An American Airlines MD-82 inflight engine fire in September 2007 was "probably due to an unapproved and improper procedure used by mechanics to manually start one of the engines," the US National Transportation Safety Board said in a report issued yesterday, adding that "the fire was prolonged and the safety of the aircraft further jeopardized by how the flight crew handled the emergency."
The US Dept. of Transportation yesterday approved Continental Airlines' entry into Star Alliance, granting tentative antitrust immunity to the carrier and certain Star partners and to CO's proposed transatlantic joint venture with Air Canada, Lufthansa and United Airlines.
Mesa Air Group agreed to sell its stake in Kunpeng Airlines, its regional joint venture with Shenzhen Airlines. Mesa said in a filing to the US Securities and Exchange Commission that it will sell its share to Shenzhen or its nominee and terminate the lease of five CRJ200s to Kunpeng for $4.5 million, minus $900,000 in returned security deposits. Mesa announced its intention to end its 44% participation in the JV last summer and said it expects the aircraft to be returned this month ( ATWOnline, Aug. 20, 2008).
American Airlines Senior VP-Human Resources Jeff Brundage told the carrier's nonunion employees yesterday that the company has decided to institute a hiring and pay freeze for the remainder of 2009. In a letter to workers, Brundage said AA is experiencing "a decline in revenue, a decrease in bookings, lower demand for cargo services and increasing costs for such items as pension expense and medical insurance." He added that it is "having a tough time borrowing money right now." AA has about 19,000 nonunion employees.
BOC Aviation announced a sale/leaseback transaction with Southwest Airlines covering six 737-700s that will be leased back to the carrier for 14 years each. The first tranche of three aircraft closed April 2 and the second is scheduled to close in the current quarter. The lessor closed a similar deal with SWA in January covering 10 aircraft ( ATWOnline, Jan. 15).
Delta Air Lines, including its Northwest Airlines subsidiary, flew 15.6 billion system RPMs in March, a 12.6% decrease from the year-ago month. Capacity was down 7.9% to 19.39 billion ASMs and load factor fell 4.4 points to 80.5%. JetBlue Airways said preliminary passenger RASM fell 12% in March. It flew 2.25 billion RPMs during the month, down 8.5% year-over-year, against a 5.6% fall in capacity to 2.83 billion ASMs. Load factor dropped 2.5 points to 79.3%.
EasyJet Chairman Colin Chandler will resign effective July 1 and be replaced on an interim basis by Senior Independent Director David Michels, the LCC announced. Chandler has held the post since 2002. British Telecom Chairman Michael Rake was named deputy chairman and will join the easyJet board prior to Chandler's departure.
Delta TechOps finalized new five-year contracts worth more than $200 million with Global Aviation Holdings subsidiaries World Airways and North American Airlines. Under the contracts, which are extensions to previous deals, it will perform component repair, inventory exchange programs and drop-in A and C check support. It also will provide time and material engine maintenance for World's PW4000s and CF6-80C2s and be the exclusive provider of 331-200 APU repairs for NAA.
US Export-Import Bank announced approval of some $1.08 billion in financing to support the delivery of up to 30 737-900ERs to Indonesia's Lion Air. The financing comprises $238 million in a first stage and a nonbinding preliminary commitment of $841 million. Ex-Im Bank said the transactions were its first in support of the -900ER.
Indonesian court jailed Garuda Indonesia Capt. Marwoto Komar, 45, the pilot who was in command of a 737-400 that crashed in Yogyakarta two years ago, killing 21.
Star Alliance said it plans to move current London Heathrow Terminal 2 tenants Austrian Airlines, Croatia Airlines, Lufthansa, Swiss International Air Lines and TAP Portugal to T1 this summer. At that point, the 21 Star members serving LHR will remain split between T1 and T3.
United Airlines flight attendants represented by the Assn. of Flight Attendants-CWA announced yesterday that the union is "exercising the opportunity to negotiate for improvement for the first time since 1996" and is "seeking contract improvements after enduring huge cuts in pay, quality of work life, healthcare and retirement for nearly seven years." The current labor contract becomes amendable on Jan. 7, 2010. If negotiations have not concluded by Aug. 7, the parties will petition the National Mediation Board to begin mediation.
