Periodic strikes planned by Iberia's pilots could "cause delays" in the airline's privatization, Spanish Industry Minister Josep Pique warned in an interview broadcast Sunday by a Spanish radio station. Sindicato Espanol de Pilotos de Lineas Aereas (SEPLA), the pilots union, called for strikes every Monday and Friday March 27-July 31. Pique said the action is "out of proportion" to the dispute, which centers on the wet-lease of aircraft from private company Air Europa and the hiring of Air Europa pilots.
Spectrum Capital Ltd., Greenwich, Conn., will establish Spectrum Aviation Services Inc., offering asset valuation and technical services. The president and chief executive of the new company will be Lawrence Crawford, founder of the Avitas and Crawford Aviation Associates consulting businesses.
Airport advocates have a better chance of raising the limit on passenger facility charges than increasing funding for the Airport Improvement Program, congressional staff members said yesterday at an airports conference, but even the PFC boost is far from assured. House Transportation Aviation Subcommittee Counsel David Schaffer rated the chance for a gradual or limited PFC increase at "50-50" but said he did not sense the "grassroots" pressure needed to increase the current cap - $3 per segment, with a limit of charges at four segments.
FAA has approved an increase in the types of airplane modifications Boeing carries out at its facilities in Wichita, Kan., the company said. The supplemental type certificate will allow Boeing to convert 747-200 Combis with stretched upper decks to full-freighter configuration. The stretched upper deck provides for more passengers but reduces cargo capacity. The modifications restore the cargo capability.
A federation of 17 unions at Olympic Airways plans a three-hour strike today to protest a restructuring program announced last week by the Greek government. The plan, based on a report last year by international consultant McKinsey, aims to cut annual costs $155 million by means of a three-year wage freeze, longer working hours and termination of unprofitable routes. The unions unanimously rejected the plan, which they are expected to discuss with the airline's management today. The union federation was successful in checking a previous restructuring plan in 1994.
Air Transport Association President Carol Hallett yesterday announced a reorganization that creates four new divisions "designed to embrace change and better serve our member airlines." John Ryan, who has been VP-air traffic management, was named acting head of the new Aviation Safety and Operating division, encompassing all of ATA's technical departments. Mike Rioux, who was senior VP-operations and safety, now is VP-engineering, maintenance and materiel, part of Aviation Safety and Operations.
US Airways' Baltimore MetroJet operation on July 6 will launch four daily flights to Tampa/St. Petersburg, its sixth destination. A seven-day advance ticket on the route will cost $89 one way.
Canadian Air Traffic Control Association and Nav Canada over the weekend reached agreement on a tentative three-year contract that contains a new pay package. The proposed contract is the first for CATCA and Nav Canada, the private-sector provider of civil air navigation services that took over from the government in November 1996. Before then, controllers were employed by the federal government.
Boeing will not alter announced plans to boost production of its next- generation 737 aircraft from seven to 14 next month despite the fact that it is producing more aircraft than it can deliver. Boeing ran into problems when the Joint Aviation Authorities demanded a bigger escape hatch over the wing on the 737-700 and FAA required modifications to the horizontal stabilizer. "It is not a situation we like to be in," a spokeswoman said yesterday.
Kitty Hawk expressed concern about its first quarter earnings due to "poor operating results" of American International Airways, which it acquired last November. Tom Christopher, Kitty Hawk chairman, said that "although we face difficult challenges with AIA, we remain confident in the long-term benefits of the merger." Operating its own and leased aircraft, Kitty Hawk provides global air freight service, scheduled overnight cargo service to 28 U.S. cities and charter passenger service.
U.S. major airline unit cost structures remained largely fixed over the last five years, and, when inflation is factored in, the industry's cost per available seat mile (CASM) actually declined. The largest 10 airlines reported a 0.4% increase in CASM last year, according to a DAILY analysis of DOT data. (See charts on Pages 487-488.) Majors' average CASM for 1993 was 9.17 cents, rising to 9.41 in 1997. With a 3% annual inflation rate, the five-year trend would have led to a 1997 CASM of 10.32 cents.
American Eagle will introduce regional jet service May 15 between Chicago O'Hare and Cleveland, Cincinnati and Milwaukee. Eagle will offer the 50- seat Embraer RJ145 on six roundtrips to Cleveland, five to Cincinnati and one to Milwaukee.
Polar Air Cargo said yesterday it will be the first major U.S. scheduled all-cargo operator to equip its fleet with traffic alert and collision avoidance system (TCAS). The first 747 freighter with TCAS flew yesterday, and Dick Scholl, VP-maintenance, said all 17 747s will have TCAS by yearend.
Negotiators from the U.S. and Argentina had a "good first round" of open- skies talks in Buenos Aires last week, a DOT spokesman said.No dates are set for the next round, expected soon. Argentina offered immediate "open rights" for U.S. cargo operators, based on comity and reciprocity, in advance of open skies.
Washington Consulting Group (WCG), which raised conflict-of-interest questions in a recent unsuccessful protest of a major FAA contract award, has settled out of court charges that it falsified labor costs in a number of federal contracts. The $425,000 settlement was reached March 10, more than four years after the Dec. 30, 1993, filing of the complaint by a former WCG employee, later joined by the Justice Department. In signing the agreement, WCG admitted no guilt or wrongdoing.
Germany has been well apprised of the European Commission's position on open-skies agreements, an EC spokesperson told The DAILY yesterday, countering statements by Germany's transport counselor in the U.S. embassy (DAILY, March, 18). Since the inception of the U.S. open-skies policy in late 1994, the spokesperson said, the EC has maintained that member states had "lost their competence" to negotiate bilateral aviation agreements with the institution of the single aviation market in 1993.
While most airlines are scrambling to get their share of business travel, Spirit Airlines continues to market itself as a leisure carrier. It seems to be working - net profit climbed to $1 million last year, and its load factors stabilized in the high 70s to low 80s, said Vice Chairman Mark Kahan. Unlike many startups, Spirit survived the exodus of passengers following the ValuJet crash. It also survived last year's failed purchase bid by Comair Holdings, and so far it has held on at Detroit Metro Airport despite not having its own gate.
American will begin its Japan Airlines code share with only one Japanese city-pair, Tokyo-Nagoya, and one beyond market, Tokyo-Bangkok. In the 15 initial code-share routes that start in October, JAL will offer service beyond Dallas, Chicago and Los Angeles to Orlando, Miami and Las Vegas. Total city-pairs will rise to 100 by summer 1999.
Continental will take delivery of 64 Boeing aircraft this year - on average, one every 5.7 days - making it one of the top aircraft customers in the world. The airline received 20 new Boeings last year but needed used aircraft as well - it bought three used DC-10-30s and leased seven more.
Eva Airways has overtaken China Airlines over the Pacific. Investment company Goldman Sachs now regards CAL as a "niche carrier," because 45% of its revenue comes from two markets - Hong Kong and Japan.
American Society of Travel Agents will hold its Western Regional Conference May 26-29 in Reno at John Ascuaga's Nugget Hotel. More than 700 travel industry professionals are expected to attend.
