The Des Moines Register reports that the Iowa capital’s airport is in for a US$3m facelift. By all accounts it’s about time. "This is the gateway to central Iowa, and it needs to look better," said Roy Criss, an airport spokesman. “The airport has stained carpets and an outdated look,” he said, adding that its last upgrade was in 1986. The Register notes that the one year project, started in May will see the renovation of both of the airport’s two terminals and improvements in safety and energy efficiency. Terminals A and C – bizarrely there is no B – will get new ceilings, walls and flooring in addition to a new sprinkler system. An elevator will also be added to the C concourse, and the rest rooms will get a new look.
The airport's gates will also be reorganised so that all seven airlines will be allowed to use the 12 gates. Gates are currently airline-specific, which officials said limits scheduling flexibility. The renovation will take place one gate at a time and isn't expected to affect travel.
The renovation will be funded through a US$4.50 levy added to all tickets in and out of Des Moines. According to the FAA, the fee can be used for projects that enhance safety, security, or capacity; reduce noise; or increase air carrier competition. The Des Moines airport has about a $25 million budget.
For the third time in a month, Mexican carrier Aviacsa has had its fleet grounded by the country’s government. According to the authorities, the airline owes some US$22m in unpaid airspace debts. Coincidentally, Aviacsa also had its aircraft grounded twice last month after the authorities detected “irregularities” in the maintenance of its fleet and distributed a photograph of an Aviacsa aircraft’s landing gear after a somewhat bumpy landing for passenge rs – none of whom were hurt – at Mexico City Airport. The carrier was subsequently able to resume flying after winning a court ruling against Mexico's Transportation and Communications Department. Unless another court battle ensues, Aviacsa will only be able to take to the sky again after paying off its substantial tab… and perhaps putting some air into its tyres.
In an attempt to reduce engine damage (and worse) to aircraft taking off and landing at New York City’s LaGuardia and Kennedy airports, agency biologists and other specialists from the US Department of Agriculture have been trapping and culling Canadian geese over the past month. The move comes after the ditching of US Airways flight 1549 into the Hudson last winter. Around 2000 Canadian geese will now be permanently grounded by US authorities.
The US Department of Transportation has reported that the 10 US carriers collecting the highest amount in baggage fees racked up a total of US$566.3m in the first quarter, more than four times the US$122.6m collected in the same period last year. American Airlines had the dubious honour of leading the way with US$108.1m, followed by Delta Air Lines (excluding its Northwest Airlines subsidiary) at US$102.8m and US Airways at US$94.2 million.
All 21 reporting carriers recorded a -2.4% loss margin during the period, widened from -0.4% the prior year. Network carriers' -4% margin accounted for the loss, with regionals reporting a 4.3% profit margin and LCCs at 2.9%. The seven network airlines posted a combined US$867m operating loss, the seven LCCs were US$126m in the black and the seven regionals achieved a US$78m profit. Combined unit revenue fell 8% year-over-year to 12.7 cents and yield was down 8.8% to 12.4 cents.
US scheduled passenger airlines employed 5.5% fewer workers in April than in the year-ago month, the 10th consecutive decrease in fulltime equivalent employees, the Department of Transport said. But the drop was the lowest since last September's 4.5%.
In an effort to cut runway incursions at Los Angeles International (which has had the highest number of incursions of any US airport for the best part of a decade) the FAA have installed a US$7m radar system. The radar will detect potential collisions between aircraft and GSE and warn pilots and drivers by illuminating a series of lights along a runway and eight taxiways. A taxiway between the airport’s two southern runways installed in 2008 has already cut the number of incursions from 21 in 2007, to just five last year. Dallas, Fort Worth and San Diego already successfully use the radar system.
June 8 2009
United Airlines have posted a video of one of their 747s having a First and Business Class refit. It's safe to imagine that the process took slightly longer than the one minute and 37 seconds that the video lasts for. You can view it here: 747 Refit.
The US$318.5 million airport planned for the Gulf of Florida is on track to open in late May or June 2010 after the developers defeated an environmental challenge to its 8400 foot main runway. Panama City-Bay County International will replace the existing 60 year old Panama City facility which was bought for around US$56 million in “cash” along with an estimated US$38 million in revenues.
The new airport will also comprise a terminal building of some 10,000 square feet and a 5,000 foot crosswind strip, funded in part by a US$119 million in state and federal grants.
The existing airport is served by Atlantic Southeast, Comair and Northwest Airlink.
From June 17, cats, dogs and unaccompanied minors between five and eleven will be able to travel on Southwest flights, but only provided they pay their way. Furry friends will be landed with a US$75 each-way charge whilst unaccompanied minors will have to raid the piggy bank for a US$25 each-way supplement on top of the original ticket price..
Whilst the former two categories will be obliged to confine their movements to designated under-seat containers, the latter will, within reason, be allowed to roam freely about the aircraft under the watchful eye of Southwest staff. "We know from Customer and Employee feedback that our new 'pet' customers will be a welcomed addition to any flight," said Southwest Airlines Chairman, President, and CEO Gary Kelly. "Our enhanced boarding process has opened the window, allowing us to accommodate small pets comfortably on a Southwest flight - without impacting our efficiency." The service is limited to cats and dogs; man-eating anacondas, two metre alligators, and fully grown lions will not, knowingly, be admitted.
On the subject of unaccompanied minors, Kelly stressed that Southwest “are proud to offer an outstanding service for our young Customers travelling alone but realise that the extra service does come at a cost to the Company. This service charge will help us cover our added costs and still maintain our competitive Low Fare advantage.
(Paws for thought? Pet friendly initiatives at Southwest Airlines.)
From July 19, Continental Airlines will close its reservations office based at Tampa International in Florida resulting in a loss of 500 jobs. Continental will be offering "a number of voluntary programs to employees, including an early-out severance program and Company Offered Leaves of Absence. Tampa employees who would not otherwise be furloughed will have the option of transferring to other reservations centres located in Houston and Salt Lake City." According to Continental, the closure is necessary due to reduced call volumes as more passengers opt for the internet services offered by the airline.
DAL Global Services has announced that Virgin America has selected DGS to provide Ramp and Cabin Cleaning in John F Kennedy International airport at Terminal 4. DALGlobal Services offers a full range of aircraft ground handling services such as ramp and passenger handling, cabin and cargo services, operations and load control, aircraft and ground support equipment maintenance. DGS operate in over 50 US cities, Canada and the Bahamas and have over 7000 employees.
Despite a steady increase in profits over the last five months, budget Denver based airline Frontier looks set to remain in bankruptcy. The current agreement would see the airline’s creditors step in to formulate a reorganisation plan for the airline as early at June 4 but Frontier have filed a request with a New York Bankruptcy Court in an attempt to extend the timeframe to October 9.
Frontier first filed for bankruptcy in April 2008 after severe financial difficulties. Extending Chapter 11 protection to later this year "is a routine procedure that shows we are still positively moving forward in our restructuring efforts” said Frontier spokesman Steve Snyder. Day to day operation of the airline is not expected to be disrupted.
In a bid to secure the title of most overused word in the world of airline press releases, Southwest have struck a “tentative” agreement with The International Association of Machinists and Aerospace Workers District 142 who they have been fighting over pay and benefits. The provisional, cautious and hesitant arrangement will, if ratified by IAM District 142 members within the next few weeks, see a new contract for the workers until October 31, 2012. According to Southwest: “The Company is pleased with this tentative agreement that delivers wage and benefit increases in exchange for work rule improvements and scheduling flexibility along with productivity and gained efficiencies for Customer Support and Services Representatives in the airline's call centres and for its airport Customer Service Agents. The Negotiation Teams struck this tentative agreement during challenging economic times. Today's announcement demonstrates the IAM'S commitment to maintaining Southwest's competitiveness and overall financial strength as it weathers the current volatile economic environment."
A recent bill (pun unintended but latterly adopted) passed by the Florida Legislature, will enable airport employees to be more tenacious in their efforts to rid the state’s airports of man’s feathery friends without fear of prosecution. Airport workers engaged on wildlife control duties will be exempted from current local and regional penalties for killing or injuring endangered birds and animals in an effort to keep them from the runways and surrounding airspace. Airport managers will still be liable for prosecution should they be found to have been acting without due care and attention – it’s safe to assume therefore, that a baggage cart loaded with plump turkeys a week before Thanksgiving is unlikely to pass unnoticed.
“The bill will be sent to the governor's office for his signature” comments Larry Dale, CEO of Orlando Sanford International Airport, “I think all the signs are that he supports it".
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Airports have been known to employ a range of measures in the past in an attempt to control bird populations. Birds of prey brought in by experienced handlers have been successfully employed by many airports both within and outside the US. Closer to home, noisy methods such as sound cannons and air-horns are in use at some of Florida’s airports, whilst others have been known to use dogs and – perhaps most bizarrely of all – paintball guns to disperse the birds. Should you happen to see a wounded lime green goose in your back yard, you’ll have a fair idea where it came from.
In an item of related news, the Federal Aviation Administration has made good on its promise to release, for the first time, records of where and when aircraft have struck birds over the last 19 years – this according to a release from the Associated Press.
The FAA has now published the data on the Internet. It lists details for more than 89,000 incidents since 1990, including 28 cases since 2000 when a collision with a bird or other animal such as a deer on a runway was so severe that the aircraft was considered destroyed. The data shows that since 2000, John F Kennedy International Airport in New York reported at least 30 accidents where damage was either substantial or the aircraft was actually destroyed. Sacramento International Airport in California reported at least 28 such accidents.
