Career Pilot

Industry News Archive 2008

Industry news is more important to career development and the job search than many aspiring career pilots realize. What new regulations that could affect your career lurk just over the horizon? A proposal is pending, for example, that could eliminate the longstanding FAA regulation that required airline pilots to leave the cockpit when they turn 60.

Which airline is thinking about buying another carrier? That could affect you directly if you work for the acquired carrier. Who is ordering new airplanes? If new aircraft are an addition to the carrier's existing fleet, it will have to hire more pilots to fly them. How is the industry—and individual airlines—doing financially? While a company's financial situation can change over time, you should know how an airline stands when you apply.

Frontier Airlines reaches agreement with pilots

Frontier Airlines announced last week it reached a long-term tentative contract agreement with the Frontier Airlines Pilots Association, the union that represents Frontier’s pilots. The airline characterized the agreement as one that includes long-term wage and benefit concessions, something it said is necessary as part of its current restructuring process. FAPA President John Stemmler said the agreement “minimizes the damage to our contract.”

[ POSTED DECEMBER 30, 2008 ]

California senator urges action on ATC staffing levels

U.S. Senator Dianne Feinstein (D.-Calif.) said in a letter to Department of Transportation Secretary-elect Ray LaHood this week that staffing levels at ATC facilities in Southern California are dangerously low and public safety is at risk. In the letter, Feinstein said the Southern California TRACON and Los Angeles International Airport control tower should institute incentives to keep controllers on the job and attract qualified controllers from other facilities.

[ POSTED DECEMBER 30, 2008 ]

Continental pilot released from hospital following accident

The captain of Continental Airlines Flight 1404 was released from a Denver hospital late last week after an accident that injured more than 38 people. The accident occurred December 20 while the Boeing 737 was attempting to take off at Denver International Airport. After the takeoff was aborted, the airplane ran off the end of the runway and down a ravine, where it caught fire.

[ POSTED DECEMBER 30, 2008 ]

Settlement forces NATCA to change policies

A settlement recently reached between the National Air Traffic Controllers Association and the National Right to Work Legal Defense Foundation requires NATCA to post public notices informing affected controllers of their right to refrain from formal, full dues-paying membership; rescinds the union’s annual objections policy – a policy that requires nonunion members annually to inform union officials of their decision not to pay for union activities unrelated to collective bargaining; and commits union officials to providing employees with an audited financial breakdown of all organizational expenditures.

[ POSTED DECEMBER 30, 2008 ]

Airline hiring at all-time low

November saw the worst airline hiring ever, according to Atlanta-based AIR, Inc. Of 175 airlines reporting to AIR, Inc, 54 airlines hired a total of 133 pilots in November. None of the 15 major airlines was hiring, national carriers hired 62 pilots, non-jet operators hired 20, and jet operators hired 13. Furloughs rose during the month, from 4,052 to 4,466.

[ POSTED DECEMBER 16, 2008 ]

Delta Air Lines announces employee buyout

In an effort to trim its workforce while avoiding furloughs, Delta Air Lines announced this week it was offering voluntary employee buyouts to all of its 75,000 employees. The merged airline’s buyout offer applies to legacy Delta employees, as well as those formerly employed by Northwest Airlines. The company didn’t say how many employees it was hoping to cut, but the offer came amid a planned six- to eight-percent capacity reduction for 2009.

[ POSTED DECEMBER 16, 2008 ]

Business deliveries expected to peak soon

Deliveries of business jets are expected to peak later this year or next year before a four-year slump, according to aviation analyst Richard Aboulafia of the Teal Group. Aboulafia said one of two scenarios is possible—either a short, cyclical downturn, or a “painful period of extended restructuring.” The Teal Group forecast calls for decrease in shipments, but a slight increase in billings, before the two equalize.

[ POSTED DECEMBER 16, 2008 ]

DOT slot auction plan blocked

A federal appeals court this week blocked a controversial plan to auction off landing slots at New York’s John F. Kennedy International Airport, La Guardia Airport, and Newark International Airport. The Department of Transportation is pushing the plan in an effort to reduce congestion at the three airports, but critics have said it will hurt the industry. The appeals court said DOT had moved too fast on the plan and it will now take time to fully consider the implications.

[ POSTED DECEMBER 9, 2008 ]

Two airlines drop safety reporting system

American Airlines, Delta Air Lines, and Comair have all announced that they plan to stop voluntary reporting to the Aviation Safety Action Program. ASAP allows pilots to make reports of various safety-related incidents, ideally without fear of retribution. Concerns over job security led the unions to drop the program, according to the airlines and their respective pilot unions.

[ POSTED DECEMBER 9, 2008 ]

Report says business aviation market deteriorating rapidly

A recent UBS Investment Research report said the market for business aviation aircraft is “deteriorating at an accelerated pace.” Pre-owned inventory is rising, flight activity has fallen, and new sales are slowing, according to the report. Perhaps most troubling is that some financing has started to dry up. All of this led UBS to drop its index by 50 percent, the largest ever since it began reporting.

[ POSTED DECEMBER 9, 2008 ]

Virgin America looks to hedge fuel

With jet fuel at its lowest price in three years, many airlines are looking to lock in that price for the next few years, said Virgin America CEO David Cush. Called hedging, airlines often buy large quantities of fuel at current prices to offset expected future price increases. Cush said that with prices being so low, Virgin America wants to hedge for an unusually long period of time, even three or four years. And while the economy has slowed the airline’s growth, Cush said, the company plans to become profitable in 2010 or 2011.

[POSTED DECEMBER 2, 2008]

go! may become Aloha

Mesa Air Group, which operates go! airlines with interconnecting island service in Hawaii, may be cleared to operate under the name Aloha Airlines as soon as this week. The name Aloha Airlines is owned by Yucaipa Companies, which shut down the airline early this year after a bitter price battle with go! Mesa will be allowed to change the airline’s name after it makes a number of concessions, and if an auction in bankruptcy court this week is successful.

[POSTED DECEMBER 2, 2008]

FAA gives green light to ADS-B

FAA Acting Administrator Robert Sturgell last week authorized the agency to implement a nationwide system that allows aircraft to be tracked by satellite, rather than radar. Called Automatic Dependant Surveillance-Broadcast, the system allows for increased air traffic capacity, according to the FAA. If fully adopted, ADS-B promises to drastically change the way air traffic control and aircraft operate in the national airspace system.

[POSTED DECEMBER 2, 2008]

Delta to keep all 7 hubs

Even though some are only a few hundred miles apart, Delta Air Lines officials said last week that they plan to keep all seven of the now-combined company’s hubs. “We’ve already paid for them; they’re ours,” said Delta President Ed Bastian. Delta recently merged with Northwest. Bastian also said the company plans for half of all its routes to be international by 2010.

[POSTED NOVEMBER 25, 2008]

Sun sets on DayJet

In a move that was widely expected, per-seat, on-demand operator DayJet filed for Chapter 7 liquidation recently. The company had been trying to hang on for weeks, although it had previously ceased flight operations. The filing revealed that DayJet investigated a number of last-ditch efforts to stay in business, including merger and even a loan from Eclipse Aviation, its airframe of choice. The company has $3.8 million in liabilities to its $3.2 million of assets.

[POSTED NOVEMBER 25, 2008]

CAE posts quarterly profit

Despite a slowing economy, flight simulation training provider CAE posted a healthy second quarter profit, the company announced last week. For the quarter ending September 30, CAE’s revenue increased 15 percent to C$407 million, and net revenue increased 25 percent. The company’s backlog now stands at C$2.7 billion.

[POSTED NOVEMBER 25, 2008]

DOT proceeds with slot auctions

Despite strong industry pressure against the action, the Department of Transportation is pushing ahead with a plan to reduce congestion at the delay-plagued New York City airports. The proposed plan calls for DOT to auction some landing and takeoff slots, something AOPA, NBAA, ATA, and individual airlines oppose. In addition, the Government Accountability Office opined recently that DOT doesn’t have the legal authority to implement the plan, which is scheduled to begin December 15.

[POSTED NOVEMBER 18, 2008]

Report says controllers covered up errors

FAA air traffic managers at Dallas-Ft. Worth International Airport covered up more than 60 controller deviations, according to a report released recently by the U.S. Office of Special Counsel. The report, the second allegation of such conduct in three years, says that controller mistakes were deliberately misclassified as pilot error or nonevents. The same whistleblower who first brought forward the problem in 2004 alerted authorities to the problems this time. The National Air Traffic Controllers Union said understaffed towers are leading to safety errors.

[POSTED NOVEMBER 18, 2008]

DHL halts domestic package service

The parent company of DHL announced last week it was cutting all domestic shipping operations. At the time of the announcement, DHL was in talks with UPS to provide the company’s air cargo services. A UPS spokesman said the two sides would have to negotiate on the new business plan, which would mean flying international packages to and from their U.S. destinations. DHL’s air cargo was previously handled by DHL, ABX Air, and Astar Air Cargo.

[POSTED NOVEMBER 18, 2008]

Delta, Northwest merger official

The merger of Delta Air Lines and Northwest Airlines has cleared regulatory approval, creating the world’s largest airline. The two carriers have already linked operations, although the transition has been transparent to passengers thus far. Although past airline mergers have caused havoc among pilots, Air Line Pilot Association President Capt. John Prater said last week the merger should be seen as a success story. “The pilots of Delta Air Lines and Northwest Airlines go to work today under a single new contract that improves pay, retirement, and work rules, along with providing pilots equity in the company,” he said.

[POSTED NOVEMBER 11, 2008]

Airlines’ finances expected to improve

After many consecutive quarters of heavy losses, James May, the head of the Air Transport Association, said recently that the forth quarter of this year is looking strong, and profits can be expected next year. According to May, higher fares and surcharges, including those for checked bags—along with lower oil prices—will result in a stronger showing in the short term. May went on to say that he thinks the future of the industry will be in strategic partnerships domestically, and mergers in the international market.

[POSTED NOVEMBER 11, 2008]

Economic slowdown hurts business jet manufacturers

Tightening credit markets and the bear stock market have contributed to difficult times at business jet manufacturers. Although Gulfstream and a few others have yet to announce layoffs, Cessna, Hawker Beechcraft, Cirrus, Eclipse, Grob, and other aircraft manufacturers have made substantial workforce cutbacks in recent weeks. It has yet to be seen how much the market will hurt aircraft orders, as many of the manufacturers have said the layoffs remain a preliminary step at combating a tenuous market. Jet backlogs in the billions of dollars, however, seem to indicate many pilot jobs will remain secure in the short term.

[POSTED NOVEMBER 11, 2008]

Medevac operations under scrutiny

Because of what many consider an abysmal safety record, the emergency medical helicopter community has come under fire lately. Two high-profile fatal accidents in recent weeks, the latest of nine during the past 11 months, have prompted the National Transportation Safety Board to hold a three-day public hearing on the safety of these operations. The hearing will take place in early February, and will include witnesses from the FAA, helicopter pilots, and flight department managers.

[POSTED NOVEMBER 11, 2008]

More airlines using electronic flight bags

In an effort to reduce runway incursions, the FAA recently announced it plans to fund the use of electronic flight bags at three more airlines, for a total of seven. With this most recent announcement, Atlas Air, CommutAir, and Shuttle America will equip a total of 53 aircraft with the systems. Electronic flight bags are intended to improve situational awareness by displaying airport diagrams georeferenced with the airplane’s current position. There’s also a built-in aural alert to further aid pilots. The pilot program is part of a larger study to help determine the course for the FAA’s Next Generation Air Transportation System.

[POSTED NOVEMBER 11, 2008]

Boeing, labor union reach tentative agreement

Commercial airplane maker Boeing and the International Association of Machinists and Aerospace Workers—which represents 27,000 company workers—reached a tentative contract agreement Monday that, if ratified, will end a two-month-long strike. At stake for the union was protection from job outsourcing and yearly pay and benefit increases. For Boeing’s part, the company said the agreement allows it to remain flexible and competitive. Voting is expected to take place later this week.

[POSTED OCTOBER 28, 2008]

OurPlane bids on former DayJet airplanes

Fractional ownership company OurPlane said last week it had bid on 28 Eclipse 500 very light jets that belonged to former per-seat, on-demand operator DayJet. OurPlane has 21 Eclipse 500s on order, but is looking for more airplanes sooner than Eclipse can deliver them. If the bid is successful, OurPlane said it will immediately begin selling quarter shares in the jet for $449,000. The company said it expects the aircraft to be placed at 12 locations across the country.

[POSTED OCTOBER 28, 2008]

FAA to limit controller training

Facing a shortage of fully trained air traffic controllers, the FAA announced last week that it plans to alter controller training in two busy terminal areas. Seen by some as the first of many locations, the FAA will train new controllers in Orlando and Memphis only on tower or approach duties. Traditionally, new controllers would receive training in both areas to help bolster a full understanding of the entire traffic system. The National Air Traffic Controllers Union opposes the move.

[POSTED OCTOBER 28, 2008]

Preliminary report indicates jet was on battery power

A Boeing 757 operated by American Airlines that ran off the side of the runway at Chicago O’Hare International Airport on September 22 was running completely off battery power, according to a preliminary NTSB report issued last week. The report said the crew received a message indicating a loss of generator power, but elected to continue the flight. An hour and 40 minutes later, multiple cockpit systems began to fail, at which point the crew diverted to O’Hare. After landing, the captain intentionally exited the runway after realizing the brakes, spoilers, and thrust reversers weren’t functioning. No one was hurt in the accident.

