Americans have a "special relationship" with the U.K. and expect it to "speak out loudly in our defense when the EU proposes anti-American legislation," John Douglass, president of the Aerospace Industries Association (AIA), said yesterday in London. Douglass told the Society of British Aerospace Companies (SBAC), "If you do not, the disappointment will be palatable on our side, and it will be a factor in the political reaction to future U.S.-U.K. joint endeavors."
McDonnell Douglas Helicopter Co., an indirect subsidiary of Boeing Co., and MD Helicopters Holding, an indirect subsidiary of RDM Holding, said they have completed an agreement on the purchase of the Boeing MD 500, MD 600N and MD Explorer series of light commercial helicopter lines. The sale was approved by the Federal Trade Commission. RDM also builds submarines and other defense vehicles.
Northwest's clerical, ramp and security employees represented by IAM ratified their contracts Northwest's clerical, ramp and security employees represented by the International Association of Machinists ratified their contracts yesterday. Clerical, office, fleet and passenger service voted 6,249-2,038 in favor. Equipment service and stock clerk employees approved their contract 3,277-2,071, and plant protection employees ratified their agreement 13-3.
The government of Malaysia has turned down an application by Air Asia, the country's second designated national carrier, to operate international flights from Sultan Abdul Aziz Shah Airport in Kuala Lumpur. Failure to get approval prompted the airline to drop its Kaohsiung, Jakarta, Pattaya and Taipei routes. Using two leased 737-300s, it operates domestic services to Langkawi Island, Kuching, Kota Kinabalu, Miri and Labuan. The government's decision frustrates Air Asia's hopes to expand and become a full-fledged international carrier.
American reiterated its offer during the weekend to seek arbitration or mediation to help resolve its dispute with the Allied Pilots Association (APA) over its acquisition of Reno Air. The two sides last met on Thursday and the APA board was scheduled to meet yesterday to consider the proposal for outside intervention. The airline said yesterday APA's key demands are "simply out of step with regard to an airline merger," and it accused the union of presenting "a huge obstacle to concluding this deal.
FAA and the Luggage and Leather Goods Manufacturing Association unveiled a brochure providing guidance to travelers on carry-on baggage. The brochures will be distributed through FAA's Aviation Safety Program and to airlines and travel agents, and members of the association will distribute them with luggage products.
America West announced yesterday that it has "terminated consideration of expressions of interest" by other carriers in acquiring the Phoenix-based airline. The decision caps a month of speculation that United would acquire America West (DAILY, Jan. 22). America West said it reviewed the "highly conditioned expressions of interest," as well as antitrust, regulatory and employee factors, and favored remaining on its own. "We are confident about the company's future as an independent airline," said America West Chairman Bill Franke.
United Technologies Corp. will acquire Sundstrand Corp. for $4.3 billion in cash and stock in what analysts consider a move to solidify its aerospace business and its place in the market. Announcing the deal yesterday, the companies said UTC will pay 50% in cash and 50% in stock to combine Sundstrand with its Hamilton Standard division and form one of the world's largest suppliers of airframe components and subsystems, to be named Hamilton Sundstrand. The deal is subject to approval by Sundstrand shareholders and regulatory reviews in the U.S.
International Lease Finance Corp. said 1998 pretax income rose 6.9% to $562.3 million from $526.2 million and revenues 4.5% to $2.05 billion from $1.96 billion.
Spanair launched nonstop service from Madrid to Alicante, Vigo and Oviedo Sunday. With three daily roundtrips to each destination, the expansion is the first of several route moves this year. Spanair is offering a $297 roundtrip fare from Washington Dulles to Madrid and the new cities, as well as other Spanish destinations, through April 30.
A House subcommittee yesterday issued a periodic report on government resolution of Year 2000 computer problems and gave DOT and FAA an F, down from a D last November. An FAA spokesman took the rating in stride, saying the agency remains on target to meet its June 30 deadline for Year 2000 compliance.