When tested by Ramp Equipment News on May 13, the FAA database was down; should it recover in the near future you can access it here: FAA Strike Database
Airport Terminal Services are to provide cleaning and ramp services to John Wayne International in Orange County. The contact, which begun on April 29 will see ATS undertake the daily handling of Virgin America’s A319 and A320 aircraft.
As of May 1, ATS will also serve WestJet flights at Montreal’s Trudeau International. This is the handler’s eighth Canadian location and the fifth where it provides ground handling and cleaning services to WestJet.
In an acronym laden deal, Cargo Airport Services USA has been awarded the cargo warehouse handling contract with Scandinavian Airline System at EWR International Airport. CAS will handle SAS in their 65,000 square foot warehouse that includes ramp parking for three wide body aircraft.
SAS, based in Copenhagen, Denmark, is the leading carrier to Scandinavia. SAS operates two daily flights to Stockholm and Copenhagen with connecting service to Northern Europe and the Baltics.
Michael Duffy, President of CAS said “We are very pleased to have expanded our business relationship with SAS at our EWR facility. With the addition of SAS, CARGOJET and EL AL we have increased our presence at Newark and now serve twelve Carriers”. CAS currently serves Air France, British Airways, Delta, EVA, Jet Airways, KLM, Northwest, United and US Airways in Newark.
In a deal understood to be a US industry first involving two carriers, British Airways World Cargo has signed a general sales agent agreement with Tampa Cargo, one of the leading cargo carriers in Latin America. Effective from May 18 2009, the business partnership sees BA World Cargo trained staff selling US originating cargo capacity across Tampa Cargo’s entire US network, excluding Miami.
Following the buy-out of Tampa Cargo by Colombian flag-carrier Avianca in 2008, Tampa Cargo now manages both freighter and bellyhold capacity on behalf of the airline from three online and 19 offline origins across the US.
Joe LeBeau, Vice President, Commercial, the Americas, BA World Cargo commented: “This is an exciting and mutually beneficial agreement in the US. Our industry is facing unprecedented challenges and this deal marks an important new revenue stream for our US business. Tampa Cargo offers an extensive US network and we are confident that the agreement will enhance its business proposition in the coming months.”
Rodrigo Plata, Executive Director, Tampa Cargo added: “We are very pleased to be part of this unique agreement and are confident that BA World Cargo’s strong and effective sales team will deliver a real benefit to our activities in the US.”
April 27 2009
Following new federal regulations aimed at combatting organised crime, Canadian airport workers will have their details checked through ten police computers before being allowed access to secure areas of the airport.
Speaking to Canwest News Service, a senior government official underlined the message behind the measures. "Our government is serious about getting people who shouldn't be working in classified areas, out,” said the source, “we're committed to fighting organised crime, wherever it exists." Transport Minister John Baird said: “This is a big step forward, but obviously more work remains to be done; it allows us to go beyond a simple finding-out whether someone has a criminal record, or a criminal warrant is out for them."
Canada’s airports, which have attracted negative comments in the past for a perceived laxness in security procedures, will be able to use information from data-banks not previously available. According to one news feed, “the sweeping scope of the checks means that people who want to work inside secure areas at Canadian airports will be scrutinised for everything from past traffic accidents to links to criminal and terrorist groups.” Police at the airports will also be able to run checks for outstanding convictions from any of the 187 member countries that form Interpol. Understandably, the scheme has drawn much criticism from rights organisations, but lawyers from the justice department have approved all changes.
The move will affect approximately 100,000 people who work in and around Canada’s airports.
The Greater Toronto Airports Authority has announced that Cargolux will begin service at Toronto Pearson International airport on April 20, 2009. Cargolux, Europe’s largest all-cargo airline based in Luxembourg, will begin a weekly freighter service into Toronto with a B747-400 aircraft.
This new service will provide the Canadian market with approximately 50,000 kilogrammes of air freight capacity on each flight. The B747-400 aircraft is one of the most fuel efficient and quietest in its class.
“We are very happy to welcome Cargolux to Toronto Pearson,” said Lloyd McCoomb,
President and CEO of the GTAA. “There is a high demand for additional cargo service in Toronto and we’re pleased to be able to respond to the needs of the businesses in the GTA, providing them with on-time and dependable shipping solutions.”
Toronto Pearson is the leading air cargo gateway in Canada, offering world class facilities and infrastructure for all cargo operators. All five runways are equipped to handle heavyweight aircraft and there are more than 1.2m square feet of cargo handling facilities and 2.5m square feet of dedicated apron space for cargo operations.
Toronto Pearson is the only Canadian airport served with scheduled all-cargo services to Latin America, Europe, Asia and the US. Additionally, world-leading freight forwarders have their Canadian headquarters in Toronto and the bulk of their consolidations in Canada take place near the airport.
American Airlines Senior VP-Human Resources Jeff Brundage has informed the carrier's non-unionised employees that the company has decided to institute a hiring and pay freeze for the remainder of 2009. In a letter to workers, Brundage said that AA was experiencing "a decline in revenue, a decrease in bookings, lower demand for cargo services and increasing costs for such items as pension expense and medical insurance." He added that the airline was "having a tough time borrowing money right now." American has about 19,000 non-union employees. Exceptions to the hiring freeze will be made if so-called critical needs arise, Brundage wrote, adding that workers who gained a promotion would get an increased salary if the new position accorded a higher pay level.
In their 2008 Airline Quality Rating report, researchers from St Louis University and Wichita State University noted an improvement in US airlines’ levels of customer service: in fact, the first in five years. Improvement was noticed across the board, with carriers scoring better on baggage handling, punctuality, denied boarding and customer complaints.
The airline with the best overall performance among the 17 was Hawaiian Airlines, followed by AirTran Airways, JetBlue Airways, Northwest Airlines and Alaska Airlines. Regional carriers were rated the lowest and Atlantic Southeast Airlines the worst of all, with American Eagle, Comair and Mesa Airlines doing only slightly better.
Baggage handling improved at all 17 airlines, with Wichita State Associate Professor Dean Headley noting that it probably needed to, “given the fact that people are now paying for it." He added that the airlines would have had a real problem had they lost the same number of bags as before.
Numerically speaking, AirTran had the best baggage handling rate with only 2.87 mishandled bags per 1,000 passengers whilst American Eagle was the worst, with 5.19 mishandled per 1,000, the study revealed.
Hawaiian was the most punctual carrier, with 90% of flights reaching their destination on time, while American Airlines scored lowest at 69.8%. JetBlue had the lowest involuntary denied boarding rate at 0.01 per 10,000 passengers while ASA was a dismal last at 3.89 per 10,000 passengers. Southwest Airlines scored the lowest consumer complaint rate at 0.25 per 100,000 passengers while US Airways had the highest rate of 2.01.
According to Dean Headley, the positive performance for airlines in 2008 should be taken with a grain of salt. "We know the system performs better when it's less stressed by higher passenger volume,” he noted. “The economy scared away both business and leisure travellers in 2008."
Sounds like there’s still room for improvement, then…
According to the Associated Press, Delta Air Lines CEO Richard Anderson and President Ed Bastian told employees in a memo recently that it was prudent for them to restructure and reduce the size of the executive team. He also announced that five management officials would leave the company. The departing executives are Senior VP-International Laura Liu, Northwest Airlines Senior VP-Customer Service Crystal Knotek, NWA VP-Chief Accounting Officer Anna Schafer, Minneapolis/ St Paul VP-Corporate Affairs Tammy Lee Stanoch and MSP Senior VP-Customer Service Todd Anderson. As a result, NWA COO Mike Becker will assume responsibility for international operations and DL Senior VP-Customer Service Gil West also will oversee customer service for NWA. NWA Senior VP-Flight Operations Bill Lentsch was named as Senior VP-Minnesota operations.
Travelling light? You might have to.
United Airlines has recently introduced a policy whereby their larger customers may have to pay for two seats, should they not be able to fit “comfortably” into just the one. A press release from United elucidates further.
“For the comfort and well-being of all customers aboard United flights, we have aligned with other major airlines' seating policies relating to passengers who: are unable to fit into a single seat in the ticketed cabin; are unable to properly buckle the seatbelt using a single seatbelt extender; and/ or are unable to put the seat's armrests down when seated.”
Assuming an adjacent seat is available, travellers unable to shoehorn themselves into just the one will have to pay a full price for each additional seat they encroach upon. If an adjacent seat is unavailable, the passenger will be obliged to take the next flight with two (or perhaps even three) adjacent seats free. Either way, the policy (effective at Chicago O’Hare as of April 15) will entail a 100% rise in travel costs for many American flyers.
The problem here, it’s important to note, is not a passenger’s weight, but their girth. United, although keen to get backsides on seats, is understandably reluctant to fill many with just the one.
How exactly United will judge who, among their passengers, are oversize and who, with a bit of a squeeze, might make it without any overspill is perhaps the moot point of the whole weighty issue. At the time of writing, there is no firm paper policy from United. Check-in staff look set to be the unfortunate peripheral victims of the scheme, as the heavy burden of deciding who will fit between the armrests falls on them.It’s a difficult scene to picture. “Excuse me madam, would you mind stepping between these sticks/ crawling through this narrow pipe/ hopping on to our weighbridge.”
Flights of fondant fancy aside, it’s worth noting that a whole host of expensive electronic scanning equipment will no doubt eventually be introduced in an effort to depersonalise the newly created business of “waist management”. In the meantime, airline staff face the mortally embarrassing prospect of telling customers that they are too fat to fly – an unenviable task by any standards and one which is likely to raise eyebrows within workers’ unions and passenger organisations alike.
