Delta and Solair have signed a memorandum of understanding that will make the Banner Aerospace subsidiary Delta's sole supplier of airframe rotables, repairables and expendables from the surplus market, Solair said last week. The deal, subject to negotiation of a definitive agreement, could yield revenues totaling $150 million in three years, Solair President Timothy Daggett said. Michael Ellenberg, Delta VP of aircraft maintenance, cited Solair's "aggressive" parts supply strategy and its help as Delta disposes of excess inventory.
Japan Airlines appointed John McGhee VP-non-Japanese marketing. KLM named Dig Istha corporate communications officer, a new position, and Max Rens corporate information officer, focusing on information technology policy.
Air Transport Association airlines carried 13.6% more cargo in April than last April, bolstered by an 18.4% gain in international cargo. Domestic cargo rose 9.9%. The strong demand for freight and express service continues to outpace growth in mail. In April, freight and express cargo rose 14.7% and mail 6.1%.
US Airways' Air Line Pilots Association representatives say 64 pilots received furlough notices last week. Although management has faulted ALPA for forcing it into a furlough situation, ALPA argues that the company has not provided adequate written contract proposals and continues to be unavailable for negotiations, "ensuring the furloughs will occur."
U.S. and Barbados will meet Thursday and Friday in Washington to try to hammer out an open skies agreement. U.S. officials are optimistic about attaining the first open skies pact in the Caribbean.
American is offering ticketless travel from Chicago O'Hare and Dallas/Fort Worth to Frankfurt. The carrier said it is the first U.S. airline to offer ticketless travel across the Atlantic and expects to extend the option "in the near future" to more European points, Canada and Mexico. It introduced ticketless travel on domestic flights last September. The AAccess Ticketless Travel option sends customers a receipt and itinerary that satisfies U.S. and German immigration and customs requirements.
United and the Association of Flight Attendants resume contract negotiations this week in Honolulu in what the AFA continues to call the "final, critical phase" of discussions over pay. AFA says the company's decision to spend $125 million on the new United Rising ad campaign, which FAA says will require the flight attendants to fulfill the promises of the ads now, is "a new benchmark in corporate stupidity."
In the early minutes of Friday morning, the House Ways and Means Committee voted to add another $2 billion in aviation taxes over five years by adopting a $5.50 increase in both the international departure and arrival taxes proposed by Chairman Bill Archer (R-Texas). As approved by the committee, the package would convert the existing $6-per-passenger international departure tax into a $15.50 departure tax and a $15.50 arrival tax - an increase of more than 400%.
Small Chilean regional Avant Airlines is expected to get a boost if bus company Tur Bus follows through with plans to buy the airline. Tur Bus intends to double Avant's fleet from two to four aircraft.
Boeing is stepping up its approach to increase aircraft market segmentation, spotlighting eight new aircraft concepts at the Paris Air Show. The product development programs, derivatives that offer greater range, capacity or weight, are prospects to join seven that are in varying stages of development, including three versions of the 737, the larger 777- 300 and recently launched 767-400. "We're looking at the existing strengths of our product line, and building on that," said Boeing spokesman Jerry Johnson.
For the second time this year, unions at U.S. and foreign carriers engaged in an alliance have pledged to support each other through responses to labor cost cuts as well as data sharing. When United, Lufthansa, SAS, Thai International and Air Canada formed their Star Alliance in mid-May, 14 unions at those carriers formed a Star Solidarity Alliance under a partnership coordinated by London-based International Transport Workers Federation.
DOT has backed off Assistant Secretary Charles Hunnicutt's recent prediction that the U.S. and Korea would reach final agreement on open skies next month (DAILY, June 5). Deputy Assistant Secretary Patrick Murphy, standing in for Hunnicutt, who was ill, told the House Transportation aviation subcommittee last week that the Korea talks will take longer. A DOT official told The DAILY Hunnicutt's staff had been "overly optimistic," but DOT and State officials still think they will sign an agreement.
American and British Airways reached an agreement with Spain Friday to acquire 5% each of Iberia, and American will acquire 20% of Aerolineas Argentinas, according to unconfirmed published reports in Madrid and Buenos Aires. American declined comment on the reports.
Senate Commerce Committee has scheduled the confirmation hearing for FAA Administrator-designate Jane Garvey on June 24 at 2:30 p.m. in Room 235, Russell Building.
American Trans Air reported a 0.6% decrease in May traffic to 703.5 million revenue passenger miles from 707.6 million, while capacity dropped 10.8% to 1.009 billion available seat miles from 1.132 billion. The load factor increased 7.2 percentage points to 69.7%. The airline focused on charter flights as it continued to reduce its scheduled service during the month. Scheduled service RPMs were down 19% and ASMs 31.6%, resulting in a load factor improvement of 11.7 points, while charter service block hours rose 40.6%.
Air France pilots, striking recently on pay and other issues, object to a proposed starting salary of $38,300, one-third less than the current amount, roughly $57,000. Young U.S. pilots would welcome either rate - as some major airlines start them at $22,000 or less.
Approved a request for Lineas Aereas Allegro to wet-lease MD-83, 727 and DC-9 equipment to Air Jamaica for the operation of Air Jamaica's scheduled service between Baltimore and Montego Bay, Orlando and Montego Bay, Fort Lauderdale and Kingston, and Fort Lauderdale and Montego Bay, effective June 10-Aug. 9. DOT deferred action on Allegro's request to continue the wet-lease beyond Aug. 9...Approved a charter by Blyth&Co.
RTCA board elected James Pierce, ARINC chairman and chief executive, chairman; John Fearnsides, Mitre/CAASD senior VP and general manager, vice chairman, and James Hardy, director-air traffic control systems of Hughes
