GE Aircraft Engines and IHI of Japan have signed a memorandum of understanding under which IHI will be responsible for design and manufacture of 30% of the CF34-8C turbofan engine that will power the new Canadair CRJ-X regional jetliner. IHI may invite other Japanese companies to participate in its portion of the program. The engine for the 70- to 76-passenger aircraft will produce up to 13,000 pounds' thrust, or about 50% more than the CF34-3A1 that powers the Canadair Regional Jet.
Continental Chief Executive Gordon Bethune received a $1.5 million bonus and an amended employment agreement last year, at least in part because he was offered a better deal by an unidentified competitor after joining Continental as its president and chief operating officer in February 1994.According to the proxy statement Continental filed recently with the Securities and Exchange Commission, the competing offer included a substantial bonus and significantly higher salary and benefits than Continental had agreed to pay.
District 143 of the International Association of Machinists has authorized litigation against one of its members for pursuing criminal charges of assault and "fighting words" against an IAM official. Attorneys for Victor Remeneski, an IAM member who supported a move in 1991 by the Aircraft Mechanics Fraternal Association (AMFA) to represent mechanics at Northwest, said IAM officials screamed profanities at Remeneski, who feared physical harm. The suit against Remeneski is for malicious prosecution.
DHL Worldwide Express named Victor Luaces director-sales and marketing for the Latin American and Caribbean region. Emirates appointed Scott Holz sales executive-Central USA. Swissair named Peter Somaglia VP-cargo.
- In Federal Register dated April 24...Issued an airworthiness directive on certain Boeing 767 aircraft requiring replacing the door-opening actuators of the emergency off-wing escape system...Issued an AD on AlliedSignal LTS101 engines requiring replacing the magnetic speed pickups in the engine overspeed protection system...Issued an AD on Pratt&Whitney JT8D engines requiring inspection of certain combustion chamber outer cases on DC-9 and 737 aircraft.
Sterling Airways A/S has decided not to submit an application to DOT to renew its Foreign Air Carrier Permit. Put into bankruptcy in September 1993, the carrier has been substantially liquidated, but part of its operations has been reorganized for service in Europe and North Africa. (Docket 45279)
United has rolled out its first 737 painted with the Shuttle by United logo. It will be followed by 11 more throughout the year. United is applying the new logo as the airplanes come due for repainting.
Aeromexico requested renewal of its authority to operate scheduled combination service between Hermosillo and Tijuana, Mexico, and Phoenix, Ariz. The carrier currently offers multiple daily nonstop service in the Hermosillo-Phoenix market under its code-share arrangement with Air L.A., using 19-seat Metro III aircraft. It does not operate service between Tijuana and Phoenix but is considering it. (Docket 50305)
DOT and European Union representatives squared off Friday over who will gain the most from the U.S. nine-country initiative, in a panel discussion sponsored by the Federal Bar Association. The U.S. will get "many more advantages" than the European countries, said Yves Devellennes, counsellor for the delegation of the Commission of the European Community. For example, the pacts do not address market access in a balanced way. Under the agreements, U.S. carriers gain fifth-freedom rights in Europe, while European airlines will be shut out of the U.S.
Another round of internal conflicts at Kiwi International Airlines could cause management upheaval as early as today and further calls into question the airline"s stability. A battle broke out last week among directors and management, as some directors took sides with Chairman and Chief Executive Byron Hogue, and others supported President Danny Wright. Wright and five board members, referred to as the voting trust, called a board meeting designed to get rid of Hogue.
Airbus Industrie of North America appointed Troy Tollen director- placement and remarketing, North America. Airclaims Limited appointed Larry O'Beirne managing director- Airclaims International with the announced acquisition of L.E. O'Beirne&Associates. Air Express International reported the death of Tom Stack, formerly head of AEI's European operations Associated Air Freight promoted Jim Marks to regional service manager- Mid-Atlantic region.
United said it could save $5 million a year by opening a flight attendant domicile in Hong Kong, a move that has outraged its flight attendants, who fear that U.S. jobs will go overseas (DAILY, April 27). The airline countered that the new base will generate additional flight attendant jobs in the U.S. and Asia, and U.S.-based flight attendants will have first choice, based on seniority.
General aviation aircraft billings increased 33.5% to $595 million in the first quarter, while units rose 14.4% to 207, the General Aviation Manufacturers Association said. GAMA President Edward Stimpson said that the first quarter included increases in both piston aircraft and turboprop aircraft shipments, and "we are beginning to see indications of industry revitalization." Piston shipments were up 16.4% to 108 and turboprop shipments 40.5% to 52, but jet shipments declined 9.6% to 47.
