Hainan Airlines is in crisis following the appeal of six pilots to the Haikou arbitration committee to have their labor contracts terminated. The six resigned at the end of last year, bringing to 20 the number of HNA pilots who have walked out since 2006. The carrier has accepted none of the resignations and their disputes remain unresolved. Luo Zulin, one of the six who asked for arbitration yesterday, said the resignations were a result of "frequent overtime" and "long delays in getting their salary."
Dunlop Aircraft Tyres signed a joint venture with Hong Kong Aircraft Engineering Co. and Taikoo Aircraft Engineering Co. to build a retreading facility in Jinjiang, Fujian Province. Dunlop will command a 63% stake, HAECO will take 28% and TAECO will hold a 9% share.
On Jan. 1, for the first time in six years, the US airline industry began a new year with no carriers operating under bankruptcy protection. The 10 largest were all in the black in 2007 and the nine that had reported full-year income as of this writing posted a cumulative net profit of $5.88 billion. Costs finally have been reined in, with overall 2007 expenses growing just 3.2% and CASM rising a mere 0.4%.
WHEN SEVERE weather hits, airlineswhich generally gear their operational procedures toward keeping flights on scheduleengage in critical cost-benefit analyses. They must decide whether to cancel flights and deal with the consequences or attempt to keep aircraft moving despite a less-than-ideal operating environment. There are no easy answers, and miscalculations can lead to disastrous situations in which passengers are stranded for hours at a time in aircraft sitting on the tarmac.
EARLY RETURNS FROM THE first Multi-Crew Pilot License instruction courses demonstrate that the ICAO-approved alternate training path for commercial transport pilots is living up to its promise, say those familiar with the programs. At the same time, advocates are working hard to dispel the notion that MPL is simply a shortcut to the cockpit intended to alleviate the current pilot drought.
CAE reached agreement with the Indian government to become the managing partner of its flight school, Indira Gandhi Rashtriya Uran Akademi. It also entered into a JV with the Airport Authority of India to develop the Rajiv Gandhi National Flying Training Institute. "We are pleased that the government of India has recognized CAE's expertise in creating and managing world-class flight training organizations," Innovation and Civil Training and Services Group President Jeff Roberts said.
Travelport GDS said all new airline contracts will cover participation in Galileo, Apollo and Worldspan. The company also confirmed that it has moved to a "home and away" pricing system for airline bookings that "more closely aligns with the greater value we provide in reaching a global customer base." The pricing structure, which appears to be reminiscent of the "value-based" structure introduced by Amadeus at the beginning of 2004, sets lower fees for bookings made within a carrier's home market and higher fees for bookings made outside its prime market.
Online travel agencies have done a great job of delivering flight search results based on price, number of stops and schedule. Meanwhile, passengers feel the pain of late flights, long connecting times, lost bags, old aircraft and other frustrations.The two realities have until now remained in separate silos. InsideTrip Inc., a new company based in Seattle, is bringing the reality of the travel experience into the booking process, assigning a "TripQuality Rating" to each flight based on 12 "pain points." The beta version of the Web site, InsideTrip.com, launches this week.
AAR Corp. acquired Miami-based third-party MRO provider Avborne Heavy Maintenance and renamed it AAR Aircraft Services-Miami. Avborne offered maintenance checks, modifications, installations and painting services to commercial airlines, international cargo carriers and major aircraft leasing companies. Financial terms of the deal were not disclosed, but AAR will gain 226,000 sq. ft. of hangar space at Miami International and increase its overall MRO space by 22%.
HISTORY WILL BE MADE ON MARCH 30 WHEN THE first commercial aviation agreement between the European Union and the US enters into force. The accord, which creates a single transatlantic Open Aviation Area in place of the existing regime of individual bilaterals between the 27 EU member states and the US, was no easy delivery. Negotiations were begun in June 2003 and required 11 rounds to achieve an agreement that was initialed in Brussels on March 2, 2007, and signed at the EU-US summit in Washington on April 30, 2007.
VRG and Japan Airlines inked an interline agreement that will allow passengers to purchase single tickets for flights serving all destinations of both carriers. Passengers traveling under VRG's Smiles frequent-flier program will only accumulate miles on flights operated by VRG, formerly Varig.
