Pilots of Air Nova and Air Alliance, both represented by the Air Line Pilots Association, International, have ratified a four-year contract with management at their respective carriers. Pilots and management have been negotiating since last November, when plans were announced to consolidate the regionals' operations. The ratified contract, retroactive to May 1998, was approved by 95.5% of Air Nova pilots and 90% of Air Alliance pilots.
Garuda Indonesia, in an effort to remain lean and work toward profitability, has embarked on several cost-cutting measures. It has asked 3,000 of its 12,732 workers, including several pilots, to go on voluntary retirement, moved its head office from downtown Jakarta to Soekarno Hatta Airport, where rents are lower, and made Denpasar in Bali the hub of its international operations. Bali is Indonesia's prize tourist destination. The airline also shut down operations to 14 destinations in Europe and Asia and returned 16 aircraft to lessors.
Some airports will not be prepared for the year 2000 and the problems these airports experience could impede traffic flow throughout the nation, according to the General Accounting Office. These airports are using an "ad hoc" approach to preparing equipment for the year 2000; some will not complete preparations by FAA's recommended June 30 deadline and currently lack contingency plans, GAO said in a report to Congress.
Aviall, one of the largest independent distributors of new aviation parts, said it has retained Merrill Lynch to "assist the company in exploring possible strategic alternatives to improve shareholder value." Eric Anderson, chairman, said Aviall's operations "represent strong business with significant growth potential.
DOT shortened the answer period on its show cause order tentatively selecting Delta's Atlanta-Rome proposal for U.S.-Italy service (DAILY, Feb. 24). Delta asked for immediate authority, so it can begin marketing and selling the service to compete with other U.S.-Italy carriers, which are now marketing their summer services. US Airways, selected for backup authority, urged DOT to finalize its decision quickly (DAILY, March 1). Answers, which would have been due March 8, are due today and replies tomorrow. (Docket OST-98-4854)
Germany is proposing a compromise to soften the ban of duty-free sales to passengers traveling inside the European Union. The ban is scheduled to enter into force July 1, and Bonn, which holds the presidency of the EU, suggests that value added taxes be applied to duty-free goods as planned at that time. Excise duties would be reintroduced gradually, however, over a period of two and a half years. France supports a similar proposal, but several EU nations demand the complete ban, as of July 1.
New AirTran President, Chief Executive and Chairman Joseph Leonard said that as of this week AirTran customers can upgrade at the gate for $25 on a first-come first-served basis. The marketing strategy is one step in the former AlliedSignal chief's plan to draw higher-yield business travelers and return the airline to profitability. The company is in a major campaign in the Atlanta region to bring more business travelers on board and has signed "a significant number of contracts," Leonard told The DAILY.
British Airways will boost capacity from the U.K. to Ireland this spring with the launch of jet flights between London Gatwick and Cork. The service, to start March 28 with two daily flights on weekdays, will be operated by BA CityFlyer with 100-seat British Aerospace Avro RJ100s. ATR turboprop services will complement the jet operation on weekends. To promote the upgrade to jet equipment, BA will offer an introductory roundtrip fare of #89 (US$141.51), including passenger taxes.
US Airways asked DOT to make final "without further delay" its selection of Delta for Atlanta-Rome service beginning April 1 (DAILY, Feb. 24). DOT expedited the proceeding so the chosen carrier could launch service in time to succeed in the summer season, US Airways said, and "it is important to maximize the value" of transitional services the U.S. secured under the open-skies agreement initialed last fall (DAILY, Nov. 13, 1998), which will be implemented following U.S. approval of antitrust immunity for an alliance including Alitalia.
New Air Corp.'s application for 75 new-entrant slots at New York Kennedy, filed in advance of an application for FAA and DOT certification, drew a flurry of opposition as well as support from another startup carrier.
SAS was forced to cancel about 100 flights in Europe last week because of a wing inspection on its DC-9s. An SAS spokeswoman in Copenhagen said the airline's maintenance officials discovered that routine inspections had not been performed regularly. The inspections will be completed in about one week.
British Airways' low-cost unit Go will add service to Spain and Portugal, starting this month, with flights from London Stansted to Malaga March 29, Bilbao May 20 and Madrid July 1. Service to Faro, Portugal, begins March 28. Go also will fly two daily Stansted-Lisbon flights, starting March 24.
American Trans Air parent Amtran Inc. reached an agreement in principle Friday to purchase all the outstanding shares of Chicago Express Airlines. The privately owned regional carrier serves ATA at Chicago Midway. No value was attached to the transaction.
-- In Federal Register dated Feb. 19...Issued an airworthiness directive on certain Airbus A330 and A340 aircraft requiring checks of the valves of the main landing gear...Issued an AD on Saab 340 aircraft requiring inspection of the support straps of the flaps...Issued an AD on Boeing 777 aircraft requiring inspection of the outboard leading edge flaps...Issued an AD on Airbus A300-600 aircraft requiring a new fuel-level sensing amplifier.
DOT published a proposed rulemaking Friday in The Federal Register to extend the expiration date on its rules covering carrier-owned computer reservations systems for one year, to March 31, 2000. Current rules would remain in effect without disrupting compliance by CRS operators while DOT continues its "re-examination of the need for CRS regulations." The sunset date on the rules was last amended in December 1997.
Tales of A War Pilot by Richard Kirkland. Captures the experiences of the author and other pilots who served in the armed forces during World War II and the Korean War. Smithsonian Institution Press; $21.95. To order, call 800-782-4612.
British Aerospace said its 20% share of Airbus caused a loss of $40 million last year, and it attributed the results to an aircraft price war with Boeing. This would mean the consortium lost about $200 million. Boeing reported its first annual loss in 1997. But even though the Airbus consortium lost money, its partners made a profit through the sale of parts to Airbus. Other consortium partners are DaimlerChrysler Aerospace, Aerospatiale and CASA. Attempts to turn Airbus into a public limited company have not been successful.
Delta's new brain, an O&D yield management system that goes on line March 17, will generate $100 million in incremental revenue this year and $185- $290 million in 2000, according to Merrill Lynch. Delta has a lot to gain - its old system is behind the competition and the airline carries more connecting traffic than others its size.
KLM said Friday it will offer 12,296,600 seats during the summer 1999 travel season beginning March 28, a 2.5% increase from last summer. The carrier will add three cities and increase frequencies to a number of European destinations. KLM will add no new service across the Atlantic, an area of increasing scrutiny because of the abundance of existing capacity. In total, KLM will have 43,630 roundtrips over the 217-day period until Oct. 30. The airline will begin twice-weekly service from Amsterdam to Shanghai, using a 747-400 Combi.