[POSTED OCTOBER 28, 2008]

Airline hiring up last month

A total of 429 pilots were hired last month, approximately 50 percent more than the previous month, according to data recently released by AIR, Inc. in Atlanta. Among the 63 airlines that reported hiring in September, non-jet operators hired the most with 109 new pilots joining the ranks. National airlines hired 85 pilots, jet operators hired 60, and major airlines added 85 new pilots. Almost 4,000 pilots were on furlough in September, however.

[POSTED OCTOBER 21, 2008]

ExpressJet reaches tentative deal with pilots

Regional airline ExpressJet announced last week it had reached a tentative contract agreement with its employee unions, including its pilots’ organization. The contract calls for wage and benefit reductions for an anticipated savings of $20 million. Voting on the agreement is expected to finish by November 1. If ratified, the pilot contract will be amendable again in December 2010.

[POSTED OCTOBER 21, 2008]

Pratt & Whitney showcases future engine

Testing of Pratt & Whitney’s geared turbofan engine installed on an Airbus A340 began last week in Toulouse, France. The engine is mounted on the inboard left pylon of the four-engine jet. The geared turbofan was previously flown for 43 hours on a Boeing 747SP. Airbus plans to fly 75 hours with the revolutionary engine. Pratt & Whitney is hoping its geared turbofan will present major cost and energy savings in the 30,000-lb-thrust category.

[POSTED OCTOBER 21, 2008]

Mesa, pilot union reach tentative deal

The Mesa Air Group and its pilots, represented by the Air Line Pilot Association, have reached a tentative contract agreement, according to a joint statement issued by the two parties last week. The agreement will result in improved quality of life issues, including a preferential bidding system that gives pilots more control over their schedule, more days off, certain minimum hour guarantees, and more pay for actual time worked, they said. The contract must be ratified by the full group of pilots, who are expected to vote on it in mid-November.

[POSTED OCTOBER 14, 2008]

Frontier pilots approve additional pay cuts

Pilots at Frontier Airlines agreed to extend pay cuts previously instituted as a way to reduce costs amid the airline’s bankruptcy proceedings. The airline’s independent pilot union, the Frontier Airline Pilots Association, approved the airline’s initial request for cuts in June. That reduction will expire on December 1, at which time the two sides will have to come together on an additional extension, or reach a final settlement, according to Frontier.

[POSTED OCTOBER 14, 2008]

TSA releases corporate aircraft security proposal

The Transportation Security Administration last week introduced its long-anticipated Large Aircraft Security Program proposal. The plan would require operators of aircraft weighing more than 12,500 pounds maximum takeoff weight to implement security procedures subject to TSA audit. Among other provisions is a requirement to check all passengers and crew against the TSA’s “no-fly list.” Most corporate aircraft exceed the takeoff weight limitation, meaning the proposal could represent a significant change to corporate aviation.

[POSTED OCTOBER 14, 2008]

Boeing, union unable to reach agreement

A recent round of contract negotiations between Boeing and the International Association of Machinists and Aerospace Workers ended almost as soon as it began this week. On Sunday the two sides again entered mediation to try and resolve a strike over job security, pension, medical benefits, and wages. By Monday the talks had ended with no resolution. Analysts estimate that Boeing loses $100 million every day of the strike.

[POSTED OCTOBER 14, 2008]

Delta, Northwest stockholders approve merger

Delta and Northwest, in the process of combining to become the world’s largest airline, cleared another hurdle this week as stockholders of both companies approved the pending merger. Under the deal, Delta stockholders approved the issuance of 1.25 shares of Delta stock for each share of Northwest stock. According to Delta, 99 percent of its shareholders casting votes were in favor of the deal. Northwest’s stockholders were slightly less receptive, with only 98 percent approving.

[POSTED SEPTEMBER 30, 2008]

United pilots call for CEO’s compensation package to be slashed

Pilots for United Airlines went on the offensive again this week over what they see is excessive compensation for airline CEO Glenn Tilton. According to the pilot’s union, Tilton makes a total of $10.3 million, the highest of any airline CEO in the country. Capt. Steve Wallach, chairman of the United Chapter of the Air Line Pilots Association, said, “His pay is not an entitlement; he should have to earn his money, just like everyone else does.” The union further contends that Tilton has received the high level of compensation, despite the airline’s stock dropping $50 a share over the past year.

[POSTED SEPTEMBER 30, 2008]

Cape Air pilot killed in crash

A Cape Air pilot was killed last week when the Cessna 402 he was flying crashed shortly after takeoff from Martha’s Vineyard Airport, en route to Boston’s Logan International Airport. Cape Air is a regional airline that operates a fleet of more than 50 of the twin-engine Cessna 402s, generally using a single pilot. The accident aircraft was on a repositioning flight, so no passengers were on board.

[POSTED SEPTEMBER 30, 2008]

Airlines resume Houston flights after Ike

Airlines resumed regular Houston flights just two days after Hurricane Ike ravaged the city. The Category II hurricane blew through over the weekend causing widespread damage and power outages, but Houston’s Hobby and Bush Intercontinental airports planned to operate the majority of scheduled flights starting 48 hours after the hurricane. “I know my co-workers have gone through many sacrifices and hardships to try to return their personal lives to normalcy after Hurricane Ike, and they’ve helped each other and our customers in that effort,” said Larry Kellner, chairman and chief executive at Houston-based Continental Airlines. “I want to thank them for all they’ve done.”

[POSTED SEPTEMBER 16, 2008]

Alaska Airlines cuts routes, workers

Alaska Airlines is slashing its capacity 8 percent and its workforce 9 percent in the face of high oil prices and falling travel demand. “The one-two punch of record oil prices and a softening economy, on top of increased competition, has burdened Alaska Air Group with a $50 million loss on an adjusted basis for the first half of this year,” said Bill Ayer, chairman and chief executive. “That demands decisive action to ensure the viability of our company.” Alaska Airlines operates a fleet of 111 Boeing 737s.

[POSTED SEPTEMBER 16, 2008]

Boeing’s IAM strike could last a long time

Boeing and its striking machinists are digging in for what could become a long and costly labor battle. The strike by 27,000 IAM workers at Boeing began Sept. 6, and workers say they are determined to win anti-outsourcing guarantees by walking out at a time when Boeing has a backlog of nearly 3,700 aircraft and faces mounting pressure to deliver fuel-efficient Boeing 787 Dreamliners. “The unions believe they have been giving back [to the company] for years,” said Sheryl Willert, managing director of a Seattle law firm that represents many union members. “They are thinking now is the time to make it up.” Boeing appears equally determined to preserve its flexibility to pursue global projects like the 787, parts of which are manufactured all over the world.

[POSTED SEPTEMBER 16, 2008]

Gulfstream to announce G250

Gulfstream reportedly plans to announce the launch of a new aircraft capable of carrying eight passengers 3,600 nm at Mach 0.80. The new G250, expected to use a smaller version of the G550 wing, is set to debut at the NBAA annual convention in Orlando beginning Oct. 6. Like the larger G550 wing, the G250's will use heated engine bleed air for ice protection, and will not have any high-lift devices on the leading edges. The G250 is slated to use Honeywell engines and Rockwell-Collins Pro Line Fusion avionics with large cockpit displays that offer synthetic vision.

[POSTED SEPTEMBER 2, 2008]

Mexican airline offers tickets to ride-the bus

VivaAerobus, a Mexican low-cost carrier with flights between Austin, San Antonio, and several resort cities south of the border, is offering bus service that picks up passengers downtown in U.S. cities and takes them to local airports for $20 per person. There, they can catch VivaAerobus flights to Mexico. Taxis and airport limos in some U.S. cities can cost as much as airfare on discounted VivaAerobus flights, company officials say, and the program was designed to appeal to budget-conscious leisure travelers. "It's a great value in convenience and time gained for passengers who fly, for instance, to and from Monterrey and Cancun," said Juan Carlos Zuazua, a VivaAerobus spokesman.

[POSTED SEPTEMBER 2, 2008]

Faulty oxygen bottle exploded on Qantas 747

Australian investigators blame a faulty oxygen bottle for an explosion that ruptured the skin of a Qantas Boeing 747 on July 25 that led to a forced landing in Manila. No one was hurt in the explosion, which ripped a gaping hole in the jet and depressurized the cabin at 29,000 feet. Pilots made a mayday call, descended rapidly to 10,000 feet, and jettisoned fuel before landing in the Philippines. "We don't really know why the bottle failed," said Julian Walsh, an investigator with the Australian Transportation Safety Bureau. "That's a key question for the investigation." Determining the cause of the bottle's failure is complicated by the fact that it is at the bottom of the Pacific-it became dislodged near the time of the explosion and fell from the airplane.

[POSTED SEPTEMBER 2, 2008]

American Airlines shows MD-80s the door

American is speeding up the retirement of its aging, gas-guzzling jets and replacing them with newer, more fuel-efficient Boeing 737-800s. The Dallas-based airline plans to move up deliveries for about 47 of the 737s it’s committed to buy. “We believe that beginning to replace some of our MD-80s in a measured way makes economic sense and represents prudent and strategic reinvestment in our business,” said Gerald Arpey, AMR chairman and chief executive. The new 737s will “lower operational costs, boost the fuel efficiency of our fleet, and also bolster our efforts to lower emissions and noise levels.” American says the 737s will consume 25 percent less fuel per available seat mile than an MD-80.

[POSTED AUGUST 19, 2008]

FAA affirms $10.2 million fine for Southwest; dings American for $7.1 million

The FAA is sticking with a proposed $10.2 million fine for Southwest Airlines as a penalty for failing to perform required maintenance inspections. The FAA said the fine is appropriate for failing to complete structural inspections of some Boeing 737 fuselages in 2007, and the agency called Southwest’s actions “serious…and deliberate violations.” Southwest has until August 29 to decide whether to contest the penalty through a formal process. FAA officials also announced they plan to fine American Airlines $7.1 million for improperly deferring maintenance. The bulk of the penalty stems from a pair of MD-83s that were improperly returned to service and flew 58 times before maintenance and paperwork problems were corrected.

[POSTED AUGUST 19, 2008]

Avemco offers insurance coverage to part-time CFIs

Part-time CFIs who want to give dual instruction in their own aircraft will get full coverage at a reduced rate under a new Avemco insurance plan. Previously, instructors who wanted to teach in their own planes had to buy the same policies offered to flight schools flying large numbers of students on a full-time basis. “At Avemco, we’re concerned about the low rate of student starts, the shortage of CFIs, and the overall low level of flying activity across the marketplace,” said Jim Lauerman, Avemco president. “Our hope is to facilitate an increase in the number of qualified, experienced flight instructors available to the general aviation community offering more options for people to seek flight instruction.” Avemco said rates for the new insurance policies are about 30 percent lower than traditional rates.

[POSTED AUGUST 19, 2008]

European carriers shop for new jets

European passenger carriers plan to take advantage of the weak dollar and new technology that improves fuel efficiency by buying large numbers of new aircraft. Since Airbus prices are linked to the dollar, however, there’s no guarantee exchange rates will favor U.S. giant Boeing. Spanish carrier Iberia is considering dumping four-engine Airbus A340s in favor of two-engine A330s, and Ryanair is weighing a massive order of up to 200 new aircraft with options for 200 more. Ryanair, the largest discount carrier in Europe, currently operates Boeing 737s, but says it’s considering Airbus planes as well. “If you buy a lot of aircraft now, you make amazing savings,” said Michael O’Leary, CEO of Ryanair. “They are 50 percent cheaper than a few years ago.”

[POSTED AUGUST 11, 2008]

Airlines threaten lawsuits for slot auctions

The U.S. Transportation Department said it will go forward with a controversial Sept. 3 slot auction for landing rights at Newark International Airport despite strenuous airline objections. The single arrival and departure slot at the chronically delayed airport became available when Eos filed for bankruptcy in April. “This auction will allow us to implement market mechanisms on a small scale, gauge interest, and determine the slot’s market value,” said Transportation Secretary Mary Peters. But airline officials said the auction defies logic, increases congestion, and is meant to serve as a precedent for the FAA to conduct many more and larger slot auctions at Newark and elsewhere in the future. “DOT’s auction proposal is unlawful, unwise, and will do absolutely nothing to reduce congestion and flight delays in New York,” said James May, president of the Air Transport Association. “DOT has left us no options. We will sue to prevent this illegal action.”

[POSTED AUGUST 11, 2008]

Homes to be bulldozed for O’Hare expansion

A Chicago judge has cleared the way for demolition of about 500 homes in the village on Bensenville for the planned expansion of O’Hare International Airport. Lawyers for the village had sought to block demolition until the city showed it had the funds to go forward with the multi-billion-dollar project that includes building a new runway, extending an existing one, and adding a new concourse. Village officials said they plan to appeal the ruling.

[POSTED AUGUST 11, 2008]

United, ALPA try to avoid slowdown

An apparent sickout among United Airlines pilots forced the airline to cancel scores of flights. Pilots angered at the pending furlough of 950 United pilots launched the unauthorized labor action, and a deal between United and the Air Line Pilots Association—which represents the company’s pilots—is meant prevent a wildcat strike. The Railway Labor Act governs airlines and prohibits a strike until a long series of negotiated steps are exhausted. The union that represents American Airlines pilots was hit with a $45 million fine after an illegal job action in 1999 forced the cancellation of more than 6,000 flights.

