Archive for October, 2007
October 30, 2007
Air France said it hoped to return to normal service quickly after a five day cabin crew strike over pay, and added it would resume negotiations with union representatives on Tuesday.
Trade unions voted on Monday to end the strike at midnight as expected, a source said, but union representatives said it was unrealistic to expect a rapid return to normal traffic.
“For tomorrow, there is no chance that all the flights will take off. After five days of strikes, it can’t happen like that. From a technical point of view, there is a time lag,” said Sud air union spokesman Leon Cremieux.
But Air France KLM estimated all long-haul flights and 90 percent of its medium-haul flights would run normally, Chairman Jean-Cyril Spinetta told French RTL radio.
The strike, which began on October 25, hit thousands of travelers trying to take advantage of this week’s school holidays and a public holiday on Thursday.
Air France has said it expected “major costs” as a result of the dispute, but the Paris-based air carrier said there were no precise estimates of what the costs might be.
Spinetta said he would meet union representatives on Tuesday morning and hoped to reach an agreement. At the heart of the dispute are pay and working conditions due to expire at the end of 2007.
Spinetta said the company was open to discussions about salaries, but would not give in to some demands.
“Before we’ve even started negotiations, some people are demanding that we put a financial package on the table. We refuse to do that,” he said. “That’s not social discussion, it’s an ultimatum. It would be a surrender by the management, so it’s a no.”
Six unions — representing nearly 80 percent of cabin crew staff at the last union elections — met on Monday and voted to end the strike.
Spinetta said Air France-KLM, created from the 2004 merger of the French airline with Dutch carrier KLM, must be able to compete.
“If we want to continue to create jobs, we must stay competitive,” he said.
In an interview in Monday’s Le Parisien newspaper, Secretary of State for Transport Dominique Bussereau urged a swift end to the dispute and said Air France must become better at providing travelers with information about strikes.
(Reuters)
October 29, 2007
Cabin crew members at Air France said they would continue with a strike that brought misery to thousands of travelers at Paris airports over the weekend.
The company said it expected “major costs” as a result of the dispute.
“The cost is very important,” Air France Chief Operating Officer Pierre-Henri Gourgeon told French TV station LCI. He added there were no precise estimates at the moment for what the financial cost might be.
A joint statement by various trade unions representing more than 60 percent of Air France flight attendants said the strike would go on until midnight, local time, on October 29.
The strike began on October 25. The dispute centers on renegotiating a framework agreement on salaries and working conditions that is due to expire at the end of 2007.
The situation became serious enough for the French government to intervene over the weekend.
Transport Minister Dominique Bussereau issued a statement demanding a speedy resolution to the affair and Bussereau himself went to Paris Orly Airport on Sunday to assess the situation.
“I have come to see how the passengers are getting on,” he told TV reporters at the airport.
The strike has affected between 30 and 40 percent of flights, causing major disruption at airports with many French families due to leave for school half-term holidays.
Talks between management and trade union members broke down over the weekend. Air France reiterated it was open to further negotiations and the airline has warned that the strike could have an adverse financial impact on the company.
Air France said it operated around 65 percent of flights on Saturday. It expected to operate more than 60 percent of flights on Sunday and at least 70 percent of flights on Monday.
It said it had run 71 percent of flights on Sunday morning.
Air France is part of the Air France KLM group, the world’s largest airline by revenue. The French state holds around 18 percent of the Air France KLM share capital.
(Reuters)
October 26, 2007
LIAT (1974) Limited and chief rival Caribbean Star Airlines Limited finalised and executed the deal for LIAT to purchase the assets of Caribbean Star Airlines this week following a year of negotiations that began last October.
The agreement, which was jointly announced by the companies, facilitates the immediate transfer of Caribbean Star’s assets, excluding aircraft, to LIAT.
The final five aircraft currently leased by Caribbean Star will be transferred to LIAT in a separate transaction to be executed at the full cessation of Star’s operation in two weeks.
