TRAFFIC DATA FOR MARCH 2000 RPMs Change ASMs Change In From In From Load Airline Millions 3/99 Millions 3/99 Factor Atlantic Southeast 168.4 56.9% 246.7 30.3% 68.3% Great Lakes 21.4 1.3% 45.1 (3.7%) 48.4% Change Change
Australian carrier Impulse Airlines' decision to operate a budget service on routes among Melbourne, Sydney and Brisbane most likely will stimulate the country's airline traffic the way low-fare carriers have done in the U.S., airline industry analysts and consultants say. But the carrier will face stiff competition from the Ansett-Qantas duopoly, which is unlikely to sit by and let an upstart take its lucrative traffic, especially with Virgin making plans to move in.
A House-passed bill expected to be considered by the Senate before adjournment this year would extend to cockpit video films the same prohibition on public release that now applies to cockpit voice recordings. The report on the bill, prepared by the House Transportation aviation subcommittee, says the National Transportation Safety Board believes that video cameras for all modes of transportation "may become a reality in the future," an idea the safety board concedes has "met with some resistance" due to concern over the lack of protection from public disclosure.
National Air Transportation Association last week added its opposition to a recommendation by the National Transportation Safety Board that FAA require equipping most of the commercial fleet with cameras to record cockpit activity. The Air Line Pilots Association earlier expressed its opposition. "Our members strongly question the need for cockpit cameras in aircraft already equipped with cockpit voice recorders and/or flight data recorders," said NATA President James Coyne.
DOT on Friday issued orders to begin the phase-out of slot restrictions at Chicago O'Hare and New York Kennedy and LaGuardia for new-entrant or small-community service, and for granting 12 within- and 12 beyond-perimeter slots at Washington National.
US Airways' chief negotiator for the pilots' union resigned last week, and the entire negotiating committee may be replaced over "an apparent disagreement" over the number of regional jets that should be allowed to fly in its system, according to Merrill Lynch analysts. The pilot union on April 10 voted to ratify a letter of agreement allowing the company to increase by 35 the number of RJs in its fleet.
A Canadian court on Friday approved letters of intent between Canadian Airlines and some of its creditors. The airline has reached agreement with creditors representing more than 90% of its ongoing fleet.
International service rights could be allocated through a weighted auction, economist Joseph Stiglitz told DOT. In testimony included in UPS's rebuttal for 2001 U.S.-China rights, Stiglitz said auctions would require new authority and present "design challenges," such as assigning "'preference' points" for market and social factors. Absent such a process, a second cargo carrier would add needed cargo capacity and lower shipping costs in the market, he said.
Federal Air Transport Service (FATS) of Russia has approved Aeroflot-Russian International Airlines' plan to join the Air France/Delta alliance. At the end of March, Valery Okulov, Aeroflot general director, and Jean-Cyril Spinetta, Air France president, signed an agreement on creating a coordination committee with the goal of forming the partnership. Korean Air and AeroMexico are considered to be other members of the proposed global alliance. According to Okulov, formation of the alliance could be completed in three years.
Honeywell and Seattle Lab announced plans to make e-mail available to commercial airline passengers. The joint project, called Inflightmail, "means that travelers will now be able to access their e-mail on airplanes by using their laptops or seatback consoles to send or receive messages," said L.A. Heberlein, president of Seattle Lab.
Nav Canada increased second quarter and six-month revenues and at the same time said it is looking at another year of more than $100 million in capital investment as it gears up for a 35% growth in instrument flight movements by 2008. Second quarter revenues rose to $208 million from $201 million, while expenses remained level at $714 million. President John Crichton said the company is "now well positioned for a strategy shift from cost reduction to cost control." Six-month revenues rose to $437 million from $443 million.
TWA may accelerate the retirements of its 10 remaining Boeing 727-200s at the end of the third quarter and beginning of the fourth quarter. No decision has been made, however, and the carrier still plans on having all 727s removed by yearend, Senior VP of Planning Jack Stelzer told employees. The airline still has 29 aging DC-9s as well, according to AvData, Inc.
United officially will change its web site address from www.ual.com to www.united.com this week. National ads will publicize the move. "Customer research indicates that united.com is a more intuitive name than ual.com," said John Kiker, VP of advertising and communications. Customers who type in ual.com, unitedairlines.com or united.com will be linked to the carrier's site.
British Deputy Secretary Prime Minister John Prescott, during a visit to the U.S., plans to meet with DOT Secretary Rodney Slater April 25 in Washington. The two leaders agreed to keep up contacts as the U.S. and U.K. work toward aviation liberalization.
David Neeleman, chief executive of JetBlue Airways, will be the keynote speaker at the Eighth Annual International Airline CEO Conference May 7-9 in Orlando, Fla. DOT Secretary Rodney Slater will be the second keynote speaker.
Korean Air will be one of "four key partners" in the Delta/Air France/AeroMexico alliance, Delta Chief Executive Leo Mullin said for the first time last week.The group plans to launch the alliance and unveil a name by the end of June, Mullin told The DAILY. Korean Air has made "tremendous progress" in improving and changing its safety and maintenance procedures this year, he said, noting that he is "convinced its management is committed to a safe operation."
DOT Inspector General has concluded that the FAA's contract tower program provides "cost-effective services that are comparable to the quality and safety of FAA-operated towers." The IG faulted FAA arguments for not expanding the program, saying that the agency "ignores other long-term benefits that would accrue." There are c urrently 189 towers in the program, which the IG said provides services at towers "that FAA otherwise would have not have staffed because they were too expensive to operate." The IG said users remain supportive of the program and believe contrac