A workers’ union representing more than 7,000 ramp, operations, provisioning and freight agent employees at Southwest have resolved their dispute with the airline, voting to ratify a three year contract. The contract, valid until June 30, ensures that members of the Transport Workers Union Local 555 who have worked for between one and 11 years will receive a 3% pay increase each year. The president of TWU Local 555, Charles Cerf, is buoyant: "The pay increases were moderate, but they're guaranteed pay increases for the next three years for every employee," he said. "It's a win-win. If you have retirement benefits, you can retire earlier. The company can hire someone to replace you at the new hire rate." The new deal, which will affect over 7,000 employees, many of whom work in the ground handling industry, will also benefit from a post-retirement medical scheme – not a feature of their original contracts.The airline has recently announced the addition of a new priority security lane at Phoenix Sky Harbour International airport. The lane will provide access for its Business Select and Rapid Reward A-List Customers. An additional “Fly By” lane for business customers will also be provided at Checkpoint C, following the successful opening of the first, at Checkpoint D, last year.
Virgin America has recently introduced a fixed US$15 fee to check in a bag – a move which puts the airline in line with other US operators. The US$15 charge is applicable to every extra bag up to a total of ten – what occurs beyond this point is unclear.
Until the change, Virgin America was charging nothing for a single bag but US$25 for a second and US$50 for a third. Defending the charges, Dianna Walker, Vice President of Planning and Sales for Virgin Americas, claimed that the airline was “following the trend in domestic travel both in the US and abroad.”
In a controversial move, the FAA has put forward a proposal to block public access to its records of aircraft/ bird collisions just two months after an errant flock of geese forced US Airways flight 1549 to ditch in the Hudson river. Collisions between aircraft and their less rigidly winged counterparts – more frequent than the average traveller might suspect – are voluntarily reported by the American airport authorities at present, but there is no legal obligation for them to do so. Blocking public access to the records in order to quell passenger fears after such a high profile ditching might well have the opposite effect. As one of the few risks of air travel by and large out of the relevant authorities’ and carriers’ control, the move to suppress the information seems unusual. The American public will have an opportunity to air their views on the subject until April 20 when a final decision will be made.
The Associated Press reports that eight contract baggage handlers for Delta Air Lines rifled through hundreds of bags of luggage at Lambert airport over a period of more than a year, stealing some 900 items ranging from laptops and iPods to cologne and cigarettes.
Airport Police Chief Paul Mason said the workers were employed by St. Louis-based Huntleigh USA, and hired by Delta to handle baggage. Huntleigh Chief Executive Officer Richard Sporn said that all eight workers had been fired.
"It clearly is an unfortunate situation and we are distressed by the news," Sporn said. "Unfortunately we are not the first for something like this to happen. All we can do is learn from this and try to make sure it doesn't happen again."
At a news conference at the airport, most of the recovered items were laid out on tables. The thieves targeted expensive goods, mostly electronic devices, games, computers and computer equipment but also more mundane items such as cartons of cigarettes, battery chargers and even perfume.
Formal charges have not been filed as yet, and names of the suspects were not released.
Tampa International airport will benefit from US$8 million in funding from the Federal Aviation Administration through the US$787 billion stimulus package pushed through by President Barack Obama.
According to a press release from Tampa, the funds will contribute a portion of the US$52 million required for the “Taxiway B Reconstruction and Bridge” project. The project will elevate an existing taxiway, allowing for the transportation corridor necessary to connect the existing terminal facilities with the new North Terminal Complex.
In addition to the taxiway reconstruction, the airport will commence work on the US$26 million infrastructure project for the North Terminal Complex. The infrastructure project was already planned for development, but the injection of additional funds will allow for a “jump start” on the taxiway work, moving it ahead of schedule by as much as three years. The Aviation Authority board could pick a winning bid for the project as early as June, with construction underway by autumn of this year.
“We will be spending the money really quickly to put people back to work in the Tampa Bay area,” said Louis Miller, Executive Director of Tampa International Airport at the March board meeting – when news of the funds was still pending. Delighted at the positive news of the funding, Miller stated, “creating these kinds of good jobs with good salaries is an important step in the economic recovery and we are pleased that it also supports the long term success of the Airport.” It is predicted that over 265 jobs will be directly created by the two projects which are expected to take approximately one year to complete.
Tripadvisor, an on-line travel community offering advice from “real travellers” has released the results of a survey 1,500 American tourists. The data includes the revelation that 53% of passengers prefer an aisle seat whilst 42% would rather sit near the window – whether the remaining 5% are comfortable in the middle or just generally easy going, has not been divulged. Judging by the fact that 31% get frustrated when another in-flight passenger asks them to switch seats, it could well be that they’re just playing it safe. We also learn that the traveller’s biggest bugbear is the bag check-in fee: some 54% are irritated by it and 60% factor it in to the overall cost when booking the flight, suggesting a growing degree of baggage-awareness among the travelling public. In fact, 19% always take a bag as hand luggage to avoid the fees, according to the survey
Soggy sandwiches, it appears, are plummeting in popularity: only 6% purchase in-flight food, although it seems reasonable to assume that the percentage of passengers declining free food, were it available, would be substantially lower. Meanwhile 50% of respondents eat at the airport whilst another 37% prefer to bring a packed lunch.
Approximately 60% of travellers have flown first class in the past whilst 43% are accustomed to business travel. A lucky 63% of those who completed the survey had been upgraded for free. The larger seat, it appears, is the major draw for American passengers who fly in a premium class: 64% cite it as the most important factor.
Moving into the less salubrious area of toilet provision, 75% of passengers would be literally bursting at the seams at the thought of having to pay to use the facilities – a system recently proposed by Michael O’Leary, Director of Irish budget airline Ryanair, amid a shower of negative publicity.
Other statistics thrown up by the survey include the discoveries that 9% of passengers have experienced in-flight vomiting (some doubt exists as to whether this is personal or atmospheric); 19% have witnessed obvious intoxication; 11% have been privy to fondling couples; a staggering 44% encountered loud snoring and 25% witnessed, or rather, detected, excessive flatulence. How Tripadvisor quantified “excessive” remains a mystery.
No statistics are available for passengers experiencing all of the above in-flight entertainment options simultaneously.
March 18 2009
In the wake of extended talks, Southwest Airlines has reached a tentative agreement with the Transport Workers Union (the TWU Local 555), which represents ramp, operations, provisioning and freight agents.
The accord relates to a new, three-year contract that will run through to June 30, 2011. In its current format, the existing contract became due for amendment on June 30 last year. With that in mind, TWU Local 555 and Southwest Airlines began contract negotiations in January last year.
“The negotiation process has been long and arduous - both negotiating committees have certainly worked diligently and in good faith,” reports Gary Kelly, Southwest's Chairman of the Board, President, and CEO. “We urge our employees to give serious consideration to the tentative agreement, keeping in mind that in these uncertain economic times, our common goal should be to take needed steps to protect employee jobs and to ensure the financial viability of our company.”
The TWU Executive Board has voted to submit the tentative agreement to all members of the TWU 555 for review and a ratification vote, which will take place towards the end of March. In all, the TWU Local 555 represents approximately 7,780 Southwest Airlines employees.
Following a dispute with the US Department of Transportation, Spirit Airlines has reinstated its Passenger Usage fee of U$4.90 for each leg of a two-way flight.
The carrier actually began charging the fee last summer, along with a US$2.50 “natural occurrence interruption fee” and a US$8.50 “international service recovery fee.” A so-called “natural occurrence” is more commonly described as an unexpected weather pattern and the recovery fee looks to offset the cost of doing business at international destinations.
The DOT declared against the imposition and in turn levied a US$40,000 fine on the carrier for having misled the public in its advertising campaign. It is against the law for an airline operating in the US to advertise fares that do not include discretionary or fixed fees.
Spirit Airlines announced that it did not intend to reinstate either the “natural occurrence” or the “international service” fees. That said, it did modify the presentation of the Passenger Usage fee on its website so that it is now included in the total departure air fare per passenger (including all taxes and fees) amount. This is further explained in a section on taxes and fees that appears in small print below the search results.
However, what the note does not explain is that the fee can be avoided by purchasing the ticket at an airport. This, to some, is a retrograde step in an age that is seeing more and more external bookings thanks to the wonders of technology.
Spirit Airlines, paradoxically, is thus waiving a fee in the face of what is probably its most expensive method of distribution.
Spirit, though, isn’t the first airline to try to offset distribution costs through the introduction of fees. In particular, low cost carriers have looked at all sorts of extra streams of revenue, culminating in the European carrier Ryanair’s threat to levy a charge for in-flight toilet use…
Following four years of intensive research and development, aviation IT provider SITA has announced the successful testing of a breakthrough new technology for common-use passenger processing (CUPPS) in a live airport environment.
For the last three weeks, Orlando passengers on the Canadian low cost carrier, WestJet, have been both checked in and boarded the carrier using the ground-breaking CUPPS application. CUPPS is expected to save the air transport sector millions of dollars through the introduction of the first-ever, common use IT application which is acceptable to all airports and airlines.
Francesco Violante, SITA CEO, spoke about the operation.
“SITA takes great pride in the fact that we have been the technical lead on this collaborative project with other key industry players. It is particularly gratifying to us that the latest version of SITA’s AirportConnect Open is the only fully-integrated, field tested, common-use check-in and boarding platform capable of supporting CUPPS, legacy CUTE, proprietary and Web-based applications as well as CUSS kiosk applications.”
The system went live at the end of January and the pilot will continue until mid-April, this year. When testing is fully completed, SITA’s AirportConnect Open platform will be considered as CUPPS-compliant prior to a general product launch later in the year.
