Main News April 17th 2013

Orlando first with automated form

Orlando International has been selected as the first airport in the nation to automate the I-94 arrival/departure form used by the US Customs and Border Protection. The main factor contributing to Orlando’s selection has been that of the dramatic increase in international traffic. So far this year, the airport has experienced a 13.7% growth in international travel.

“To be named first in the nation to expedite the international arrival process will not only increase efficiency, it will also provide the capacity for more international growth, which is already responsible for over US$2.8bn in annual economic impact to the entire Central Florida region,” stated Frank Kruppenbacher, Chairman of the Greater Orlando Aviation Authority.

“Increasing efficiency and streamlining processes, automation of the Form I-94 will minimize paperwork required for travelers and the administrative duties for CBP officers,” added Vernon Foret, Miami Director of Field Operations. “This will save millions of dollars for both CBP and the travel and tourism industry.”

The automation will be phased in from April 30 onwards. On average, it is anticipated that passengers will see a decrease in waiting time by at least 20 seconds.

 

 

Strike looks set to continue at St John’s

A spokesman for the striking maintenance workers at St John’s International airport has said that there seems to be no end in sight to the seven month long labor dispute. The spokesperson, Chris Bussey, added that his members were resolved in continuing to fight for what they have termed a fair collective agreement with the airport authority. Bussey added that the union had provided essential services to the airport through the winter months, although this arrangement was due to end in the near future.

 

Going cleaner in Baltimore

Clean Energy Fuels Corporation, North America’s largest supplier of natural gas fuel for transportation, recently opened a new public access compressed natural gas fueling station at Baltimore/Washington International Thurgood Marshall airport.

Owned and operated by Clean Energy, the facility provides CNG fuel for public and private vehicles and fleets, including airport shuttle buses, shared ride vans, taxis, trucks and personal use CNG vehicles. Among key Clean Energy station users will be a new fleet of CNG airport parking shuttles that are operated by IMPARK.

Representing Clean Energy at the opening was Mark Riley, Vice President, Eastern Region. He said: “With the expanding availability of natural gas vehicles, fleet operators across the nation are adopting natural gas power. Among their goals are adding fuel diversity, curtailing harmful emissions and helping reduce America’s dependence on imported oil. Airport and allied ground transportation fleets have become magnets for natural gas vehicle usage. We are delighted to have the opportunity to provide the benefits of natural gas fuel to the Baltimore/Washington International airport area and the neighboring communities.”

Natural gas fuel costs up to US$1.50 less per gallon than gasoline or diesel, depending on local market conditions. The use of natural gas fuel not only reduces operating costs for vehicles, but also reduces greenhouse gas emissions by up to 30% in light duty vehicles and by up to 23% in medium to heavy duty vehicles. The US Department of Energy reports that 98% of the natural gas consumed in the country is sourced within the US and Canada.

 

Southwest’s customer service on the line?

At the end of March Southwest Airlines ground workers who belong to the Transport Workers Union Local 555 began information picketing and leafleting at Fort Lauderdale-Hollywood International as well as at 15 other airports. The picketing came in response to concerns that contract proposals from the airline could compromise the company’s customer service, according to a press release.

The TWU Local 555 bargaining committee, representing more than 9,400 ground crew workers at Southwest, began negotiations for a new agreement back in July 2011. However, talks have since been aborted through management demands that would have a negative impact on customer service and which, it is felt, would impose unnecessary concessions on members of Local 555.

“Southwest Airlines is widely recognized as one of the most successful airlines in the industry, with 40 straight years of profitability,” TWU Local President Charles Cerf said in a statement. “Our members, who are the most productive airline workers in the industry, play a huge rôle in the company’s success. The work of ramp, operations, provisioning and freight agents is crucial to flight safety, timely departures and to providing our passengers with Southwest Airlines’ legendary customer service.”

 

How good is your airline?

According to the annual Airline Quality Rating report, now in its twenty-third year, Virgin America came out on top for customer satisfaction. Bottom of the list was United, although passengers reported an overall better performance at this carrier.

The performance of the 14 leading carriers in 2012 compared favorably with results from 2011 and the study noted that there had been improvements in both on-time performance and baggage handling. At the same time, involuntary denied boarding and customer complaint rates were higher.

Virgin America posted the best baggage handling rate of just 0.87 mishandled bags per 1,000 passengers, whilst at the other end of the scale, American Eagle logged 5.80 mishandled bags per 1,000 passengers. Overall, Hawaiian Airlines came out best for adhering to schedules, which contrasted with Skywest ExpressJet and American Airlines, who were thought to be much less efficient.