FAA and the City of Los Angeles are partnering to install a Runway Status Lights system at Los Angeles International. The system uses a series of red lights embedded in the pavement to warn pilots if it is unsafe to cross or enter a runway. Los Angeles World Airports is funding the $6 million cost of the system, on which tests will begin at LAX early next year. FAA will be responsible for installing, testing, evaluating and maintaining the system. "This is another valuable tool we're using to reduce the risk of runway incursions," Acting Administrator Bobby Sturgell said.
IATA and Flight Safety Foundation established a partnership "to tackle the global shortage in pilots, engineers and maintenance certification staff." FSF will join the IATA Training and Qualification Initiative to "review the shortage of skilled staff and develop a roadmap and strategy," IATA said.
Abu Dhabi Aircraft Technologies said it began construction on a dedicated single-bay line and light maintenance hangar for Etihad Airways, part of a $500 million, five-year MRO contract signed last year. The hangar is scheduled to be completed in July.
CAE signed contracts valued at C$52 million ($53 million) with Lufthansa Flight Training and Xiamen Airlines to design and manufacture four full-flight simulators and associated CAE Simfinity training devices. LH Flight Training ordered a CAE 5000 Series A320 FFS and a CAE 7000 Series 747-8I FFS while Xiamen Airlines ordered two CAE 7000 Series 737-800 FFSs along with a suite of Simfinity training devices.
Iberia reached a two-year extension on its handling contract with Iberworld covering services at 41 Spanish airports. ARINC announced a three-year deal with Etihad Airways to provide its ARINC X.400 Message Handling System featuring enhanced message flow, message management and visibility. Gate Aviation, a subsidiary of gategroup, acquired The Caterers UK, a catering company based at Manchester Airport. Gate Aviation, formerly known as IAS/Fernley, provides airlines with cleaning services at Manchester.
Eedo Knowledgeware of the Netherlands said Eurocontrol selected the Eedo ForceTen learning content management system "for the development and delivery of e-learning services for ATC and ARM management staff."
AAR Corp. announced an agreement to acquire Miami-based third-party maintenance, repair and overhaul provider Avborne Heavy Maintenance "and a related entity" from AHM Holding Corp. Price of the sale was not disclosed. Avborne operates a 226,000-sq.-ft. hangar at Miami International capable of simultaneously accommodating up to three widebody aircraft or nine narrowbodies. It performs heavy maintenance on most types of Airbus and Boeing aircraft. The deal is expected to close by the May 31 end of AAR's 2008 fiscal year.
Canadian leisure airline Air Transat received its IATA Operational Safety Audit certification this week. The IOSA audit was performed by Simat, Helliesen & Eichner. Air Transat is a subsidiary of Transat A.T.
Oneworld airlines this week will begin bringing all operations together at Beijing International in the airport's vast new passenger terminal. British Airways and Qantas will move on Feb. 29 while the alliance's other members serving Beijing (Cathay Pacific, Dragonair, Finnair and Japan Airlines) will transfer into Terminal 3 on March 26. The six oneworld carriers will use check-in desks in the terminal's Area C.
Ryanair filed yet another complaint with the European Commission alleging illegal state aid, this time highlighting more than €400 million ($594 million) per year in the form of exemptions from environmental taxes granted by the Dutch government to transfer passengers.
IATA said international passenger traffic grew 4.3% in January compared to January 2007, sharply down from 6.7% RPK growth recorded in December and full-year 2007 growth of 7.4%. "January traffic results show that we could be at a turning point," DG and CEO Giovanni Bisignani said, arguing that "the sharp shift in demand growth patterns makes it clear that the US credit crunch is negatively impacting air travel." IATA said North American carriers' international RPKs rose 5% in January, down slightly from 6% in December, while US domestic traffic decreased 3%-4%.
International Assn. of Machinists released a statement yesterday saying it will partner with the Coalition for an Airline Passengers Bill of Rights to "coordinate legislative efforts" and oppose "any combination" of legacy carriers in the US. IAM Transportation General VP Robert Roach Jr. said airline employees and customers "are the two groups essential to an airline's success, yet they are the ones who are hurt the most in mergers."