Greenville-Spartanburg Airport Commission requested an exemption from DOT for three Chicago O'Hare slots for nonstop service from Chicago to the community. American Eagle's application for such service (Docket OST-98-4647) is pending at DOT. Noting O'Hare slot requests for service to Savannah/Hilton Head by the Community of Savannah, Ga./Hilton Head, S.C.
Atlas Air said yesterday it has exercised two options to purchase 747-400 freighters next year. Atlas said this brings its total orders to 12 aircraft, four of which will go into service this year, joining five delivered in 1998.
FDX Corp. said yesterday the contingency plan it laid down during the Federal Express pilot contract negotiations cost $20-$30 million less than the company forecast. FDX estimated the cost at about $90 million, which will be recognized in the fiscal third quarter ending Feb. 28. It said $80 million will be included in operating expenses and $10 million in interest/other expenses.
Pilot hiring, strong in 1998, stayed strong in January, according to Atlanta-based AIR, Inc., as 1,220 pilots found jobs during the month. Majors hired 437, nationals 337 and jet operators 181. Of 218 airlines reporting to AIR, Inc., 166, or 76%, hired pilots in January. At the end of the month, 300 of the 80,677 active airline pilots remained on furlough.
Kiwi International posted January increases of 42% in traffic and 21% in capacity to 60 million revenue passenger miles and 94.6 million available seat miles, respectively. The load factor rose 10 percentage points to 64%.
The expansion of Terminal 1 at the Singapore Changi Airport has been completed and will be commissioned next month. The enlargement added eight aerobridges, for a total of 67 in Terminals 1 and 2, and two "travelator" moving sidewalks, easing passenger movement to other points in the facility. Costing US$262 million, the expansion is part of a planned US$3 billion program, including the extension of Terminal 2 and construction of a third terminal.
American Eagle to launch nonstop RJ service between Madison, Wis., and Chicago O'Hare American Eagle, regional airline affiliate of American, will launch nonstop RJ service between Madison, Wis., and Chicago O'Hare April 19 and add a second flight on April 26, replacing two of its seven daily turboprop flights with 50-seat ERJ-145 regional jets. It will replace four of its nine daily Grand Rapids-Chicago turboprop flights with RJs on April 26.
The State of Alaska challenged as inappropriate United's suggestion that DOT use "'Cities Program'-type criteria" to evaluate exemptions for service to extrabilateral, contiguous-U.S. points on flights that also serve Alaska. DOT plans to develop Alaska's international service by expanding foreign carrier access to U.S. points via Alaska (DAILY, Jan. 27). The state said carriers from countries without open-skies agreements with the U.S. should be encouraged by the opportunity to serve U.S.
American is rewarding some of its employees who stuck it out during the recent nine-day pilot sickout.The company is giving airport, reservations and other customer contract and operations employees $50 Citibank gift certificates in addition to their overtime pay. Pilots and flight attendants whose flights were canceled even though they reported to work will be paid as if they flew their scheduled trips.
DOT granted for two years TWA's exemption request for "'worldwide' route integration" of its existing authority, permitting the carrier to conduct services involving any points in its certificates and exemptions (DAILY, Feb. 8). DOT also renewed for two years, or until it acts on the carrier's certificate application, TWA's exemption to provide scheduled combination services between the terminal points St. Louis and Cancun, Puerto Vallarta and Ixtapa/Zihuatanejo, Mexico, and Montego Bay, Jamaica. (Dockets OST-99-5066, 97-2292)
American Eagle launched nonstop regional jet service Friday between Jackson, Miss., and Dallas/Fort Worth, replacing turboprops with 50-seat ERJ-145s on three of its six roundtrips in the market.
A Kuala Lumpur consortium - ERL Sdn Bhd - has received a US$840 million contract to construct a high-speed-rail track from the city to Kuala Lumpur International Airport. The consortium comprises three companies, Lembaga Tabung Haji and YTL Corp., with a 40% stake each, and Abrar Corp. with 20%. Work on the 60-kilometer track will start this week, with completion slated for early 2001. Trains will cover the distance in 22 minutes.
