Airlines will begin running into difficulties scheduling their flights "without undue delays" as early as 2005, according to Margaret Jenny, a US Airways official and co-chair of the Select Committee on Free Flight. Collaboration between industry and FAA is imperative to cope with projected traffic growth, Jenny told the Global Aviation and Security Conference yesterday in Washington.
James Goodwin, United senior VP-North America since 1995 and a member of the carrier's board, was named president and chief operating officer yesterday, replacing John Edwardson, who resigned Friday. Christopher Bowers, who has been senior VP-international, was named senior VP-North America.
Clarification: Sun Country will not cut its crew scheduling staff as the result of purchasing crew scheduling software from SBS International. The software will save the carrier about 50% of its current costs by improving efficiencies (DAILY, Sept. 22).
DOT reacted quickly yesterday to the oneworld alliance, announced Monday by American, British Airways, Canadian, Cathay Pacific and Qantas, and its impact on the American-BA antitrust immunity proceeding. The department issued a notice requiring American and BA to file in that docket by Sept.
Oneworld, the new five-carrier alliance, launched yesterday complete with its own Internet site, www.oneworldalliance.com, which already was full of details.The site had nine photos available for downloading within hours of the launch event, plus statistics for the alliance and individual members.
Continental has signed marketing alliances with Aserca Airlines Venezuela and Air Aruba. The carriers expect their alliances to take effect before yearend. Continental-Aserca will cover flights to Caracas and other domestic points, while the Air Aruba alliance will give Continental a partner on flights from its hub in Houston to Aruba. It also covers Air Aruba's service from Aruba to New York/Newark, Tampa and Miami. The alliances are linked to some degree, since Aserca invested heavily in Air Aruba this year.
Philippine Airlines major shareholder and Chairman Lucio Tan has turned down a proposal to keep the carrier in operation (DAILY, Sept. 18). The rescue package, prepared by the secretary of the Ministry of Finance, Edgardo Espiritu, at the request of PAL President Joseph Estrada, proposed trimming PAL's fleet to 10 aircraft from the current 15, suspending all international flights except to Los Angeles, San Francisco and Singapore, and selling and leasing back all owned aircraft. It also proposed a 50% increase in all domestic fares, effective immediately.
FAA Administrator Jane Garvey said yesterday she will push for quick solutions to Year 2000 problems at the International Civil Aviation Organization (ICAO) annual meeting, which opens this week in Montreal. Garvey said FAA will issue notices to airmen through the State Department about nations that have not resolved computer-related glitches if safety issues are involved. She said her duty is to protect U.S. citizens traveling abroad even if, on a worst-case basis, it means U.S. airlines would have to curtail operations to nations with compliance problems.
Back-country airstrips, especially in western states, are being restricted more and more, according to Aircraft Owners and Pilots Association President Phil Boyer. He told Congress recently that "we have seen a startling increase in the attempts to restrict aviation access to public lands." He said four airstrips are targeted for closure in Idaho. Boyer said back-country airstrips are necessary for search-and-rescue operations, firefighting, forest management and research. They also are important as emergency landing areas for single-engine aircraft.
Unions at Aerports de Paris have asked the entire staff of the company managing Paris' airport system to strike for 24 hours on Thursday, to protest French government plans to transfer intercontinental traffic from Orly to Charles de Gaulle. Orly staff fears the transfer will jeopardize jobs, in light of the French government's plans to beef up de Gaulle with two new runways.
Bombardier has started manufacturing and assembly of structural and system components of the Canadair Regional Jet Series 700. Assembly of the first 70-passenger aircraft is scheduled to get under way later this year, with rollout and first flight scheduled in the second quarter next year. Certification and first deliveries are planned early in 2001. A number of test rigs are running, including DC power, full-scale fuel system, electrical power, landing gear and brakes and avionics. The cockpit structure and major wing pieces have been built.
Charter operator Winair, which recently received a request from Long Beach, Calif., city officials to provide scheduled flights in its markets, applied at DOT for a certificate to engage in such service. The Utah-based carrier, which received interstate and foreign charter combination service certificates in 1997, "has experienced steady growth" since it began those operations in January this year. The carrier wants to begin scheduled passenger operations Nov. 1 and "has taken steps" to secure slots at Long Beach.
