Latin American routes are the most profitable, fastest-growing and the most important growth market in the world for Delta, according to Fred Reid, executive VP and chief marketing officer. Speaking with journalists yesterday in Atlanta, Delta's senior management was very clear that its burgeoning Latin American network is making money for the airline and that its aggressive expansion will continue.
After placing worst in DOT's ranking of U.S. major mishandled baggage reports in 1999, United told employees last week it has initiatives in place to improve its poor performance. United claims its "BullsEye" scanners now in place at its five hubs have reduced online transfer mishandling by 23%. The new bag-tracking technology has been installed at 35 North American stations and will be deployed in the remaining 62 U.S. domestic stations by June. International use is under evaluation. "Although the February U.S.
Austrian Airlines is among the worst hit by 1999's fuel cost rise, the Kosovo war and delays in Europe. The airline's operating profit fell from 77.9 million euros to 21.1 million euros. Available seat miles, including Tyrolean Airways, increased 12.8%, and passengers 3.7%. But the load factor was 1.9 percentage points lower at 65.9%. Revenues rose 4.4% to 1.5 billion euros.
The FAA is moving toward requiring video cameras in airline cockpits despite the opposition of airlines and their pilots, while the NTSB is pushing for a new cockpit video standard. Thomas McSweeny, FAA associate administrator for regulation and certification, told The DAILY yesterday that the FAA would plan to make cockpit cameras standard shortly after the European standards organization completes testing in six months. "As long as the standard is an appropriate standard," he said, "we have no reason not to" issue it.
At the time of Viasa's bankruptcy proceedings two years ago, a $20 million bank trust was set up by the Venezuelan government with contributions from government agencies and shareholders of the carrier in order to cover back salaries and benefits owed to some former 1,800 workers. All these, except about 500, were duly compensated. In the meantime, Viasa's assets, including its skyscraper headquarters in downtown Caracas, were put on the block, but the country's overall economic hardships have precluded their sale.
SAS, following an earlier announcement, signed a contract to buy six Airbus A330-300s, four A340-300s and 12 A321s, Airbus said yesterday. With the A330/A340 introduction, SAS will increase the number of seats available on intercontinental flights by up to 50% and cargo capacity by 40%, Airbus said.
Cash-rich Singapore Airlines (SIA) has spent NZ$140 million (US$69.6 million) to buy an 8.4% stake in Air New Zealand, ending a 12-month battle for control of that airline and Ansett Australia. SIA tried to buy 50% of Ansett from Rupert Murdoch's News Corp. for A$500 million (US$300 million) in March 1999, but that bid was thwarted by co-owner ANZ, which owned the rights to the shares. That move set off a 12-month battle for control of Ansett, which came to a head in February, when News agreed to sell its share to ANZ for A$680 million.
Travel Industry Association expressed support for Senate introduction of legislation to make the Visa Waiver Pilot Program permanent. Sens. Spencer Abraham (R-MI), Edward Kennedy (D-Ma.) and Daniel Akaka (D-HI) introduced S.2367, legislation that would reauthorize the program and give it permanent status.
German charter airline LTU is facing a hefty labor dispute with its union. The airline this week is starting negotiations with its employees that are expected to lead to major cost reductions for the struggling airline. LTU reportedly lost more than 200 million deutschmarks (US$100 million) last year and is operating at about 20% to 25% higher costs than competing carriers.
TRAFFIC DATA FOR MARCH 2000 RPMs Change ASMs Change In From In From Load Airline Millions 3/99 Millions 3/99 Factor Frontier 224.1 36.4% 344.7 32.8% 65.0% Midway 131.7 42.7% 177.4 30.3% 74.2% SkyWest 107.0 12.0% 189.8 11.2% 56.4%
Carolyn Ezzell has been named managing director of Delta Shuttle. Ezzell is a 21-year Delta employee, most recently as director of airport customer service.
Northwest will add Airbus A319 and A320 aircraft to its Memphis base beginning in September, and add 160 pilot positions there. Northwest will take delivery of 10 of the new aircraft this year and next, 24 in 2002, 25 in 2003 and one in 2004.
