Delta Air Lines and its pilots avoided having the fate of their protracted labor negotiations, and possibly the carrier itself, decided by a panel of arbitrators by reaching a tentative agreement, the parties announced Friday. A three-man arbitration panel was prepared to rule Saturday on whether or not Delta could void its deal with approximately 6,000 pilots represented by the Air Line Pilots Assn. The pilots voted this month to strike if the panel ruled in the airline's favor ( ATWOnline, April 4).
Ukraine International Airlines took delivery of two 737-500s on lease from Boeing Capital Corp. UIA now operates 12 737s. It expects 2006 traffic to be up 26% compared to 2005 and is considering whether to add another 737 before year end.
In a move likely to chill slowly thawing labor relations at United Airlines, parent UAL Corp. is providing a generous severance package to Douglas Hacker, a longtime member of the company's executive management team who sued UAL in March to recover bonus and incentive payments he claimed he was owed. Hacker was named executive VP-strategy two days after UAL filed for bankruptcy protection in December 2002 but currently is listed on the airline's website as executive VP. He joined United in 1993.
Air Mauritius announced an overhaul of its long-haul product beginning in December on its route to London Heathrow operated with two soon-to-be-delivered A340-300Es. Three revamped cabin classes will include flat-bed cocoon seats in first class and on-demand audio and video. Upgrades across all three classes will be retrofitted to the remainder of the fleet.
JetBlue Airways will launch four-times-daily New York JFK-Charlotte service on July 12 and four-times-daily flights to Raleigh-Durham on July 20 aboard Embraer 190s. Separately, JetBlue flew 2.06 billion RPMs in March, an increase of 24.2% over the year-ago month. Capacity climbed 29.1% to 2.38 billion ASMs and load factor fell 3.5 points to 86.5%.
DirectFly, a new Polish Regional, launched service this week. The carrier operates five Saab 340s and offers flights to and from Gdansk, Lodz, Bydgoszcz, Warsaw, Krakow and Wroclaw. It hopes to attract passengers by offering point-to-point flights bypassing Warsaw. Initial international destinations are Berlin Schoenefeld, Copenhagen, Kiev and Lvov. DirectFly uses the AOC of Sky Express.
Boeing announced a number of changes to its senior management. Upon the retirement of Washington Office Senior VP Rudy deLeon effective June 30, Tod Hullin will assume his responsibilities as senior VP for public policy and communications. Also, Thomas Downey, who leads Boeing Commercial Airplanes Communications, will move to Chicago to become VP-corporate communications for the entire company. Connexion by Boeing President Laurette Koellner, 51, will become president-Boeing International Relations, replacing Thomas Pickering, 74, who is retiring.
Northwest Airlines pilots will receive an $888 million stock claim when the carrier emerges from bankruptcy, according to press reports citing a video on the Air Line Pilots Assn. website. Voting on the new labor deal, which was reached last month ( ATWOnline, March 6) and is worth $358 million in savings to the airline, is being conducted through May 3. The stock claim will represent 13% of all unsecured claims on NWA and will be paid in shares of the reorganized company.
United Airlines signed a five-year, full-content distribution agreement with Worldspan designating the GDS as a "preferred distribution channel." The agreement is expected to be implemented in the next six months. UA signed a similar agreement with Galileo earlier this week. Separately, Worldspan said Mexicana Airlines chose to adopt its Rapid Reprice solution for repricing airline tickets when itineraries change.
Evergreen Air Center will break ground on a new widebody hangar at Pinal Air Park in Marana, Ariz., April 18. The 87,000-sq.-ft. hangar, set to open in early 2007, will be able to accommodate the 747-400 Large Cargo Freighter that will be used to deliver 787 wing and fuselage assemblies to Boeing. Evergreen International Aviation will operate and maintain the aircraft on behalf of Boeing.
British Airways reported a 1.8% increase in March RPKs to 9.5 billion and a 2.5% rise in capacity to 12.63 billion ASKs. Load factor fell 0.5 point to 75.2%. Northwest Airlines flew 6.43 billion RPMs in March, a 6.1% decrease from the year-ago month. Capacity fell 8.8% to 7.38 billion ASMs and load factor rose 2.5 points to 87.1%. Domestic traffic dropped 9.5% to 3.77 billion RPMs against a 12.9% fall in capacity to 4.46 billion ASMs, lifting load factor 3.2 points to 84.5%.