Perhaps most telling of all were the customer complaint statistics per 100,000 passengers: this figure increased from 1.19 in 2011 to 1.43 in 2012. Interestingly, just three of the 14 airlines improved their customer complaint rates for 2012. The most criticized in this context was United Airlines whereas Southwest Airlines had the lowest complaint count.

 

 

 

Main News April 2nd 2013

Better baggage routing at Lester Pearson

Air Canada is becoming an attractive option for travelers connecting to the US, thanks to a simplified baggage handling process at its Toronto Lester B Pearson International airport hub. The new system sends checked baggage to connecting flights, so that connecting customers no longer have to retrieve their checked bags for US customs’ inspection.

“Air Canada’s Toronto Pearson hub is already recognized as a North American gateway and this simplified baggage process makes it even more attractive. It strengthens Toronto’s position as a preferred routing by making transit through Pearson easier for customers who are increasingly choosing to travel our international network because it offers some of the best elapsed travel times between the US and other global centres in Europe and Asia,” commented Ben Smith, Executive Vice President and Chief Commercial Officer at Air Canada.

 

Sequestration starts to bite

The US Federal Aviation Administration has decided to close one third of its air traffic control towers that are located at smaller airports. This will come into effect on April 7.

In all, just under 150 towers will be affected, involving 46 states. These towers are part of FAA’s contract tower program that hires third-party controller staff to manage towers at small airports.

Immune will be 24 federal contract towers that had previously been proposed for closure; further, 16 towers under a cost share program will also continue to operate through congressional statute funding.

The US Transportation Secretary, Ray LaHood, admitted that the agency had heard from communities across the country, stressing the importance of their towers, but nonetheless, closure decisions had had to be made.

 

Profits take a tumble at LatAm

LatAm Airlines’ net profit dipped by 96.6% in 2012 to US$10.96m, says a company report. This was in large part due to the cost of LAN’s takeover of Brazil’s TAM airline, coupled with higher taxes in Chile.

That said, Latin America’s principal carrier revealed that it had seen a significant improvement in its major market, Brazil, this year; however, it would still cut its planned capital expenditure for the 2013-2015 fleet by a total of US$1.2bn. Simply put, the group is in the process of adjusting its fleet plan in order to match its capacity expansion plans. The company said that it would continue to evaluate alternatives in order to rationalize its fleet orders.

The group revealed that fleet investment would total US$2.047bn this year, US$1.993bn in 2014 and US$806m in 2015: cost of its future aircraft would be partly assisted through debt issues. Total merger synergies should reach between US$600m and US$700m, and will be fully achieved by June 2016, LatAm said.

 

Have knife, will travel…

The TSA has modified its list of prohibited items that can be carried on aircraft on an overall risk-based security approach: this comes into effect on April 25. The modified rule will allow passengers to carry small pocket knives with non-locking blades smaller than 2.36 inches and less than 1/2 inch in width. Passengers will also be allowed to carry small and toy bats, ski poles, hockey sticks, lacrosse sticks, billiard cues and two golf clubs. However, the list does not allow razor blades and box cutters, full-size baseball, softball or cricket bats.

TSA spokesman David Castelveter said that the decision was made in order to bring US regulations more into line with ICAO standards, and that it would also assist in offering an improved passenger experience.

“This is part of an overall risk-based security approach, which allows transportation security officers to better focus their efforts on finding higher threat items such as explosives,” he explained.

The US Flight Attendants Union Coalition has expressed its dismay at the decision and,amongst others, US Airways’ CEO Doug Parker has asked the Transportation Security Administration to reconsider its decision to allow such implements past airport security.

 

Boeing to trim its workforce – but will add staff

Boeing has said that it has plans to lay off about 800 machinists this year as it reduces its workforce on its B747 and B787 aircraft. The reductions are part of a long term plan but do not necessarily signal changes in production rates for either model.

Interestingly, Boeing is doubling its output of the B787, even though the model is currently grounded and cannot be delivered to customers. By the end of 2013 it aims to produce ten a month.

The eliminated positions are the only layoffs the Chicago-based company plans as it trims its workforce by 2,000 this year in the Puget Sound region. The remainder of the reductions will be through attrition and redeployment, the company says. These layoffs will mainly affect machinists involved in change incorporation work, or those reworking aircraft that have left the factory for the B787 and B747 programs.

On the plus side, Boeing is looking to take on 8,000 to 10,000 workers this year across the company.