CUPPS technology will eventually replace the current CUTE (Common Use Terminal Equipment) technology standard which SITA brought to the market in time for use at the Los Angeles Olympic Games back in 1984.
SITA’s Vice-President for Airport Services, Catherine Mayer, hailed the progress as a major benefit to airlines, airports and passengers alike.
“It will encourage greater take-up of common-use while bringing down costs through greater uniformity in airport business models and a more consistent approach to network connectivity. CUPPS will also support passenger processing outside of the traditional airport check-in desk environment,” she said.
She added: “The overall goal was to develop a common system platform which takes advantage of new technology to facilitate business processes where airlines can use one application for any common-use installation as well as their own dedicated environment. The solution can be easily integrated with other airport systems such as flight information displays. CUPPS brings cost savings associated with check-in and boarding passengers for both airlines and airports, while simplifying these processes for the passengers.”
The development of CUPPS is an official IATA, ATA and Airports Council International sanctioned process and each has a Recommended Practice in place: IATA RP1797, ATA RP30.201 and ACI RP500A07. It is the first time that all three organisations have come together to mandate the development of a new standard for the industry.
Air Canada has reported an operating loss of CAN$146m for the fourth quarter of 2008, and more than CAN$1bn for the full year. For the fourth quarter, fuel expenses increased by CAN$177m or 29% compared to the fourth quarter of 2007. A net loss of CAN$727m in the fourth quarter of 2008 included net losses on foreign exchange of CAN$527m. This compared to net income of CAN$35m in the fourth quarter of 2007, which included net gains on foreign exchange of CAN$20m.
Passenger revenues decreased by some CAN$14m or 1% from the fourth quarter of 2007. Air Canada reduced its overall capacity by 7.8% in the fourth quarter of 2008 when compared to the fourth quarter of 2007. Traffic decreased by 5.3% on this capacity reduction, resulting in a 2.1 percentage point improvement in system passenger load factor. The decrease in passenger revenues because of the lower traffic was partly offset by additional revenues from increased fares and fuel surcharges. Finally, yield increased by 6.2% from the fourth quarter of 2007, reflecting a yield growth across all markets.
The on-line travel network WAYN (Where Are You Now?) recently surveyed 2,250 travellers about passport control, baggage handling, customs and security at a number of major, international airports. London's Heathrow was voted the worst for long passport control queues by all travellers, including Britons, followed by JFK in New York and Los Angeles airport.
Heathrow again was voted the worse airport for baggage, followed by JFK and Los Angeles. The three airports were seen as having the longest wait at the carousel, and were considered the most likely to damage luggage.
Passport staff, however, were an extra irritant for passengers landing at JFK and other international US airports, who voted US immigration as the rudest in the world, ahead of the likes of India and Russia. By contrast, Heathrow's passport control officers were seen as the most friendly, after Australia.
“Competition among countries to attract tourists is becoming increasingly fierce,” commented Jerome Touze, joint CEO of WAYN. “Our survey would suggest that the US customs and immigration need to address their attitude toward visitors, simplify the form filling, generally be a lot more welcoming and better reflect the personality of the American people.”
Travellers seeking to exit an airport quickly should head to Amsterdam's Schiphol, Singapore's Changi or Frankfurt, says the report, all three being voted as having the shortest immigration queues.
JFK and Heathrow were voted as having the best security by 18% and 15% respectively of the travellers questioned; and these were also the airports where bag searches and the frisking of passengers were most commonly encountered.
Delta Air Lines has indicated in an internal memorandum which has been cited by numerous press reports that in excess of 2,100 employees have asked to take advantage of the carrier's voluntary severance programme: this is slightly more than the 2,000 statistic that the carrier had predicted.
February 24 2009
According to the US Department of Transportation's Bureau of Transportation Statistics’ recent figures, US scheduled passenger airlines employed some 6.7% fewer workers in December 2008 compared with December 2007: this represents the sixth consecutive decrease in full-time employee levels for the scheduled passenger carriers from the same month of the previous year, as well as being the largest year-to-year decrease since December 2003.
All the signs are that the recession is going to be around for a while yet. Network carriers as well as budget carriers are trimming back staffing levels, reports the survey, and the employment split is an interesting one, with seven network carriers employing 264,744 full-time staff in December, (the equivalent of 67.6% of the passenger airline total), whereas the no-frills contingent employed 16.%, leaving regional carriers with a 14.8% staffing share.
American Airlines had the most full-time workers in the network section whilst Southwest employed the most among within the low cost carrier sector. It is also worth mentioning that seven out of the top ten employers in the industry are network carriers.
The global downturn is not singling out airlines or stations: it’s indiscriminate. Indeed, Transport Canada’s passenger volume forecasts are now anticipating a 5.8% reduction this year, which will translate into 1.8m fewer trips through Toronto Pearson International.
The GTAA, which controls the airport, is a non profit-making organisation and now, faced with the likelihood of a dip in volumes, it has had to look to its day-to-day running to mitigate the anticipated problems. To that end it has identified four areas in which it will be modifying its practices.
In terms of cost reduction and containment, because two-thirds of the GTAA’s costs are fixed (which includes rent paid to the federal government), there are limitations as to where financial cuts can physically be made. Despite this, expenditure reductions will be instigated over the coming 12 months. The airport thus expects to close certain airside and groundside facilities and consolidate some contracted services. Financial sacrifices in the shape of non-recruitment and a freeze in management salaries are parts of this budgetary process.
Planned, too, is an incentive programme for airlines. The need to encourage carriers to the airport will translate into landing rebates that are designed to run for a year. This, it is hoped, will act as the necessary spur to new carriers.
The airport has announced that will also defer certain capital programmes, addressing instead only the most important. Some of the shelved plans will include the Pier G project as well as Terminal 1’s garage expansion. Also affected will be Terminal 3’s Master Plan.
The final part of the equation will see an increase to the Airport Improvement Fee, a concept that has been implemented elsewhere in Canada. This has been a successful measure since its introduction eight years ago.
Whilst readers are all aware of the trials and tribulations suffered by airline pilots worldwide, it appears that those whose office is in the pointed end of an aircraft now have another problem with which to contend. The latest threat is that of unexpected hardware that could, literally, fall from the sky.
Experts at the Federal Aviation Administration have warned airline operators of the likelihood of falling débris from the two American and Russian satellites which collided recently. The fragments, which are currently circling the Earth, could be there for thousands of years and so pose an ongoing, long-tern threat.
Good news for thirsty travellers who are feeling the credit crunch. Those flying with US Airways from March onwards will once again be able to benefit from free in-flight non-alcoholic drinks.
US Airways’ backtracking on the issue (in the face of many disgruntled passengers, it has to be said), is possibly, just possibly the beginning of a realisation that passengers have been pushed enough in the area of extra charges. In reverting to this scheme US Airways has nonetheless confirmed that it will continue to offer its select à la carte service.
Rather than mull over the gloom and doom pervading the industry, UAL has decided to buck the trend and reward its staff for meeting corporate targets. In consequence, United Airlines recently announced that it had achieved an operating goal for January, which meant that frontline employees would be eligible for an ex-gratia payment of US$100.
United was looking a favourite to lead the pack of network carriers in January for its on-time performance, in which it was seeing nearly eight out of its ten flights operating on time. Cognisant of the fact that such results stem from a team effort John Tague, United’s Executive Vice President and COO, confirmed that the payment would be made and praised his staff in their dedication to work in difficult times and underlined the fact that customer satisfaction was extremely buoyant at present.
Under the company’s new cash incentive plan, a first place in the on-time departure rankings among the major network carriers leads to the cash payment; a runner-up position results in a US$65 reward.
February 16 2009
Delta Air Lines is to establish a subsidiary called Regional Handling Services: this will combine in excess of 4,000 customer service workers at regional subsidiaries Comair, Mesaba Airlines and Compass Airlines into one company.
Taking as its base Minneapolis, Delta has said that the unit will be operational later in 2009 and that its formation will ensure a consistent airport experience for customers around the country flying on Delta mainline and regional flights. The base will oversee ticket counters, gates and baggage handling for the three regional carriers and such consolidation will in due course lead to some trimming of the workforce.
Separately, Delta Air Lines has said that together with its subsidiary Northwest Airlines it will stop using some 170 gates at airports throughout the US as the merged carriers start to consolidate their flight operations. Employees were informed that such facilities will all carry Delta branding by the end of the year. Such a degree of consolidation is expected to save the carrier several millions of dollars annually in rental savings.
United has announced to its workforce that it will be cutting the jobs of over 200 ramp workers and gate and ticketing agents around ten US locations because of capacity cuts and the loss of contracts that see provision of ground services to other airlines at these stations. It appears that Las Vegas, Pittsburgh and Tucson will witness the biggest staff reductions. According to the airline’s Chairman, uncertain times that have seen rising unemployment and fewer family and business flights are behind the move. United cut 7,000 jobs in 2008 and has plans to cut a further 1,000 over the coming year.
Moreover, United’s parent company, UAL, has declared that it will be filling 165 customer relation jobs (which were previously outsourced to India) in the US. Interestingly, the strategy gainsays the current trend among US companies, many of which are exporting jobs in order to cut back on costs. However, UAL says that the change is cost-neutral to the company because US workers who take airline reservations would be able to respond to customer feedback as well. A spokesperson for the carrier said that US-located staff would have a better understanding of the airline’s philosophy and workings. The positions will be located in Chicago and Hawaii.
On the subject on-time performance, the US’s biggest airlines managed a better show of it in 2008 – although to be fair, they were operating with reduced schedules.
