Main News October 22 2012

 

Southwest invests in Denver

Southwest Airlines has opened the carrier’s latest Pilot and Flight Attendant crew bases at Denver International. The new crew base, which represents the airline’s ninth, will become home to nearly 400 pilots and 400 flight attendants, with a potential to grow if necessary. These lounges will be located on the third level of concourse C at the airport and will effectively serve as offices on the ground for Southwest’s pilots and flight attendants. Flight crew personnel stationed in Denver may use these offices before and after trips to receive briefings, access required reading material, learn about changes in policies or schedules and catch up on Southwest news.

Southwest currently operates eight other Pilot and Flight Attendants bases nationwide, which are located in Baltimore/Washington, Chicago Midway, Dallas, Houston, Phoenix, Oakland, Orlando and Las Vegas. In addition to the crew bases, Southwest has also established a line maintenance operation at Denver: Southwest will staff this with six maintenance employees, who will perform routine maintenance as needed for flights flying to and from Denver.

 

Security screening not up to the mark?

According to an internal report, screeners at Newark’s Liberty International airport are correctly executing passenger pat-downs only 16% of the time. Moreover, the report has revealed that screeners identify and take appropriate action on prohibited items in only a quarter of all cases.

Despite these negative findings, the report also states that in numerous categories, including the removal of prohibited items found during physical searches and the exhibition of good listening skills, screeners have been performing their duties correctly for 100% of the time on their shifts.

(The report was compiled by a number of undercover teams of Transportation Security Administration employees from other airports, who observed the Newark Liberty screeners at work over a period of several months).

 

 

New Chair for Toronto

The Board of Directors of the Greater Toronto Airports Authority has announced the appointment of Vijay Jeet Kanwar as Chair of the Board of Directors with effect from January 1, 2013. Vijay Kanwar has been a member of the Board of Directors since May 2006. He was appointed by the Province of Ontario and has served on the Planning and Development Committee, Audit Committee and the Human Resources and Compensation Committee. He was also involved with the Board search committee for the GTAA’s new CEO.

 

 

ABM in Air Serv acquisition

ABM, a provider of integrated facility solutions, has announced a definitive agreement to acquire Air Serv Corporation for approximately US$158m in cash, subject to certain closing adjustments. Air Serv, when combined with ABM’s janitorial, facility solutions, security and parking airport businesses, will significantly expand ABM’s capabilities in servicing the end-to-end needs of the airlines and airport authorities, and ought to create an entity with in excess of US$650m in annual revenues.

Founded in 2002, Air Serv has around 12,000 employees worldwide and is a leading provider of integrated facility management services for the world’s leading airlines and freight companies, at airports throughout the US and the UK. This rapidly growing company provides a range of janitorial, passenger, security services and transportation services to over 50 airports, including 27 of the top 40 markets in the US and 12 of the top 30 airports worldwide; further, it is considered the global leader in terms of wheelchair, baggage handling and skycap services. Overall, Air Serv generates annual revenues in the region of US$300m.

 

 

Ultimate hedge goes into operation

In September, Delta Air Lines’ US refinery began producing jet fuel.

The refinery, which was shut in September 2011 by its previous owner, has recently been undergoing maintenance and upgrades. Delta bought the refinery last spring from Phillips 66 to control fuel costs. The Pennsylvania state government agreed to provide US$30m in assistance for job creation and infrastructural improvements whilst the purchase price (US$150m) was contributed by Monroe Energy, the owner of Delta Air Lines. Delta has said that it expects to invest about US$100m in the infrastructure to modify it for an increase in jet fuel production, and that it is aiming initially at an output of some 52,000 barrels a day.

Delta thus becomes the first US airline to buy an oil refinery in an attempt to better manage the vagaries of the petroleum market. The airline expects the refinery to reduce its annual fuel bill (which reached US$12bn last year) by around US$300m.

Delta Air Lines’ President, Ed Bastian, said in a conference that Delta could save even more, since the carrier was looking to bring in Bakken crude from North Dakota to supply the refinery at prices that could be equivalent to West Texas Intermediate or lower.

The refinery currently processes more expensive crude from the North Sea and Africa.