The battle over taking the aviation trust funds off budget shifted to the Senate yesterday, and the issue likely will be raised when the Senate Commerce Committee's FAA reauthorization is on the Senate floor, either late this month or in July.
Air France Industries (AFI) and AAR Corp. have created a partnership to provide full component management support for Airbus A320 operators in North and Central America, the companies said yesterday in Paris. The joint operation, to be based at the AAR Aircraft Component Services facility in Garden City, N.Y., will provide full spares provisioning and supply, component repair, logistics management, pool access and flexible financing options. The facility will open next month.
British Airways yesterday entered an agreement with Galileo International to sell Britair Acquisition Corp., a 100%-owned BA subsidiary that indirectly holds 7,000,400 common shares of Galileo International. The net sales proceeds will be $307.7 million. In July 1997, BA sold 5,891,660 shares in Galileo.
Air Pacific, flag carrier of the Fiji Islands, has joined American's AAdvantage frequent flyer program, enabling plan members to earn mileage and claim awards on Air Pacific, effective immediately. The airline serves Nadi, Fiji, Honolulu, Los Angeles, Japan, Australia, New Zealand, Western Samoa, Tonga, Tahiti, Vanuata and the Solomon Islands. Air Pacific is offering double miles on flights between the U.S. and Fiji through July 31 and Oct. 15-Dec. 10.
Ryanair Chief Financial Officer Michael Cawley is not impressed by the airline industry's structure. After two years in the business, "I'm struck by its inefficiencies," he said. Ryanair carries 4,018 passengers per employee, while Lufthansa transports 737, British Airways 615 and KLM 453, Cawley said in Paris.
Comair will begin weekend service July 16 from Myrtle Beach, S.C., to New York LaGuardia and Chicago O'Hare, using 50-seat Canadair Regional Jets. Service to LaGuardia will operate Saturdays and Sundays and flights to O'Hare on Saturdays.
Midway's order for 737-700s has led some industry sources to wonder whether the airline is positioning itself to be acquired by American.Industry consultants were surprised by the order for 15 Boeing aircraft, with options for 10 more, and plans to lease two 737-700s (DAILY, June 15). Midway said it is positioning itself to lower its unit costs and grow Raleigh/Durham, not for acquisition.
FAA is revising and strengthening rules governing maintenance at domestic and foreign repair shops, FAA Administrator Jane Garvey said yesterday. The agency came under intense criticism of its oversight of repair shops following a National Transportation Safety Board hearing into the 1996 crash of a ValuJet DC-9 in the Florida Everglades. "We intend to raise the safety bar at these facilities and require the same high level of safety in every U.S. repair station, wherever they are located," Garvey said.
Boeing is expected to certify inflight trolley products manufactured by Taiwan-based Ferlix Co., a first for Boeing, a Ferlix spokesman said. Ferlix received supplemental-type certification from FAA for its inflight carts in 1998.
Air Transport Association scheduled a news conference tomorrow at 11:45 a.m. in Room 253, Russell, the Senate Commerce Committee hearing room. The event probably indicates ATA has overcome the objections of committee members, including Chairman John McCain (R-Ariz.), to its "voluntary passenger rights plan."
National Transportation Safety Board yesterday recommended that DOT and its modal administrations to adopt "scientific hours-of-service rules that require predictable and effective rest periods so vehicle operators remain alert." Chairman Jim Hall said DOT is "still permitting pilots, truck drivers, railroad engineers, mariners and others to operate under regulations that are out of date and contribute to fatigue."
Amerijet International announced five promotions to new positions created under a recent corporate restructuring. James Bassett was named senior director-domestic operations and Jay Klucar senior director-international operations. Al Donofrio was named senior director-hub operations, Rick Alberty senior director-human resources and Simon Pantin director-planning.
FAA yesterday published in the Federal Register a policy statement saying it will begin cracking down on pilot scheduling violations. The statement says that on Dec.