Speculation about a possible merger between Boeing and BAA Systems is spreading within Europe after a U.K. newspaper reported that the two companies are in negotiations. Boeing declined comment, and BAe Systems said the merger talk was pure speculation. The reports come at a time when Alenia Aerospazio, the Italian aerospace concern, is due to announce which of the big emerging blocs it intends to join. Alenia is negotiating with the partners of the planned European Aeronautic Defence and Space Company (EADS) and BAE Systems about a far-reaching industrial alliance.
AviationX, an electronic business-to-business marketplace for the parts, data and information, has signed a strategic alliance with Reed Business Information to offer customers market and industry data to assist their daily purchase decisions. RBI is part of the Reed Elsevier Plc group, which publishes airline-related magazines. AviationX and RBI will develop a co-branded information service to provide aviationX customers with a range of market and industry data, including current and archived industry news.
Vasp, Brazil's No. 2 airline, which averted suspending flights last week when it made a last-minute payment to Sao Paulo Airport, still faces other financial, legal and labor problems. The airline now is on a pay-as-you-use basis at Congonhas Airport and the threat of suspension continues to hinge on the carrier's capacity to recover financially. By court injunction, Vasp was unable to take back three Boeing 737-200s impounded for almost $5 million in back payments to Cayman Islands-based leasing firm Victoria Regia.
The Wings Club will give its Distinguished Achievement Award to Jean Pierson, former president and chief executive of Airbus Industrie. The award will be made Oct. 17 at the Waldorf-Astoria Hotel in New York.
FAA said controllers at Minneapolis air route traffic control center have started testing an advanced computer tool called Traffic Management Advisor (TMA), which helps en route controllers and traffic managers make more efficient decisions in handling arriving aircraft. TMA looks at aircraft as they come in from all directions while they are still several hundred miles from selected airports. The tool helps controllers develop plans to handle the arriving traffic according to spacing requirements for each airport.
British Airways and GetThere.com signed an agreement yesterday to launch a travel portal for the U.K.'s small- and medium-sized businesses. The new site will be hosted by GetThere.com and provides travel booking and benefits "previously available only to large corporations." BA will use the GetThere Global Manager system, which will allow a company's employees to book air, car and hotel reservations on their corporate intranet with negotiated discount prices, policy management and reporting/analysis.
Video cameras in the cockpit and in other parts of the airplane are part of the future, according to Bob Baker, vice chairman of American. The technology is available, but "we have a little work to do with the unions in designing procedures so they can be comfortable with it," Baker says.Videos can add more to the "why" of a crash, "so I think it is going to happen."
Cargo transported by Peru's air carriers will grow 15% this year, according to Alvaro Barrenechea, president of Peru's International Air Cargo Association. In a country where non-traditional exports like fruits, vegetables, seafood and fresh flowers contribute substantially to the economy, this means more airplanes, more frequencies, more state-of-the-art refrigerated and other storage and additional transfer facilities for perishables. Recently, non-traditional goods like textiles, chemicals and agricultural byproducts began to be exported.
EasyJet followed through on its punctuality promise last week by refunding nearly #600,000. For every one of the airline's flights, the carrier has a policy that it will always refund the full cost of a passenger's fare if a flight is delayed for more than four hours. On April 4, EasyJet's London Luton Airport base was struck by a spring snowfall that closed its runway for 12 hours. The airline refunded all customers who were forced to rebook from another airport, or those who chose to fly but arrived more than four hours late.
Northwest promoted Dirk McMahon to senior VP-ground operations, effective immediately. McMahon will continue to be responsible for customer service and station operations at all 141 Northwest airport locations in North America. McMahon will continue to report to Richard Anderson, executive VP and chief operating officer.
American, which is continuing to bolster its West Coast presence, yesterday said it will reduce flights at Reno and Las Vegas in favor of adding seven new routes at Los Angeles and San Jose, beginning in June and July. American said it would help employees affected by the reductions find other jobs either with American or outside the organization. Its reservations office at Las Vegas will remain in full operation to handle calls from the West Coast expansion. At Los Angeles, American will begin daily nonstop service to St.
Continental and DLJdirect, the online brokerage service of Donaldson, Lufkin and Jenrette, signed a partnership that will offer Continental's OnePass frequent flyer members the opportunity to earn miles, while investing online. OnePass members will earn 10,000 miles when they open and activate a DLJdirect account with a minimum $10,000 account transfer or deposit.
