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.
Airbus has decided not to develop a 100-seat aircraft and has no plans to create an aircraft below 100 seats. Airbus President Noel Forgeard said in Singapore yesterday that the company studied and evaluated the industry's requirements in all sectors before making a decision. The company has decided, however, to develop a 250-seat aircraft -- likely the A330-100 -- for regional routes now that the A310 and A300 have been in service for many years. Forgeard said the A3XX project is being driven largely by the needs of airlines in the Asian region.
Peruvian Prime Minister Alberto Bustamante announced last week that the tender for Lima Airport's multimillion dollar concession is now being enlarged in its engineering and legal specifications. The concession contract is open to private bidders for improvements and management of Jorge Chavez International Airport. The final model, which will require presidential approval, includes amendments specifying a new critical path for the construction of a second runway, adjustments in investment schedules and expropriation of additional adjacent lands.
Boeing and its Society of Professional Engineering Employees in Aerospace will meet with a federal mediator today, more than two weeks into a strike that appears to be having an impact on the company's operations. SPEEA spokesman Bill Dugovich said the union is "hopeful but not optimistic at this point" that the meeting could mean an end to the strike. "Boeing hasn't budged yet, so we're taking a wait-and-see attitude," he said. Richard Barnes, director of Federal Mediation and Conciliation Services, is expected to run the meeting.
Rockwell Collins and BFGoodrich Aerospace formed an alliance to provide airlines a "broad range of equipment, parts and maintenance services including single-stop solutions for avionics, instrumentation and other aircraft components, the companies said yesterday. The alliance will draw on Rockwell's expertise in avionics and inflight entertainment systems, avionics integration and a global service network including maintenance, repair and overhaul of avionics equipment.
Commercial jet emissions accounted for about 3% of greenhouse gases and are a "potentially significant" factor in global warming, the General Accounting Office said in a report this week. GAO said jet emissions are deposited directly into the upper atmosphere and some of these emissions have a greater warming effect than gases given off closer to the surface, such as automobile exhaust. The primary gas emitted by aircraft engines is carbon dioxide, which can survive in the atmosphere up to 100 years.
Boeing and Aviation Partners Inc. (API) of Seattle next month will begin flying a 747-200 freighter with 14 1/2-foot tall winglets. The 747 winglets are expected to provide as much as 7% fuel savings, which officials say equates to "saving a million gallons of fuel per year" for a typical 747, or extending range by 50 minutes per flight. Boeing earlier announced it will start offering the 737-800 with winglets early 2001 (DAILY, Feb. 22). The company is beginning flight certification tests of winglets for the Boeing Business Jet as part of a joint venture with API.
