Rep. Anthony Weiner (D-N. Y.), whose New York City congressional district borders on Kennedy International Airport, has introduced a bill in the House that would direct the DOT secretary to prohibit the commercial operation of supersonic transport category aircraft that do not comply with Stage 3 noise levels.
Summary of U.S. Major Carriers International Revenues and Expenses Third Quarter 1999 Total Operating % Passenger Freight Revenues Change Revenues Revenues Alaska 20,897,000 12.25 20,121,000 191,000 Latin 20,897,000 12.25 20,121,000 191,000 American 1,382,021,000 (1.51) 1,212,988,000 84,572,000
Japan Airlines' pilots staged an all-day strike yesterday demanding a pay increase, but the carrier said the action had no effect on international and domestic passenger flights. The union also planned to strike today if its demands were not addressed, which could result in flight disruptions. The JAL Cockpit Crew Union has 1,320 members and represents pilots below the rank of captain. The JAL Cabin Attendants Union has 1,095 members.
FAA is expected to issue a final rule today requiring terrain awareness and warning systems on turbine aircraft seating six or more passengers. Many carriers already voluntarily decided to equip with the systems, although industry officials opposed the inclusion of aircraft operated under Parts 91 and 135. The rule will go into effect in one year and then will have a four-year compliance period.
DOT granted Kuwait Airways an exemption to serve Orlando as a co-terminal point for its Kuwait-Frankfurt-New York services. The carrier plans to place its designator code on TWA flights between New York and Orlando. The department approved TWA's request for the code-share authority. (Dockets OST-99-5589, 5590)
House transportation appropriations subcommittee Chairman Frank Wolf (R-Va.) upbraided the FAA in a hearing last week for appearing reluctant to stand by an FAA safety inspector arrested at Washington Dulles on March 7 while inspecting a United aircraft. Wolf was "really disappointed in the management at Dulles," he said. The inspector, Joseph Gore, was arrested inside the plane, humiliated and searched three times, Wolf said. Asked if Gore had done anything improper, FAA Administrator Jane Garvey said she did not have all the facts to respond.
Argentina's Minister of Infrastructure, Nicolas Gallo, in New Orleans Monday for the annual general meeting of the Inter-American Development Bank, said his government has put the open-skies agreement with the U.S. on hold because "it jeopardizes the majority of Argentines," according to Buenos Aires daily La Nacion. However, Argentina will negotiate with other member countries of Mercosur (Brazil, Paraguay and Uruguay) a regional open-skies agreement, and also sponsor the creation of a committee to handle bids for relevant infrastructure projects.
Varig is holding two initial public offerings in Brazil to capitalize two new subsidiaries -- Varig Participacoes Transporte Aereo, which will control regional carriers Rio Sul and Nordeste, and Varig Participacoes, a holding company for Sata, Tropical Hotel Chain, Amadeus computer reservations system and others.
Alaska Airlines has named a former NASA official and a former NTSB official to lead what it called a "comprehensive safety audit of all aspects of the airlines operations." John Kelly, chairman, said, "I have asked them to go beyond just a traditional audit of records and procedures to ensure we maximize the benefit of their safety expertise." Jack Enders, former manager of Aviation Safety Research at NASA and vice chairman of the Flight Safety Foundation, will oversee the audit team.
By Michael Miller, Editor-in-Chief, Aviation Daily
While Congress took a laudable first step toward aviation reform by funding FAA from the Airport and Airway Trust Fund, it now must drive the overhaul to the next level and stop micromanaging U.S. aviation. Witness the dizzying number of provisions attached to the FAA budget agreement, probably part of the reason it was passed six months late. From legislating slots to forcing language that could ban the Concorde, the FAA budget bill is a prime example of legislators' inclination to think they know more about an industry than those who run it.
In Moscow, Aeroflot and Air France signed an agreement setting up a global alliance by 2003. Aeromexico, Delta and Korean Airlines will be invited to join.
A "come one, come all" Internet trading exchange for the aerospace industry was announced yesterday by its founders -- Boeing, Lockheed Martin, BAE Systems, Raytheon and Commerce One, which will provide the technology platform for the new business-to-business exchange. Microsoft will provide its Windows 2000 and its Internet services to the venture, which is expected to be in operation by midyear.