[POSTED AUGUST 6, 2008]

Gulfstream order backlog grows

A surge in firm orders for Gulfstream Aerospace’s ultra-high-end G650 jet has nearly doubled the value of the company’s order backlog to $18 billion. Customers have placed nonrefundable deposits of about $3 million on 100 of the high-speed, luxury jets. The first G650 is scheduled to fly next year, and the company is scrambling to accelerate production to meet burgeoning demand. “Demand is such that we will crank it up as best we can,” said Nicholas Chabraja, chairman of Gulfstream corporate parent General Dynamics. About half the G650 orders have come from North American customers, and overseas buyers have purchased the rest.

[POSTED AUGUST 6, 2008]

PiperJet gets airborne

Piper launched its entry into the emerging Very Light Jet category with the first flight of its single-engine jet. The beginning of the 50-hour flight test program is a “major milestone” for the company that “marks the beginning of a new era,” said James Bass, Piper president and CEO. The PiperJet is designed to fly 360 KTAS at 35,000 feet with a range of 1,300 nm and a full-fuel payload of 800 pounds. Customer deliveries of the $2.2-million plane are scheduled to begin in 2011. The PiperJet joins an increasingly competitive category of single-engine jets that include the Cirrus SJ-50, Diamond D-Jet, and Eclipse 400.

[POSTED AUGUST 6, 2008]

U.S. bizjet demand slowing

Slow sales at high-profile aviation events such as the Farnborough International Air Show in England are forcing industry analysts to reassess the conventional wisdom that rich U.S. customers and corporations are “recession proof.” U.S. sales have always accounted for more than 50 percent of the total business jet market, but that share has recently fallen to about 30 percent of future sales. The good news for manufacturers is that the falling dollar is making U.S. products a bargain when purchased with foreign currencies—and international demand is surging. Russia, south Asia, and the Middle East are the areas showing the fastest growth in demand. Embraer CEO Federico Curado blamed the credit crunch for slowing U.S. sales: “Already we are seeing a slowdown in business jets in the United States. Credit today is much more selective than a year ago. It’s not as easy as six months ago to finance new aircraft.”

[POSTED JULY 22, 2008]

Fuel reserve policy pits union against US Airways

US Airways pilots accused the airline of forcing pilots to fly with unacceptably low fuel reserves in a full-page ad in USA Today. The airline rejected the charge and said the fledgling union, the US Airline Pilots Association (USAPA), was looking for leverage in contract negotiations. James Ray, a USAPA member, said eight US Airways pilots, all senior captains, were sent for additional training on fuel reserve policy after they repeatedly added fuel before flights. “We think this is an intimidation tactic,” Ray said. US Airways countered that its fuel reserve policy exceeds regulatory requirements. The eight pilots selected for additional training regularly carried significantly more fuel than their peers, and that the training isn’t meant as punishment, airline officials said.

[POSTED JULY 22, 2008]

TSA tests separate lines for airline pilots

The TSA has begun testing separate security lines for airline pilots only at a half-dozen U.S. airports including Atlanta, Baltimore, and Pittsburgh. The move is meant to get pilots to their gates faster and avoid angering passengers who currently have to watch airline crews cut to the front of security lines. “It will definitely be a benefit to passengers not having to see someone cut in line,” said John Prater, head of the Air Line Pilots Association. Not all airline crews are happy with the experiment, however. The Association of Flight Attendants opposes the move.

[POSTED JULY 22, 2008]

American Airlines cuts maintenance staff

American Airlines is planning to eliminate about 1,500 jobs from its maintenance and engineering division, including about 1,300 union positions. The Dallas-based carrier lost $1.4 billion in the second quarter, and American—the only legacy carrier that has so far avoided Chapter 11 bankruptcy court protection—is grounding its entire fleet of 34 Airbus A300 aircraft as well as about 95 additional airframes. The maintenance job cuts will likely begin in September and coincide with the aircraft retirements. American didn’t say where the cuts would take place geographically. American has about 7,000 maintenance workers in Tulsa, Oklahoma; 1,900 in Dallas/Ft. Worth, Texas; and 900 in Kansas City, Missouri.

[POSTED JULY 22, 2008]

United, Continental pilots share information

After their parent companies announced their intention to form a global alliance, United and Continental pilots decided to share information and cooperate to advance their own careers. "Just as United and Continental management have decided to form an alliance to strengthen the relative positions of their airlines against competitors and reap the benefits of a cooperative relationship, we are also positioning ourselves to use the combined strength of our pilot groups to leverage opportunity and defend against threats their alliance presents," said Steve Wallach and Jay Pierce, pilot union representatives for United and Continental, in a joint statement. United and Continental announced a wide-ranging agreement to coordinate schedules and services on June 19, and Continental said it will join United in the international Star Alliance. The Air Line Pilots Association (ALPA) represents pilots at United and Continental, but union representatives said the amount of information sharing and coordination will go far beyond that which normally takes place among ALPA units.

[POSTED JULY 8, 2008]

Northwest pares international flights

In a troublesome trend for U.S. airlines rushing to beef up international service in the face of declining domestic demand, Northwest Airlines announced it is suspending or canceling several transatlantic routes. The carrier will suspend Minneapolis/Paris flights for the winter and end Detroit/Dusseldorf and Hartford/Amsterdam flights in the fall. Northwest called the cuts "inevitable" in the face of record fuel prices and the falling value of the dollar. "The U.S. dollar has fallen substantially against the euro, making it more expensive for Americans to travel to Europe and softening demand," Northwest said in a written statement. Northwest intends to merge with Delta Air Lines, the largest U.S. airline in the transatlantic market.

[POSTED JULY 8, 2008]

Frontier slashes fleet, staff

Frontier Airlines will cut 17 percent of its fleet and a similar percentage of its 6,000 workers, the Denver-based airline said. Frontier has been operating under Chapter 11 bankruptcy court protection since April. Frontier plans to sell 11 Airbus A320s. The discount carrier said it was pushed to seek Chapter 11 when credit card processor First Data Corp. held back the proceeds from ticket sales until passengers actually traveled. Frontier had previously been paid when travelers purchased tickets. Frontier and First Data have negotiated confidential new terms.

[POSTED JULY 1, 2008]

Horizon Air embraces Q400

Horizon Air is moving toward an all-Q400 turboprop fleet to simplify maintenance and training and reduce fuel costs. The regional airline will ditch smaller, 37-seat Q200s and 70-seat CRJ-700 jets in favor of the 76-seat Q400s. Horizon will quit flying Q200s this year. Horizon, a regional airline with routes centered in the western United States, said the move to an all-turboprop fleet was driven by record fuel costs.

[POSTED JULY 1, 2008]

Eclipse 500 OKed for icing; throttle glitch fixed

Eclipse 500 jets won FAA approval to fly into known icing conditions--an important step for the very light jets seeking to become standards for air taxi operators. All aircraft delivered in the fall will be FIKI certified. Existing planes will receive retrofits that bring them into compliance. Some of the changes include new wing and empennage deice boots, rain-repellant paint around static ports, and windshield coatings. Eclipse also altered its engine FADEC systems to avoid a problem that occurred June 5 when an Eclipse 500 crew apparently pushed the throttle levers too far forward and both engines stayed at full power. A software change will allow for much more aggressive throttle handling.

[POSTED JULY 1, 2008]

Continental joins United's alliance

Stopping short of an outright merger, Continental said it will coordinate schedules and capacity with United Airlines and its Star Alliance. Houston-based Continental had been part of the SkyTeam, led by Delta and Northwest. Continental rejected United's merger overtures in April. "Alliances can work better than mergers in raising revenues and reducing costs without the integration, regulatory, and labor headaches," said Jim Corridore, a Standard & Poors analyst. United CEO Glenn Tilton said Continental will strengthen the Star Alliance. "Continental will bring significant new assets to our global alliance, and our two companies will work together effectively with our partners to provide the best overall network in America and the world."

[POSTED JUNE 24, 2008]

LaGuardia slot auction gets Bronx cheer

The Transportation Department's proposed slot auction for New York's LaGuardia Airport is "hare-brained and goofy," according to U.S. Sen. Charles Schumer (D-N.Y.). It won't reduce air traffic or congestion, he said at a Senate hearing, and is an "ideological, untested experiment coming from someone sitting in an ivory tower." Schumer said the agency should increase air traffic capacity by hiring more air traffic controllers and implementing the "NextGen" ADS-B system. Airline trade groups have called the auction misguided and illegal and accuse the Transportation Department of taking airline assets-in this case, takeoff and landing slots-without compensation. Chronic air traffic delays in New York commonly cascade throughout the national air transportation system.

[POSTED JUNE 24, 2008]

Southwest sees modest growth in 2008

In a harsh airline environment where most passenger airlines are slashing capacity, Southwest Airlines anticipates 4 percent growth for the current year. "We know like everyone else knows that we're going to have to move fares along gradually and continuously to be able to overcome these dramatically higher (fuel) costs," said Southwest CEO Gary Kelly. "If we have to slow our growth to zero next year, we're obviously prepared to do that." Southwest will likely add flights in large markets like Denver where competitors are pulling back.

[POSTED JUNE 24, 2008]

Gemini Air Cargo bankrupt, again

Gemini Air Cargo filed for bankruptcy court protection for the second time in two years and furloughed or terminated 75 pilots. The Virginia-based firm flies internationally, and Gemini pilots said they were surprised by the company's decision to seek protection from creditors under Chapter 11. "We are very surprised by the bankruptcy announcement," said Bill Atchison, a Gemini pilot and union chairman. "The furloughs were done in direct violation of our current contract, and we will take whatever steps are necessary to protect the rights of those pilots affected."

[POSTED JUNE 24, 2008]

Continental drops routes

Continental Airlines plans to cut domestic capacity 11 percent with most of the dropped routes coming from the airline's main hubs in Newark and Houston. Smaller hubs in Cleveland and Guan will see reductions, too. Most of the cuts will result in fewer frequencies on existing routes, but 44 routes are going away entirely. Washington-Dulles International Airport loses service from Houston and Cleveland; and Sarasota, Florida, loses flights from Newark and Houston. Continental will close its facilities in nine U.S. cities: Chattanooga, Tennessee; Green Bay, Wisconsin; Montgomery, Alabama; Oakland, California; Palm Springs, California; Reno, Nevada; Sarasota and Tallahassee, Florida, and Toledo, Ohio.

[POSTED JUNE 17, 2008]

Eclipse 500s subject of emergency AD

The FAA sent out emergency airworthiness directives to all Eclipse 500 owners and operators saying throttle quadrants in the very light jets must be inspected immediately. An Eclipse jet landing at Chicago's Midway Airport on June 5 apparently exceeded the allowable travel on the throttle quadrant, leading both engines to go to full power. When the pilots shut down one engine, the other reverted to idle power and was unresponsive to other commands. The crew performed an emergency landing and blew both main landing gear tires, but no one was injured. Eclipse founder and chief executive Vern Raburn said he doesn't believe there's a design problem with the throttles. "There's no need to fix something that isn't broken," he said. "If you abuse an airplane by pulling 6 Gs and pop some rivets on the wings, that doesn't mean the aircraft was designed improperly. The person just exceeded the design limit."

[POSTED JUNE 17, 2008]

No white knight for Silverjet

There will be no miracle comeback for Silverjet. The grounded airline hoped private investors would revive the all-business-class carrier, but a deal failed to materialize. All employees have been laid off and the company's assets are being sold. "We continue to negotiate the sale of Silverjet's assets for the benefit of the company's creditors," said Mark Fry, a U.K. administrator for the London-based carrier.

[POSTED JUNE 17, 2008]

Big carriers vulnerable to fuel prices, too

So far, surging fuel costs have claimed a few small passenger airlines-but industry analysts say big carriers are at risk of bankruptcy, too, if relief doesn't come soon. American, Continental, Delta, and United have trimmed their fleets and domestic schedules in recent weeks, and low-cost carriers AirTran, JetBlue, and Southwest have said they will scale back growth plans. "If you don't have an oil price of about $75 or $80 a barrel, at the end of 2009, you'll have most of the airline industry on the financial ropes," said Harlan Platt, a finance professor at the Northeastern University in Boston. Morgan Stanley analyst Ole Slorer said oil prices are likely to top $150 a barrel this summer as Asian demand for the commodity increases. "If that happens and if that price holds...they'll need to file for bankruptcy protection," Platt said. "And by 'they,' I mean most of the airline industry."

[POSTED JUNE 10, 2008]

An upside of downsizing?

Virgin America says capacity cuts among major U.S. competitors could open new opportunities for the fledgling low-cost carrier to break into busy airports such as New York's JFK and Chicago's O'Hare. "You're seeing capacity cuts of 15 to 18 percent," said David Cush, chief executive at Virgin America. "These capacity cuts are a great opportunity for airports to regain control of their facilities and airspace." Cush said competition from Virgin America would lead to better service and lower consumer prices in the long run.

