Cathay Pacific continued to slash its flight schedule in the runup to the negotiating deadline with its pilots at noon tomorrow local time. If pilots and management, meeting in Hong Kong, fail to reach a last-minute agreement, the carrier maintains it will begin to lay off pilots. "We are sticking firm to the deadline," said Cathay spokesman Gus Whitcomb.
Financially strapped Varig received some encouraging news when a local court ruled that the airline should receive at least 2.2 billion reals (US$1.2 billion) from the government in compensation for losses incurred during a period of regulated fares. Varig's complaint alleges losses from the 1986 freezing of air fares that was supposed to stabilize the Brazilian economy. Officials believe the ruling will help the carrier's financial situation and its struggle with $1.8 billion in local and foreign currency debts.
Cincinnati-based Comair, which flies as Delta Connection, saw a 26.7% gain in May traffic on 26.5% more capacity, which grew the load factor 0.2 percentage points. Passenger boardings jumped 17.8% for a record high of 617,140. Year-to-date traffic grew 24.5% and capacity 22.1%, boosting the load factor 2 points. Passengers flown climbed 17.2%.
British Midland Chairman Michael Bishop told The DAILY that rival British Airways Chairman Bob Ayling has done "a good job," because he was "the first to tackle some core route problems."Despite their ongoing battle at London Heathrow, Bishop credits Ayling with managing the carrier's challenges, and as a result, he said, BA will remain one of the world's top airlines.
President Clinton signed into law the Fastener Quality Act. The bill was enacted in 1990, but last year Congress, with input from the General Aviation Manufacturers Association, amended it to exempt aviation fasteners subject to FAA oversight. Ed Bolen, GAMA president, said, "Without action by the Congress and approval by the President, the Fastener Quality Act would have imposed an unnecessary burden on aviation manufacturers."
FAA Administrator Jane Garvey asked the private, non-profit RTCA to assist in overhauling the certification process by helping implement 15 recommendations to make it less lengthy, less costly and more user- friendly. Recommendations issued earlier this year came from the RTCA Certification Task Force co-chaired by Anthony Broderick, former FAA associate administrator for regulation and certification, and Ed Stimpson, vice chairman of the General Aviation Manufacturers Association.
LanChile's May traffic jumped 16.3% on 8.9% more capacity compared with the same month last year, raising the load factor 3.8 percentage points to 59.1%. The airline saw the most growth in international traffic, up 28.6%, while domestic revenue passenger miles plunged 14.3%. LanChile Chief Operating Officer Luis Ernesto Videla attributed the domestic decline to difficult economic conditions in Chile. Cargo volume rose 35.3% to 133.4 million freight ton kilometers.
FAA should modify its Automated Radar Tracking System (ARTS) to make sure controllers are able to identify and track non-transponder-equipped aircraft, the National Transportation Safety Board said. The board said it is "concerned about the lack of conspicuity of primary targets in ARTS systems." Increasing primary targets' visibility to controllers is "essential to enhancing flight safety," it said.
TWA's assertions about Northwest controlling Continental and the effect of the proposed Alitalia/KLM/Northwest alliance on competition are "fallacious," Continental told DOT. TWA's request two weeks ago that DOT analyze the effect of such an alliance on Continental-Alitalia competition should be denied, Continental said. Northwest "does not control Continental" and "will not control Continental" during a 10-year period covered by agreements, the Houston-based carrier said. Northwest has restricted ownership of 14% of Continental's equity and 46% of its voting stock.
Dallas/Fort Worth Airport broke ground yesterday for a new facility that can deice 53 airplanes simultaneously without threat of runoff. Jeff Fegan, executive director of the airport, said the facility will enable airlines to maintain service during inclement weather "while thoroughly protecting the surrounding environment." The runoff will be collected at nine tanks around the airport and removed by trucks for safe disposal or recycling, he said.
United will place its code on Dusseldorf- and Frankfurt-Katowice, Poland, flights operated by Lufthansa, beginning about July 3, the two carriers told DOT. All Nippon Airways will display its code on United's Chicago-Sao Paulo flights, starting about July 5, on a blind-sector traffic basis, United said.