News from Travel Technology Update: Farelogix unveiled FLX Commando, a patent-pending agency reservations tool that simulates cryptic GDS command-line functions, and E-FLX, described as the travel industry's first "hub" for issuing, storing, managing and reporting Electronic Miscellaneous Documents. Farelogix has been busy: The new product announcements came on the heels of the debut of Project Hawkeye, Farelogix' open-source, Web-based travel management point-of-sale application whose source code is now available for free public download from the company's Web site.
US airlines' customer service improved for the first time in five years in 2008, researchers from St. Louis University and Wichita State University said yesterday in releasing their annual Airline Quality Rating report. Improvement was across the board, with carriers scoring better on baggage handling, ontime performance, denied boarding and customer complaints, researchers said. The airline with the best overall AQR among the 17 graded was Hawaiian Airlines, followed by AirTran Airways, JetBlue Airways, Northwest Airlines and Alaska Airlines.
US Airways named former Eos Airlines Senior VP-Guest Experience Hector Adler VP- inflight services. Ryanair promoted Head of Scheduled Revenue Ken O'Toole to director-new route development. AirTran Airways named Transportation Security Administration Office of Strategic Communications and Public Affairs Deputy Assistant Administrator Christopher White director of public relations.
American Airlines flew 10.32 billion system RPMs in March, down 10.9% from the year-ago month. Capacity fell 5.6% to 13.04 billion ASMs and load factor slipped 4.8 points to 79.2%. American Eagle flew 643.1 million RPMs, down 6.1%, against a 4.2% decline in ASMs to 894.2 million, lowering load factor 1.5 points to 71.9%. US Airways Group said March consolidated passenger RASM fell an estimated 17%-19% year-over-year, although total RASM dropped 13%-15% including ancillary revenue.
JetBlue Airways and Aer Lingus said bookings during the first year of their partnership exceeded targets by 50% and that JetBlue was able to connect more than 80 passengers a day from Ireland. The deal allows customers in both the US and Ireland to book a single connecting fare on EI's website and provides for baggage transfer. It originally involved connections between Dublin and Shannon, New York JFK and 25 JetBlue onward destinations but now includes flights via Boston as well. EI CEO Dermot Mannion said the companies will "continue to grow and develop new opportunities."
Qantas agreed to contribute an additional A$66 million ($46.7 million) over the next three years into the defined benefit divisions of the Qantas Superannuation Plan, in addition to current contributions, in response to the turmoil in the financial markets that has hit pension funds hard around the globe. It said the plan has assets of around A$5 billion and remains "in a strong financial position despite the challenging economic environment."
European Commission revealed last week that 27 European aircraft have been equipped to allow the use of standard mobile telephones onboard since the EC created the regulatory framework for such a service last year ( ATWOnline, April 8, 2008) and that it expects the number of aircraft to double by the end of 2009. Ryanair, TAP Portugal and bmi currently offer the service through either OnAir or AeroMobile, and technical trials are underway at other carriers, the EC said.
EU and Mongolia signed a horizontal aviation agreement designed to "restore legal certainty regarding bilateral air services agreements" between Mongolia and 12 EU member nations. It will remove nationality restrictions in the existing air services agreements, allowing any EU airline to operate between Mongolia and any of the 12 nations in which it is established.
Delta Air Lines CEO Richard Anderson and President Ed Bastian told employees in a memo last week that "it is prudent for us to restructure and reduce the size of our executive team" and announced that five management officials will leave the company June 1, the Associated Press reported. The departing executives are Senior VP-International Laura Liu, Northwest Airlines Senior VP-Customer Service Crystal Knotek, NWA VP-Chief Accounting Officer Anna Schafer, Minneapolis/St. Paul VP-Corporate Affairs Tammy Lee Stanoch and MSP Senior VP-Customer Service Todd Anderson.
Discover the World Marketing was chosen by Condor Airlines for representation in Canada, becoming the 33rd airline represented by Discover the World Marketing.
US National Transportation Safety Board reported that US scheduled airlines operated for a second consecutive year in 2008 with no fatal accidents. In preliminary numbers released last week, NTSB said Part 121 scheduled carriers had an accident rate of 0.189 per 100,000 departures last year. That translated to 28 accidents, identical to 2007. None of the accidents in either year resulted in fatalities. Part 135 regional airline operations resulted in seven accidents in 2008, none of which were fatal, up from three nonfatal accidents in 2007.