Few if any of the niche and major carriers meeting with DOT in recent months to discuss the proposed competition policy believe it is adequate as written, according to notes submitted into the docket by the department. Some small-carrier advocates, predictably, think the guidelines address too narrow a range of abuses, while larger airlines see them as competition-stifling. American, for one, sees signs of small-carrier vitality that illustrate those companies can succeed if managed intelligently.
Taiwan's EVA Air posted a net loss of NT$584 million (US$17 million) for the first six months of 1998 after reporting profits during the 1995-1997 period. Revenue increased 9.6% to NT$20.1 billion ($583 million). The airline, which invested US$4 billion in new aircraft this decade, expects its fortunes to remain constant during the coming year. "We have some carefully developed strategies in place and are confident of our ability to weather this period of economic contraction," said K.W. Nieh, deputy senior VP.
Ogden Corp. said its board authorized a $100 million increase in a stock repurchase program, to $200 million. To date, the company has repurchased about $50 million of its stock.
Air Pacific Limited asked DOT to amend its exemption to provide scheduled combination service between Nadi, Fiji, and Los Angeles via Honolulu, so it can provide the service via Auckland, New Zealand. The Fijian carrier wants to display Canadian Airlines International's code on the Auckland-Honolulu portion of the proposed route. It plans to operate the service three times weekly, beginning Dec. 7 with a 767-300 and asked that the amended authority be issued through Dec. 31, 1999. (Docket OST-96-1842)
DOT, granting a motion filed by US Airways (DAILY, Sept. 2), issued an order dismissing the carrier's complaint against the U.K. government over its inability to obtain "commercially viable access" to London Gatwick and terminating the proceeding. US Airways, DOT noted, cites its expectation that the U.S. government will continue efforts to gain "usable Gatwick slots" for the carrier's Charlotte-London service on a year-round basis.
BAA plc has increased its estimate of how fast passenger volume will increase at London Stansted Airport, adding as many as 1.5 million passengers per year to totals projected a year ago for the 2001-03 period. In its annual update of 10-year forecasts for its three London airports, BAA said Stansted is growing faster than expected - more than 28% in the April-August period - due to the rapid development of low-fare scheduled service within Europe.
SAS has taken delivery of the first next-generation 737-600. The aircraft is scheduled to enter service Oct. 25 between Stockholm and Paris. Launch customer SAS has 55 of the aircraft on order with options for 40 more. The 737-600 is the smallest of the next-generation 737s.
America West and its mechanics union leadership have reached tentative agreement on a five-year contract in which the company would recall 375 mechanics it laid off three years ago, bring some heavy maintenance work back in-house and give mechanics an immediate 14.4% wage increase. The deal is subject to ratification by the carrier's approximately 450 mechanics, represented by the International Brotherhood of Teamsters, whose spokesman, Patrick Lacefield, told The DAILY a vote could take place as soon as this weekend.
Through the release of two studies yesterday, Air Transport Association consultants called DOT's competition policy study "erroneous" and "ill-conceived" and claimed the agency chose specific information to advance a pre-ordained policy directive. The association representing major U.S. airlines said DOT deliberately misstated data "in a contrived attempt" to make the industry appear less competitive than in 1992. The department's study is so flawed "it raises questions about DOT's capabilities," ATA said.
Malaysia Airlines (MAS) will launch three-times-weekly Kuala Lumpur-Manchester service July 2, 1999. Using a 777-200, the flight will operate via Munich. The move comes as a surprise, as MAS Chairman Tajudin Ramli a month ago said he would shelve all expansion plans until the economy in Asia improves and the bleeding airline industry recovers from the slump. MAS Executive VP Bashir Ahmad said the decision comes in anticipation of the growth of the U.K. market for the Commonwealth Games, to be held in Manchester in 2002.
American, British Airways, Canadian, Cathay Pacific and Qantas yesterday announced what they described as a "new customer-driven global alliance" under the brand name "oneworld." Launching the venture in London with satellite links to other parts of the world, the chief executives of all five partners said oneworld will be available - and visible - to travelers early next year. They intend to phase in what Don Carty of American termed "a multimillion-dollar investment offering frequent flyer schemes, seamless service, earning and burning frequent flyer points."
