As part of its campaign to win the right to fly directly into China, UPS launched a new web site to promote its application for the new service, pending before DOT. The web site, located at www.chinaquest.ups.com, also can be accessed directly from the UPS home page. DOT is considering applications from both passenger and cargo airlines for the one available authority to land in China, which will begin in April 2001. The web site features several areas where interested parties can get up-to-date information about UPS's economic arguments and support.
Boeing is finalizing a service bulletin (SB) to address problems found in 747-400 engine fire-suppression systems and expects to issue it by the end of next week. The SB will address cracks in fire-suppression system tubing on GE-powered 747s uncovered by Lufthansa this week, DAILY affiliate Aero Safety&Maintenance reported today. FAA confirmed that it would review Boeing's pending SB and issue mandatory checks and fixes based on it.
Northwest said metallurgical analysis of grease from the jackscrews it removed from three DC-9 stabilizers showed that the metal chips that prompted the removal came from aluminum drill filings of previous sheet metal repairs. Rick Orr, fleet captain director of DC-9 fight procedures and training, told company pilots the jackscrews "were not damaged." FAA required Northwest and other Douglas twinjet operators to remove the jackscrews if metal particles were found as part of an ongoing NTSB investigation.
Thai Airways confirmed this week that it intends to remain in the Star Alliance. The statement follows speculation that the airline is considering leaving the group when Singapore Airlines joins in April. Executives of Thai, Singapore and Lufthansa met in Singapore this week to discuss the future of Thai's membership. Thai President Thamnoon Wanglee issued a statement following the meeting, saying the airline "has never said that [it] wanted to leave the alliance" and confirming that Thai would remain in the group.
Flight attendants at US Airways claim management's threat to shut down operations in 29 days in the event of a job action is a ploy to engage a Presidential Emergency Board. A PEB would have the power to order flight attendants to cease any job action. US Airways on Wednesday told 40,000 employees that it would "shut down the airline" if the current 30-day cooling-off period ends without a contract agreement and flight attendants, represented by the Association of Flight Attendants, launch their Create Havoc Around Our System (CHAOS) campaign (DAILY, Feb. 24).
Airline executives claim they are always prepared for the unexpected in the cyclical aviation industry, but many could not hide their shock when fuel prices spiked 17% during the fourth quarter and profits tumbled despite strong revenue and traffic growth. The industry operating margin was a slim 5.2%, down 0.9 percentage points from last year, largely due to continued transatlantic overcapacity.
Meudon, France-based Hurel-Dubois has signed a framework agreement with Airbus for a significant role on the A3XX, scheduled for launch in December. The participation of up to 2% in the US$12 billion project positions Hurel-Dubois for aerostructure/engine nacelle systems development and production on the double-deck aircraft. Chairman and Chief Executive Francis Avanzi said the company will develop its strategy of product support, maintenance and overhaul in the Asia/Pacific region to further strengthen its position.
WestJet Airlines' fourth quarter earnings soared 183% to C$4.7 million (US$3.2 million) as the carrier plans aggressive expansion of its network with an order for 30 more Boeing 737s. The Calgary-based airline posted full-year earnings of C$15.8 million (US$10.8 million) yesterday, up 143% from 1998 on 62% higher revenues. Despite an intense battle between the country's major airlines, WestJet managed to gain significant traffic and boost yields across its system. The airline's capacity increased 40%, but traffic kept pace, growing 41.3% during the year.
Montreal-based Air Transat and its pilots and flight engineers, represented by the Air Line Pilots Association, have reached a tentative agreement on a new contract following a conciliation process. It will be sent to the rank-and-file for ratification vote.
TWA and Air Malta signed a code-sharing agreement this week that will give TWA access to several additional European cities, beginning May 1. The marketing alliance calls for TWA to place its reservations code on Air Malta flights between both Milan, Italy, and London, and Malta. TWA operates daily nonstop 767 service between New York Kennedy and Milan and from its St. Louis hub to London Gatwick.
Japan Airlines, one of the largest operators of Boeing 747-400s with General Electric engines, said yesterday it is making "immediate checks" of the fire-extinguishing systems to ensure they are not showing signs of fatigue. A total of 143 of the GE-powered 747s are in service worldwide with CF6-80C2 engines built Jan. 1, 1989-May 31, 1995, when GE made a change in the production line to solve problems on copper fire-suppression system lines (DAILY, Feb. 23). JAL has 39 of the aircraft in service, with 30 built during that time frame.
Low-cost airline Go, a British Airways subsidiary, will withdraw from three of its European routes due to lack of demand and hefty competition. The airline will stop operating to Munich, Zurich and Lyon on March 26, sources said.
Sabena yesterday posted a loss of 14 million euros (US$14 million) in 1999 and has missed its goal of remaining profitable. The airline said increased competition on the North Atlantic routes, Y2K investments, air traffic problems during the Kosovo war and higher fuel prices caused the loss. Revenue for the group increased 3.5% to 2.2 billion euro. Traffic went up 13.9%, but load factor fell to 65.6% from 67.5%. Hardest hit was Sabena's intercontinental network, where only 68.3% of the seats were sold, compared with 70.9% in 1998.
Crossair's full-year 1999 profit dropped 20% to 50.7 million Swiss (US$31.6 million) francs despite increased revenue and traffic. The carrier faced a "difficult environment" during the year and its results for the last two months were "well below expectations." As a result, the airline has launched a top-to-bottom review of its routes and plans to increase fares to cover its growing expenses. Earnings were lower due to higher fuel costs, an increase in the exchange rate against the U.S.
Hong Kong-based Dragonair has signed an order with Airbus for five A320s and one A330-300s plus two A330 options. Another deal was signed with ILFC for one A330-300 and two A321s under a lease agreement. The A321s will be delivered this year, followed by the A330s during the second quarter of 2001, while the A320s will be delivered between 2003 and 2005. According to Dragonair Chief Executive Stanley Hui, the aircraft acquisition is intended to meet the airline's planned service increases, secured under a new air bilateral agreement between the Hong Kong and China.
America West is asking DOT for an exemption to continue current service between Columbus and New York LaGuardia and between Phoenix/Las Vegas and New York Kennedy. The airline wants three slots and the authority to slide two slots it owns into times that are usable for flights to Las Vegas and Phoenix. America West is asking permission to slide two slots held by Mesa at LaGuardia for America West Express flights to more usable times and to be awarded four slots to continue four daily Columbus roundtrip flights with connections in the West.
Summary of U.S. Major Carriers International Traffic July 1999 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (miles) (000) Change Alaska 58 8.81 1,113 64,773 9.23
Continental blasted United this week for claiming to be the first airline to retrofit a large portion of its fleet with overhead bin extensions. "Although United may claim to be the first to extend bins across its fleet, the reality is they are about three years behind Continental," the airline said. Beginning in October 1997, Continental began retrofitting its domestic fleet with larger bins, starting with the MD-80s. The airline's customers responded positively, and Continental decided to spend $15 million to retrofit a total of 188 aircraft.
In the aftermath of the fatal Alaska Airlines crash Jan. 31, several Latin American and Caribbean have completed horizontal stabilizer inspection on their MD-80 fleets. Airlines in the region completing inspections recommended by FAA are Avianca, with 11 MD-80s inspected, AeroMexico, 37, Air Jamaica, 15, and BWIA, five. According to the carriers, after thorough maintenance checks all confirmed the integrity of the jackscrew assembly in the horizontal stabilizer without problems.