World Air Holdings, parent of World Airways and North American Airlines, authorized the repurchase of up to 2 million shares of its common stock once it files its annual report, which has been delayed.
Southwest Airlines will appeal last week's verdict in a racial profiling case that concluded with a $27.5 million award to a California woman and Iran native who claimed false imprisonment and malicious prosecution following her 2003 arrest in El Paso, according to press reports.
Alaska Airlines will spend $3.5 million to upgrade its terminal at Nome. Work on renovating and expanding the passenger lobby by nearly 1,500 sq. ft. and upgrading the secured passenger area, cargo facility, ground service equipment area, parking lot and water and sewer line connections will begin in June and conclude in March 2007. The carrier operates three daily flights at the airport. Separately, Alaska flew 1.53 billion RPMs in March, a 4.2% increase over the year-ago month. Capacity rose 3.7% to 1.95 billion ASMs and load factor improved 0.3 point to 78.2%.
Etihad Crystal Cargo, the cargo division of Etihad Airways, said it had more than $15 million in sales last month and handled more than 10,000 shipments.
British Airways CEO Willie Walsh yesterday urged the European Commission to move forward with plans to bring EU airlines within the emissions trading scheme "as soon as the technical details can be resolved and political agreement reached." At the same time, he urged the EC to "go for simplicity." For example, the scheme should apply, "initially at least," to flights that start and end within the EU and not try to include non-EU flights, "which could delay implementation for years."
Embraer delivered 27 aircraft in the first quarter comprising four ERJ-145s, eight 170s, one 175, eight 190s and six business or defense aircraft. It expects to deliver 145 aircraft this year and 150 in 2007. During the quarter, Midwest Express confirmed the cancellation of a May 2001 order for 20 ERJ-140s and Embraer said the cancellation will not have an impact on the company's delivery forecast for the coming year. Some 60% of those deliveries are expected to occur in the second half. Firm order backlog of commercial and business aircraft is valued at $10.4 billion.
Wizz Air and Pegasus Aviation Finance announced the closing of a sale and leaseback transaction for four new IAE V2500-powered A320s scheduled for delivery in 2007. Lease term is 11 years.
FAA Administrator Marion Blakey told media in Washington yesterday she is confident that ATC personnel will continue to perform at a high level despite the current impasse over a new labor agreement and that a slowdown or an organized spate of early retirements is "not realistic." She said controllers are "very dedicated [and] take a tremendous amount of pride" in their work and would not act in a manner contrary to their professional or financial self-interest. FAA ended negotiations with the National Air Traffic Controllers Assn. last week and sent its final proposal to Congress.
World Airways signed leases for two MD-11s it had been subleasing from Delta Air Lines until the leases were rejected by DL in bankruptcy court in September. A third lease will be signed later this month. World had been operating the aircraft on an interim agreement. Leases with the new owner are on staggered terms through March 2008.
Air Greenland plans to open the first route between Greenland and the US in May 2007. No decision on a US destination has been made, but the leading candidate is a weekly route between Kangerlussuaq and Baltimore/Washington International Airport. The company's financial report for 2005 shows a profit after tax of DKK40.8 million ($6.6 million) on turnover of DKK869.7 million. Air Greenland operates one A330-200, one 757-200, six Dash 7s and several smaller aircraft and helicopters on its domestic network.
American Airlines and KLM are increasing their fuel surcharges. AA will add $10 each way on most transatlantic and transpacific routes, excluding Japan, effective immediately. KLM will add €5 per stretch on all long-haul segments effective April 15. Surcharge on intercontinental flights will rise to €45 but remain at €15 per segment on European routes.
TAM closed its preferred shares public offering ( ATWOnline, March 17) yesterday after distributing 37.1 million shares and raising BRL1.56 billion ($724.7 million). TAM said 54.7% of its capital now is held by TAM Empreendimentos e Participacoes SA and Aerosystem SA, with the remainder held by minority shareholders.
