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.
The government of Taiwan signed a contract yesterday with Salomon Smith Barney under which the investment firm will advise it on the financial sale of at least half of its 71% stake in China Airlines. Salomon edged out Morgan Stanley Asia after the China Aviation Development Foundation (CASF) received bids from seven investment banks. CASF expressed of hopes of selling most of the stake to a single investor but because Tawainese law limits foreign investors from owning more than 33% of a domestic airline, part of the stake could go to other investors.
Swissair continued to back away from long-time Atlantic Excellence partner Delta yesterday with plans to sell its 4.6% stake in the Atlanta-based carrier and grow closer to partner Sabena. Swissair, providing greater insight into its strategy, will streamline by cutting as many as 600 jobs worldwide and form a joint management group with Sabena. Swissair and Sabena will merge sales and marketing departments under an umbrella Brussels-based Airline Management Company.
Senate Commerce Committee yesterday gave voice vote approval to a bill providing for formal monitoring of airline compliance with the Air Transport Association's voluntary Customer Service Plan. The bill would direct the DOT Inspector General to monitor the activities of ATA carriers and evaluate whether the airlines' individual plans are consistent with ATA's program, and whether each airline lives up to its own plan. The IG would submit an interim report to Congress by June 15, 2000.
Virgin Atlantic wants a slot exemption at Chicago O'Hare for one daily Chicago-London Heathrow roundtrip beginning Nov. 1, using Airbus A340 aircraft. DOT granted the carrier a one-year exemption for combination service on the route at the same time that it denied as untimely Virgin's application for two summer-season O'Hare slots. (DAILY, May 10). Virgin noted it was unable to apply to FAA in time - by mid-October 1998 - for summer 1999 slots, as the U.K. designated Virgin for service on the route March 4.
Critics are questioning the Civil Aviation Administration of China's policy of removing the heads of airlines that continue to incur losses. Three chief executives, who declined to be named for fear of repercussions from CAAC, told The DAILY that CEOs should not be judged on the basis of one financial year. If this is the yardstick to be used to measure performance, they said, then it is grossly unfair.
CIT Group purchased a 757 from British Airways and leased it back to the airline, completing a transaction that began in May with the purchase/lease-back of another 757 to BA. CIT Group also bought a 737-500 from Asiana and leased it to the airline.
The Minneapolis/St. Paul Metropolitan Airports Commission has presented plans for a new terminal at MSP airport by March 2001. The new terminal, which will replace the existing Humphrey terminal, is designed to accommodate Sun Country Airlines, charter carriers and point-to-point airlines. It will have five jet gates with the potential for 18-19 total gates.
Air Madagascar took delivery of a 767-300ER from GE Capital Aviation Services and from Boeing. The aircraft is equipped with the first inflight entertainment system installed and certified during production of a 767. The IFE is installed in first and business classes. The carrier has operated one 767-300ER since last year.
American applied for the 10 U.S.-China frequencies and the additional carrier designation that become available April 1, 2001, under the amended U.S.-China aviation pact. The carrier wants to begin seven Chicago-Shanghai and three Chicago-Beijing weekly nonstops April 1, 2001, on a year-round basis, using 237-seat Boeing 777-223 aircraft. American code shares with China Eastern Airways via Los Angeles and San Francisco, from which China Eastern holds authority to display American's code on flights to Beijing/Shanghai.
Korean Air said Citibank and Korea Development Bank approved a $750 million loan package to help the region and the airline recover from its crippling recession. Brookline Leasing will receive the funds to purchase six Boeing aircraft and lease them to Korean Air. The carrier said the loan will help refurbish its fleet without adding to its $4.5 billion debt. Korea Development Bank will issue a $375 million, five-year loan after borrowing the funds from the U.S. Export-Import Bank. The remaining $375 million will come from Citibank's own funds.
Fayair, the flight department of Al Fayed, owner of Harrod's department store in London, has become the first U.K. customer for the Airbus Corporate Jetliner (ACJ). The aircraft is scheduled for delivery next May, when it will be ready for cabin outfitting. Airbus has commitments for 14 of the aircraft, essentially an A319 with extra fuel tanks that give intercontinental range.
TWA filed an amendment adding a request to serve Aruba to its application for an exemption to serve the Dominican Republic and the Netherlands Antilles from San Juan, Puerto Rico (DAILY, June 22). The carrier "failed to specifically request authority to Aruba," which, as a "separate autonomous part of the Kingdom of The Netherlands," has a separate open-skies agreement with the U.S. It intends to serve St. Maarten, Netherlands Antilles, in the future. (Docket OST-99-5859)
A tentative contract agreement before Air Canada's 5,000 flight attendants is headed for almost certain rejection, according to the Canadian Union of Public Employees, Airline Division (CUPE), which represents the airline's cabin crew. The two sides reached an impasse in talks over the weekend, but then CUPE agreed to take Air Canada's latest offer to the membership for a vote. "Not a chance. Are you kidding? It's going to be rejected," said union negotiator Catherine Louli about the deal's chance for ratification. "This offer does nothing."
Qantas and Ansett have called untrue industry reports that they plan sharp increases in the cost of post-July 2000 domestic and international fares. Qantas Deputy Chief Executive Geoff Dixon said it is "nonsense" to suggest that the carriers would not offer the usual range of fare discounts next year. Dixon claimed that inbound tour operators are responsible for the negative reports, and Ansett's executive chairman dismissed them as "inaccurate." Dietmar Schulz, head of Germany's FTI/CA Ferntouristik, said both airlines already quoted him significant increases.
Pilots at Japan Air System (JAS) ended their strike Sunday after the airline's management agreed to withdraw its plan to transfer its international operations to its lower-cost Harlequin Air subsidiary. The airline was forced to cancel 28 domestic flights Friday and Saturday because of the pilot walkout (DAILY, June 21), but it resumed a full schedule on Sunday. JAS officials said the airline still is proceeding with cost-cutting efforts to reduce overall operating expenses and cut debt by 13% over three years.
RADA Electronic Industries of Israel has signed an agreement with Boeing to supply two Commercial Aviation Test Station automatic testing systems for Boeing 777 aircraft line replacement units. The packages include an overall test package comprising maintenance services, full technical support, test program sets revision, updates and upgrades.
Midwest Express, the company with the motto "best care in the air," will reduce flights on some routes from August through October because of a pilot shortage. The shortfall was caused by major airlines hiring pilots away from the Wisconsin-based carrier, medical leave and military call-up, as well as the airline's "traditionally lean staffing," Director of Operations David Reeve said in a message to employees.
Lufthansa posted a 9.1% increase in May passenger traffic, showing the highest growth on routes to the Americas and Asia. With total traffic at 3.9 million passengers, travelers to Asia jumped 16.3%, compared with the same month last year, and those to North and South America were up 17.6%. Lufthansa said traffic to Asia continues to show signs of recovery from its recession. The airline again warned, however, that its profit may drop this year because of lower yields. Capacity grew 17% in May, depressing the load factor 0.6 percentage points to 73.3%.