US Airways may follow the leads of United and American, which already have begun giving economy passengers more legroom, by adding up to three more inches of pitch in coach on its new Airbus A330 fleet.
Frontier named Lowell Miller director of e-commerce. Miller joined the airline in 1994 and has held a variety of positions, including his most recent as director of marketing programs and alliances. "Last month, Frontier's web site contributed over 7% of our total revenue, and clearly, we recognize a tremendous growth opportunity in the e-commerce area," said Frontier's VP of Marketing Jeff Potter. At the same time, Frontier selected Colorado-based Fourmula Technologies as its agency of record for a web site redesign.
Midway Airlines' Air Line Pilots Association unit yesterday ratified its first contract. Management and the union reached a tentative deal March 10. Sixty-seven percent of the pilots casting ballots voted to ratify. The four-year deal includes pay raises, improvements to work rules and enhancement to insurance and 401(k) benefits.
United's parent company UAL Corp. provided an improved financial outlook Monday for its first quarter profits noting it expects earnings "to exceed the top end" of its previously forecast $0.80-$1.20 earnings-per-share range. Even with unit costs about 7% higher than last year due to soaring fuel costs, the airline expects total unit revenue growth of 6.25% to 7%. United's shares rose roughly 3% on the news to close yesterday at $58.75 a share.
The unnamed travel web company being founded by United, Delta, Northwest and Continental, yesterday named Worldspan its global distribution system in addition to four other technology suppliers that signed deals with the web site. "This is a pretty big deal for Worldspan," said Arnhold and S. Bleichroeder analyst Thomas Longman.
Continental plans to launch nonstop service between its Newark hub and Grand Cayman, Cayman Islands, beginning Dec. 14, subject to government approval. Continental's will fly four weekly flights and said the service will be the only nonstop between the New York City area and Grand Cayman. The airline will operate a Boeing 737-700 aircraft equipped with 12 first-class and 112 economy-class seats. The flight will mark Continental's 48th destination in Latin America and the Caribbean.
America West plans to build a $35 million, 150,000-square-foot flight training center and systems operation control facility on a 13-acre site leased from the City of Phoenix. America West said yesterday it will break ground on the project in late summer and occupy the facility a year later. The airline will invest about $35 million in design, development, construction, equipment and related costs to complete the complex. The base term of the ground lease is 15 years and America West will have options to extend that term for up to 30 years.
Moody's Investor Service yesterday changed its outlook on US Airways to negative as the carrier sought to recoup lost business with a deep fare sale now that it reached a tentative contract with flight attendants over the weekend. The airline's Association of Flight Attendants Master Executive Council will consider the tentative deal this week in Washington and send it to the rank-and-file. Union negotiators recommend that flight attendants accept the deal, but it is up to the MEC to recommend ratification to members, said MEC Chairman Lynn Lenosky.
Qantas wants to make a A$470 million (US$291 million) bid for 47% of Air New Zealand in a move that could prompt the biggest shakeup in Australian airline history. Qantas Chief Executive James Strong confirmed yesterday that the airline is talking with cash-strapped Brierley Investments about its majority stake in ANZ, in an attempt to thwart Singapore Airlines' efforts to become the dominant regional airline.
Southwest will pay its 25,000 eligible employees more than $138 million in profit sharing, its largest payout yet. The employee sharing plan, based on pre-tax profits, "plays a significant part in making employees true participants in Southwest's success," said Chief Executive Herb Kelleher. Profit sharing grew to $138,336,916 in 1999, representing 14.1% of eligible salaries. From 1992 through 1999, each Southwest employee received an average of 10.6% of his eligible salary in profit-sharing payments.
The European Union's hushkit regulation "will enter into force on May 4, as planned," said a spokesman for European Transport Commissioner Loyola de Palacio yesterday in Brussels. However, the EU is "willing to discuss" the aspects of the ban that are most damaging to non-European nations, he said. Starting May 4, European airlines will no longer be allowed to add hushkitted aircraft to their fleets.