The recent Transportation Department report indicates that over three-quarters of the flights operated (comprising 19 airlines) arrived on time; this was up on 2007 when the statistic was 73.4%. Perhaps more telling was the fact that this result still emerged after an appalling December performance which saw on-time schedules slip to a lowly 65.3%. Against this fact one has to take into account the elements which traditionally conspire to affect statistics late in the year. Some 45% of December’s delays were occasioned by the weather, in fact.
Best of the bunch by a long way was Hawaiian, which chalked up a 90% on-time figure; chasing it into second place was the low cost specialist Southwest with an 80.5% figure. US Airways was just edged out to third position.
The reasons for the improvement are not hard to fathom: a roller coaster oil price ride coupled with lower demand has led to the closure of unprofitable routes and in December 2008 the largest carriers’ share of flights was actually down by 11% on the previous year. American Airline passengers suffered the worst delays, with a posting of 69.8% on-time flights.
There was some good news, though: just under 2% of scheduled domestic flights were cancelled, which compares well with 2007. In addition, fewer bags were mishandled: this was down by almost 2% compared to 2007 figures. Likewise, passenger complaints fell by a dramatic 19% and the numbers of “bumped” passengers was marginally better at 1.1 per 1,000.
Virgin Atlantic has been awarded the contract to manage the cargo product for Australia’s brand new long-haul airline, V Australia.
V Australia, a division of the Australian domestic carrier Virgin Blue, will start operating three times a week between Sydney and Los Angeles from February 27, increasing its frequency to a daily service on March 29.
In April the airline will also start operating flights between Brisbane to Los Angeles with Boeing 777-300ER aircraft.
After a competitive tender process, V Australia appointed Virgin Atlantic Cargo to manage all aspects of its cargo operation, with a team based in Sydney. Virgin Atlantic Cargo's existing US operation will look after the new services to Sydney from Los Angeles, a gateway which Virgin has served for over 18 years.
February 9 2009
DHL Express has inaugurated one of Latin America’s most advanced logistics industry gateways, which is located at Mexico City’s International airport. In addition to this it has set up a customer service call centre. The US$6.2m facilities have been designed to significantly increase the company’s operational capacity and strengthen both its Mexican and international network, thereby further facilitating trade with the US, Europe, Latin America and the rest of the world.
Some three decades after setting up its first operation in Mexico, DHL now connects the country with practically all other markets throughout the world through its international express network.
It’s official: the revolutionary wireless Internet service is starting to spread its tendrils around airlines in the US.
Both Delta and American Airlines have installed the facility on a handful of aircraft and the latest news is that several other carriers are planning to trial the idea.
The topic is a sensitive one, of course; along with mobile phone use on board an aircraft, this new development is very likely to polarise opinion. For the airlines, ever keen to try a new source of revenue, the service could well be a lucrative one. Current fees for a passenger wanting to avail himself of this facility begin at US$10.
All well and good - but fears have been expressed by flight attendants that the facility could be put to nefarious use. Add to that the scenario of a packed flight and laptops struggling for space and you are left with a longer term question mark over the concept.
Boeing has gone on record to say that world air cargo growth will expand at around 5.8% annually over the next two decades, with worldwide air freight traffic tripling through 2027. This, at least, is the essence of Boeing's recently-published World Air Cargo Forecast 2008/ 2009.
Air cargo traffic is destined to grow over the longer term, despite a current near-term market weakness and worldwide economic uncertainty. The industry has shown strong recoveries from previous economic downturns, including the Asian economic crisis, the 9/11 attacks and the much-publicised SARS outbreak. Boeing released its biennial forecast at the International Air Cargo Forum and Exhibition in Kuala Lumpur.
“Our research tells us that long-term economic growth, freighter fleet renewal and moderating jet fuel prices will stimulate air cargo traffic growth,” declared Randy Tinseth, Vice President, Marketing, Boeing Commercial Airplanes. “These positive prospects will prevail despite the industry's concerns about our current economic challenges.
“World GDP is projected to average just higher than 3% during the next 20 years,” he added. “Asian production fundamentals - including abundant raw materials and low cost labour - remain solid, and China will remain a source of strong economic growth with substantial industrialisation and related investment.”
Cargo tends to be at the forefront of increased liberalisation of air services, which is a driver of economic growth. The Asian air cargo market growth, says Boeing, will continue to lead all global traffic routes, with domestic Chinese and intra-Asian markets growing some 9.9% and 8.1% per year respectively. Asia-related markets are expected to experience growth in excess of the global average.
“We've seen market contraction during the middle of 2008 for the first time since late 2003; however, history tells us that the air cargo market returns robustly when the economy strengthens,” affirmed Jim Edgar, Regional Director, Marketing, Boeing Commercial Airplanes, and a contributor to the forecast. He further noted that air cargo would remain crucial to the globalisation process.
Boeing predicts that the world freighter fleet will increase to 3,890 aircraft from 1,950 during this 20 year period.
Mercury Air Cargo, a tenant at Los Angeles International, has secured certification from the Transportation Security Administration to become the first US Independent Cargo Screening Facility under new TSA air cargo screening guidelines that came into effect earlier this month.
The requirements for screening air cargo carried on wide-body jets have been dramatically strengthened under the implementation of the 9/11 Commission Recommendations Act of 2007. This now requires the air cargo industry to screen 50% of cargo on wide-body passenger aircraft at a level commensurate with passenger checked baggage, with 100% percent screening coming into effect this August.
"Screening air cargo has been a gaping hole in aviation security for decades," admitted Congresswoman Jane Harman, the Chair of the Homeland Security Subcommittee on Intelligence and Terrorism Risk Assessment. She went on to congratulate Mercury Air Cargo and the TSA for their efforts towards improving the safety of passengers flying in and out of Los Angeles.
For the certification process Mercury Air Cargo participated in TSA's voluntary Certified Cargo Screening Programme for its 200,000 square foot, on-airport air cargo handling facility at Avion Drive. Mercury has secured screening equipment as well as trained personnel operating under the TSA's new guidelines. By utilising its on-airport facility, Mercury will be able to accept unscreened cargo from freight forwarders street-side, screen it in a secured environment and subsequently transport it anywhere on the airport, keeping all operations within the airport's security perimeter.
“Mercury is the longest, continually operating tenant at LAX and with that comes a special understanding of the needs of this airport community and where we can be of service," declared Joseph A Czyzyk, Chairman and Chief Executive Officer of Mercury Air Group. "By becoming an integrated cargo screening facility, we see a real opportunity to help facilitate cargo screening and especially help out the small- and medium-sized forwarders, who may not be able to afford the costs associated with doing their own in-house screening and/ or who have the desire to keep up with all of the TSA requirements."
The TSA has initially focused its CCSP programme at 18 major airports in the US and is looking to implement a supply chain-wide solution for meeting the new requirements.
The airport recently confirmed an order for a fleet of battery-powered GSE which includes tow tractors, baggage tractors and belt loaders. There will be 25 electric vehicles in all, together with a number of advanced Dual Port Super Charge recharging stations. The acquisition was made possible through the assistance of an FAA Voluntary Airport Low Emissions grant of US$1.1m. Total project budget was put at around US$2.5m and the airport expects to save approximately 1.7m gallons of fuel during the 14-year lifespan of the equipment. As an added bonus, the new equipment will also help mitigate vehicle emissions by up to 27,000 tons over the period.
January 30 2009
DHL Express US has been recognised as the Best International Courier Service in the US and worldwide by the readers of Business Traveler magazine, a publication geared towards frequent business travellers. DHL has received the accolade for three years running.
Sabre, the global travel technology company, has announced redundancies at its offices around the world. A report from Texas, where the company has its headquarters, has put the figure at 500. A UK spokeswoman confirmed the redundancies, saying there were company-wide and included the UK as well as continental Europe.
Sabre blames adverse market conditions for the cuts and says that it was also seeking other cost savings to minimise the effect on its staff.
Delta Air Lines and its SkyTeam partner Air France KLM have begun to offer joint deals to corporate partners in Europe. The carriers described the move as a milestone in the progress of the joint venture, an initiative which has already seen the two carriers share costs and revenues on their transatlantic services.
Delta and AF-KLM said that the deals would ensure a high degree of commercial efficiency between the airlines and their corporate clients. The joint corporate deals are the latest step in the ever growing co-operation between Delta and AF KLM.
KLM and Northwest Airlines started a transatlantic joint venture in 1998.
A spokesperson said that the next step would be to integrate the transatlantic operations into a triple-party joint venture.
American Airlines, in conjunction with the Association of Professional Flight Attendants and the Federal Aviation Administration, has implemented an Aviation Safety Action Program. ASAP is essentially a safety partnership between the three organisations which is designed to encourage flight attendants to voluntarily report any safety-related information. The reports are also designed to identify any potential problem areas that might develop into something more serious.
"Our flight attendants have made a huge commitment to supporting safety at American - (it’s) one of our top priorities," declared Lauri Curtis, Vice President - Onboard Service, American Airlines.
The information gathered in the ASAP reports will be analysed jointly by American, APFA, and the FAA in order to develop and implement effective solutions to possible safety concerns. The bodies see the addressing of prospective safety concerns as essential to the reduction of future accidents and incidents.
Flight attendant ASAP at American Airlines also embraces the so-called Just Culture philosophy and processes. The Just Culture model establishes a defined, objective process to evaluate incidents and events to determine if reports should be incorporated into the ASAP programme. The Just Culture philosophy has taken hold within the US airline industry and is heading towards becoming an accepted industry standard.
Florida-based ground handler ASIG has renewed its licence to provide into plane refuelling services at Munich International airport for an additional seven years, through its joint venture Skytanking ASIG. ASIG commenced operations in Munich in 1997, as the founding partner of the joint venture. Commenting on the renewal, Mark Edwards, Managing Director, ASIG Europe, said: “We are very happy to renew this agreement. We have established outstanding relationships with the airport and our customers; we look forward to continuing to serve them.”
