It noted that it is "contemplating...code shares or other strategic alliances and is currently in negotiations to that end.
FAA yesterday released repair assessment guidelines (RAGs) for work done along the so-called "pressure boundaries" of a dozen models of older planes, requiring operators to put FAA-approved programs to check such repairs into their maintenance and inspection programs. The RAGs are meant to ensure that both existing and new repairs -- which include fuselage skins, door skins and pressure webs -- maintain their load-carrying capabilities as the aircraft approach or exceed their original design service goals.
A recent joint statement by IATA and AITAL (Association of Latin American Airlines), criticized the extensive airport privatization process now taking place in Latin America.
AirTran on June 10 will offer a third nonstop Fulfport/Biloxi-Atlanta service to meet the increased demand between the two markets. Additional Atlanta-Gulfport/Biloxi service will start June 11.
Frankfurt's county court ruled against Hannover Airport's plans to introduce a new administrative charge on passenger handling. Hannover Airport -- backed by the Arbeitsgemeinschaft Deutscher Verkehrsflughaefen, the German airport association -- said it would appeal the tribunal's decision. The case is being scrutinized closely because it could set a precedent throughout the European Union for airports that seek alternative revenues to compensate for the liberalization of ground-handling.
FAA plans to fine Northwest $55,000 for alleged transportation of a 50-pound container of compressed hydrogen on two passenger flights last year. The cargo was transported from Guam to California on behalf of Lynden Air Freight, although it was marked "flammable" and for transport by cargo aircraft only, FAA said. Northwest said it has requested a conference to discuss the planned penalty, FAA said.
Boeing Commercial Airplanes President Alan Mulally sees ETOPS engine limits eventually going away because of continuing advances in reliability.Speaking at the Aero Club of Washington yesterday, Mulally said engine and reliability gains have been "the biggest improvements in operating efficiency" the industry has ever seen.
British Airways named Rod Eddington chief executive yesterday following a six-week search for a candidate to replace Bob Ayling. Eddington, 49, was widely rumored to be the favorite candidate of BA Chairman Colin Marshall, who led the search, but the timing comes as a surprise after BA spent last week denying he was in consideration. In addition, Eddington said earlier that he wanted to finalize the sale of News Corp.'s stake in Ansett before taking another job.
The leadership at Northwest's Teamster Local 2000, which represents about 11,000 flight attendants, recommends the rank-and-file ratify the latest contract offer after the last tentative deal failed to pass membership muster last fall. Union President Billie Davenport said ballots will go out on April 28 and will be counted in Minneapolis on May 30. She said there were virtually "no disagreements" among the executive board, which represents the union's 10 bases.
Calgary-based WestJet Airlines will begin service June 8 from Ottawa International Airport. It will operate two daily nonstop flights to Hamilton, where it offers service six days per week to Winnipeg and Moncton. One-way fares from Ottawa to Hamilton start at $79 and at $169 to Winnipeg or Moncton.
Mandarin Airlines wants a foreign carrier permit and authority to operate Taipei-Saipan service. The Taiwanese carrier plans twice-weekly nonstops using Boeing 737-800 aircraft, configured for 158 passengers, wet-leased from China Airlines. CAL will file separately for an exemption for the service. Mandarin, into which Formosa Airlines merged last year, is 90% owned by CAL, which announced plans to reduce its stake in the Taiwanese carrier.
India's federal cabinet of ministers has approved a proposal granting international status to six of India's domestic airports -- Ahmedabad, Amritsar, Guwahati, Hyderabad, Kochi and Panaji -- a ministry source said. The cabinet meeting also approved a proposal to construct a new airport at Shamshabad near Hyderabad. For the latter project, the Andhra Pradesh state administration is expected to invite bids from global majors to design, build, finance, operate and maintain the airport.
