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| A Social and Benevolent Organisation |
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| WORLD AIRWAYS GET MAINTENANCE TRAINING AWARDS |
World Airways has received its fifth consecutive Federal Aviation Administration (FAA) Diamond Award for outstanding participation in aircraft maintenance training (AMT) programs. The Diamond Award is the FAA's highest maintenance honor, designed to encourage AMT employees and companies to participate actively in initial and recurrent training programs. World had 92 percent participation among its AMTs in 2005, far exceeding the 25 percent required to qualify for the Diamond Award. A total of 119 World AMTs tallied 4,353 hours of training in 2005. "This award is recognized in the aviation industry as a symbol of commitment to maintenance training," said Larry Montford, vice president of technical operations. "It is a credit to our maintenance reps and to the company. Our team has done an outstanding job of reaching a high participation level again in 2005." |
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| US CARRIERS BEGIN TO OPERATE IN BLACK |
After five years of losing billions of dollars, going in and out of bankruptcy and ordering money-saving service cutbacks, U.S. carriers are falling behind rival foreign airlines in the care and feeding of travelers, especially the long-haul passenger who flies in the front of the plane in business or first class. Carriers such as British Airways, Cathay Pacific Airways, Virgin Atlantic Airlines, Singapore Airlines and Lufthansa AG have been buying new planes, installing elaborate entertainment systems, firing up in-flight e-mail and Web-surfing options, designing plush seats and recruiting celebrity chefs to create haute cuisine menus. Continuing losses at big U.S. carriers, however, have not allowed them to buy state-of-the-art airplanes. At best, they have had to make do with upgrading business and first-class services. Travelers and travel industry experts alike say the U.S. airlines have a long way to go to catch leading European and Asian carriers -- especially at the front of the cabin, where high-paying passengers shell out thousands of dollars for long international flights. And that means U.S. airlines, which have lost $40 billion since 2000, may well continue to struggle, notwithstanding predictions of a busy summer with full flights and higher fares. |
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| FOREIGN CARRIERS ALSO PROFITABLE |
Indeed, if it weren't for ailing U.S. carriers, the world's aviation industry would make money this year, according to the International Air Transport Association, an industry group whose 275 member airlines carry 94 percent of the world's air travelers. At its annual meeting two weeks ago in Paris, the association predicted a worldwide industry loss of $3 billion in 2006, down slightly from 2005's $3.2 billion loss. The association's director-general and CEO, Giovanni Besignani, pinned the red ink directly on U.S. airlines, which lost $6.9 billion last year. They are expected to lose $5.2 billion this year. |
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| REGIONAL JETS AND AIRLINES MAKING STRONG MOVES |
Airlines are using more regional jets - and those jets need pilots. By some estimates, as many as 40,000 pilots with major airline carriers are nearing the mandatory federal retirement age of 60. In an interview with the Akron Beacon Journal, Abby said the job prospects for regional pilots look good. "Regional airlines are seen as a great training ground for those people who want to move on to the larger aircraft," he said. "The major airlines are not hiring - they're furloughing or laying off. The regionals are growing." A representative from Universal Air Academy at El Monte Airport said he's seeing the same trend. "A few of our instructors were recently hired by Pinnacle Airlines, a regional carrier out of Memphis," he said. "These pilots were told that Pinnacle is looking to hire 60 new pilots a month for the rest of the year." Other certified flight instructors at the school have been lured away by Sky- West Airlines, which expressed a similar need for pilots, the Universal Air Academy representative said. Universal Air Academy typically has about 50 students at any given time, ranging from beginners to pilots who are finishing up their training and are ready to be hired. The average regional jet pilot with 10 years experience can make as much as $100,000 a year, although they may begin their career earning as little as $20,000 annually, according to industry experts. |
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ADMINISTRATION WANTS TO EASE RESTRICTIONS
ON FOREIGN INVESTMENT |
The Bush administration plans to move ahead this summer with its proposal to ease restrictions on foreign investment in US airlines despite strong congressional opposition, Transportation Secretary Norman Mineta said on Thursday. Mineta, who has resigned from his post after 5-1/2 years and leaves office on Friday, told reporters he may have underestimated the strength of lawmaker sentiment on the politically sensitive plan to give foreign investors some say in day-today airline operations in exchange for equity. But in a speech earlier to the US Chamber of Commerce, Mineta said he believes the United States must embrace foreign capital to stay competitive in a globalized economy. He has championed foreign investment for years, positioning his agency to approve the airline regulation without him. |
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…AND DOT EASES ANTITRUST LAWS
FOR INTERNATIONAL INVESTORS |
The US Transportation Department on Wednesday proposed lifting antitrust immunity for an international trade group that sets airfares and air cargo rates between the United States and Europe. The proposal to eliminate the longstanding involvement of the International Air Transport Association in pricing would also affect flights between the US and Australia. Competition authorities in Europe and Australia have also proposed reducing IATA influence, arguing that the growth of international aviation alliances has enhanced competition, lowered fares, and offered consumers more choices. |
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| SUMMER AIR TRAFFIC IS HEAVY AND WILL CONTINUE |
Planes operated by major US airlines are fuller than ever this summer, and the embattled carriers are seeing stronger revenues as a result, analysts said on Wednesday. The record-high load factors bode well for airlines if they can keep the number of empty seats to a minimum. The industry has been weakened by high fuel prices and competitive pressures that make it hard for carriers to keep ticket prices high enough to cover costs. But recent cuts in capacity have enabled airlines to raise fares to bolster revenue. United Airlines said its passenger load factor reached a record 88.3 percent in June. Continental Airlines on Monday said its mainline load factor was a record 84.8 percent in June. |
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| CHINA SOUTHERN BUYS A320’S |
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China Southern Airlines, the country's largest carrier by fleet size, said it had signed a contract to buy 50 A320 passenger jets from Airbus. The airline said it would pay CNY26.53 billion yuan (USD$3.32 billion) for the jets, scheduled to be delivered between 2009 and 2010. China agreed last December to buy a total of 150 planes from Airbus and China Southern's 50 plane contract appears to be part of that order. |
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| TOO MUCH NOISE FOR CANADIAN START UP |
A new airline planning to start operating out of Toronto's island airport later this year announced its first route late last month, dismissing protests from opponents who say the carrier will cause excessive noise and should be denied permission to fly. Porter Airlines President Robert Deluce said service would begin with 10 round trips a day to Ottawa from the |
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