Caribbean Star ceases flying on November 15, at which LIAT will begin operating the combined fleet of Dash-8 aircraft.
No interruption
“Customers should experience no interruption of their travel itineraries as a result of the transfer of aircraft and closure,” said Skip Barnette, president and CEO of Caribbean Star Airlines.
The flight schedule will continue as published, and LIAT, which is run by CEO Mark Darby, will operate the flights formerly flown by Caribbean Star equipment and crews.
Janet Silvera, Senior Tourism Writer
SAN JUAN, Puerto Rico:
Aiming to create a single Caribbean airspace, the region’s Ministers of Tourism and International Transport have approved a proposal to implement the ‘San Juan Accord’ by September 30, 2008.
Two of the main components of the accord are a single airspace and a common civil aviation regime. It is aimed at improving the management of international and intraregional air services in order to maintain and improve the vibrancy and competitiveness of the vital tourist sector while promoting greater business as well as social and institutional integration in the region.
The decision was taken at an air transport meeting with civil aviation and tourism officials, regional airline executives and representatives of relevant regional and international institutions last Friday in Puerto Rico. The meeting was chaired by Senator Allen Chastenet of St. Lucia.
The primary rationale for the deliberations was recognition of:
The critical importance of the tourism sector to all Caribbean economies.
The inescapable link between tourism and air transport.
The region’s declining global tourism market share.
The escalating cost of regional air travel.
A reduction in intraregional tourist arrivals.
Visa regime
The proposal comes at a time when many of the region’s leaders have plans to re-establish the Caribbean Community (CARICOM) visa regime which was implemented by the Caribbean Community Council of Ministers of National Security during the 2007 ICC Cricket World Cup.
The CARICOM visa saw the establishment of a single domestic space by nine countries hosting the games, and Dominica. However, this came under extreme criticism from stakeholders in the tourist industry because of their lack of involvement in the decision-making process.
Under the San Juan Accord, the ministers have pledged to work towards the realisation of the following:
Accelerating the revision of the CARICOM Multilateral Air Services Agreement and related liberalization of regional air transport sector, with a view to completion and implementation by September 30, 2008;
Convening of a forum of CTO Tourism ministers and ministers responsible for air transport, national security and other related matters to examine ways and means of harmonizing air transport policy in the context of the sustainability of Caribbean tourism.|
Establishment of a CTO-wide umbrella policy for air transport within the framework of the existing Association of Caribbean States Multilateral Air Transport Agreement or other mechanism taking account of the obligation of CARICOM member states under the Revised Treaty of Chaguaramas;V. Intensified efforts towards the creation of a single regional air space within sub-regional groupings such as CARICOM by September 3, 2008 and extending this air space to the wider Caribbean, as feasible.
October 25, 2007
An Airbus A380, the world’s biggest jumbo jet, landed safely in Sydney on Thursday, ending its first commercial flight from Singapore.
The Singapore Airlines’ Airbus A380 superjumbo emerged from low-lying cloud to touch down on time on a damp Sydney afternoon, completing its flight from Singapore’s Changi Airport.
Watched by hundreds of airport staff and aviation enthusiasts lining fences outside the airport, passengers on the inaugural Singapore Airlines (SIA) flight disembarked without a hitch.
The wet Sydney afternoon did nothing to dampen passengers’ enthusiasm.
“It was great being a part of history,” Michael Sim, who said he had paid about 30 percent more for his ticket than he would have on other flights, said.
Passengers paid between USD$560 and USD$100,380 for seats on the inaugural flight, after bidding for the tickets as part of a charity auction.
“It was a very smooth rise, and much quieter than the 747,” Rainer Silhavy said.
During the flight, first-class passengers reclined in suites modeled on luxury yacht interiors and slumbered in proper beds which the airline said can be converted into doubles.
French design house Givenchy designed the bedding, while passengers ate off fine bone chinaware and drank from crystal glasses bought in by the same designer.
“Of course it was the first flight, so you get most of the first class treatment, I hope they keep that up,” said Sim.
