Continental President Greg Brenneman is in the running for the top position at Compaq, the world's largest producer of personal computers. A Compaq source told The DAILY that Brenneman is one of several candidates on the short list to replace Eckhard Pfeiffer, former chief executive who resigned in April, shortly after the company warned of lower profits. Brenneman has been president of Continental since September 1996.
House Transportation Chairman Bud Shuster (R-Pa.) has approached four senators about sponsoring legislation to take the aviation trust funds off budget, the centerpiece of his House-approved $59.3 billion, five-year FAA reauthorization. The senators are looking at ways to achieve this goal, congressional sources told The DAILY yesterday.
American's Allied Pilots Association will file "a prompt appeal" to Texas District Court Judge Joe Kendall's April decision that fined the union $45.5 million because of the February pilot sickout. APA claims Kendall predetermined the outcome of the suit that American brought against the union. He issued a temporary restraining order and two days later a contempt order when pilots failed to clear the sick list. Kendall on Wednesday handed down his written ruling on the suit.
Finnair traffic fell 1% in May due to a drop in intercontinental passengers. The carrier flew 633,400 passengers, with a 5.3% gain on European flights but a 9.9% drop on intercontinental routes. Officials said they expect Finnair's European traffic to rise in the second half of the year, as Finland becomes the chair of the European Union. The airline's total load factor declined 3.4 percentage points to 64.8% because of reduced cargo volume.
Detroit-based ProAir yesterday inked a corporate travel deal with Masco Corp. and its affiliated companies that will lower their annual travel costs. ProAir last year entered a similar agreement with General Motors and DaimlerChrysler.
Correction: British Airways' Speedwing subsidiary is installing Rod Lynch as head of the team to run Olympic Airways. His name was misspelled earlier (DAILY, June 24).
North Korea and Russia will review their bilateral air services agreement next month to pave the way for additional flights between the two countries. North Korea's Kore Hangon Airlines (KHAL) wants to increase flights between Pyongyang and Vladivostok to five weekly and secure landing rights to other Russian destinations. Russian carrier Vladivostok-Avia wants to double its flights to six to the Korean capital.
British Airways' consulting subsidiary Speedwing will have the task of returning Olympic Airways to profitability, Greek Transport Minister Tassos Mandelis said yesterday in Athens (DAILY, June 22). The chaotic, state-owned airline will be managed for two and one-half years by a team of 12 experienced executives led by Rod Lintz. Speedwing's second assignment is to seek a strategic partner for Olympic. The agreement between the Greek government and Speedwing gives BA an option to purchase up to 20% of the Greek airline.
Air Canada's 5,000 flight attendants, represented by the Canadian Union of Public Employees (CUPE), Airline Division, will vote on the company's latest contract offer June 25-July 4. Votes will be tallied by July 5.
UAL Services signed an agreement with Airbus Industrie to provide technical and maintenance support for the new A319CJ. The eight-year contract calls for United to operate a 24-hour support desk and offer maintenance assistance as the corporate aircraft enter service. Airbus has 14 firm orders for the ACJ and expects to deliver at least 10 units a year. United's service will begin in October, in time for the first delivery. A System Aircraft Maintenance Control team at the Indianapolis Maintenance Center will operate a 24-hour call center.
British Midland said it will end its code-share agreement with American on March 25, 2000, because of a significant drop in traffic feed from the arrangement. British Midland's code appears on American's flights from Boston, Chicago, Los Angeles, Miami and New York to London Heathrow. Alex Grant, director of strategy and external affairs, said yesterday that the route-specific code shares have become less appealing to passengers.
New Jet Aircraft Deliveries February 1999 Last 12 Months Carrier # Type Engines Delivery Aero Lloyd 1 A321-200 V2533-A5 2 Air Berlin 2 737-800 CFM56-7B27 5 Air Canada 1 A340-300X CFM56-5C4 1
Lufthansa Technik and MacroAsia are setting up a joint-venture company that will operate a maintenance, repair and overhaul facility in the Philippines, with Philippine Airlines as one of its first long-term customers. MacroAsia, a public company that provides aviation and logistics support, has a catering joint venture with Cathay Pacific Catering Services, Singapore Airport Terminal Services and Eurest International. It recently signed a joint venture pact with Ogden Aviation for ramp and passenger handling services in the Philippines and abroad.
