DOT extended through Feb. 1, 2000, the window for action on Northwest's complaint against European Union restrictions on the use of hushkitted aircraft. Northwest has agreed to a limited waiver of the deadline. The airline charged that the regulation would unreasonably restrict U.S. operators' access to the European market "in contravention of U.S. rights" under bilateral aviation and Chicago Convention agreements.
American and its Association of Professional Flight Attendants (APFA) yesterday concluded a tentative contract agreement that would place members at the top of the industry in terms of pay, pension benefits and flexibility by the November 2004 amendable date. APFA President Denise Hedges said she could not release details because the two sides still are resolving the final language. The deal also is subject to the approval of APFA's executive committee, which will decide whether to send it to the 20,000 members for ratification.
British Airways and the Royal Bank of Canada are launching a range of financial services that will be available 24 hours a day, seven days a week through a toll-free telephone number and a secure Internet site. The two parties have formed a major strategic alliance, British Airways Global Financial Services, which begins on June 1 with the launch of the Offshore Deposit Account, good for any major world currency.
Air Canada, after an absence of three years, yesterday relaunched daily service between Chicago and Calgary, with new 112-seat Airbus A319 aircraft. The flight, which the carrier plans to offer twice daily in the near future, connects in Chicago with service by Star Alliance partner United. To kick off the new service, Air Canada offers double bonus miles that also apply to United's frequent flyer plan.
DOT made final its order proposing expanded designation and frequency opportunities for foreign carriers operating service via Alaska (DAILY, Jan. 27). The new policy is designed to reverse the decline in stopovers resulting from use of long-range aircraft and the opening of Russian airspace that makes shorter, northern air routes available.
Senate Commerce Committee pushed for last week's longer-than-expected FAA extension to Aug. 6 in hopes that a multi-year FAA authorization would be finalized by then, helping avoid the typical September traffic jam over appropriations bills, Senate sources said. DOT Secretary Rodney Slater hopes to see House and Senate action on a multi-year authorization well before the Aug. 6 deadline - the last working day before Congress' month-long recess - to avoid 11th-hour negotiations in August, a DOT spokesman said.
TWA's pilots want a real-time simulation study of a plan to expand and improve St. Louis Lambert Field because they say the W-1-W option under consideration fails to properly consider certain safety issues. Pilots, represented by the Air Line Pilots Association, say the plan also grossly overstates capacity improvement claims. They say the plan's safety issues have not been adequately addressed by the airport authority.
Delta filed a motion yesterday to dismiss a lawsuit by its Air Line Pilots Association unit seeking to halt Delta's Connection partner Comair from operating three new Boston-Washington Delta Shuttle flights (DAILY, April 28). ALPA's suit, filed in the U.S. District Court of New York, charges that Delta violated the spirit of its contract with the union by using non-Delta equipment and crew. Delta plans to add the flights June 1.
Hawaiian Airlines flew 457,618 passengers in April, 4.1% more than in the same period a year ago. It also recorded 397 million revenue passenger miles, up 7.7%, and 515.3 million available seat miles, 11.7% higher. The resulting systemwide load factor was 77%, a drop of 2.9 percentage points. For four months, the carrier reported 1.5 billion RPMs, up 10.5%, 2 billion ASMs, up 5.9%, and 1,822,428 passengers, 7.8% more than in the comparable 1998 period. The systemwide load factor for the four months was 75.5%, up 3.1 points.
The long-lasting dispute between Iberia and its pilots came to a head Sunday when Sindicato Espanol de Pilotos de Lineas Aereas (SEPLA), the pilots union, rejected management's "last and only" proposal on pay and conditions. The two sides have been in difficult negotiations on renewal of their contract since April. Even though SEPLA insisted Sunday in Madrid that it would seek a negotiated resolution to the conflict, it is widely expected that the renewed tension will worsen severe air traffic problems Spain has been suffering since the end of March.
Seven former and current flight attendants at United have sued the company for alleged discrimination during the 14 years the carrier imposed a maximum limit on weight for cabin crew. United spokesman Joe Hopkins said the airline dropped the weight limit in 1994. In the lawsuit filed in U.S. District Court in Denver, the flight attendants alleged they lost income because they were not allowed to work when their weight exceeded the limits. They are asking for back pay and damages.
