Main News February 11

Orlando moves ahead with biometric kiosks

Orlando International has become the first US airport to process travelers from so-called Visa Waiver countries with biometric kiosks: these will streamline the arrival experience. These self-service kiosks are now operational and processing international passengers who have acquired an Electronic System for Travel Authorization approval prior to travel.
The kiosks will enable travelers from arriving international flights to complete their Customs Declaration Form on touchscreens, and have their passports read and fingerprints and facial images captured.

It’s official: welcome to O’Hare!

The Chicago Department of Aviation has announced that O’Hare International airport has won the Global Traveler GT Tested Reader Survey Award for Best Airport in North America for the tenth straight year.

Business travelers who participated in a survey, which was conducted between January and August 2013) overwhelmingly voted for O’Hare. O’Hare was also inducted into the Global Traveler 10-Year Hall of Fame for having won the award for every year of its existence.

Alaska reaches tentative agreement with workforce

Alaska Airlines and the International Association of Machinists and Aerospace Workers have reached tentative agreement on a new five-year contract for around 2,500 of the airline’s staff, which includes those in clerical, office and passenger service posts.
The proposed contract includes enhanced pay levels and job security provisions, amongst other improvements. At the beginning if this year the current three-year contract became amendable but the results of a ratification vote on the new contract are not expected before April.

Labor dispute causes flight delays

Flights to and from Buenos Aires’ international airport were delayed recently after a union offshoot, representing baggage handlers for Aerolíneas Argentinas, went on strike to protest against the company’s proposal that would see it employing handlers for six hour shifts. The strike also extended to the port, where cruise ship passengers were obliged to wait up to five hours for their luggage. The baggage handlers, who are part of the APA airline workers’ union, were urged to fulfill the mandatory conciliation order that the ministry issued. At least 3,000 passengers were affected by the action and the union has demanded that the airport company hire more workers for 12 hour shifts, since they claim that the operation is currently understaffed.

Fuel hedging comes at a price

Delta Air Lines has run into a problem in the wake of its Philadelphia refinery purchase in 2013.

The plan was simple enough: faced with unpredictable market movements in terms of the price of fuel, Delta’s idea saw it employ subsidiary Monroe Energy to produce fuel and thereby cut out the middleman and the variable factor. All well and good – save that the purchase came with strings, primarily that of the requirement to produce a specific quantity of renewable blending fuel that is destined for the nation’s gasoline and diesel stocks. This quantity rises each year in line with the EPA’s guidelines: it will total some 36bn gallons by 2022.

The Delta/Monroe venture is without the requisite blending infrastructure and so the carrier would be obliged to purchase credits from other facilities that do blend in order to offset the envisioned shortfall.

Delta has lodged an objection to the scheme, which it feels favors those with the requisite facilities whilst alienating those who are unable to comply. It will be interesting to see the outcome of the case since this is the first time that the infrastructural situation is being used as a defense. Critics point out that at the time of the acquisition, Delta had the option of purchasing the blending infrastructure yet it opted instead to employ a merchant refiner which lacked these facilities.

Delta Air Lines has since announced that that its Trainer oil refinery in Delaware County would post a small loss in the current first quarter, after posting a loss of US$46m in the three months ended December 31, together with a US$116m loss for 2013 overall. However, a modest profit was anticipated by the end of the current year.