| AVIATION NEWS |
HOLIDAY FLIGHT
PROBLEMS: COMPUTERS OR
WORK SLOWDOWN? |
Flight cancellations stranded thousands
of Christmas weekend airline passengers
in the United States over the holidays
as two airlines wrestled with computer and
staffing headaches. Late breaking news
before our newspaper’s closing appeared to
indicate that computers may not have had
a role in the problems. Instead, the problems
appear to be directly attributable to a
union slowdown at selected airports in the
US Airways system.
Financially troubled US Airways
scratched 29 flights system-wide after a
continued "unusually high level of sick calls"
from baggage handlers and flight attendants,
said Amy Kudwa, a spokeswoman.
Separately, Comair, a Delta Air Lines
unit, resumed a "limited" flight schedule
after grounding all of its 1,100 flights to
119 cities on Christmas day because of a
computer system crash, said Tracey Bowden,
a Delta spokeswoman. |
| |
| BIG DEMAND FOR AIR
CONTROLLERS |
The US government said it planned to
hire more than 12,000 air controllers over
10 years to address a wave of upcoming
retirements, but the controllers union said
the strategy is unrealistic.
The Federal Aviation Administration
released its congressionally ordered
report on how it plans to address the
looming staffing problem, which is rooted
in mandatory retirement rules and the
1981 strike. At that time, 10,000 controllers
were fired and their replacements
hired virtually all at once.
FAA officials could not give long-term
budget estimates, but expect future
salaries to drop per controller because the
group will be getting younger. The agency
now spends about USD$2 billion per year
to support its aging controller work force.
It remains unclear how the new controller
strategy will work with other priorities,
like the equipment modernization
initiatives that have been put on hold or
scaled back.
Also to be seen is how the FAA would
respond if revenue it collects from ticket
taxes and other fees continues to slide.
The agency has relied more than ever on
direct funding from taxpayers, approved
by Congress in recent years, as airline revenues
have plunged. |
| |
AIRBUS TO LAUNCH
MARKETING CAMPAIGN
FOR A350 |
European aircraft manufacturer Airbus
won approval from its shareholders
to unleash a fresh marketing battle
against rival Boeing by seeking orders for
a fuel-saving, wide-body jet to be called
the A350.
The A350 -- a spin-off of the earlier
A330 -- is Airbus's response to Boeing's
first all-new plane of the 21st century, the
7E7 which is due in the air in 2008.
The two jets will battle for orders in a
mid-sized market that Boeing estimates to
be worth USD$400 billion.
The A350 will be offered in two different
passenger versions with capacities
ranging from 245 to 285 seats. |
| |
US GOVERNMENT MAY
GET INVOLVED IN
AIRBUS-BOEING ROW |
The United States said it may soon
take legal action in a trade row over government
help for Airbus and Boeing, particularly
as the European aircraft maker
was seeking support for a new project.
Washington and Brussels have so far
resisted launching legal action at the
World Trade Organization (WTO) in their
battle over allegations of illegal subsidies
to the aviation rivals, but that option may
now be just weeks away.
In Brussels, a European Commission
spokeswoman said both sides had agreed
to more talks before taking any legal steps. |
| |
| SINGAPORE AIRLINES
CHOOSES BOEING |
Boeing and Singapore Airlines (SIA)
have finalized an order for 18 Boeing 777-
300ER (Extended Range) jetliners, making
the airline the world’s largest 777 customer.
With this order, valued at US$4.1 billion
(RM15.58 billion) at list prices, SIA
had ordered a total of 77 of the twinengine
airplane family models, Boeing said
in a statement on Dec 10.
"The 777-300ER will provide superior
operating efficiency, an excellent cabin
experience for the passenger and commonality
with the airline’s extensive 777
fleet," said Boeing Commercial Airplanes
vice president of sales for Asia-Pacific
Larry Dickenson.
The 777-300ER, powered by General
Electric GE90-115B engines, will allow
SIA to achieve its growth targets and
maintain the airline’s fleet as one of the
industry's youngest, with an average age
of just five years.
SIA currently operates 89 twin-aisle
airplanes including 29 747-400s and 55
777-200s and 777-300s and currently has
four other 777s on backlog. |
| |
| OIL PRICE DROP PROVIDES
SOME RELIEF |
But longer term trend is still not predictable
Last months steady, if not spectacular,
oil price drop is a welcome sight for
airlines, but Air Transport Association
Chief Economist John Heimlich cautions
that it is still too early to call it a longterm
trend that will cut airline costs dramatically.
The drop of about $6 a barrel to less
than $43 by Friday afternoon gives some
relief to airlines after prices peaked at
about $55 a barrel earlier this year,
Heimlich told The DAILY. "A few airlines
need as much breathing room as possible,"
he said.
Even a slight reduction in the average
price for next year will mean big savings
for the industry, Heimlich said. For
example, if the average price was $40 a
barrel, the industry saving would be
almost $1 billion. |
| |
| COMING SOON: CELL
PHONES ON AIRPLANES |
Just when we all thought we had
found a place to sit and relax without
hearing constant phone conversations in
our ears, the FCC appears to be looking at
allowing passengers to use cell phones on
airplanes. Federal regulators plan to hold
discussions about allowing passengers to
use cell phones on airplanes.
The good news is that even if it is
allowed, most cell phones might not work
if they are too far from their towers. One
of the major proponents of the revision is
the airlines who think this might be a way
to sell more tickets.
American Airlines said after a successful
test in July that regular commercial
application of the tested technology
was at least two years away.
A FAA spokesperson said while the
FCC prohibits in-flight cell phone use
because of concerns that communication
by callers in airplanes will interfere with
calls between on-ground users, the FAA is
focused on whether cell phone use will
interfere with a plane's navigation system. |
| |
| FLIGHT ATTENDANTS RALLY
TO KEEP PENSIONS |
Hundreds of flight attendants and
other airline workers rallied outside the
White House on Tuesday in an angry
appeal for the government to block bankrupt
carriers from dropping union contracts
and pensions.
"There is a price for safe and efficient
air travel," said Patricia Friend, president
of the Association of Flight Attendants.
"We are sending a message not just to our
airline managements but to corporate
America." |
| |
| AIRBUS OVER BUDGET BUT
WHO CARES |
With little to fear since it is funded by
taxpayers, Airbus's A380 super-jumbo
project is running millions of dollars over
budget because of work to improve the
efficiency and weight of the aircraft, the
co-head of parent company EADS said.
Total costs for the mammoth doubledecker
are currently estimated at over 8
billion US dollars,German co-chief Rainer
Hertrich said.
"That (the extra costs) is indeed a lot,
that is indeed hefty," Hertrich told journalists
in Munich, Germany. The extra costs
cover the entire A380 development project,
including a freight version by 2008,
he added. |
| |
| AIRBUS ACTIVE IN ASIA |
Airbus said it expects China will soon
buy its new super-jumbo Airbus jet but
warned time was running short to assure
delivery by the 2008 Beijing Olympics.
The European Union's weapons
embargo against China, in place since the
crushing of the 1989 Tiananmen Square
democracy protests, did not appear to be
linked to Beijing's delay in ordering the
new aircraft, Hertrich said.
Although German officials said that
flag carrier Air China would buy the
planes for USD$1.3 billion, an Airbus
spokesman said that the customer had not
been officially announced and that the
deal was worth USD$1.2 billion. |