U.S. and Philippines concluded the current round of negotiations Friday in Washington without resolution or plans to meet again. The U.S. has been seeking a more liberal regime, while Filipino officials are concerned mainly about the potential for uncontrolled capacity from the U.S.
Arrow Air was successful in negotiations with FAA in avoiding a proposed certificate revocation, Jeffrey Shane, the carrier's attorney, said Friday. Shane said FAA had agreed in a consent order not to revoke the certificate but formalized a suspension issued March 17 in a consent agreement under which Arrow voluntarily grounded its fleet of 18 aircraft. The carrier will pay FAA $1.5 million to defray the cost of the agency's investigation, Shane said. Under the terms of the settlement, Arrow did not admit any violation of FAA regulations, Shane said.
DOT is granting regional carriers a waiver from filing a 45-day notice of intention to suspend service at FAA-designated non-hub communities where DOT has established Essential Air Service. The DOT decision expands criteria tentatively set in October 1994 for receiving a waiver (DAILY, Oct. 14, 1994). In the earlier decision, a waiver could be gained if the community would continue to receive scheduled jet aircraft service or scheduled service from two or more commuter carriers.
To Rep. James Oberstar (D-Minn.), last week's $955 million in FAA-Loral contracts to restructure elements of the former Advanced Automation System program show that FAA "can be fixed within its current, basic organizational structure." Oberstar opposes air traffic control corporatization and backs acquisition and personnel reforms at FAA.
Top 10 Passsenger Airports By Worldwide Region The Year 1994 Total % North America Code Passengers Change Chicago, Illinois ORD 66,435,252 2.1 Atlanta, Georgia ATL 54,090,579 13.9 Dallas/Fort Worth, Texas DFW 52,601,125 5.9 Los Angeles, California LAX 51,050,275 6.7 Denver, Colorado DEN 33,129,126 1.5 New York, New York JFK 28,799,275 7.5
Delta last week graduated a class of 227 flight attendants, a majority of whom are currently working for Delta in other capacities. Filling the positions from within the company will help Delta reach its Leadership 7.5 cost goals by reducing the overall number of jobs, said Harry Alger, executive VP-operations. The new flight attendants are needed because of code-sharing service - 80 will be placed in Boston, 25 in Miami/Fort Lauderdale and 122 in New York.
National Transportation Safety Board released last week its factual report on the fatal crash of an Air Transport International DC-8 Feb. 16 during takeoff on an attempted three-engine ferry flight from Kansas City. The board will study information contained in the report in determining a probable cause. The report shows the crew may have confused Fahrenheit and Celsius in computing the outdoors temperature at takeoff, resulting in too slow a liftoff speed.
U.K. airport management and development company, BAA plc, announced that Russell Walls has been appointed group finance director, replacing Nigel Ellis, who will retire from the board July 14. Walls was group finance director of Wellcome plc before it was acquired by Glaxo plc.
Sen. Max Baucus (D-Mont.) introduced legislation (S.729) last week to provide for off-budget treatment of transportation trust funds - aviation, highway, inland waterways and harbor maintenance. The bill, co-sponsored by Senate Majority Whip Trent Lott (R-Miss.), is similar to House legislation (H.R.842) that has 147 co-sponsors.
International Air Transport Association member carriers should expect traffic to increase by 8.5% and capacity by 7% in 1995, according to Director General Pierre Jeanniot.Unit costs should decrease 1.5%. With freight traffic up 14% and passenger traffic 8% in 1994, the 1995 traffic projections should be reached, he said, but the question is whether carriers can hold down capacity.
Crew of a United 767 followed proper ETOPS (Extended-range Twin-engine Operations) procedures after shutting down one of the two engines last week, and the aircraft was never in danger before diverting to Bermuda on a flight from New York to Sao Paulo, an FAA official said Friday. A check with FAA headquarters in Washington showed that only 39 inflight shutdowns have occurred in the 33.8 million aircraft cycles ETOPS has been in use.
Western Pacific Airlines' first flight took off Friday from Colorado Springs Airport despite a court filing by Plane Purpose Promotions of Tampa seeking an injunction to stop the carrier from operating the aircraft. WestPAC is selling the exterior of its airplanes for advertising, and the first flight was a "flying billboard" for the Broadmoor Hotel.