[POSTED JUNE 10, 2008]

Bill would regulate foreign repair stations

Senators from both major political parties are lining up behind a bill that demands closer scrutiny of overseas airline repair stations. The "Safe Air Act" would boost FAA inspections of foreign facilities to at least twice a year and screen workers for drugs and alcohol. "If we don't do something, this will remain a disaster waiting to happen," said U.S. Sen. Claire McCaskill (D-Mo.). "Oversight of this area is not something we should shirk." The White House and European regulators oppose the bill and say drug and alcohol testing is illegal in some countries where airline maintenance is being performed. U.S. airlines have increasingly sent aircraft to Central and South America and Asia for labor-intensive heavy maintenance.

[POSTED JUNE 10, 2008]

Record oil prices draining airline profits

The global airline industry is on pace to lose $2.3 billion this year-a sharp reversal of fortune from previous projections of modest profits this year, according to the International Air Transport Association. Record oil prices that have surpassed $135 a barrel have burdened the airline industry with $40 billion in additional costs this year. IATA had previously projected a $4.5 billion industry profit for 2008. IATA officials urged governments to "stop crazy taxation," reign in monopolies such as airports and aviation authorities, improve airport infrastructure, and promote trade liberalization.

[ POSTED JUNE 3, 2008 ]

Heathrow a "national embarrassment"

IATA Director General Giovanni Bisignani took aim at London's Heathrow Airport and the U.K.'s Civil Aviation Authority for a relentless series of price hikes that have come on top of a dramatic drop in airline profitability. The CAA has increased airline charges 50 percent in the past five years and plans to hike them 86 percent in the next five years-even while service is reduced. "Service levels are a national embarrassment," he said. "Could anyone in this room ask for a fare increase of 86 percent? Nobody. That only happens in monopoly land." CAA officials defended the increases as necessary to pay for modernization and expansion.

[ POSTED JUNE 3, 2008 ]

AirTran says no thanks to more 737s

Atlanta-based AirTran Airways deferred delivery of 18 new Boeing 737s and slashed its growth plans for the next four years to reduce costs in the face of record fuel prices. "We are reducing planned growth for September 2008, through at least 2009, from 10 percent to no more than flat," said AirTran CEO Bob Fornaro. AirTran grew aggressively by increasing seat capacity more than 20 percent annually through the first part of this decade. AirTran operates 54 Boeing 737-700s and 87 Boeing 717s. Last month, rival discount carrier JetBlue deferred delivery of 21 Airbus A320s.

[ POSTED JUNE 3, 2008 ]

Lessor is biggest Boeing 777 owner

International Lease Finance Corp. took delivery of its seventy-fifth Boeing 777, an extended-range model that will be used by customer Cathay Pacific on long-distance flights. ILFC has ordered 79 777s from Boeing beginning in 1992 and owns more of the two-aisle, twin-engine jets than any other firm. To date, 57 Boeing customers have ordered 1,080 777s.

[ POSTED JUNE 3, 2008 ]

Air traffic changes confusing Newark departures

New departure procedures at Newark Liberty International Airport have caused confusion among some pilots accustomed to always turning left after departing to the southwest. The new procedures allow for left or right turns when departing during peak traffic periods, and air traffic controllers say several pilots have turned the wrong way. Pilots sometimes aren’t notified of the new departure procedures until they arrive at Runway 22R ready for takeoff. “The pilots are being told one thing 30 minutes before departure and then they get on the runway and we’re required to tell them another thing,” said Ray Adams, vice president of the National Air Traffic Controllers Association. The FAA has recently modified air traffic procedures in the New York area as part of a comprehensive effort to cut aerial congestion, and Newark’s new procedures are part of that effort.

[ POSTED MAY 27, 2008 ]

Kelleher to write Southwest’s inside story

After stepping down as chairman on May 21, Southwest Airlines co-founder Herb Kelleher said he plans to write a book. The iconoclastic entrepreneur also expects to work on several ongoing projects for Southwest, including designing a 737 replacement with Boeing and haggling with the FAA to reduce or eliminate a record $10.2 million fine imposed on Southwest for failing to comply with a disputed airworthiness directive. Kelleher had planned to write a book beginning in late 2001, but the terrorist attacks that year disrupted his schedule. Now, he says he has enough material for a few new chapters. “I’ve got lots of fascinating stories to tell,” Kelleher said. “I do know more of the inside stories of Southwest Airlines probably than anyone else. It’s really a very, very colorful story. There are lots of layers, a lot of dimensions that haven’t been addressed.”

[ POSTED MAY 27, 2008 ]

Boeing in no hurry to replace 737

Boeing is slowing efforts to replace its best-selling 737 because the narrow-body jet remains popular with domestic and overseas buyers. Boeing said it’s focusing on technological and manufacturing improvements that will raise the performance of its entire product line in the future. “We’ve reduced our airplane-design effort and are focusing more on the technology breakthroughs,” Boeing spokeswoman Sandy Angers told the Seattle Times. “We need technology breakthroughs in engines, aerodynamics, materials, and other systems.” Rival Airbus is planning to replace its 150-seat A320—a direct 737 competitor—in 2020, and Boeing could wait to see what Airbus does before committing to the 737’s successor. Boeing has delivered more than 5,700 737s and has 2,200 orders through 2014.

[ POSTED MAY 27, 2008 ]

Airlines furious over planned New York slot auctions

The FAA—not the airlines—owns prized takeoff and landing slots at New York City’s busy airports, the federal Transportation Department said in a novel legal argument that has infuriated airline managers. The FAA plans to cap Newark flights at 83 an hour and auction slots at Newark and JFK. D.J. Gibbon, a DOT lawyer, said the FAA has the legal authority to impose caps and auction assets due to an “implicit” and “intangible” grant. “Carriers have no authority or legal property interest in the slots,” he said. Airline officials angrily called the proposals ill conceived and unlawful. Airlines have paid millions of dollars for the valuable slots, and any “attempt to take away that property would require due process and just compensation,” said Douglas Lavin, an airline industry spokesman. “There is no legal authority that airline slots are the property of the government.” Both airline and government officials are under pressure to cut gridlock at the perennially clogged New York City-area airports, and the FAA believes a combination of flight restrictions and market-based incentives are the answer.

[ POSTED MAY 20, 2008 ]

Groundings blamed on poor communication

Transportation Secretary Mary E. Peters blamed massive April schedule disruptions at American, Delta, and Southwest on miscommunication between the carriers and FAA. The FAA imposed multimillion-dollar civil penalties against Southwest for failing to comply with airworthiness directives on its Boeing 737s while the discount airline said it thought it was following the letter and spirit of the regulations. Fearing similar penalties, American and Delta grounded hundreds of short-haul aircraft. American later accused the FAA of misinterpreting the relevant directives. In a recent statement, Peters seemed to agree. “When situations of this magnitude evolve, it is critical that all parties have the right information so the right decisions can be made,” she said.

[ POSTED MAY 20, 2008 ]

Frontier employees accuse execs of bad faith

Frontier Airlines employees who accepted 10-percent pay cuts when the Denver-based carrier sought Chapter 11 bankruptcy protection last month accused airline executives of feathering their own nests by seeking golden parachutes that include six-month pay deals for executives but none for workers. “Golden parachutes for executives are a deal-breaker,” said Matthew Fazakas, president of Teamsters Local 961, which represents more than 400 Frontier employees. “They want us to have confidence in their plan to emerge from bankruptcy, but obviously they have no confidence in it themselves.” Frontier executives have taken 20-percent wage cuts in an effort to attract outside investment. The company has a workforce of about 6,200 people.

[ POSTED MAY 20, 2008 ]

Fuel heist lands worker in hot water

A contract airport worker at Portland International Jetport in Portland, Maine, has been arrested and charged with stealing jet fuel from a JetBlue Airways A-320 for use as home heating oil. With kerosene prices at record levels, the thousands of gallons of kerosene-based jet fuel stored in aircraft are increasingly valuable. Airport security officials say they caught the worker in the act of siphoning jet fuel into a five-gallon can, and they believe he took about 25 gallons total. The man also is accused of damaging the aircraft and faces local and federal charges.

[ POSTED MAY 20, 2008 ]

New business jet deliveries speed up

Deliveries of new business jets surged 40.8 percent in the first quarter and billings jumped 16.1 percent to a record $5.3 billion, according to the General Aviation Manufacturers Association. Jet manufacturers delivered 297 new airframes in the first three months of 2008 compared to 211 in the same period last year. GAMA said total deliveries this year are likely to surpass last year’s record 1,138 business jets. Although slow growth and weak corporate earnings have dogged the U.S. economy, the financial picture is brighter overseas. “The trend of increasing market share occurring outside of North America continues for most manufacturers,” said Pete Bunce, GAMA president and chief executive.

[ POSTED MAY 13, 2008 ]

SkyWest, ASA sign Bombardier maintenance deal

Airline pilots accustomed to cruising at max power are being told to fly more fuel-efficiently to save money, if not time. With record high fuel prices, savings from flying higher, or slower—or both—can more than offset the price of keeping flight crews on duty a bit longer. Southwest, JetBlue, and Northwest are among the airlines shaving about 10 knots off cruise speeds, changing altitudes to maximize tailwinds (and minimize headwinds), and making other small changes the carriers hope will trim fuel use. The airlines also have invested in new software that allows dispatchers to plan more efficient routes, altitudes, and speeds.

[ POSTED MAY 13, 2008 ]

Airlines slow down to save fuel

Airline pilots accustomed to cruising at max power are being told to fly more fuel-efficiently to save money, if not time. With record high fuel prices, savings from flying higher, or slower—or both—can more than offset the price of keeping flight crews on duty a bit longer. Southwest, JetBlue, and Northwest are among the airlines shaving about 10 knots off cruise speeds, changing altitudes to maximize tailwinds (and minimize headwinds), and making other small changes the carriers hope will trim fuel use. The airlines also have invested in new software that allows dispatchers to plan more efficient routes, altitudes, and speeds.

[ POSTED MAY 6, 2008 ]

American blames FAA for groundings

A last-minute change in rule interpretations within the FAA caused American Airlines to abruptly cancel more than 3,000 flights last month, the Dallas-based carrier said in a report to the U.S. Transportation Department. American was working with manufacturer Boeing on a wiring fix for its MD-80s, had a “handshake agreement” with local FAA inspectors, and planned to finish upgrades months in advance of FAA deadlines. But FAA headquarters overruled local officials and forced American to make immediate, costly, and disruptive changes that caused chaotic cancellations throughout American’s network. Southwest and Delta have suffered steep fines and thousands of flight cancellations over similar issues.

[ POSTED MAY 6, 2008 ]

Business jet prices fall

The domestic market appears to be softening for new and used business jets, but increasing demand overseas is preventing fire sales. Research from JP Morgan shows the number of business jets for sale jumped to 7.2 percent of the active fleet from 6.2 percent in January, and asking prices have dipped about 1 percent. The weak U.S. economy and slumping corporate profits are at the root of the downturn. About 80 percent of the world’s business jet fleet is based in North America. But growing demand from Asia, Europe, and Russia has cushioned the blow, so far.

[ POSTED MAY 6, 2008 ]

Virgin Atlantic nixes in-flight beauty therapy

The British carrier known for indulgent frills has ended in-flight beauty therapy. The service that used to be available to premium customers will still be available at some airport terminal lounges, but not at 33,000 feet over the Atlantic. About 320 in-flight beauty therapist jobs are going away. But Virgin employees needn’t furrow their brows. The company is offering them new jobs as cabin crew, or ground-based beauty therapists.

[ POSTED MAY 6, 2008 ]

Lawmakers promise merger scrutiny

Congress will take a hard look at the proposed Delta/Northwest merger and the wave of consolidation that is likely to follow, key House and Senate lawmakers said. “We are concerned that this merger could result in a cascade of mergers,” said Rep. John Conyers (D-Mich.). The proposed Delta/Northwest deal would create a globe-spanning super-carrier. Delta is strongest in the transatlantic market, while Northwest’s franchise is built in the Pacific. But lawmakers and employee groups say they are concerned the merger will eliminate jobs, U.S. hubs, and competition. Meanwhile, Continental Airlines, widely reputed to be considering a merger with United or American, said it intends to remain independent—at least for now.

[ POSTED APRIL 29, 2008 ]

Carriers post bleak first-quarter results

The first three months of 2008 were financially ruinous for U.S. passenger carriers, with American, Delta, and United posting massive losses. Delta’s staggering $6.4 billion loss was worst on paper—but $6.1 billion of it was related to non-cash accounting measures that included charges based on the falling value of its stock. Delta posted a 12-percent revenue increase in the first quarter, but a dramatic increase in fuel prices overshadowed all else. All told, Delta lost $274 million on operations (about $3 million a day) in the first quarter. American lost $328 million and United lost $537 million during the same period.

[ POSTED APRIL 29, 2008 ]

Being CEO still pays

Delta CEO Richard Anderson took home more than $11 million in total compensation during his first four months on the job. Most of Anderson’s pay came in the form of stock and other grants, which have declined in value as Delta’s stock has tanked. His salary was about $200,000 during the last four months of 2007. Anderson, a former Northwest Airlines CEO, took the helm at Delta in September. Since then, he has helped engineer a proposed merger between the two network carriers.

[ POSTED APRIL 29, 2008 ]

CAPT Program links with Bangkok Airways

The CAPT Program, an airline pilot training firm with flight operations in Florida, will become the model for the newly formed Bangkok Flight Academy, a subsidiary of Bangkok Airways. The academy in Thailand will operate 27 aircraft, including two jets, and prepare pilots for what it says is a burgeoning international market. The Jackson Group, a team of aviation consultants based in Duluth, Georgia, put the deal together.

