American Airlines last week asked the US Dept. of Transportation to approve a "modification" to its application to win route authority to China, saying it now wants to operate service to Beijing from Chicago-O'Hare rather than Dallas/Fort Worth to comply with flight distance provisions in its labor agreement with pilots. The AA aircraft going to China would originate at DFW but would fly first to O'Hare and then go to Beijing as a "through flight." The return from Beijing would operate directly to DFW.
US Transportation Security Administration named Mike Golden assistant administrator-operational process and technology, making him the agency's chief technology officer. Golden joins TSA from Southwest Airlines, where he served as senior director-airport security technologies.
Varig was conspicuously absent from last weekend's Star Alliance meeting and ceremony in Istanbul, prompting speculation about whether or not the struggling Brazilian carrier remains a viable component of Star.
Star Alliance CEO Jaan Albrecht called Turkish Airlines a "rising star" but a more appropriate metaphor might be a bridge--one that connects Europe to the Middle East and Asia and offers access to a vibrant tourist destination and a growing economy in which a scant 5% of 70 million people fly commercially.
Allegiant Travel Co., parent of Allegiant Air, raised $90 million in gross proceeds late last week through an IPO of 5 million shares of common stock priced at $18 per share. Allegiant granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of common stock to cover any overallotments. The stock will trade on the Nasdaq under the symbol ALGT. Allegiant Air has operated primarily in leisure markets, linking smaller cities with major tourist destinations such as Las Vegas, Orlando and Tampa/St.
Midwest Airlines signed an agreement Friday to acquire two MD-80s that will be used to expand long-haul flying from its Milwaukee hub. "The acquisition of these aircraft provides new opportunities for Midwest and its customers," said Senior VP and CMO Scott Dickson. The aircraft will be placed into service in the first half of 2007, with routes and schedules to be announced at a later date. Midwest currently operates a fleet of 11 MD-80s and 25 717s. With its wholly owned subsidiary Midwest Connect, it provides service to 47 cities.
OAO Unified Aircraft Corp. CEO Alexei Fyodorov met with senior Airbus officials in Toulouse Friday to discuss potential Russian involvement in A350 XWB production, Bloomberg News reported. Russia has been seeking a greater role in Airbus work since a state-owned bank purchased a 5% stake in parent EADS earlier this year ( ATWOnline, Sept. 13). It is unclear what kind of work Airbus officials discussed with the head of the Russian aerospace company.
Singapore Airlines CEO Chew Choon Seng told ATWOnline in Istanbul that the recently announced bid for Qantas might be a wakeup call for Australian officials who favor protecting the flag carrier to the detriment of SIA's wish to operate a transpacific service from Australia.
CAAC and Japan Airlines reached agreement to launch cooperative aviation safety study projects in conjunction with the Civil Aviation Safety Institute of China, saying their goal is to contribute "to the development of global flight safety."
Star Alliance Corporate Plus will bring in €2.2 billion ($2.9 billion) in sales in 2006, alliance officials said Saturday in Istanbul. The program, which targets corporate travel buyers by offering the entire Star network through an individual carrier's sales team, now boasts more than 80 clients and is enjoying 20% year-over-year revenue growth.
Emirates Executive Vice Chairman Maurice Flanagan remains imperturbably upbeat despite the challenges facing the global air transport industry. Bucking all recent trends, including fuel price increases that have pushed the fuel element of total airline costs from 13% five years ago to 30% today, the Dubai-based carrier continues its seemingly inexorable progress on the path to growth and increased profits.
Travelport reached a definitive agreement last week to acquire Worldspan for $1.4 billion, a merger the two companies said will make their GDS offerings more "cost effective and efficient." Travelport CEO Jeff Clarke said the takeover "will ensure that we are better positioned to meet the evolving needs of our customers, the travel suppliers, travel agencies and end consumers." In a statement, Travelport said easy-to-use airline websites are growing in usage and putting pressure on GDS providers. "Competition in the travel distribution industry has increased," the company said.
Brazilian police on Friday officially charged two ExelAire Legacy 600 pilots with endangering aircraft safety in the Sept. 29 midair collision with a Gol 737-800, a serious criminal charge that could land the US citizens in a Brazilian prison for up to 12 years if they are convicted.
Swiss International Air Lines reached an agreement with unions representing its ground staff that provides a 1.1% salary increase, an additional two vacation days each year and a one-time payment of CHF1,200 ($1,005) to be added to workers' December salaries.
AirTran Airways would be interested in acquiring assets from Delta Air Lines or US Airways if those carriers need to make sales to alleviate anticompetitive concerns in order to facilitate a potential merger, President and COO Bob Fornaro said yesterday.
Air Canada said new aircraft entering its fleet will continue to drive operating costs down. Costs were down across the board in the first nine months of 2006, Executive VP and CFO Joshua Koshy said yesterday in New York at the Calyon Securities Airline Conference, which was available via webcast.
Boeing confirmed this week that UK tour operator First Choice Airways ordered an additional two 787-8s for delivery in 2011. First Choice, the European launch customer for the 787, placed its first order for six in July 2004. It now has eight on firm order, with the first set to enter service in 2009. "This follow-on order from our European launch customer...speaks volumes about their belief in the exceptional benefits the 787 will bring to their passengers," Commercial Airplanes VP-Sales-Europe, Russia and Central Asia Marlin Dailey said.
Kenya Airways said it will lease three E-170s from GE Commercial Aviation Services to help expand its domestic and regional routes. The first two will be delivered in May and June 2007 and the third in June 2008, replacing Saab 340B turboprops. By the end of this month, Kenya Airways also will have taken delivery of three 737-800s it is leasing from Singapore Aircraft Leasing Enterprise.
Embraer delivered the first E-170 to Colombia's state-owned Satena, which currently operates five E-145s. A second E-170 will be delivered early next year.
Philippine Airlines yesterday placed firm orders for two 777-300ERs plus two options and signed a letter of intent with GE Commercial Aviation Services to lease two more dash 300ERs. PAL said deliveries of the purchased and leased dash 300ERs will begin in the 2009 third quarter and continue through 2010. The aircraft on option will be delivered in 2011 and 2012. The airline said it will operate the aircraft in a two-class configuration seating up to 368 passengers.
ANA Aviation Services was named UK cargo sales agent for Florida West International Airways. ANA partner NAS Network Airline Services will represent FWIA as its cargo sales agent in France.
US National Transportation Safety Board Chairman Mark Rosenker said airlines should voluntarily begin incorporating a 15% safety factor when calculating stopping distances on icy or wet runways. He added that thrust reversers should not be counted on by pilots to bring planes to a safe stop in poor conditions. US FAA is likely to implement an official rule change regarding calculation of stopping distances but has not done so yet.
US Congress yesterday passed legislation to create a federal Interagency Aerospace Revitalization Task Force charged with reversing the US's decline in aviation manufacturing workers. According to the Aerospace Industries Assn., which lobbied for the bill's passage, there is an "ominous shortage [of] younger, technically skilled professionals in the aerospace industry." Average age of aerospace manufacturing workers in the US now exceeds 50 and 27% of the workforce will become eligible for retirement in 2008, AIA said.