American will integrate Reno Air operations Aug. 31, adding more than 150 nonstop flights a day to its West Coast network. In Los Angeles, American will gain 30 flights a day to five new destinations - San Francisco, San Jose, Reno, Las Vegas and Colorado Springs, and in San Jose it will add 32 flights a day to five new points - Las Vegas, Los Angeles, Portland, Reno and Seattle. In San Francisco, American will gain nonstop service to Los Angeles with nine flights daily and to Orange County with five daily flights.
AIRWISE, a travel web site, is asking airline passengers to "name and shame" carriers on the Internet based on bad travel experiences and high prices at airports and airlines.The site, www.airwise.com/travel, offers on-line booking capability and this week introduced a forum for airline passengers worldwide to share their negative stories.
Vietnam Airlines plans to ground its fleet at midnight Dec. 31 to avoid potential problems from the millennium computer bug. Domestic and international flights that land before midnight would operate on schedule, officials said yesterday. All flights would resume on schedule Jan. 1 after the "critical moment passes." The carrier already spent an estimated $2 million to update its company's computer system but does not want to risk potential technical problems for aircraft.
Regional Aircraft Transactions February 1999 New Aircraft Deliveries Last 12 Months Carrier # Type Engines Delivery American Eagle 3 EMB RJ145 AE3007A1 22
FAA yesterday ordered operators of Boeing 727s to install sleeving over in-tank fuel boost pump wires to help prevent chafing and possible fuel tank explosion. The order follows previous airworthiness directives issued last month requiring inspections of the pumps. An AD issued May 21 was prompted by reports of "severe wear" of the in-tank fuel boost pump wiring and "arc-through of the surrounding conduit" on two high-time 727s.
BFGoodrich Aerostructures Group and the Machinists Union have signed a new labor agreement covering works at Chula Vista and Riverside, Calif., facilities. The three and one-half-year pact provides for wage increases of 2% next February, 2.25% in February 2001 and 2.25% in February 2002. Workers also will receive a lump sum payment of $1,500 before next July 23 and an increase in pension benefits from $38 to $44 a month.
The House approved the fiscal 2000 transportation appropriations bill by a 429-3 vote yesterday, but a procedural ruling knocked the $5.9 billion FAA operations funding out of the measure. Key House members and even the congressman who introduced the ruling agreed, however, that the funding would be restored and the net effect would be a reduction of $243 million in the $10.3 billion FAA request. House conferees would have no choice but to accept the Senate figures in conference committee, where House-Senate differences are resolved.
Duff&Phelps, in reaffirming Continental's unsecured debt yesterday, said the airline's continued focus on its 'Go Forward' plan has led to "improved operating fundamentals, strengthened credit protection measures, a higher business and first class customer mix and overall industry recognition as a quality airline." Continental's $1.4 billion cash balance and growing alliance with Northwest were cited as positives for the Houston-based airline.
IATA said yesterday a borderless Europe has been created on the ground, but "medieval fiefdoms" still control the skies. Pierre Jeanniot, IATA director general, said that the number of delayed flights in Europe has "reached crisis levels" due to a severe lack of air traffic control capacity, particularly in Switzerland and parts of France and Italy.
Correction: Delta wants to serve New York Kennedy-Venice, not Pisa, when additional U.S.-Italy authority becomes available. Air Europe began JFK-Pisa-Venice service last Friday (DAILY, June 18).
New Aircraft Orders And Options February 1999 Last 12 Months Firm Orders Options Orders Options Carrier # Type # Type Engines Del Dates # Type # Type Air Berlin 4 737-800 - CFM56-7B - 2 737-800 2 737-800 Air France* 1 A321-200 - CFM56-5B Feb99 21 A319 -
Newly appointed president of Yunan Airlines (YAL) Li Changxin expects to double profits in 1999 from last year's US$24 million because of cost-cutting measures and new routes. Li said the profit may seem small, but YAL is one of only five Chinese carriers that recorded positive results last year. Upon taking up his new appointment, Li's first move was to drop six unprofitable routes and introduce 22 new ones. Marketing policies were adjusted to meet market changes and requirements.