Air France faces another labor disruption today as some of its smaller pilots unions prepare to stage a work stoppage through June 12. An airline spokesman said pilots of the former Air Inter, now a part of Air France, are not satisfied with elements of their integration into Air France Groupe. The labor action will disrupt less than 3% of systemwide flights. International flights and departures from the Paris Charles De Gaulle hub will not be affected, Air France said.
The General Accounting Office charged yesterday that FAA oversight of general aviation airports "is inadequate" to comply with federal land use requirements for airports, a charge that was backed by members of the general aviation community but disputed by FAA.
Cash-strapped Malaysia Airlines has sold its 40% equity in Royal Air Cambodge (RAC) and Air Maldives (AMD) to unidentified buyers for an undisclosed sum. A MAS official told The DAILY that the carrier was no longer able to participated in the operations of the two carriers. MAS acquired the RAC stake in February 1995 for US$10 million after Singapore Airlines withdrew its bid. It bought the AMD stake six months later for $8 million.
FAA and the Professional Airways Systems Specialists yesterday agreed to use "super mediator" W.J. Usery to help them resolve issues, including pay, that have bogged down bargaining on a new labor agreement. PASS represents 7,600 FAA employees who maintain the national airspace system.
Domestic traffic has been declining since May 1998 for Colombia's second largest airline. "What we see is the domestic market not expanding significantly until probably June of next year," said ACES Chief Exexcutive Juan Emilio Posada. "The contraction started last June, then 4% July-
Cardinal Airlines seeks DOT certificates for scheduled and foreign charter combination services offering all-first-class seating. The Melbourne, Fla.-based carrier plans scheduled service to primary eastern U.S. markets from Melbourne Airport. The startup wants to begin service to Baltimore/Washington International Airport and expand service in the New York market, using two MD-80s. Its business strategy is to give all passengers "large first-class seats and offer superb meals" with one fare to each destination.
FAA will fine American $82,500 and Allison Engine Co. $75,000 for alleged violations of hazardous material regulations. FAA said American shipped 13 containers of fish livers contaminated with the toxin known as "red tide." The shipment spilled, and a hazardous materials clean-up contractor was called to repackage the containers into orange biohazard bags. One FAA inspector discovered the bags were not stored upright as required.
Northwest flight attendants, represented by the Teamsters, will petition the National Mediation Board for release into a 30-day cooling-off period if the company and the union fail to reach an agreement by tomorrow. Teamsters Local 2000 President Billie Davenport said the two sides could wrap up most of a tentative deal this week but remain far apart on pension issues. She said there has been some movement on compensation and believes "we will be able to resolve those issues."
US Airways and its International Association of Machinists unit have reached a tentative deal on a new contract covering 7,000 aircraft mechanics and related employees. The deal, subject to ratification by the rank and file, also covers mechanics and related workers at US Airways Shuttle.
Malaysia Airlines posted its second straight year of losses, as the carrier was hit by rising operating costs and a decline in regional travel. The airline posted a net loss of 700 million ringgit (US$184 million) for the fiscal year ended March 31, compared with a 259.9 million ringgit loss the year earlier. The loss came despite a 6% increase in revenue. The airline expects to improve revenue this year. MAS attributed its financial difficulties to a weak currency and foreign exchange losses.
Latin American aviation would face serious challenges even if there were no outside influence. More markets are being liberalized, competition is up, yields are down, local economies are weaker after Brazil's economic decline and those lending money for aircraft and other purchases have been reluctant to open the purse strings in light of so much uncertainty.
British Midland will name a U.S. partner in the next four months as it continues to move aggressively toward an early 2000 launch of transatlantic service. The carrier currently has code-share agreements with 19 airlines in competing alliance groups, and Chairman Michael Bishop said a strong partner is crucial to the success of its long-haul expansion.
American Eagle, the regional affiliate of American, will resume service between Omaha and Chicago O'Hare on Aug. 1, operating four daily roundtrips with new 50-seat ERJ 145 Regional Jets. The new flights will greatly expand service from Omaha to key domestic cities.