[ POSTED APRIL 29, 2008 ]

Southwest pares growth

Southwest Airlines will defer about half its scheduled aircraft deliveries next year and slow its 2009 capacity growth to about 3 percent, the Dallas-based discount airline said. The airline also is considering forming new, international code-share relationships with up to six airlines after former partner ATA abruptly exited the passenger business. Southwest will take delivery of no more than 14 new Boeing 737-700s in 2009, half its previously announced number. At one time, the company expected to increase its 2009 capacity by 8 percent. Southwest is making the changes in response to record high fuel prices, but its pain isn’t as acute as some of its competitors—Southwest locked in fuel prices at $51 a barrel for about 70 percent of its purchases this year while oil prices on the open market have more than doubled.

[ POSTED APRIL 22, 2008 ]

DOT wants LGA slot auctions

The federal Department of Transportation wants an auction to decide which carriers get coveted landing slots at New York City’s LaGuardia Airport (LGA)—but the airline industry detests the idea. Transportation Secretary Mary Peters said “congestion pricing” and a slot auction would cut traffic and smooth operations at the airport notorious for chronic delays. But the International Air Transport Association criticized the DOT’s “eBay approach.” The Air Transport Association also howled about new charges at a time when the airlines are in dire financial shape. “It is truly mystifying, with the airline industry in a financial meltdown due to the overwhelming fuel prices, that DOT decides now is the time for a costly economics experiment at LaGuardia,” said James May, ATA president. Virgin America, which doesn’t fly to LGA, also opposes the pricing scheme, fearing it could lock out new entrants and set a precedent for other busy airports.

[ POSTED APRIL 22, 2008 ]

Delta, Northwest merger not overcapacity fix

Airline executives and industry analysts say overcapacity has lead to destructive competition and an inability to pass along fuel price increases to consumers. But consolidation in the form of the proposed Delta/Northwest merger isn’t likely to do much to solve the airline industry’s capacity woes. Delta and Northwest have very few overlapping routes—so the merger, if approved by regulators, is unlikely to pull much capacity out of the market. The new Delta could eliminate one or two domestic hubs and ground inefficient DC-9s, MD-80s, and MD-90s, but the number of routes and daily flights is unlikely to change substantially. Other proposed combinations such as United/Continental could slash fleets, routes and jobs—but not as much as industry analysts say is needed. JPMorgan analyst Jamie Baker, for example, said the U.S. airline industry must shed 20 percent of its current capacity to return to financial health.

[ POSTED APRIL 22, 2008 ]

Delta, Northwest tie the knot

After a long and stormy courtship, Delta Air Lines and Northwest Airlines have agreed to a merger that will create the world’s largest passenger carrier—but probably not for long. Their marriage is likely to lead to a flurry of consolidation, with United and Continental the next to join forces. The combined Delta/Northwest will keep Delta’s name and Atlanta headquarters. Delta operates more transatlantic flights than any other carrier, and Northwest is strongest in Asia. Delta CEO Richard Anderson—a former Northwest CEO—will run the merged airline with combined annual revenues of more than $31 billion. Delta and Northwest have been talking about a merger for months, but the two sides appeared to abandon a deal when unions representing their pilot groups failed to come to terms. The boards for Delta and Northwest decided to go forward, however, without the blessing of Northwest’s pilots.

[ POSTED APRIL 15, 2008 ]

Northwest workers displeased

Northwest pilots and ground workers say they will do everything they can to torpedo the merger. Pilots at Delta and Northwest were unable to come to terms during months of talks, and Northwest’s pilots vow to resist any arrangement that gives their Delta counterparts advantages in seniority, pay, or ownership. Northwest pilots offered arbitration to resolve their differences, but Delta pilots said no. Delta pilots also get a 3.5-percent stake in the combined carrier and a contract extension through 2012. Northwest pilots say that, even if regulators approve the deal, labor discord could keep the new Delta locked in internal battles for years—just like US Airways three years after it merged with America West. “A merger built on this unstable foundation is likely to put the combined airline in a position similar to US Airways,” said Dave Stevens, leader of Northwest’s pilot union.

[ POSTED APRIL 15, 2008 ]

Musical hubs

The new Delta will have hubs in Atlanta, Cincinnati, Detroit, Minneapolis, New York, Salt Lake City, and Tokyo, and the company says it will keep all of them—for now. Airline analysts say it’s highly likely that some of the hubs will be jettisoned in the future, and Memphis and Cincinnati are most expendable. Memphis is overshadowed by Atlanta, Delta’s headquarters city and the world’s busiest airport in terms of passenger volume. Cincinnati is too close to Northwest’s Detroit hub where the airline has made huge investments to upgrade international capacity—the bright spot as a result of the weak dollar. Delta said it has no plans to close hubs or furlough workers.

[ POSTED APRIL 15, 2008 ]

More cancellations ahead

Minnesota Congressman James Oberstar said the thousands of maintenance-related flight cancellations that have plagued American, Delta, Southwest, and other U.S. airlines in recent weeks could be a hint of what is yet to come. Oberstar, chairman of the House Committee on Transportation Infrastructure, blames lax FAA oversight for allowing airlines to skip required maintenance inspections. Now, Oberstar said he’s unapologetic about planes being taken out of service for safety inspections and predicts there’s more to come. “I think we can expect more aircraft being pulled out of service because they weren’t inspected when they should have been. It’s now reached a crisis point beyond the inspection dates that they’ve had to take large numbers of aircraft out of service in order to conduct the inspections that should have been done on a routine basis.”

[ POSTED APRIL 15, 2008 ]

Three airlines gone in a week

High fuel prices and reduced passenger demand led to the demise of three airlines in a single week last week: Aloha, Skybus, and ATA. Aloha fell first, blaming unfair competition in its core interisland markets. Skybus was next, as rising fuel prices made it impossible for the deeply discounted carrier to keep offering one-way fares as low as $10. As the dismal week finished, 35-year-old carrier ATA shut its doors, parked its planes, and cut loose 2,230 workers. ATA’s corporate parent, Global Air Logistics, will continue flying air cargo and charter flights through other subsidiaries, but ATA shut down immediately and it is unlikely to reopen. ATA operated Boeing 757s and 737-800s, and it had what was regarded as a highly successful alliance with discount juggernaut Southwest Airlines. Southwest was scrambling this week to accommodate thousands of passengers with ATA tickets.

[ POSTED APRIL 8, 2008 ]

Goodbye Skyway; hello SkyWest

Midwest Airlines ditched Skyway, a company-owned regional carrier, in favor of Utah-based SkyWest and its fleet of 50-seat regional jets. Midwest announced in January it planned to jettison its regional subsidiary, and this week it cut more than 300 Skyway employees. SkyWest is a growing firm that has been picking up a larger share of regional routes from major U.S. passenger carriers who find SkyWest can operate the routes more profitably than they can through owned subsidiaries. SkyWest is based in St. George, Utah, and owns ASA Airlines, a Delta Express carrier based in Atlanta, Georgia.

[ POSTED APRIL 8, 2008 ]

A new unlucky number?

London Heathrow’s new Terminal 5 might have to be renumbered—it’s been unlucky for British Airways. The state-of-the-art facility has been hampered by baggage woes that forced BA to cancel hundreds of flights. Supermodel Naomi Campbell is reported to have had a major meltdown there and spat at a British police officer. This week there were scores of additional cancelations as snow snarled travel. The facility opened March 27, and BA officials have been forced to make repeated apologies and assurances that it would improve its operational performance at T5.

[ POSTED APRIL 8, 2008 ]

Aloha shuts down

Aloha Airlines shut down passenger flights and agreed to sell its cargo operations, the 61-year-old carrier announced. The shutdown ends the jobs of about 1,900 Aloha employees. “This is an incredibly dark day for Hawaii,” said David A. Banmiller, Aloha’s president and chief executive. “Despite the groundswell of support from the community and our elected officials, we simply ran out of time to find a qualified buyer of secure continued financing for our passenger business. We had no choice but to take this action.” Aloha blamed “unfair” discount competition from new carriers for cutting prices and revenue in its core inter-island flights, and skyrocketing fuel costs, for its demise.

[ POSTED APRIL 1, 2008 ]

Open skies won’t shake up Heathrow

A new “Open Skies” agreement between the United States and the European Union is unlikely to disrupt the status quo at London’s Heathrow Airport, Europe’s largest international gateway, according to an official from Virgin Atlantic. U.S. and E.U. officials praise Open Skies as a way to increase flights, routes, and airline jobs, as well as lower consumer prices in transatlantic markets. But Barry Humphreys, Virgin’s director of route development, said flights between Heathrow and the United States are forecast to grow by about nine daily this year—in line with current trends, and definitely not a major increase or transformation. European airline officials say they plan to lean on E.U. negotiators and U.S. airlines to push for greater access to U.S. markets in future talks. European carriers also want to eliminate U.S. laws that currently limit foreign ownership of U.S. carriers to 25 percent.

[ POSTED APRIL 1, 2008 ]

Delta launches Shanghai route

Delta Air Lines inaugurated its first China flight with a nonstop, 15.4-hour trip from Atlanta to Shanghai. A Boeing 777-200 ER will make the 7,659-mile trip daily between Delta’s Atlanta hub and China’s main business center. Delta can carry up to 268 passengers on each flight, and the twin-engine plane will typically consume about 34,000 gallons of jet fuel on each leg. Delta, which has a robust transatlantic route network but trails Northwest and United in the Pacific, had been seeking a China route for many years. Delta and other U.S. carriers are beefing up international routes to gain from favorable currency exchange rates and avoid increasing discount competition in domestic markets.

[ POSTED APRIL 1, 2008 ]

Brazilian jets for AirBrazil

JetBlue founder (and former CEO) David Neeleman placed an order for 36 new Brazilian-made Embraer 195 jets for his start-up passenger carrier, AirBrazil. Neeleman launched his last airline, JetBlue, with a fleet of Airbus A320s, but he said the smaller Embraers are a better tool to compete with Gol and other Brazilian airlines that fly larger jets. Gol flies 150-seat Boeing 737s. “The Embraer 195 is the perfect plane for the Brazilian market,” Neeleman said. “With 30 percent fewer seats than the aircraft favored by the competition, the Embraer 195 offers competitive unit costs and much lower trip costs. Because we can make money with fewer passengers per flight, we can provide nonstop service in more markets than exists today.” AirBrazil expects to take delivery of its first 195 late this year.

[ POSTED APRIL 1, 2008 ]

2008’s first airline bankruptcy

Aloha Airlines’ corporate parent filed for Chapter 11 bankruptcy court protection and plans to keep flying while it tries to sort out new deals with creditors and its 3,500 workers. The inter-island passenger carrier blamed new competition from Mesa Air Group’s Go! subsidiary for its financial woes. Go! first landed in Hawaii in 2006, and the discounter has been cutting deeply into the market long dominated by Aloha and Hawaiian airlines. Rising fuel costs didn’t help, either. Aloha predicts its annual fuel bill will rise $71 million above last year’s levels.

[ POSTED MARCH 25, 2008 ]

FAA predicts flat airline demand

The FAA’s forecast for 2008 air travel demand has changed to a flat line. The agency revised its predictions sharply downward and said domestic air travel demand will be flat at best—not the steady surge it had predicted. “We’re seeing a definite pause in growth,” FAA Acting Administrator Paul Sturgell said. Domestic air travel growth is expected to rise 0.6 percent in fiscal 2008, down from a forecast 3.4 percent. High oil prices and a sluggish U.S. economy are the main reasons for the sharp drop in demand, Sturgell said.

[ POSTED MARCH 25, 2008 ]

NetJets, FlightSafety invest in Columbus

NetJets will keep its headquarters in Columbus, Ohio; add more than 800 new employees; and invest $220 million, the growing fractional ownership group announced. The company had been evaluating other cities in North Carolina and Texas but stuck with Ohio when state and local governments offered upwards of $67 million in incentives. FlightSafety International, a sister company, also said it will dramatically expand its simulator training in Columbus to create the world’s largest flight sim facility there.

[ POSTED MARCH 25, 2008 ]

Costly oil could take toll on RJs

Major hub-and-spoke airlines are likely to slash fleets of 50-seat regional jets as high fuel prices make the cost of using the planes prohibitive, according to The Boyd Group, an aviation consulting and forecasting organization. Small RJs, operated by regional carriers on fuel cost-plus leases, are less efficient measured on a seat-mile basis than larger aircraft. A decade ago, labor costs were a higher percentage of airlines’ total operating costs. But post-9/11 wage cuts and escalating fuel prices have made small regional jets less attractive, and The Boyd Group anticipates that many older RJs will soon face forced retirement.

[ POSTED MARCH 25, 2008 ]

Biggest Boeing 787 customer expects more delays

International Lease Finance Corp. Chairman Steven Udvar-Hazy expects a redesign of the Boeing 787 Dreamliner center wing box to delay the highly anticipated program six months—but the company isn’t commenting. The 787 program has been delayed three times to date, and top management has been replaced once. The first 787 is scheduled to fly this year, and the first delivery is supposed to take place next year. Hazy, with 74 of the ultra-efficient aircraft on order, said increases in the aircraft’s weight have required a redesign of the center wing box, a key structural component that determines wing strength.