ABS Jets will now serve as a new Universal preferred ground handling provider in the Czech Republic and Slovakia.
“The combination of ABS Jets’ local market expertise and Universal’s global market presence provide a perfect blend of services and support for business jet clients, not just at Prague Ruzyne Airport, but also at the other major airports in the Czech Republic and Slovakia,” commented David Kyjovsky, CEO and General Director of ABS Jets.
There has been more cutting edge news from Las Vegas. McCarran International recently added a further location at which travellers could take advantage of its off-airport baggage programme, the so-called Airport SpeedCheck Advance.
For a specific period Southwest Airlines customers were enabled to check bags and obtain boarding passes from the Venetian hotel’s front desk. This temporary location was deliberately installed to ease the departure of many of the 130,000 visitors who came to Las Vegas to attend the International Consumer Electronics Show.
A US$20 fee per customer was levied for the convenience of this service. Bags were collected by a third party and delivered to the airport, where they were duly scanned before being loaded on to the appropriate flight.
The concept is nothing new in Las Vegas, whose airport has also been one of the pioneers in RFID bag tagging.
Lufthansa has unveiled an expanded lounge facility at New York’s JFK airport.
Sited just past the security checkpoint in Terminal 1, the revamped 16,000 square foot facility is double the size of its predecessor and contains three levels, each of which is dedicated to one of its three premium passenger segments. This facility forms a part of a wider Lufthansa investment of US$200m that will see the carrier renovate its lounges at 22 airports around the world.
JBT has announced that JBT AeroTech has been awarded the maintenance service contract for John Wayne airport, in Orange County. The contract will run for three years and it is expected to generate in excess of US$13m in revenues over its lifetime. Also included is an extension option for two additional, one-year periods.
The scope of the contract includes the monitoring and maintenance of all passenger boarding bridges, pre-conditioned air units, aircraft ground power units and baggage handling systems at the airport. JBT AeroTech has, in fact, been providing John Wayne with maintenance and management services since 1992.
“We are pleased to extend our long-running and mutually beneficial relationship with Orange County,” declared John Lee, Vice President and Division Manager for JBT AeroTech. “With this new agreement, John Wayne airport will continue to lead the region in customer satisfaction and operating efficiency.”
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Sami Teittinen was recently named as Chief Financial Officer at ASIG. He joined ASIG in 2002 and most recently served as Vice President, Finance.
The dollar may have rallied against the pound sterling but that hasn’t necessarily encouraged US travellers to go journeying overseas. Carrier volumes continue to dwindle and redundancies are becoming commonplace throughout the sector.
A recent example has been that of Reno-Tahoe International, where traffic was dipping towards the end of last year. In fact, the airport suffered a 25% drop in passenger traffic in November 2008 compared with the parallel month in 2007: this represented the largest monthly drop since October 2001. In retrospect, passenger volumes for last year were less than those in 2007 and 2006 for every single month, bar one.
A destination for four major carriers, namely Southwest, United, Delta and American Airlines, the authorities believe that these airlines could well cut back their frequencies in the light of reduced load factors.
Following on from that, the station has just announced that a further 11 employees have been trimmed from its workforce. This step is all part of a series of cutbacks totalling some US$2.5m which has seen sacrifices made across the board: indeed, some staff are looking at an 18-month salary freeze.
It has been reported that those affected will remain in their jobs for up to 90 days, depending on current agreements and employment regulations.
As an airport, Reno is out on a limb when it comes to investment, relying as it does on leases, concessions, gaming revenues and airline fees: it is not a recipient of local taxation. The future doesn’t look too rosy, either, according to airport officials, who are pointing to a quieter summer period ahead.
In a sector that is continually re-inventing itself, it is small wonder that all sorts of initiatives are being put forward to attract extra revenue.
Baggage charges, as has been mentioned before in Ramp Equipment News, are just one of the new wave of options to emerge. Is the device working, though? According to American Airlines, its adoption has not been totally without hiccoughs.
“By all accounts, it’s gone smoother than we anticipated. Our biggest concern was that we might see people trying to take things that were inappropriate as carry-ons, but it hasn’t been a big problem.” Thus commented Tim Smith (on behalf of the carrier), who also confirmed that the levy wasn’t really a blanket regime. “Business travellers tend to be among those that are more likely to qualify for exemptions, either through premium status or traveling on a full-fare ticket,” he explained.
Actually, the majority of airlines are ignoring luggage fees when it’s a matter of frequent fliers, passengers in first or business class or customers who purchase full-fare economy tickets. Reports suggest that some 50% of US domestic passengers check luggage in at airports but that following the imposition of tariffs, the percentage of checked bags per person has dipped: on average, less than one bag is now being processed in this manner.
Carriers are, seemingly, still quite willing to make exceptions to the charge. Continental, for example, allows a free bag to anyone using its credit or debit cards whilst United has permitted a discount to travellers booking on-line in January. At the other end of the scale, not every carrier has decided to adopt the idea of fees for bags: the likes of Southwest still allow two free bags whilst others, including JetBlue, will permit one item free of charge. As for the fees themselves, where levied, they typically range between US$15-25.
The decline in checked-in baggage should, theoretically, make life a little easier for the handlers. The downside is that those involved in staffing the flights have had to be increasingly alert to the size and weight of carry-on baggage.
United Airlines has announced that it is to withdraw its largest aircraft from the Tucson/ Denver route and that it may also outsource its local ground handling requirements towards the middle of this year. These latter include ticketing and check-in facilities as well as a baggage handling operation: just under 40 staff would be affected by any change.
The flight rearrangements will see all United flights from Tucson be made through United Express, which is operated by a number of regional carriers, including SkyWest Airlines. A non-stop flight to Denver will still operate, however.
According to the (latest) October 2008 figures, US passenger airlines employed around 5.7% fewer full-time staff compared to October 2007. This represents the largest year-on-year decline since July 2006 - and the lowest actual total for some 15 years.
It’s a double-edged sword, however. Over the Christmas period, despite recession problems, downsizing on the part of some US carriers had the positive effect of keeping flights relatively full. Since fewer flights have meant better seat factors, carriers have justifiably claimed to be in a better shape pro rata than they were a few months back, a time when oil was peaking at almost US$150 a barrel.
Since then, oil has dropped dramatically, although many carriers suffered burnt fingers through inappropriate hedging. Getting people back into the air has been their priority and trimming away the fat in the shape of surplus flights has certainly helped the situation.
Whilst results from Continental have shown a 6.7% year-on-year drop in December 2008 traffic on a capacity reduction of 8.1%, the carrier nonetheless believes that its December unit revenue rose between 4-5%. In a similar vein, United Airlines said that traffic declined by around 11.5% in December, with capacity falling by 12.7%. However, on the plus side, its aircraft turned in a useful 81.6% seat factor, which compares favourably with the 77.7% posted in December 2007.
American recorded a similar scenario: traffic dipped by 8.2% in December with an 8.6% decline in capacity. Aircraft capacity was put at 79.2%, slightly up on the 78.8% figures of 2007.
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United Airlines has just made two new appointments. It has named ex-Delta Safety Executive Michael Quiello as Vice President, Corporate Safety, Security, Quality and Environment whilst former Pratt & Whitney leader Mark Mounsey becomes Vice President, Base Maintenance, for United Services.
JetBlue Airways has confirmed Alex Battaglia as Vice President, Airports, expanding his responsibilities to include all airport-related functions.
Frontier Airlines has taken another important step forwards towards improving its bottom line with the announcement that its aircraft grooming staff and maintenance cleaners have ratified a long-term labour agreement with the carrier. This agreement will provide Frontier with salary concessions running all the way to 2012 and, as such, is seen as another important element in Frontier's restructuring plans.
“I want to express my gratitude to our aircraft appearance agents and maintenance cleaners for their willingness to make sacrifices to help in our restructuring efforts and eventual growth and sustainability,” commented Frontier’s President and CEO, Sean Menke. “This agreement, like the concessions made by the majority of our employee groups, is vital to Frontier's cost-reduction efforts ahead of our emergence from Chapter 11.”
As mentioned in an earlier news release, five years down the line DHL has decided to call it a day and cease competition with the likes of UPS and FedEx in the US marketplace. This change of tack will involve the adjustment some 9,500 DHL posts around the country as well as some positions in partner companies.
American Airlines and the Transport Workers Union, which represents the carrier's baggage handlers, simulator technicians and instructors, have filed a request with the US National Mediation Board in order to help negotiate a new labour contract. The previous contract was due for renegotiation back in May 2008 but a lack of constructive progress since then has occasioned the request.
To underline the immediacy of the situation, the TWU points to the pay cuts and reduced benefits that its members have endured, allied to the increased levels of productivity that they have contributed.
The California Air Resources Board legislation comes into effect in January 2009. Under its terms, operators with more than four fork-lift trucks (or four pieces of other equipment that are powered by gasoline or propane and which have more than 25 horsepower) have to complete a fleet inventory and begin to meet emissions targets, beginning in 2009.
Additions and subtractions to any fleet must be documented in future and the operator is also required to calculate the average emissions produced by the fleet within the appropriate state. Propane fuel requirements (both delivery and type) also have to be noted and stored for reference purposes.
The legislation will affect all industry sectors and will have to be addressed by those companies operating GSE, assuming that the above criteria are met. Electric vehicles are deemed to have zero emissions and so are exempt from the above regulations.