Jersey European, which recently started Birmingham, U.K.-Toulouse, France, service, will launch a direct route between Birmingham, U.K., and Cork, Ireland. The new service will inaugurate twice-daily flights between the two cities in September, with roundtrip fares starting at #79 (US$126), including taxes and airport charges. The new route will be operated with Dash 8 aircraft.
Royal Air Maroc is promoting special fares this month for travel from London Heathrow to 14 points in Morocco, including Agadir, Casablanca, Fesand Marrakech. Fares start at #188 (US$300) roundtrip to Tangier, and other fares include Casablanca, #207 ($331) and Marrakech, for #228 ($364), plus taxes.
Cathay Pacific will return to operating its full flight schedule by June 20 in the wake of a crippling labor dispute with its pilots. Cathay's North America service will fly a normal schedule by Friday. Gus Whitcomb, Cathay Pacific spokesman, said all but 45 of the airline's 700 pilots accepted a wage cut of 7%-22%. The remaining 45 pilots chose early retirement. The two-week pilot protest, which ended June 11, cost the airline between HK$300 million (US$38.7 million) and HK$500 million.
International Lease Finance Corp. President Steven Udvar-Hazy said yesterday the leasing company plans to order up to a record 100 next-generation 737s from Boeing. "This commitment for the next-generation 737 will bring to 390 the total [number] of 737 airplanes owned by ILFC. It also assures our strong order and delivery positions beyond 2001," he said. Sun Country and BWIA announced they are leasing six 737-800s each from ILFC. BWIA also is leasing a used 737-700.
European Union's response to U.S. proposals for working out a new international aircraft noise standard before the EU's May 2000 hushkit rule implementation "has been desultory and inadequate," David Aaron, Commerce Department under secretary for international trade, told the House International Relations Committee yesterday."If they do not respond more seriously and constructively, the crisis will revive," he added.
Singapore Aircraft Leasing Enterprise plans to order 23 more A320 family aircraft from Airbus, increasing its commitments to 39. Engine selection will be made later. The $920 million order comprises 20 A320s and three A321s. Gulf Air has taken delivery of the first of six A330-200s, becoming a new operator of the type.
NATO military activity in Kosovo this spring delayed about 36% of flights within Europe, according to the European Regions Airline Association. Rerouting caused roughly 30% of the delays and airspace restructuring in Germany, France, Switzerland and Italy the rest. ERAA predicts that delays at European airports caused by the air traffic control system this summer will be the "bleakest" yet.
Qantas Airways will beat United in the race to launch nonstop Los Angeles-Melbourne, Australia, service. Qantas Chief Executive James Strong said yesterday the carrier will begin 747-400 service in October with five flights a week. "We are confident of strong support from both the business and leisure markets on a route where demand is very healthy," Strong said. Melbourne flights from the U.S. on Qantas and United previously stopped in Sydney or Auckland, New Zealand.
Japan Air System (JAS) will reduce its debt by 13% over three years and will not purchase any aircraft in the next fiscal year, beginning April 1, 2000. The move, announced yesterday, is part of the carrier's ongoing restructuring efforts amid cutthroat fare competition in Japan. JAS officials said the airline will cut 60 billion yen (US$500 million) from its 470 billion yen debt. The carrier's decision to suspend aircraft purchases next fiscal year will not affect the purchase of one Boeing 777 and one Airbus narrowbody this year.
Crossair will add one daily Saab 2000 flight to Rome Fiumicino from Basel-Mulhouse-Freiburg July 1. The service represents "a valuable addition to the 'EuroCross' hub, which offers rapid connections to and from four Swiss and 23 European airports," the Swiss regional said.
Loganair, a British Airways franchise partner based in Glasgow, is taking two Saab 340Bs from Saab Aircraft Leasing AB to operate flights in Scotland. Starting July 1, one of the aircraft will be based in Glasgow, serving Inverness Kirkwall and Sumburgh, and the other in Kirkwall, flying to Inverness and Edinburgh and beyond to Shetland. For the first time, the new service will enable passengers to fly directly between Shetland and Edinburgh.