[ POSTED MARCH 25, 2008 ]

Southwest grounds a bunch of Boeings

Southwest Airlines parked 43 older Boeing 737s and suspended three employees after an examination of maintenance records turned up questions about the kinds of inspections performed on the aircraft. The Dallas-based discount airlines canceled about four percent of its flights because the planes were unavailable. The FAA hit Southwest with a proposed $10.2 million fine for continuing to fly 46 aircraft without performing required safety inspections of the aircraft fuselages. The grounded planes were scheduled to return to service after the inspections had been completed at maintenance bases in Dallas and Chicago.

[ POSTED MARCH 18, 2008 ]

More than 1,000 new pilots hired last month

AIR Inc., an Atlanta pilot placement firm, said U.S. airlines hired 1,038 new pilots in February despite a slowing national economy and record high oil prices. The hiring forecasts for the rest of this year remain bullish as pilot retirements continue. Among major carriers, Continental plans to hire 350 new pilots this year; JetBlue, 380; and US Airways, 325. Regional airline hiring will be even more robust with American Eagle hiring 700 new pilots; ASA, 500; and Republic, 600. AIR Inc. anticipates that more than 10,000 new airline pilots will be hired this year.

[ POSTED MARCH 18, 2008 ]

Filling those job aerospace job vacancies

JSfirm, a Web site that lists aerospace positions, said it’s helping job seekers match a growing demand. “When JSfirm started nearly 10 years ago, we had no idea the demand to find qualified aviation professionals would be this high,” said Tonya Salatino, a manager at the Fort Worth, Texas, company. The company’s Web site pulls in more than 3 million hits a month from job seekers and advertisers. About 40,000 aviation professionals have posted resumes on the JSfirm site.

[ POSTED MARCH 18, 2008 ]

SAS buys Bombardier jets, turboprops

SAS Scandinavian Airlines will buy 27 jets and turboprops from Bombardier with options for up to 24 more, despite the airline’s concerns over several landing-gear failures on Bombardier Q400 turboprops last year. SAS banished Q400s from its mainline fleet last fall after it experienced three landing-gear incidents in six weeks. An investigation revealed no flaws with the landing gear design. SAS will buy CRJ900s and Q400s with a total value of $883 million; that could grow to $1.75 billion if the airline exercises all options.

[ POSTED MARCH 18, 2008 ]

Continental pilots increase their war chest

Pilots at Continental Airlines voted to increase the size of a fund designed to protect their interests in case of a future merger. “Pilots at Continental are preparing themselves in the event the airline becomes engaged in a potential merger,” said Jay Pierce, head of the Air Line Pilots Association at Continental. Airline consolidation rumors have intensified as Delta Air Lines and Northwest confirmed they were holding merger talks, although steps toward a deal appear to have halted over a dispute about how to combine pilot seniority lists. United Airlines also has unsuccessfully sought combination with other hub-and-spoke carriers.

[ POSTED MARCH 18, 2008 ]

Cessna Caravan takes heat over ice

A lawyer for nine skydivers who were killed when the Cessna 208B Caravan they were riding in struck a mountain in Washington has sued Cessna, claiming the single-engine turboprop shouldn’t be certified for flight in icing conditions. “Our goal is to have the 208B decertified from flying in icing conditions,” said Dean Brett. Cessna declined comment citing pending litigation. According to a preliminary NTSB report, the pilot of the accident airplane didn’t file a flight plan despite warnings for IFR conditions and icing along his route. The pilot also died in the crash.

[ POSTED MARCH 18, 2008 ]

Another Dreamliner delay?

Boeing’s 787 may be facing more delays as wiring problems push back the first engine start from spring to summer, according to Richard Safran, a Goldman Sachs analyst. “Changes to the airplane have caused a delay in completing wiring of the aircraft,” Safran wrote in a research note. Boeing has delayed the Dreamliner delivery schedule several times already and replaced key leaders in the development of the ultra-efficient, long-range aircraft. The first 787 customer delivery is scheduled for early 2009. Boeing has sold 857 Dreamliners to date.

[ POSTED MARCH 11, 2008 ]

Southwest responds to FAA fine

Southwest Airlines seemed genuinely surprised by the FAA’s record $10.2 million fine and a chorus of accusations from FAA and Congress over missed safety inspections. The Dallas-based discount carrier said that it discovered the maintenance oversights on its legacy Boeing 737-300 and -500 aircraft, disclosed them to FAA officials, and received assurances that the airline was in compliance last year. “The FAA approved our actions at that time and we considered the matter closed,” Southwest spokesman Paula Berg said on the company’s Web site. “The safety of our fleet was not compromised.”

[ POSTED MARCH 11, 2008 ]

Fan blades cause CRJ engine failures

Defective fan blades on General Electric CF34-3B1 engines that have caused two in-flight failures on Canadair CRJ-200 regional jets should be taken out of service, the NTSB recommended. Manufacturing defects caused failures that resulted in loud banging and severe vibrations aboard CRJs in 2006 and 2007. The planes landed safely and no one was injured in either incident. Both failures were traced to a manufacturing defect at a Teleflex plan in Mexico that has produced about 28,000 blades now in service.

[ POSTED MARCH 11, 2008 ]

US Airways pilots feel slighted

Although their carrier was bought out of bankruptcy court and merged with America West in 2005, US Airways pilots say they are still paid at lower rates than their peers within the same airline. “The US Airways pilot group has been living under the same bankruptcy-derived contract for years, although US Airways is now a viable standalone carrier that has produced hundreds of millions of dollars for its shareholders,” said Jack Stephan, chairman of the union representing US Airways pilots. “The pilots of this airline deserve pay parity in line with what the America West pilots are compensated.” Even thought they fly many of the same airplanes on the same routes for the same company, the two pilot groups continue to work under separate labor contracts.

[ POSTED MARCH 11, 2008 ]

Judge’s order could harm airline safety

Pilots and airlines sharply criticized a federal judge for ordering Comair to turn over confidential safety violation reports to families seeking punitive damages for the 2006 accident in Lexington, Kentucky, that killed 49 people. The reports give details of at least four incidents in which pilots lined up with the wrong runways. The Lexington crash took place when a Comair regional jet crew mistakenly attempted to take off from a too-short runway before dawn. Pilots and airline officials say the confidential Aviation Safety Action Program is a valuable tool that will become useless if flight crews and air carriers know the information they provide can be used against them. “If these safety reports are released to third parties, this revolutionary, nonpunitive safety system will be in jeopardy, putting the traveling public at undue risk,” said John Prater, president of the Air Line Pilots Association. “This ruling undoes a lot of hard work we’ve all accomplished in airline safety and sets us back by decades. It will bring preemptive, proactive safety solutions in our industry to a screeching halt, forcing us to rely once again only on information gathered after accidents. The public deserves better.”

[ POSTED MARCH 11, 2008 ]

How not to land in a crosswind

A viral video of a Lufthansa A320 attempting to land in a severe crosswind—and scraping its left wing tip—in Hamburg, Germany, on March 1 lit up aviation blogs around the world. Some took the crew to task for attempting to land in winds that were reportedly gusting to 55 knots and may have exceeded the A320’s crosswind limits. Others praised the crew for quickly reacting with a timely go-around. The strong winds came in the wake of a powerful cold front that swept across Europe. The botched landing video claimed the top spot on YouTube for a time, and NBC Nightly News featured it as well.

[ POSTED MARCH 4, 2008 ]

Delta, Northwest pilots discuss seniority

The on-again, off-again courtship between Delta Air Lines and Northwest Airlines may be on again. Pilot union leaders from the two large U.S. hub-and-spoke carriers reportedly met to discuss the seniority issues that have prevented the airlines from consummating a merger. Delta has the strongest transatlantic network of any U.S. carrier, and Northwest has a powerful route network in lucrative Asian markets. Delta CEO Richard Anderson used to be the top executive at Northwest. Anderson has insisted that any combination be named Delta and that its headquarters stay in Atlanta. A marriage between the two carriers would likely eliminate some jobs, reduce some domestic routes, and put existing hubs in Memphis and Cincinnati in danger of closure. The airlines say they need to increase efficiency and reduce overcapacity in the face of record high fuel prices.

[ POSTED MARCH 4, 2008 ]

Southwest fined for skipping inspections

The FAA is seeking to slap Southwest Airlines with a $10.2 million penalty for flying 46 Boeing 737s without performing mandatory fatigue crack inspections. The Dallas-based discount carrier reportedly found cracks in six of those planes. “The FAA is taking action against Southwest Airlines for failing to follow rules that are designed to protect passengers and crew,” FAA Associate Administrator Nicholas Sabatini said. “We expect the airline industry to fully comply with all FAA directives and take corrective action.” The FAA accuses Southwest of ignoring a September airworthiness directive that required detailed inspections of the aircraft fuselages. Southwest has 30 days to respond to the FAA’s charges.

[ POSTED MARCH 4, 2008 ]

Pilots oppose British Airways plan

European and U.S. pilots are resisting an effort by British Airways to launch a separate carrier known as “OpenSkies.” British pilots say the carrier would use the same planes but different flight crews paid at lower rates than BA crews. “Allowing BA airplanes to operate without BA pilots will do irreparable harm to all British Airways pilots, indeed to all the world’s airline pilots,” Air Line Pilots Association President John Prater said in the video message to BA pilots. “If British Airways succeeds in its current demands, it will open the door for every international carrier in the EU to follow the same path.” BA plans to use the “OpenSkies” alter-ego airline to provide passenger service from Paris and Brussels to the United States under a new U.S.-European Union air services agreement. Set to begin with a single airliner in June 2008, BA is expected to attempt to expand “OpenSkies” to six airplanes by the end of 2009.

[ POSTED MARCH 4, 2008 ]

Let’s all move to first class

American Airlines is under fire from environmentalists for flying a Boeing 777 from Chicago to London with just five paying passengers. The London Daily Telegraph said a trip on February 9 carried fewer passengers than crew. It’s one of four daily flights American operates between Chicago and London. American said it had to send the nearly empty aircraft across the Atlantic to handle a return flight that was heavily booked. American certainly would have liked to avoid the expense of operating the international flight—sending the nearly empty plane on the one-way trip cost the Dallas-based company more than $60,000.

[ POSTED MARCH 4, 2008 ]

Pilot seniority issues cloud merger

It seemed as if Delta and Northwest Airlines were close to revealing a long-awaited merger deal. But now an impasse concerning pilot seniority has placed the alliance at risk, reported the Associated Press from Atlanta. As a result, the airlines might remain independent, merge with other competitors, or even wait until next year to make a deal. “I can conceive of the pilots not coming to an agreement and destroying a potential merger,” the AP quoted airline analyst Ray Neidl as saying. Sources told the AP that the two airlines’ pilots’ unions agreed on a joint contract, equity stakes for pilots, and some pay raises, but have been unable to reach a consensus on how seniority for 12,000 pilots working for a combined airline could be structured.

[ POSTED FEBRUARY 26, 2008 ]

Other unions oppose mergers

Northwest’s baggage handlers and ticket agents’ union said that it would oppose any merger, reported the Associated Press from Minneapolis. And the International Association of Machinists believes airline mergers harm employees and passengers; it also bargains for workers at United Airlines, Alaska Airlines, and other carriers. The statements came as pilot unions at Northwest and Delta Air Lines studied ways to work out their differences in the event of a possible combination. The International Association of Machinists does not represent workers at Delta, the report noted.

[ POSTED FEBRUARY 26, 2008 ]

Pinnacle pilots preparing to strike

Pinnacle Airlines pilots have opened a strike operations center in Bloomington, Minn., said an Air Line Pilots Association news release. The preparations for a potential strike come after three years of contract negotiations. “We want to send a clear message to Pinnacle management: Pinnacle pilots are serious about doing whatever it takes to negotiate a contract that recognizes the sacrifices the pilots have made to the financial success of this airline,” said Capt. Scott Erickson, chairman of the ALPA unit at Pinnacle. Capt. Erik Addy, chairman of the Strike Preparedness Committee, said that pilots “are fully prepared to conduct a strike if management refuses to negotiate a reasonable agreement.” Low morale and “en masse” departures of pilots to other airlines have stemmed from lack of pay raises and increased time away from home, said the announcement. Pinnacle, based in Memphis, operates as Northwest Airlink and Delta Connection.

[ POSTED FEBRUARY 26, 2008 ]

Oil prices force new fare hikes

United Airlines increased fares $10 on most domestic round-trip flights in an effort to offset fuel cost increases, reported the Associated Press from New York. It was the fourth such move by the airline industry this year, based on data from FareCompare.com. Fuel remains one of the industry's biggest expenses. Surging oil prices climbing back above $100 a barrel recently are seen threatening new profitability airlines have achieved.

[ POSTED FEBRUARY 26, 2008 ]

Virgin tests ‘natural’ jet fuel

Jet fuel derived from coconut and babassu nuts oils? Last Sunday, Virgin Atlantic flew a Boeing 747 from London Heathrow to Amsterdam “with one of the four engines burning a mixture of 80 percent jet fuel and 20 percent oil from naturally grown plants,” reported the online edition of the Wall Street Journal. That first commercial airline test of biofuel “came off without a hitch” and demonstrated that airliners may not always depend on petroleum alone. The report said that Virgin and the other project participants hope that in three to six years, jets could be partly powered by naturally grown oils, and that the fuel’s production process could reduce total emissions by 20 percent.

