British Airways is talking to its labor unions in the U.K. about doing away with national contract negotiations and using a system of localized bargaining. BA wants to give its managers flexibility to negotiate wages and work rules that reflect local conditions more closely.
Air Canada received route authority last week to Belgium, the Czech Republic, Greece, Haiti, Israel (service starts June 20), Russia, Singapore and Spain under Canada's new "Use-It-Or-Lose-It" policy. It lost its Cuba and Dominican Republic authority to charter carrier Air Transat, however. Canadian Airlines International did not get any primary authority but won backup authority to the Czech Republic.
American Airlines, AMR Corp., The Sabre Group and AMR Management Services are sharing a World-Wide Web site on the Internet. American said 400 web pages are immediately available as the first information phase at uniform resource locator http://www.amrcorp.com. Internet users can find information on American, American Eagle, Sabre and AMR Management Services and other wholly owned businesses. The second and third phases will provide travel-related interactive information.
Merlin Express, the wholly owned freight carrier operated by Fairchild Aircraft, is obtaining Part 298 authority to carry passengers. The airline operates 37 Metros under contract to DHL, FedEx and UPS and also maintains 50 C-26 military variants in 44 states. It plans to offer passenger aircraft under wet-lease to start-up carriers and others that require the additional lift in what is expected to the "third tier" of regional airline operations - providing feed to large regionals that move into larger equipment and quit the smaller community markets.
The chairman and ranking Democrat of the House Government Reform and Oversight Committee told DOT Secretary Federico Pena this week that they find "troubling" their understanding that DOT agreed to end the April round of aviation negotiations with the U.K. "in the face of limited opposition," and agreed not to pursue closure on a mini-deal until the Senate Commerce aviation subcommittee could conduct a hearing on the negotiations. The May 23 letter, from Reps.
Gulfstream International last month reported the largest percentage increase in the number of passengers boarded among a sample of 12 regional carriers tracked by The DAILY. The Florida-based United Express affiliate carried 28,377 passengers during the month, up 82.04% from 15,588 in the same month one year ago. In second place, logging a 21.72% increase in enplanements, was Alaska Air Group's Horizon Air, which carried 296,500 passengers compared with 243,600 in April 1994.
Major U.S. carriers, still hiring more pilots than any other airline category, will produce 2,000 new pilot jobs in 1995 if they can sustain April's pace for the rest of the year, according to AIR, Inc.Five of the 11 majors hired 185 new pilots in April. Although American and Delta are beginning to recall a small number of furloghed pilots - the industry-wide total is 2,250 - Continental began layoffs in April and USAir plans 250 furloughs this year.
A Canadian Airlines International joint labor/management committee has less than six weeks to secure C$325 million (US$238 million) per year in cost savings, C$125 million of it from labor, or watch the airline attempt to shrink its way to profitability by grounding aircraft, eliminating jobs and abandoning routes, including all of its newly won transborder service. That was the message sent yesterday in a letter and pamphlet from the airline's Strategic Planning Steering Committee (SPSC) to employees.
Continental confirmed yesterday that it has had discussions with Mesa Air Group proposing a combination of Continental's subsidiary, Continental Express, and Mesa Air Group. In a terse statement, Continental said no agreement had been reached, but Continental "continues to explore various opportunities."
Continental Express pilots, not faring any better in contract talks with management than Continental pilots, have declared an impasse and requested federal mediation last week. The Independent Association of Continental Pilots (IACP) filed the request with the National Mediation Board, which has docketed the case and plans to assign a mediator as soon a possible. The IACP represents about 4,700 pilots - nearly 600 of which are Continental Express - that have been without a contract since 1983. Continental pilots also are in mediation over their contract.
The fatal crash of a Simmons Airlines ATR-72 last November has shed more light on an unusual - and hazardous - icing phenomenon, and FAA is considering new training and test procedures that may be incorporated in aircraft manuals to handle such weather patterns. The ATR-72, which crashed Oct. 31 over Roselawn, Ind., killing all 68 people aboard, encountered what weather experts called "super cooled drizzle drops," leading to a buildup of ice on the upper part of the wing that ultimately caused the accident, it is believed.
Senate voted 61-38 yesterday to approve the conference report (House Report 104-124) on the supplemental appropriations/rescissions bill (H.R.1158). The action clears the bill for President Clinton, who plans to veto it. Neither the Senate vote nor the 235-189 vote in the House is sufficient to override a veto. The legislation would cut $2.094 billion in unused Airport Improvement Program contract authority, but the reduction would have no effect on the actual level of airport grants.