Will other states follow California’s lead? One thing is for sure: the move has occasioned more expenditure within the sector and, going forward, this investment does not seem likely to let up. The environmental nettle might be a tough one to grasp but unless schemes such as these are adopted, and adopted on a wide scale, little real progress is going to be made in the area of emissions control.
It has just been announced that Etihad Airways has been voted the airline with the best business class service from the US to the Middle East. These were the findings of a poll conducted amongst the readers of the publication Business Traveller USA.
Delta Air Lines is to put forward a voluntary severance programme in line with its recent decision to cut capacity by 6-8% in the coming year.
“These capacity reductions will reduce the number of people needed to operate the airline,” CEO Richard Anderson and President Ed Bastian said simply in a recent memorandum. “Consistent with how we have managed headcount reductions in the past, we again will offer voluntary programmes to Delta employees, including those who have joined from Northwest.”
The carrier did not actually say how many of its 75,000 workers would be affected by its initial plan; last year, a voluntary severance offer was accepted by some 4,000 staff. Encouragingly, Delta has said that the programme, for which a majority of workers would be eligible, would be similar to the one offered in 2008 and that it hoped that involuntary redundancies would not be necessary, since it was seeking reductions through other means.
…the tough take a break. Recession or not, airports are doing their best to attract a few extra dollars from passing trade. One of the most recent developments has been that of the new business class lounge in the Tom Bradley International Terminal at Los Angeles International. Although dubbed business, the new lounge (called reLAX – what else?) is open to all travellers at the terminal. Operating on pay-as-you-go principles, its clientele will have the use of the facilities (that include refreshments and Wi-Fi services) for three hours at a cost of US$25.
In a similar vein, American Airlines has announced the re-opening of its 3,600 square foot Miami Flagship Lounge. It has similar facilities at Chicago O'Hare, JFK and Los Angeles.
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More news from JFK: SITA, a specialist provider of IT solutions to the air transport industry, has announced that its BagManager system is now being used by 44 international and domestic airlines at Terminal 4, where it provides tracking and reconciliation for over 5m checked bags every year.
Baggage reconciliation is an automated system, providing a positive match between passengers and their bags, which ensures that both travel together on the same aircraft. This reduces the numbers of mishandled bags and increases the level of security. It is commonly used in other parts of the world but is less widespread in the US. The SITA system meets the requirements of international airlines at the terminal which currently have heightened security needs.
“Providing the most advanced systems for the airlines operating at Terminal 4 is paramount and ensures the terminal we operate stays competitive in this increasingly challenging environment,” says Daryl Jameson, Director at JFK. “Baggage handling is a constant challenge for airlines and so the successful implementation of SITA's BagManager solution terminal-wide is a critical improvement to the baggage handling for both the airlines and their passengers.”
Andrew Halley, President of the Terminal Four Airline Consortium which represents all the airlines using the terminal, confirmed this view. “We have welcomed the changes at JFK’s Terminal 4 because more efficient baggage handling is a win-win situation; it guarantees more satisfied passengers and saves costs for the airlines.
“SITA’s comprehensive baggage system, now in operation across the whole terminal, allows the airlines and ground handlers to load an aircraft more efficiently and locate baggage more quickly with the goal of providing a hassle-free experience for the more than eight million passengers that travel through the terminal.”
Recent figures have shown that the cost to the industry of mishandled baggage in 2007 was a staggering US$3.8bn; and this figure does not take into account passenger inconvenience and stress. In the US alone that year, some 4.4m bags were mishandled.
Sandra Girona, SITA Regional Vice President for North America, added: “SITA works with both the airlines and the airports to provide integrated solutions that ensure minimal disruption for passengers. Technology reduces the level of mishandled luggage delivering benefits to all, namely airports, airlines, passengers and ground handlers. And now, with SITA BagManager at Terminal 4 at JFK, over five million bags each year will have a smoother journey.”
Today, SITA’s BagManager is in use at more than 70 airports worldwide, interfacing with check-in and baggage sortation systems to deliver end-to-end baggage management and reconciliation. It seamlessly integrates with WorldTracer, which was developed by SITA and co-sponsored by IATA, and is used by over 400 customers globally. Based on a single, shared database of lost bags which is accessible to all airlines, WorldTracer is capable of delivering round-the-clock baggage tracing worldwide.
Cavotec MSL has co-opted Christer Granskog, the former CEO of Kalmar Industries, to the Cavotec Board of Directors.
Kilfrost recently announced the appointment of a Senior Vice President of The Americas to lead operations in the region: he is Patrick J Strasburger.
Northwest Airlines’ International Association of Machinists has taken out a suit against Delta Air Lines. The union is claiming that Delta's recent launch of a seniority integration process for the union's members before union representation elections were held is actually illegal.
The association represents some 12,000 employees at Northwest and encompasses baggage handlers and check-in staff, to name but two segments. What is interesting in this context is that Northwest’s staff is a highly unionised body in contrast to the situation at Delta, where only the pilots have union representation.
The union says that the move by Delta to start a seniority integration process amounts to unlawful interference with an employee’s right to choose a union.
Speaking on behalf of Delta, Kent Landers said that the carrier felt that the position taken by the machinists and the flight attendants was erroneous.
“Seniority integration is one of the top issues on our employees' minds and we are committed to resolving seniority and integration issues promptly” he states.
By the end of January 2009, DHL’s US Express business will be focussed entirely on its international offering and it will have discontinued its domestic-only air and ground products. A strong international presence and capability in the US will remain, though, and the DHL Express service portfolio will be maintained everywhere else in the world. Indeed, no service impact to its operations in other regions and countries is expected.
DHL’s US international express service will be rendered extremely competitive, with 71% of all international shipments to and from major metropolitan areas benefitting from improved transit times. International shipments into the US will continue to be delivered to all ZIP codes whilst outbound international shipments will continue to be picked up with virtually no change to current service levels.
ASIG reports that its Denver International airport fuel facility operation has received a Bronze Achiever Award from the Colorado Department of Public Health and Environment. This award recognises facilities that have made significant achievements in improving the environment of Colorado. ASIG was nominated for the award by Janell Barrilleaux, Director of Environmental Programmes for the airport.
ASIG actually maintains and operates the Denver fuel system on behalf of a 22 member airline consortium serving the airport. The facility comprises the world’s largest airport fuel hydrant system, which involves 27 miles of underground pipeline delivering aviation fuel to the airport’s concourses. A part of the facility is devoted to six jet fuel storage tanks that handle nearly 425m gallons of jet fuel annually, alongside 12 gasoline, diesel and avgas tanks.
ASIG received the award based on its environmental programmes and initiatives that extend beyond minimum regulatory compliance. The facility has been ISO 9001-certified since 2001 and has adopted many principles of the ISO 14001 Environmental Management System. The handler regularly tests the fuel distribution pipeline via a state-of-the-art leak detection and monitoring system. Additional enhancements include a recent upgrade of the cathodic protection system which increases corrosion protection of the pipeline, and which should extend its life expectancy by up to 40 years. Further, a recent project to repair and seal fuel pits and vaults has resulted in a 50% annual wastewater reduction and associated cost savings.
The project was completed under budget and ahead of schedule.
The BA-Meetup conference will take place over March 18-20 in Lyon, France. This business aviation conference is being billed as an annual meeting place for airports, FBOs, pilots, operators, schedulers, dispatchers and international service providers. The concept is simple: it has been designed for people to network in a choice of 20 break-out sessions over a two and a half day period. Usefully, attendees may select the sessions in which they wish to participate.
“What makes this meeting exceptional is the interaction, open exchange of opinions, and networking. Especially now that we are in a time of change where the stimulants or turn-ons to fly private seem to be missing, we have to create and offer new stimulants and turn-ons. Flying smarter and operating smarter will be the motto of a new era of business aviation.” So says Conference Chairman Cdr Bud Slabbaert, an expert in the area of business aviation development at airports.
There are three characteristics that set the BA-Meetup apart from other conferences.
Firstly, it is a conference where people are encouraged to talk with one another, rather than listening to the past experiences of just one person who takes the stage. The audience will be encouraged to participate in discussions at all times.
Secondly, the meeting makes it possible for different levels of management to interact. Improvements and new ideas are not necessarily found in the boardroom but often out in the field where clients and staff interact. In business aviation the contacts between clients and staff are more direct than other segments of aviation; hence the feedback is a valuable source of information.
Finally, the conference will bring people together who have differing functions and backgrounds. For instance, there is very little contact between the people who operate an airport and people who operate a corporate flight department. The BA-Meetup seeks to improve communication and understanding.
Where? Lyon Hilton Hotel, Lyon, France
Attendance? Around 300 delegates are expected
Cost? Euros 600
Contact? Cdr Bud Slabbaert
Tel: +41 44 586 41 44
Email: bud@ba-meetup.com
December 5 2008
As the New Year approaches, so American Airlines has begun to instigate its plans in terms of revised fare structures.
Out goes the traditional pricing method that was pretty much all-inclusive. In comes a base price to which is added virtually any service or product for which the carrier feels that it can justifiably charge.
This has been in response to the à la carte cost structure pioneered by Air Canada, airline officials have said. Thus there are likely to be a few basic fare plans, after which travellers can then select additional services, albeit at a price.
And so a new word is added to the lexicon: that of “unbundling.” And it appears quite certain that the negativity of the nomenclature will be echoed by the travelling public when they next start totting up the total cost of travel.
It’s hardly a big surprise, though, given the torment that has been suffered by the US economy in recent months. Airlines have of necessity become more bullish, looking wherever they can to make a few extra dollars; handlers have been squeezed (again) and now it seems, it’s the turn of the customer. Voicing the (somewhat novel) argument that all a traveller is entitled to for his fare is a seat, airlines now seek to justify their actions through a rather distorted re-working of history.