[ POSTED FEBRUARY 26, 2008 ]

New ATC simulators deployed

“Sim time” is not just something for pilots to keep track of when meeting training requirements. Air traffic controllers can log sim time, too. The FAA announced that it will deploy new air traffic tower simulators to 19 locations around the country “to help train thousands of new air traffic controllers in an operational environment that is interactive and provides realistic scenarios.” The FAA will also install six additional simulators at the FAA Academy in Oklahoma City. Tower simulators have been used for training in Chicago, Miami, Phoenix, and Ontario, Canada since 2006. Last December the agency awarded a contract to Adacel Systems of Orlando, Florida, to provide another 24 simulators. The Tower Simulation System “includes a large, graphic depiction of the airfield and the area around the airport and can be adjusted to depict different weather conditions and times of the day,” the FAA said.

[ POSTED FEBRUARY 26, 2008 ]

Prescription: merger?

Could a merger between Delta and Northwest Airlines spur a joining up of United and Continental? Reuters New Service, in a dispatch from New York, cited sources close to the action as making such a prediction. The report added that industry analysts believe “mergers are needed to help stabilize the volatile industry, which finally emerged from a five-year slump in 2006 after racking up $35 billion in losses.” Consumers may not welcome the news, as combinations might also lead to higher fares in markets where flight are scaled back. And the Justice Department could prevent mergers that adversely affect competition, further complicating the deal making.

[ POSTED FEBRUARY 19, 2008 ]

Gates, slots eyed after mergers

AirTran Airways’ chief executive said that he supports airline industry consolidation because it could free up gates at busy airports. In the event of a large-carrier merger, regulators likely would require that the combined company divest both gates and traffic slots in the name of antitrust compliance, said Bob Fornaro, president and CEO of AirTran Holdings Inc. He spoke at a luncheon speech sponsored by the Aero Club, according to an Associated Press report from Washington. Fornaro also said increased congestion and delays in the skies and on runways could be blamed on “many carriers' preference for using smaller planes to operate more flights,” said the AP report. He endorsed incentives for carriers to use larger aircraft, in addition to capacity growth, over a government plan to make it more costly for airlines to fly to congested airports at peak traffic periods.

[ POSTED FEBRUARY 19, 2008 ]

Pilot pay snapshot

The Web site Airline Pilot Central has published a February 2008 edition of the Airline Pilot Pay Snapshot, providing hourly pay figures for flight crew members. The previous edition from July 2007 was downloaded more than 25,000 times, and “as always, it's free for the taking and distribution,” said an announcement on the APC home page.

[ POSTED FEBRUARY 19, 2008 ]

ALPA educates on incursions

The Air Line Pilots Association (ALPA) has joined AOPA and other aviation industry organizations in highlighting runway incursions as a subject of pilot education. ALPA launched a “Hold Short for Runway Safety” campaign on its Web site, “designed to raise the awareness of the measures that can prevent runway hazards through an interactive web site and a series of informative newsletters. The web page will highlight where runway incursions occur most often and suggestive ways that pilots can avoid this ever-increasing safety risk.” In the United States alone, approximately 2.5 runway incursions happen every day, the union’s announcement said.

[ POSTED FEBRUARY 19, 2008 ]

Opening Pacific skies

The latest open skies agreement to make headlines is coming with a Pacific flavor, now that Australia and the United States have agreed to drop limits on air service between the two countries, reported the Associated Press from Sydney. The agreement clears the way for more competitiveness on “one of the world's most lucrative and protected long-haul routes.” The terms remove all restrictions for carriers of both countries, ending “a virtual duopoly” by Qantas and United Airlines. Qantas has a 75-percent market share on the Australia-U.S. route, said the report. Agreement came after three days of negotiations in Washington. The pact will become effective after formal approval by both governments.

[ POSTED FEBRUARY 19, 2008 ]

Speeding controller hiring

The hiring process for air traffic controllers can be reduced by as much as a month, say government officials, but union members are skeptical, reported the Associated Press from Washington. The FAA last week said it has devised a means for streamlining security clearances, medical screenings, and other delays, allowing the process to be completed in about two weeks. Meanwhile, the FAA and the union have been deadlocked in a contract dispute since 2006. “While the agency insists staffing has no impact on flight delays, the National Air Traffic Controllers Association says congestion problems will worsen unless the government hires more controllers and pays them more,” the report said. It added that the Government Accountability Office cited FAA leadership, malfunctioning technology, and overworked controllers in a spiking of safety incidents in 2007. The FAA has plans to hire more than 1,800 controllers this year and increase staff levels above 15,000.

[ POSTED FEBRUARY 19, 2008 ]

Major merger could come soon

A Delta-Northwest Airlines combination could be announced in just weeks, with Northwest pilots reviewing details of a deal, reported Reuters from New York. Citing “people briefed on the situation,” the news service reported that Northwest's Air Line Pilots Association unit was provided an outline of how a merged airline would shape up. Another source said a merger, creating the world’s biggest passenger airline, might be announced very soon. However, spokespersons for Northwest, financial advisors, and the pilot unions all declined comment. Reuters quoted an industry analyst saying a great “sense of urgency” associated with cost cutting is driving the deal-making.

[ POSTED FEBRUARY 12, 2008 ]

Career flight instructors finding niche

Airline hiring trends that include reduced total-time minimums have left many aviation educational institutions in a struggle to find and retain well-qualified flight instructors, said a Daniel Webster College official. The school has responded by refocusing its search “on more career-oriented professional flight educators, moving away from new grads who used their brief CFI time as the first rung on their professional ladder to the major airlines.” Future trends are also being studied. “Within the college, we have always wanted and have tried to recruit the career-oriented professional flight instructor," said Daniel Webster Chief Instructor Aidan Wilps. "However, industry norms and expectations have always been a huge burden to overcome.” Instructors with flight education as a career goal may now find new incentives to stay in their chosen field, Wilps said. For more information about Daniel Webster’s Aviation program and CFI opportunities, visit the employment page.

[ POSTED FEBRUARY 12, 2008 ]

Air Canada a merger candidate?

The majority owner of Air Canada has been approached by private investors and others about ways the airline could become part of the industry’s trend toward consolidation, reported Reuters from Calgary, Alberta, Canada, citing comments by ACE Aviation Holdings Chief Executive Robert Milton. A weak share price for the airline spurred the talks. “In my view, as I watch the U.S. airlines scurrying around to merge, anybody that actually ties up with Air Canada gets a unique piece of geography relative to the way the U.S. guys would split it up," Milton said. He had not yet consulted with government officials about means of amending federal legislation that restricts foreign ownership to 25 percent of a Canadian air carrier. But a merger could also be a Canada-only deal, he said.

[ POSTED FEBRUARY 12, 2008 ]

United’s passengers are listening

How do pilots feel about their passengers listening in on ATC communications in flight? An article on the Wall Street Journal’s Web site explored that question. Some passengers found the radio traffic entertaining; others found it relieved some of their stress from flying—especially if their pilot had a confident air on the air. United Airlines makes audio feeds available in the passenger cabin and says the channel “tends to be the most listened-to channel on its entertainment system during takeoffs and landings,” the WSJ reported. But technology is changing the rules of the game. Some captains opt to cut off the transmissions and “say they have grown wary of possible YouTube postings of their work and are concerned about lawsuits should passengers overhear mistakes,” the article reported.

[ POSTED FEBRUARY 12, 2008 ]

ASTAR contract talks completed

ASTAR Air Cargo crewmembers and management reached a tentative agreement on a third labor contract, reported a news item on the Web site of the Air Line Pilots Association (ALPA). The negotiations have continued since January 2005, aided since April 2006 by the National Mediation Board. ASTAR crewmembers “will receive retro pay and more than 20 percent in pay increases over the course of the four-year agreement. In addition, the pilots will receive furlough protections and a commitment by the company to secure new aircraft,” ALPA said. The contract is now pending ratification by crewmembers. ASTAR carries “roughly 50 percent of the weight out of Wilmington, Ohio, each night for DHL, the world’s largest and most experienced international air express network,” the announcement said.

[ POSTED FEBRUARY 12, 2008 ]

LUV and marriage?

Southwest Airlines, which flies under the stock ticker symbol LUV, is surveying the landscape for opportunity as acquisition and merger talk swirls in the airline industry, reported the Dallas Morning News in an article that appeared on the newspaper’s business Web page. "I think consolidation provides an opportunity for Southwest regardless of what we do," said CEO Gary Kelly, adding, “We have enough exposure to other airlines in the U.S. that if they shrink, we'll benefit. And of course, I wouldn't eliminate the possibility that we would participate in some form or fashion in consolidation.” Although the airline continues to operate only its trademark Boeing 737s, the report said Kelly told those attending a Raymond James Growth Airline Conference in New York “that Southwest is willing to consider a partner that flies other types of airplanes.” He described the differing aircraft type issue as an “impediment” but not a “deal killer.”

[ POSTED FEBRUARY 5, 2008 ]

Investors close Midwest deal

The private-equity firm Midwest Air Partners LLC and minority partner Northwest Airlines officially closed a deal to purchase Midwest Air Group, reported MarketWatch. Midwest added that it would work with Northwest to help reduce costs in aviation insurance and tackle fuel expenses. MarketWatch said Midwest Air Partners’ affiliate TPG Capital had investments in Continental Airlines, America West, Ryanair, Hotwire.com, Gate Gourmet, Sabre, and others, as well as 15 years’ experience in the aviation business.

[ POSTED FEBRUARY 5, 2008 ]

United employees to choose union

Employees of United Airlines will begin voting this month on representation by the International Brotherhood of Teamsters, reported MarketWatch from New York. Some 9,300 employees are represented by the Aircraft Mechanics Fraternal Association, which the Teamsters say lacks enough clout to prevent more mechanic jobs moving overseas. Workers will vote between February 26 and March 31 on whether or not they agree. A minimum of half the eligible employees, which include 5,770 mechanics, must vote to validate the election, said the report.

[ POSTED FEBRUARY 5, 2008 ]

TSA launches security blog

Airport security, with its frustrations for travelers, flight crews, and airport workers, has spawned an interactive twist. The federal government is inviting airport users with gripes to express them on the Transportation Security Administration’s new web log introduced last week. Cynical air travelers aren’t impressed just yet. “This will just make it easier for them to receive complaints for them to ignore in the name of national security,” said David Stempler, president of the Air Travelers Association, according to the Associated Press. But TSA Administrator Kip Hawley said, “We will incorporate what we learn in this forum in our checkpoint process evolution. Our postings from the public will be reviewed to remove the destructive, but not touch the critical or cranky.” Airline expert Terry Trippler cautiously praised the idea, noting that TSA “was in the right church, just not the right pew yet.”

[ POSTED FEBRUARY 5, 2008 ]

FBO operator announces technological upgrade

FBO operator and business aviation service provider Signature Flight Support announced a technology move that it said will provide “real-time flight, customer, and airspace status for customer service, line operations, and marketing through visual flight tracking and web dashboards.” The upgrade comes from a new PASSUR FBO software package contracted from Megadata Corp. “The program includes detailed marketing reports and analytics for FBO managers and marketing staff. It is based on the PASSUR proprietary database powered by the PASSUR radar network deployed throughout the U.S. and abroad,” said a news release.

[ POSTED FEBRUARY 5, 2008 ]

The season for internships

Mid-winter isn’t too early for college students to be looking for summer internships that could open the door to an aviation career. Career sites such as Aviationnews.net can take you where you want to go. Internships recently listed as open to applicants in the web site’s job bank included a 12-week full-time internship at the Jackson Hole Airport in Wyoming. See the listing for detailed requirements. Also, the San Diego County Regional Airport Authority was accepting resumes/applications for a variety of internship positions in airport management-related areas.

[ POSTED FEBRUARY 5, 2008 ]

Unions contemplate merger talks

Airline labor unions are trying to develop strategies for capitalizing on consolidation in the industry if it happens, reported the Associated Press from Dallas. Continental Airlines’ unionized pilots set up a special group to study possible deals. The AP reported that Tom Donaldson, union chairman at Continental, said his members would be content if the airline continues to fly solo but would want a voice in proceedings if “merger mania”—as the AP described it—comes to the airline, especially after his 5,200 pilots took wage cuts in 2005 to help save the airline. Northwest pilots and flight attendants had also said they would support a merger “if employees get an ownership share in the new company.”

[ POSTED JANUARY 29, 2008 ]

Labor coalition seeks contract compliance

Labor groups representing about 30,000 union members at US Airways have formed a coalition “to demand that management complete the merger that began nearly three years ago. Specifically, management needs to adhere to current labor contracts and reach new collective bargaining agreements that improve the wages, benefits, and working conditions of US Airways employees,” said a news release on the Web site of the Air Line Pilots Association (ALPA). The coalition of workers from the former America West and US Airways units included union leaders for pilots, flight attendants, customer service representatives, dispatchers, fleet service workers, and mechanics. “US Airways management failed to work with labor from the beginning of this merger and has continued this practice for nearly three years, leading us to where we are now—a once promising airline with a plummeting stock price, consistent rankings at the bottom of the industry, and disgruntled employees,” said the statement.

