ATA Airlines flight attendants, represented by the Assn. of Flight Attendants, ratified a new collective bargaining agreement yesterday that will extend concessions implemented last year. The agreement will be effective from Jan. 1 and will be amendable Oct. 31, 2008. Horizon Air's approximately 400 mechanics and fleet service agents, represented by the Aircraft Mechanics Fraternal Assn., ratified a three-year labor contract yesterday.
Passengers boarding international flights in France could pay a tax of up to €40 ($46.90) per ticket under a plan by President Jacques Chirac to be discussed today by the government, AFX News reported. The money reportedly would go toward alleviating health problems in the developing world. The tax would slide depending upon distance and cabin class (business and first class travelers would pay 10 times the levy) and would not apply to inbound flights.
Air Zimbabwe grounded its fleet Monday because of a lack of fuel but was able to resume some flights yesterday. The airline's senior management was suspended, according to the state-run Herald.
SunExpress, a Turkish leisure carrier owned by Condor and Turkish Airlines, opened a new base in Izmir, where it will keep two aircraft and offer flights to Antalya, Andana, Diyarbakir and Trabzon. Next summer it will begin service to Amsterdam, Paris Orly, Athens and London Stansted. From its Antalya base it will launch service to Vienna, Stansted and possibly Scandinavia. The airline will add three 757-200s in 2006, bringing the fleet to nine 737-800s and four 757s. It also will add 200 employees.
Sukhoi received a $1 billion order for 20 RRJ-95s plus 20 options from Dubai-based leasing firm Concord Aviation, according to media reports. Known for its military platforms, state-owned Sukhoi is developing civil aviation products at the behest of the Russian government and with the help of foreign firms like Boeing and Snecma. "We are delighted to welcome our first customer outside Russia," Civil Aircraft GD Viktor Subbotin said in a statement. "This is a real breakthrough." Deliveries of the 98-seat regional jets will begin in 2009. Sukhoi also plans a 78-seat RRJ-75.
Air Line Pilots Assn. officials representing pilots at Atlantic Southeast Airlines, a Delta Connection carrier, voted unanimously to express no confidence in the airline's management team. "Following more than three years of collective bargaining talks, with little to show for our effort, management has continued to stall this process to avoid reaching an agreement with our pilots," said Bob Arnold, chairman of the ASA Master Executive Council. The unresolved contract issues center around wages, benefits and "financially related matters," according to ALPA.
Kuwait Airways recorded an operating profit of KWD3 million ($10.2 million) for the half-year ended Sept 30, according to Reuters. Chairman Sheikh Talal Mubarak al Sabah said the figure would have risen to KWD12.2 million if not for the jump in fuel costs.
Volare Airlines' proposed sale has attracted offers from about 10 groups, including Alitalia, AirOne, Meridiana, Eurofly and easyJet, La Stampa reported. Deadline for submission of takeover bids for the Italian carrier was Sunday at noon. Alitalia Chairman and CEO Giancarlo Cimoli said last week that his carrier might buy Volare "if the price is fair" ( ATWOnline, Nov. 17). The LCC, which offers domestic and European low-fare flights under the volareweb.com brand, collapsed last year along with Air Europe, its carrier for intercontinental scheduled and charter flights.
Northwest Airlines discontinued absorbing passenger facility charges as of yesterday. The carrier said it traditionally absorbed the charges by marking down base fares, thereby staying price competitive with service through connecting hubs that do not charge PFCs. It said the practice cost it $80 million in 2004 alone. The resulting fare hike on US routes will amount to $1.50-$4.50 each way depending on itinerary. GDS improvements will allow NWA to raise prices on individual tickets depending on the PFC at a particular airport in order to maintain fare consistency.
Heico Corp.'s Flight Support Group, through its Heico Aerospace Holdings subsidiary, acquired a 51% interest in New York-based Seal Dynamics for cash. SDI is a designer and distributor of approved hydraulic, pneumatic, mechanical and electromechanical components. Heico AH is owned 20% by Lufthansa Technik.
SN Brussels Airlines signed a cooperation agreement with Air Senegal International. From Dec. 1, the Senegalese airline will add its code and sell seats on the six weekly flights operated by SN between Brussels and Dakar with A330-300s.
Ryanair CEO Michael O'Leary said he will step down in 2008. The LCC's outspoken chief executive told the Irish Independent it would be time to go once the "outstanding issues" of a new terminal in Dublin and a new runway at London Stansted are resolved.
Airbus firmed up a June order from Alafco, the Kuwait-based international aircraft leasing company, for 12 A350-800s with options on six more ( ATWOnline, June 15). It is the first leasing company to select the type. Deliveries are due to begin in the third quarter of 2012. Alafco Chairman and CEO Ahmed Alzabin sang the aircraft's praises at the Dubai Air Show, saying, "We believe in investing for the future, and the Airbus A350 is a great way to do that."
Murray Air Certifications of Michigan has been recognized by FAA as a Certification Consultant qualified to assist carriers in earning their Part 121 air carrier certifications.
Watermark Ltd. announced a deal with AeroBox Composite Structures to become the exclusive sales agent for its products in the Middle East and parts of Asia. Watermark negotiated a five-year supply agreement for AeroBox composite containers worth more than $6 million.
Air France Industries will open a component logistics center at Abu Dhabi early next year as part of its effort to become the world's leading 777 service provider. AFI celebrated the 90th 777 to join its repair services on a flight-hour basis with Saudi Arabian Airlines' 23-strong 777 fleet.
Embraer is forecasting a continued decline in demand for jets in the 30/60-seat range with demand for 60/120-seaters continuing to grow. "There is an increased market demand for 61-to-120-seat aircraft as a result of Regional airlines' natural growth, replacement of aging aircraft, right-sizing requirements from network airlines and low-cost carriers' expansion to mid-sized markets," the airframer's market outlook, released Friday, stated. Embraer estimates that 3,350 aircraft will be delivered between 2006 and 2015 and another 4,600 between 2016 and 2025.
Macair Cargo was named the exclusive cargo general sales agent for Ghana International Airlines' daily Accra-London Gatwick service. GIA flies 757s on the route but intends to increase freight capacity with the introduction of a 767.
Continental Airlines and its flight attendants, represented by the International Assn. of Machinists, edged closer to a possible strike early next year after the two sides adjourned mediated talks in Washington last week without a new contract. In a statement, the airline said that "the issues have been narrowed to a few remaining items," and another bargaining session has been scheduled for Dec. 7-8 in the offices of the National Mediation Board.
American Airlines parent AMR Corp., taking advantage of the strong run-up in its stock price since mid-September, announced Friday the pricing of a public offering of 13 million newly issued shares of common stock at $17.25 per share. The offering, set to take place Nov. 23, will raise gross proceeds of $224 million if all shares are taken up, ATWOnline calculated. It includes an overallotment option of 1.95 million shares. UBS Investment Bank is acting as the sole underwriter for the offering.
Negotiators for the EU and US, after five days of talks in Washington, achieved a tentative air services agreement that will provide airlines from the US and EU member states open access to each other's markets "with freedom of pricing and unlimited rights to fly beyond the EU and US to points in third countries," according to a joint statement (see text below). If approved by both sides, the agreement could take effect with the 2006 IATA winter season, which traditionally begins in late October.
"Delegations representing the European Union and the United States met from Nov. 14-18 in Washington, D.C., to continue negotiations on a comprehensive first-step air transport agreement.