So what will this entail? And will other carriers follow suit?
To answer the first question, just about everything from a bottle of water to a bag of peanuts is fair game. WestJet, for example, has been proudly advertising a breakthrough that (qv) “will provide guests with another option to enrich their travel experience.” What is this secret weapon that will henceforth change man’s attitude to flight? A blanket and pillow set – for US$7. On the plus side, WestJet will still be offering all-inclusive fares, however.
Then there’s the question of seating: do you want priority boarding? A window seat? Extra leg-room? An upgrade? Luggage is fast becoming a nice little earner, too, with airlines charging left, right and centre for anything that weighs more than a sponge bag.
As for the second question, with the spectre of parked-up aircraft a recurring nightmare, it’s going to be a brave carrier that decides not to re-write the rule book. According to estimates received, United Airlines confidently expects to accrue some US$700m a year from such fees. For its part, Northwest Airlines estimates that baggage charges alone will bring in US$150-200m a year. And Continental Airlines predicts that it will generate more than US$100m solely from a new US$15 fee arising from checking in a single bag.
The days of plenty, it seems, are numbered.
US ground handler ASIG, the wholly-owned subsidiary of BBA Aviation, has selected WorkBridge as the supplier for Resource Management Software for its US operations.
This will commence with ASIG’s Terminal 1 operation at New York’s JFK Airport and the deal will provide the handler with a complete platform for the management of its staff in real-time, including mobile service registration.
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WorkBridge Real Time solutions will provide automated scheduling and optimisation of resources on a daily basis, thereby ensuring that vital data is captured to enable direct and accurate revenue collection for the company’s ground handling services. ASIG’s Team Leaders will be equipped with Mobile PDA solutions in order to be able to register services for billing as soon as they are completed.
Speaking in New York at the launch of the project Tim Ramsey, Vice President Information Technology for BBA Aviation, said that ASIG was committed to being the recognised leader in the commercial aviation services industry and that WorkBridge was viewed as the perfect partner to enable it to take its business to the next level. He added that WorkBridge’s use of the newest technologies, a flexible approach and a short mobilisation time were all attractive propositions to ASIG. “This is all part of our ongoing efforts to improve our operational and back office systems for the benefit of ASIG’s airline customers. Once implemented in Terminal 1 at JFK, it is our intention to roll this out in Terminal 4 and then on to other ASIG locations.”
Erik Sorensen, CEO WorkBridge, went on to say that his mission at WorkBridge was that of performing an outstanding job for his customers by delivering advanced technological systems that solve their most pressing business problems, helping them achieve operational excellence through improved resource management, performance and productivity. “Having a customer of the prestige of ASIG within our portfolio is extremely important to us, as is breaking into the US market. We have great expectations for the ASIG project and look forward to delivering value to the ASIG operation.”
With the advent of the winter schedules Lufthansa Cargo has further expanded its airfreight capacity for shippers and forwarders. The cargo carrier’s customers now have a greater choice of destinations and frequencies, especially on routes to North America.
Aside from an additional MD-11 freighter connection on Fridays to New York, a further flight from Frankfurt will be added to Chicago on Wednesdays. Additional direct freighter connections will be available weekly on Thursdays to Seoul as well as on Saturdays to Bombay and Hong Kong. Lufthansa Cargo began flying to Toronto from Frankfurt in September with a return flight to Frankfurt via Atlanta.
General Dynamics has completed its acquisition of Switzerland-based Jet Aviation for US$2.18bn from Dreamliner Lux, a company controlled by Permira Funds.
Jet Aviation was founded in Switzerland in 1967 and approximately 5,600 Jet Aviation employees contribute to the company’s 25 airport facilities throughout the world.
Jet Aviation will continue to serve the entire aircraft manufacturing community and its global client base as a new business unit within the General Dynamics Aerospace group, operating under the Jet Aviation and Midcoast Aviation brands. The current management structure will remain in place.
“We are very pleased to add Jet Aviation to the portfolio of business aviation products and services that currently are provided by the General Dynamics Aerospace group, and to partner with the current management team to continue its success. As a unit of General Dynamics, Jet Aviation positions us to capture additional growth opportunities in the business aviation market,” commented Nicholas D Chabraja, General Dynamics’ Chairman and Chief Executive Officer.
ARINC has announced that its operations in Europe, the Middle East and Africa have been certified as carbon neutral and that they have been accredited with CarbonNeutral operational status.
The certification followed a comprehensive audit of ARINC EMEA offices and operations by The CarbonNeutral Company, a leading carbon-offset and climate consultant. ARINC’s CO2 emissions were measured in accordance with the WRI/ WBCSD GHG protocol, and the company immediately reduced its remaining CO2 emissions to zero through the purchase of equivalent carbon credits.
“Our carbon neutral certification is a proud reflection of what is important to all of us in ARINC EMEA, who are conscious of our impact on the environment and regularly take steps to minimise this as a business unit and as individuals,” stated David Poltorak, Vice President & Managing Director, ARINC EMEA.
“With our focus on becoming a carbon neutral business operation we are investing to minimise the power consumption and carbon footprint of our next-generation airport systems.”
The audit process took into account the impact of the company’s offices, ground station operations, deliveries, business travel, commuting and waste operations. Plans to reduce CO2 gradually through internal changes were also accounted for.
To attain carbon neutral status, ARINC EMEA purchased the carbon credits of two CO2 saving projects, namely the Sichuan Hydro power project in China and Sterksel Biogas in the Netherlands. Sichuan Hydro Power supplies clean energy that would otherwise have been generated from fossil fuels whilst the Sterksel Biogas project converts animal waste into energy for heating buildings, replacing the use of fossil fuel and avoiding the release of methane into the atmosphere.
Quantum Aviation Solutions has formed a partnership with DALGlobal Services to offer PAXTrack, which is essentially a real-time passenger tracking solution for special needs passengers. This technology will allow Quantum to help its airport and airline customers meet recent initiatives that require better service for special needs passengers, which extends to disabled travellers and unaccompanied minors.
“We are excited to offer PAXTrack as part of the Quantum product suite,” declared David Kennedy, President and CEO, Quantum Aviation Solutions. “Quantum is focused on providing its customers with cost-effective technology to assist below-the-wing operations. The addition of PAXTrack allows Quantum to expand its products, and provides a solution to help airlines and airports comply with increasing regulations for special needs passengers.”
“We have been aware of Quantum’s success with baggage tracking and felt the partnership would increase the reach of PAXTrack to European and Eastern markets as well as provide continued growth in our core market, the United States,” added Pete Weiland, Vice President of Operations at DALGlobal Services. “PAXTrack’s patent pending technology is the ideal solution for aviation companies that emphasise passenger service and will help these organisations accommodate an overlooked segment of travellers.”
PAXTrack combines Geographic Information Systems, wireless personal computers and digital mapping in a dispatch system in order to create an operating framework that serves special needs customers more effectively.
Cargo Airport Services USA has been awarded cargo warehouse handling contracts by Aeromexpress, Olympic, United Airlines, Singapore Airlines and Qatar Airways at JFK International airport.
Qatar Airways actually relocated its Newark operation to JFK back in October 2008 to Building 261, where it has been operating daily B777 flights to Doha. United actually started cargo operations at building 261 in November, accounting for 13 weekly flights. Aeromexpress and Olympic began their operations at building 151 on November 21 and December 1 respectively whilst Singapore Airlines moved into building 73 on November 26, offering a daily B747/400 service to Frankfurt and Singapore.
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VT Services, a provider of GSE fleet management, maintenance and training, has announced the appointment of Pat Brown as its new Business Development Director for North America. Pat will operate from the Alpharetta headquarters of VT Services and brings with him a wealth of experience in the aviation industry, having worked for John Bean Technologies (formally FMC Technologies) for more than 21 years, in which his last post was that of Executive Sales Manager.
The US Air Transport Association recently named Delta Air Lines’ GM-Security Technology, Compliance and Facilitation Eric Thacker as Director-Security Operations responsible for daily co-ordination with the Transportation Security Administration. It also appointed DL Director-Government Affairs Sametta Barnett as MD-Security.
October/November 2008
With its huge ongoing investment in the US, Lufthansa Cargo continues to underline its rôle as an industry leader in international airfreight security.
At all destinations served by Lufthansa Cargo in the US market, which includes New York, Washington DC, Houston and Chicago, together with over a dozen others, state-of-the-art explosive trace detection systems are being installed with a capability of detecting various types of explosives concealed within shipments.
Denver International airport has installed 9,200 solar panels that are destined to generate in excess of 3m kilowatt hours of solar electricity per year. This, in fact, equates to about half of the power required to operate the airport's people-mover trains.
Universal Weather and Aviation has entered into a letter of intent to become the majority owner of Brazilian flight support services provider Cavok Servicos Auxiliares de Transportes Aereos. (CAVOK) and expects to complete the transaction in the near future, subjectany required governmental approvals.
National Aviation Services has won the recent tender for a comprehensive security handling service to Delta Airlines. Under its terms NAS will provide passenger, security, cargo and ramp handling for Delta Airlines at Kuwait International airport. Delta will initially be operating four flights a week between Kuwait International and Hartsfield-Jackson in Atlanta.
Credit crises and financial upheavals have dominated the headlines in recent weeks and these, coupled to the soaring cost of oil, has led to the implementation of an array of strategies designed to keep carriers aloft.
Delta Cargo, in what is viewed by some as a departure from the industry trend of outsourcing freight handling services, has begun to redeploy Delta personnel at its Atlanta cargo operations centre.
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