[ POSTED JANUARY 29, 2008 ]

Airlines tweak surcharge strategies

Fuel surcharges continue as the airlines’ method of choice for responding to volatility in fuel prices. Reuters reported from New York that American Airlines, United and US Airways doubled fuel surcharges to $40 from $20 on domestic round-trip tickets to match last week’s move by Continental Airlines. Following the rejection of many surcharge attempts by the flying public recently, however, airlines “were more selective in increasing the fees, raising them on 66 percent of their respective networks,” said Reuters, citing information provided by FareCompare.com.

[ POSTED JANUARY 29, 2008 ]

American Eagle launches new service to Mexico

American Eagle Airlines, the regional affiliate of American Airlines, plans to add a daily nonstop flight between Dallas/Fort Worth International Airport (DFW) and General Francisco Javier Mina International Airport in Tampico, Mexico (TAM), starting on April 7. American Eagle will fly 44-seat Embraer ERJ-140 jets on the route. Peter Bowler, president of American Eagle, said Tampico becomes the eighth city in Mexico served from DFW by the airline.

[ POSTED JANUARY 29, 2008 ]

US Airways Express gets new president

A 41-year-old vice president of financial analysis at US Airways will take over as president of US Airways Express, said a company announcement. Dion Flannery will succeed Robert Martens, who announced his retirement. Flannery will be responsible for oversight of US Airways’ wholly owned regional carriers, Piedmont and PSA Airlines, and the seven regional affiliates operating as US Airways Express. Flannery joined America West Airlines in 2002 as vice president of route planning and scheduling. He became vice president of financial analysis in 2005. His career began in 1993 at Continental Airlines, where he served in a variety of capacities.

[ POSTED JANUARY 29, 2008 ]

Northwest’s pilots open to merger

Pilots at Northwest Airlines could support a merger as long it includes a pay hike and satisfies other conditions, the Associated Press reported from Minneapolis. Union leaders who met last week unanimously passed a resolution saying that “a merger may be in the best interests of the Northwest pilots.” Delta Airlines is looking at possible combinations with Northwest and United Airlines. The AP report said that even tentative pilot approval of a merger is significant because pilots “are likely to be one of the biggest sticking points in any airline combination. Integrating the unionized pilots of two large airlines is difficult because they both want to hang onto their hard-won seniority and the pay and scheduling perks that go with it.”

[ POSTED JANUARY 22, 2008 ]

Airlines boost fuel surcharge

Airline fuel charges are increasing, reported Reuters from New York. American Airlines recently doubled its domestic fuel surcharge, to $40 per round-trip ticket, although it held back the fee in markets with competition from low-cost operators. Delta, United, and Continental matched the increase. The news service cited FareCompare.com reporting that Continental matched the increase and in some cases “levied different surcharges on many city pairs” depending on travel dates. FareCompare “also said that United and Continental raised fuel surcharges on some round-trip fares to as high as $60,” Reuters said.

[ POSTED JANUARY 22, 2008 ]

China carriers contemplate consolidation

Airline combinations and acquisition bids are bringing a flavor of free enterprise to China’s carriers, reported the Associated Press from Hong Kong. The parent of China's flag carrier, Air China Ltd., offered $1.9 billion for 30-percent ownership of rival China Eastern Airlines Corp. in what the AP called “the latest twist in an unusual public takeover battle between two Chinese state companies.” China Eastern doubted the sincerity of the CNAC offer, “because it was sent in a letter that did not have the endorsement of the company's directors, according to a statement issued late Sunday,” reported the AP. The report noted that China's aviation market is fast-growing but hindered “by the inefficiencies of its state-owned airlines.”

[ POSTED JANUARY 22, 2008 ]

Will Boeing lose sleep over Dreamliner?

Boeing’s recent announcement of an additional three-month delay rolling out its 787 Dreamliner may provoke a lawsuit from Japan Airlines. Reuters reported from Tokyo that JAL, which has ordered 35 Dreamliners, might seek compensation from Boeing for delays in delivery. “Of course, we will consider such an action,” JAL CEO Haruka Nishimatsu responded to a reporter’s inquiry. Nishimatsu said JAL had not yet determined the damage to its business, but was accountable to shareholders. The Dreamliner is the fastest-selling airliner in history, but delays have put the program about nine months behind schedule, the report said.

[ POSTED JANUARY 22, 2008 ]

Northwest chief hints at consolidation

Northwest Airlines’ chief executive said the company could benefit from the right kind of merger, according to a report by the Associated Press from Minneapolis. The statement came as the board of Delta Air Lines met to discuss that possibility. The AP said an internal memo to employees from Northwest Airlines chief Doug Steenland stated that his airline's board and leadership would carefully study any proposal. “The right transaction could be of benefit to our employees, our shareholders, and the communities we serve,” he said. Sources cited by the AP said that “Delta's board was expected to be asked to allow formal talks between Delta and Northwest and UAL Corp.'s United Airlines, with the idea that Delta would ultimately choose to combine with one of the two.”

[ POSTED JANUARY 15, 2008 ]

Controllers’ union questions staffing

An insufficient number of veteran air traffic controllers means that there is a “staffing emergency” eroding air and runway safety in Atlanta, Chicago, New York, and Southern California, said the union representing the nation's 14,800 controllers in an article on CNN.com. “The whole system is going to hell in a handbag, and it doesn't seem that anybody cares,” Patrick Forrey, president of the National Air Traffic Controllers Association, told reporters in a conference call, predicting that overworked controllers would make mistakes. An FAA spokeswoman disagreed with the union’s assessment and described union statistics as “misleading.” The FAA planned for a recent surge in retirements, hiring 1,815 new air traffic controllers last year—more than projected, said spokeswoman Laura Brown.

[ POSTED JANUARY 15, 2008 ]

Mesa in ‘expedited’ talks

Mesa Air Group and its pilots have launched “expedited negotiations” for a new contract, the Air Line Pilots Association said in an Associated Press dispatch from Phoenix, Arizona. The union asked the regional carrier to “address pilot staffing and morale issues that it says have negatively impacted Mesa operations,” the report said. It added that upwards of 500 pilots left Mesa in 2007, which ALPA said caused delays and cancellations. Mesa employs about 1,800 pilots and is primarily a regional flight operator for Delta Air Lines, United Airlines, and US Airways Group.

[ POSTED JANUARY 15, 2008 ]

Pact spawns new airline

First it was the name of a transcontinental air travel agreement. Now it will name a new airline. Business Week reported online that British Airways plans to launch a new airline flying between the United States and continental Europe. “By flying from the Continent to the U.S. without stopping over at London's crowded Heathrow airport, BA aims to claw back some of the business it may lose when American and European rivals add competing flights to Britain from the U.S.,” the report said. The new carrier, to be called OpenSkies, “takes its name from the treaty to liberalize air travel that will allow operators from either side of the Atlantic to fly anywhere within the EU and the U.S.,” pending regulators’ approval. The airline will provide service with a Boeing 757, with another to be added by year’s end.

[ POSTED JANUARY 15, 2008 ]

Continental receives Boeing 737-900

Continental Airlines has taken delivery of the airline's first 737-900 extended-range jet, according to a Boeing announcement. The model is expected to increase the airline's capacity and to improve fuel efficiency. The airline said it has 26 additional 737-900s on order from Boeing. The manufacturer said that Continental’s 737-900ER has a 173-seat configuration accommodating 20 first-class and 153 economy-class seats.

[ POSTED JANUARY 15, 2008 ]

Career view: airport management

Want to know what it’s like being a senior operating executive of one of the nation’s largest airports? Ever wonder what’s it like to deal with the competing interests of the major carriers that fly—or would like to fly—to and from that hub? “It's like having a bunch of children; every one of them is different and they all have different needs. As long as you can keep them all happy, you can have a pretty good operation,” says Joe Lopano in an interview with Aviation Week. Since 1997, Lopano has served as executive vice president for marketing and terminal management for Dallas/Fort Worth International Airport. There he oversees passenger and cargo network development, advertising, and marketing programs, among other duties. He has management experience from Lufthansa, Continental, and Pan Am airlines. Read the complete interview on the Aviation Week Web site.

[ POSTED JANUARY 15, 2008 ]

Delta AirElite adds Learjet 45

Delta AirElite, the business aircraft charter and management subsidiary of Delta Air Lines, announced that it has added a Learjet 45 to its fleet. In October, the company put two similar aircraft and a Cessna Citation to work, reported the Associated Press. Delta AirElite “has access to more than 400 business jets, mostly through charter agreements, according to its Web site,” said the AP dispatch.

[ POSTED JANUARY 8, 2008 ]

American pilots oppose seniority arbitration

The union representing pilots at American Airlines said it opposes a new law permitting the use of binding arbitration in seniority disputes when two carriers merge. The Allied Pilots Association said Congress should stay out of labor negotiations, reported the Associated Press from Dallas. The union has 12,000 pilot members at American. Senators Claire McCaskill (D-Mo.) and Kit Bond (R-Mo.) proposed that employee seniority rosters be combined in a “fair and equitable manner” in future corporate combinations. Seniority disputes would enter binding arbitration after 20 days. The proposal was attached to a $555 billion spending bill signed by President Bush last month, the AP reported.

[ POSTED JANUARY 8, 2008 ]

Pilots to picket at NBA game

What do pro basketball and airline labor protests have in common? Usually not much—unless Champion Air, the airline that transports 13 National Basketball Association teams is involved. “On Tuesday, January 15, Champion pilots will be picketing the Wizards/Knicks game and you need to help them send their management team a message to stop crying ‘Foul’ and calling ‘Time Out,’” said a news release on the Air Line Pilots Association’s Web site. Champion’s pilots and management have negotiated since January 2005; a mediator joined the talks in September 2005. There have been no meetings since September 2007, but ALPA was instructed “to be ready to return to the bargaining table early in 2008,” the news release said.

[ POSTED JANUARY 8, 2008 ]

Airliner anti-missile tests planned

As many as three American Airlines aircraft will be equipped this spring with laser technology under development to protect airplanes from terrorists’ missiles, reported the Associated Press from Dallas. There will be no tests on passenger-carrying flights. “But the tests, which could involve more than 1,000 flights, will determine how well the technology holds up under the rigors of flight,” the AP reported.

[ POSTED JANUARY 8, 2008 ]

Airline execs rose from the ranks

Two executives who came up through the ranks in the airline business have been named to top management positions for operations on the East Coast by US Airways. Suzanne Boda, 48, “will have responsibilities for the airline’s hub at Philadelphia International Airport, Shuttle operations, international operations, and the airline’s cargo business,” the announcement said. Boda began her career in 1983 at Northwest Airlines in customer service at the airline’s Minneapolis hub, rising to vice president for in-flight services. Robert Ciminelli, 56, will serve in the newly created position of vice president, Philadelphia hub, with direct oversight of all operating functions. His career began in 1979 at American Airlines as an airport agent at LAX. He rose to managing director at New York City’s LaGuardia Airport.

[ POSTED JANUARY 8, 2008 ]

Pilot retirement age increased to 65

President George W. Bush signed a law December 13, 2007, making it legal for airline pilots to fly until age 65. This newly signed Fair Treatment for Experienced Pilots Act requires that international crews abide by International Civil Aviation Organization (ICAO) standards set in 2006 requiring at least one of the pilots to be less than 60 years old, but the legislation does not apply that restriction to domestic operations. The FAA had proposed the age change in January 2007, but legislation shortened the process. It’s unclear how many pilots will choose to continue their flying careers beyond age 60; pilots who turned 60 before the legislation was signed cannot return to work unless they return to the bottom of the seniority ladder. More information on the change can be found on the FAA’s Web site.

[ POSTED JANUARY 2, 2008 ]

DOT approves China routes

The Transportation Department has finalized the awarding of new China routes to four domestic airlines starting in 2009, reported the Associated Press from Washington. US Airways’ China service will begin with a flight between Philadelphia and Beijing. American Airlines, Continental Airlines, and Northwest Airlines each got approval to add a new daily flight to their existing service. The service additions were enabled by a July 2007 agreement between the two countries that will double the daily flights permitted between them over the next five years, the AP reported.

[ POSTED JANUARY 2, 2008 ]

US Airways recalls flight attendants

US Airways said it would recall more than 200 flight attendants effective February 15 in preparation for the busy summer travel season, and to fill slots expected to become vacant through retirement and attrition. Notices were being sent to eligible employees on a seniority basis among furloughed flight attendants. Since merging with America West in 2005, US Airways has recalled 330 flight attendants, said a company news release.

[ POSTED JANUARY 2, 2008 ]

MAXjet bankruptcy issues in court

A federal judge said newly bankrupt MAXjet Airways Inc. can use $390,000 to “accommodate” about 1,000 customers stranded by the airline's Christmas Eve bankruptcy filing, reported the Associated Press. The U.S. Bankruptcy Court in Wilmington, Delaware, issued interim approval of MAXjet's request to compensate other airlines for carrying its passengers, and to book hotel rooms for the affected travelers. The order also authorized credit-card company refunds to customers who had booked tickets on the airline. The airline operated flights from London's Stansted Airport to New York, Los Angeles, and Las Vegas. It ceased operations “in the face of high fuel prices, fierce competition and its failure to raise new capital,” the AP reported.

[ POSTED JANUARY 2, 2008 ]