Strike by JAT mechanics entered its eighth day Thursday with no sign of a resolution ( ATWOnline, March 21). According to media reports in Serbia, the government used police to remove 400 striking mechanics from an aircraft hangar. This is the third strike at JAT over the past six months as the carrier has tried to reduce its workforce and salaries amid union allegations of corporate mismanagement. The fleet is grounded and management is trying to lease aircraft to operate flights.
Citing "a growing trend towards the outsourcing of maintenance," Airbus yesterday unveiled a Maintenance Repair & Overhaul Network consisting of 11 service providers around the world.
IAE and SilkAir signed a 10-year fleet hour agreement covering maintenance and repairs on V2500 engines that power SilkAir's fleet of seven A320s and four A319s.
Magic Software Enterprises announced that TAP Servicos Portugueses de Handling has implemented its Hermes cargo handling system in a deal valued at $1.4 million over a four-year period.
ARINC's MUSE Link network service was selected by China Eastern Airlines to connect the carrier's host computer system in Shanghai with its passenger operations at a dozen international airports. According to ARINC, the airline expects to save as much as 15 million yuan ($1.9 million) in operating costs each year by leveraging its existing infrastructure in combination with the AviNet MUSE Link connection.
Sabre Airline Solutions announced that Aeroflot has migrated to the SabreSonic new-generation reservations and passenger management solution along with a customized version of the Sabre distribution system for Aeroflot affiliated travel agents.
Finnair President and CEO Keijo Suila announced his retirement effective at the end of 2005. A search for a successor has begun. Suila has been with the carrier since 1998. Separately, the Assn. of Support Service Industries representing Finnair and the Assn. of Finnish Flight Attendants reached an agreement on the attendants' terms of employment. Thus a strike scheduled to start on Easter Saturday has been avoided and the carrier's flights will continue to operate normally.
The tax burden on US airlines and passengers continues to rise, but not to the level regularly cited by airlines themselves as well as industry trade groups, according to the Ticket Tax Project, a joint effort of MIT's Global Airline Industry Program and Daniel Webster College.
Ultimate Software, a provider of Web-based payroll and workforce management solutions, announced that Spirit Airlines has chosen its UltiPro, which will be delivered through its hosted service model Intersourcing.
CSA Czech Airlines management and pilots union CZ ALPA reached agreement yesterday on a new three-year contract that among other things calls for wage increases of 12.5% in 2005 and 15.5% in both 2006 and 2007 in exchange for increased productivity. As a result of the agreement, CSA expects to move up to No. 7 among AEA member airlines in terms of average number of flown hours. The accord was reached after five months of negotiations. Its technical and legal aspects will be fine-tuned over the following days.
IATA named FAA Assistant Administrator for International Aviation Douglas Lavin to lead its Washington activities from May 1, replacing Regional Director-North America David O'Connor, who will leave that month. "Decisions in Washington impact the entire industry. I am confident that Doug will significantly raise the profile of international aviation among Washington's decision-makers," said DG and CEO Giovanni Bisignani. Prior to joining FAA, Lavin was VP-portfolio management for American Express.
European Commission VP in Charge of Transport Policy Jacques Barrot yesterday appeared to welcome the news that Lufthansa will acquire Swiss. Speaking to media in Washington through a translator, Barrot said, "We are convinced that alliances of companies allow for better quality of service, better effectiveness, and I don't see a risk of monopoly, which is why this coming together of Lufthansa and Swiss is a positive thing."
El Al unveiled new upgrades to its inflight services that will be available on all flights between the US and Israel. The airline has equipped all of its 747-400s and 777s with a new video-on-demand service in all classes. In addition, it has reached an agreement with Connexion by Boeing to install high-speed Internet service on its 747-400s and 777s. Installation will begin in June and be completed at the end of next year at an estimated cost of $3 million.
The Latin American Airline Assn., supported by IATA, called on the US government to end efforts by the Internal Revenue Service to impose US federal withholding requirements and related taxes on Latin American carriers and their non-US-based crewmembers. AITAL also warned that there could be retaliation by affected Latin American countries against US airlines if the tax probe is not halted immediately.
United Airlines mechanics, represented by the Aircraft Mechanics Fraternal Assn., yesterday ripped UAL Corp. after the union learned that CEO Glenn Tilton received a $366,393 bonus for 2004 under the company's Success Sharing program ( ATWOnline, March 18). "Our pay, benefit and pension cuts helped to fund the exorbitant Success Sharing bonuses for Tilton and his team," AMFA head Joesph Prisco said. "We do not understand Tilton's view of 'Success.' Neither do we get his concept of 'Sharing.'"
Several European airlines yesterday announced new increases in their fuel surcharges. British Airways will raise its surcharge to £16 ($30.37) from £10 on long-haul flights and to £6 from £4 on short-haul flights from March 28. "Our fuel bill next year is expected to be an extra £300 million. With prices continuing to rise, a surcharge increase is regrettably unavoidable," Commercial Director Martin George said in a statement. Virgin Atlantic is adding £6 to its fuel surcharge to bring it to £16.
The leading European and US airport trade organizations called for "urgent" progress on European-US open skies when the two sides meet today in Washington.
News from Travel Technology Update: The Airlines Reporting Corp. delayed the date for the elimination of the travel agent coupon to May 9. It said the delay will give ARC-accredited travel agencies and corporate travel departments an extra month to become more familiar with enhancements to the ARC Document Retrieval Service that will be rolled out in early April. ARC had planned to eliminate the agent coupon on April 4.
Hawaiian Airlines, which expects to emerge from Chapter 11 bankruptcy protection next month ( ATWOnline, March 14), reported a $1.9 million net loss in February. This compares to net income of $596,000 in the year-ago period. Total revenue during the month rose 4.7% to $56.8 million while a 36.2% increase in fuel costs pushed operating expenses up 9.4% to $57.2 million. This produced an operating loss of $435,000 compared to an operating profit of $1.9 million in February 2004. At the unit level, RASM improved 1.4% but CASM increased nearly 6%.
Messier-Bugatti-Tracer is extending its wheel and brake repair and overhaul contract with CanJet Airlines to include the carrier's new 737-500 fleet. MBT, a joint venture of Messier-Bugatti and Tracer Repair and Overhaul, now will provide wheel and brake support for CanJet's entire 737 fleet.
European Commission and the relevant regulatory authorities in the US cleared the proposed joint takeover bid for Amadeus by current airline shareholders Air France, Iberia and Lufthansa and Amadelux, which was formed by two venture capital funds, BC Partners and Cinven. Amadeus is owned 23% by AF, 18% by Iberia and 5% by Lufthansa. The airlines and private equity funds have formed a takeover vehicle, WAM Acquisition, to bid for the whole of Amadeus, which they valued at around €4.3 billion ($5.67 billion).
State-controlled CSA Czech Airlines is considering an IPO, Chairman Jaroslav Tvrdik told the magazine business weekly Euro. "I can imagine that the nearest general meeting will decide to go in this direction," he was quoted as saying. He added that the selloff will not occur until CSA covers accumulated losses and finishes a financial restructuring, which would seem to indicate that an IPO would not occur before 2006. VP-Financial Petr Juza told this website earlier that CSA is a potential subject of privatization ( ATWOnline, Feb. 23).
Goodrich Corp. signed a multiyear wheel and brake agreement with LOT Polish Airlines covering its fleet of ERJ-145s. The accord includes heat sink refurbishment and exchange support, all of which will be performed at Goodrich's Hatfield, UK, service center. In addition, the carrier will receive a main wheel and brake upgrade with Goodrich's Duracarb carbon heat sink material.