Facing a tight schedule and difficult issues, Sabena's management and unions are meeting to develop a business plan austere enough to return the carrier to profitability as Swissair takes 49.5% ownership of it. Major sacrifices will be required of the work force to meet Sabena's objectives, and the deadline for signing the Swissair-Sabena investment deal is July 31.
Jetstream Aircraft, which produces three commuter turboprop models, has established a Commuter Air Safety Perceptions Group to battle the negative publicity attached to turboprops.
The European Commission economic outlook for the European Union forecasts growth of 3% per year in 1995 and 1996 following last year's "surprisingly strong" growth of 2.75%, according to Yves-Thibault de Silguy, EC commissioner for economic, monetary and financial affairs. He described the forecast growth as healthy and stable, but he noted that prospects would have been more favorable were it not for recent "currency upheavals" within the EU and the weakness of the U.S. dollar.
Air L.A. ceased all California operations Thursday and is expected to move its headquarters to St. Paul, Minn. The Fairchild Metro operator and code-sharing partner of Aeromexico, recently acquired St. Paul-based Capitol Air, which operates between downtown St. Paul and Chicago Midway. Air L.A.'s only other remaining route is between Phoenix and Hermosillo, Mexico. The company said passenger loads were "insufficient to justify" continued Los Angeles service, which included San Diego, Tijuana, Bakersfield, Fresno, Stockton and Ontario.
Emirates recently took delivery of an A310-300, the 16th Airbus to enter the carrier's fleet and the last of the European-made airplanes to be delivered to the airline before the arrival of its first Boeing 777 in 1996. The A310 received is the last of three that Emirates leased when demand for capacity exceeded its original estimate. The aircraft is configured to accommodate 10 passengers in first class, 32 in business and 131 in economy. Emirates' Airbus fleet now comprises 10 A310-300s and six A300-600Rs.
A revenue management service designed specifically for regional carriers can help them generate up to 2% more revenue, the service's developer claims. The service, dubbed ReArm (regional airline revenue maximizer), will allow regionals to "achieve the significant revenue benefits of automated revenue management without making the major capital investment required for an in-house system," according to Kenneth Stephens, president and chief executive officer of BehavHeuristics, which developed the system.
Financially strapped Continental will resume mediated contract negotiations with its increasingly disenchanted pilots union Tuesday as both sides try to find some middle ground. A representative of the Independent Association of Continental Pilots (IACP) said "the longer this goes on, the more difficult it is to control the pilots," who have been without a contract since 1983. Continental cannot afford a strike, and the pilots have been rumbling for some time about work stoppages, and they picketed the main hubs this month.
Swissair has named Werner Rohrer, formerly general manager-Madrid, general manager-marketing for North America. In his new post, Rohrer oversees a staff responsible for Swissair's passenger marketing, pricing, product development and management, sales promotion, public relations, market communication and planning activities. He reports to Jean-Pierre Allemann, Swissair's general manager for the region.
Senate adopted by voice vote yesterday a measure expressing the "sense of the Senate" that the essential air service program receive a sufficient level of funding to continue to provide air service to small rural communities that qualify for assistance. The resolution, adopted as an amendment to the budget resolution (S.Con.Res.13), has no legal effect, although it does put the Senate on record as supporting EAS. In fact, the budget resolution still technically assumes that EAS will be terminated as part of a package of cuts within transportation.
KLM will be forced to cancel 20 intra-European flights and one intercontinental service if pilots strike Tuesday, as threatened, but the airline believes it will be able to accommodate on alternative KLM flights more than 5,000 of the 7,000 passengers booked to depart during the six- hour strike period (DAILY, May 24). KLM has prepared a rescheduled flight plan in anticipation of the strike, expected May 30 from 10 a.m. to 4 p.m. local time.
Admission to Buckingham Palace is part of a three-night "Treasures of London" tour package British Airways is offering from the U.S. The air- inclusive tour is priced from $749 to $1,089 per person based on double occupancy. The four-day/three-night package, offered for travel between July 1 and Sept.
Host Marriott has been selected to be the master concessionaire/operator of food and beverage service and hotels at Amsterdam Schiphol Airport. The long-term contract, which takes effect July 1, covers more than 30 food and beverage outlets and two hotels located within the terminal complex. Schiphol will be Host Marriott's first European operation but its fifth international location, after Auckland, Christchurch, Melbourne and Vancouver.