DOT has given Haines Airways, Haines, Alaska, permission to terminate scheduled service at Kake, Alaska, May 29, but denied its request to drop service before that date. Kake will continue to be served by L.A.B. Flying Service, also of Haines. (Docket OST 1999-5166)
AccessAir Chairman Roger Ferguson told DOT in a letter that Northwest's strategy is "obviously more subtle than the grosser forms of predation the department has seen, but no less destructive of healthy competition."Northwest refiled fares "at a slightly increased level" once AccessAir's introductory fares expired, he said. The move was a "calculated action" designed to "drain traffic" at "below-cost prices," Ferguson alleged.
World Airways has named Andrew Gilbert Morgan president and chief operating officer, effective June 1. Hollis Harris, who was appointed chairman, president and chief executive in April, will continue as chairman and CEO.
Air France, developing its European network from Charles de Gaulle with the help of regional airline partners, plans to form stronger ties with Irish carrier Cityjet. The French national carrier was instrumental in finding British and Irish investors to recapitalize Cityjet, bringing 2.5 million euros (US$2.7 million) to the transaction. In return, it will receive two seats on Cityjet's board. The Air France/Cityjet partnership, in effect since 1996, generated 320 million French francs ($52 million) last year.
US Airways' Envoy Class service has won the 1999 Presidents Award of Distinction for Innovation in First and Business Class Service, given by the International Inflight Food Service Association. The award was presented in recognition for outstanding achievement based on menu selection and presentation, serviceware and table linen, spirits and wine, and special presentations such as dessert, amenities and cabin service.
US Airways flight attendants, who have been in contract talks with the company for about two years, plan to rally at Wednesday's shareholders meeting in Charlotte, N.C., to protest proposed cash incentives in addition to what they consider outrageous pay to President and Chief Executive Rakesh Gangwal and US Airways Group Chairman Stephen Wolf. US Airways' Association of Flight Attendants President Steve Hearn said Wolf "raked in $34 million last year.
China's reduction of its civil aviation infrastructure levy (CAIL) will help China Eastern Airlines (CEA) return to profitability after a US$61 million loss last year, CEA Chairman Fu Yunbi told The DAILY. CEA made a profit of US$74.9 million in 1997. Fu said the $23.6 million earned from the sale (Continued) of 13 Boeing MD-82s also would help the carrier improve its finances. CAIL is the government's charge on all Chinese airlines for revenue earned on domestic and international services for one calendar year.
Peruvian President Alberto Fujimori has extended AeroPeru's bankruptcy proceeding from May 17 to June 1. According to DAILY affiliate Aviation Latin America&Caribbean, Continental executives are set to meet with Fujimori May 24. Reports say the Houston-based airline is prepared to invest up to $70 million to relaunch AeroPeru - $40 million for liabilities and $30 million for working capital. Two other airlines are waiting in the wings in Lima. LanChile is backing LanPeru, while Grupo TACA is helping fund TransAm Airlines.
Japan Airlines yesterday named Kazunari Yashiro chief executive officer, the Americas. He replaces Yukio Ohtani, who has returned to Japan to become president of Japan Air Charter, which will become a scheduled carrier. Based in New York, Yashiro will be responsible for JAL's business in the U.S., Canada, Mexico and Central and South America. He previously was senior VP and deputy general manager of JAL's corporate planning department. It is Yashiro's second U.S. assignment, after directing the airline's government affairs from 1979 to 1984.
Great Lakes Aviation has been tentatively selected by DOT to continue to provide subsidized essential air service at Manistee/Ludington, Mich., for two years from Dec. 29, 1998, through Dec. 31, 2000, at an annual subsidy rate of $361,808. Great Lakes provides - and will continue to provide - two one-stop roundtrips per day, six days a week, with Beech 1900s, from Manistee to Chicago O'Hare. Objections are due May 25. (Docket OST 96-1711)
US Airways' Air Line Pilots Association Master Executive Council last week unanimously approved a deal that will for the first time cover pay and work rules for pilots in supervisory positions. The union also is asking for volunteers to help new pilots transition from training to flying the line. US Airways expects to hire 25 pilots per week through the yearend.