The A380 can seat more than 800 passengers although Singapore Airlines, the first airline to take delivery of the plane, has configured the aircraft to seat 470 over two decks, hoping to attract more top-paying passengers.
The superjumbo replaces the Boeing 747 as the world’s largest airliner in service.
Hundreds of airport staff and passengers armed with camera phones earlier watched the take-off from Singapore.
“I’m a big airplane freak and I love everything about planes,” said Ernest Graaff, an A380 passenger as he waited to board the jet among beaming SIA flight attendants.
Graaff paid USD$40,000 for two business-class tickets on the jet. “I’m excited about being a part of history.”
The aircraft will return to Singapore on Friday.
“Flying the aircraft itself is like flying any other big jet,” said pilot Robert Ting, who was one of four pilots and a crew of 30 aboard the flight.
“This aircraft comes with the latest technology… for example this is an aircraft where we come with an electronic flight plan whereby we will have electronic manuals on board, we no longer carry paper copies,” he told local television.
SIA is to take delivery of another five A380s in 2008. The airline plans to introduce the A380 on long-haul flights to London, Tokyo and San Francisco from early 2008.
(Reuters)
October 25, 2007
An Airbus A380, the world’s biggest jumbo jet, landed safely in Sydney on Thursday, ending its first commercial flight from Singapore.
The Singapore Airlines’ Airbus A380 superjumbo emerged from low-lying cloud to touch down on time on a damp Sydney afternoon, completing its flight from Singapore’s Changi Airport.
The aircraft will return to Singapore on Friday.
Earlier, watched by hundreds of airport staff and passengers who gathered around the airport lounges with their pocket cameras and camera phones, the A380 superjumbo took off from Changi Airport on the seven hour flight.
“I’m a big airplane freak and I love everything about planes,” said Ernest Graaff, an A380 passenger as he waited to board the jet among beaming Singapore Airlines flight attendants.
Graaff paid USD$40,000 for two business-class tickets on the jet. “I’m excited about being a part of history.”
Passengers paid between USD$560 and USD$100,380 to be on the inaugural flight, after bidding for the tickets as part of a charity auction.
Airbus’s new aircraft — which boasts two passenger decks and, in Singapore Airlines’ version, first-class suites with proper beds — suffered two years of delays caused by wiring glitches.
Singapore Airlines is to take delivery of another five A380s in 2008.
(Reuters)
October 24, 2007
JetBlue Airways returned to third-quarter profitability on stronger revenue, nearly doubling Wall Street forecasts.
The airline posted net income of USD$23 million, compared with a net loss of USD$500,000 in the comparable year-ago period.
The carrier saw its fares rise 7 percent on average, which helped drive a 21.9 percent increase in operating revenue in the quarter. JetBlue filled 82 percent of its seats compared with 80.4 percent a year earlier.
JetBlue Chief Executive Dave Barger said that bookings for Thanksgiving are strong and the carrier expects similar demand for the December holidays.
Unit revenue growth — a key measure of revenue performance — is forecast at between 2 percent and 4 percent for the fourth quarter, and 5 percent and 7 percent for the full year.
JetBlue expects an operating margin in the fourth quarter of 3 percent to 5 percent.
Barger also said the launch of Virgin America in September on transcontinental routes out of San Francisco and Los Angeles cut into JetBlue’s West Coast business. He did not provide specifics but said the impact did not exceed expectations.
(Reuters)
October 24, 2007
Air France said it expects to operate 90 percent of its short and medium-haul flights and all its long-haul flights if a five day strike by cabin crew goes ahead later this week.
The notice of a strike from Thursday, October 25 to Monday, October 29, was submitted last Friday, the airline said.
The airline said in a statement that discussions with unions to try to avoid the strike had “not yet succeeded” and that it was thus forced to predict disruptions in its service.
Unions representing cabin crew at Air France have called the five day strike in a dispute with management about salary reviews and working conditions, the unions said on Monday.
Disruption at Air France would follow a nationwide strike over pensions that crippled train, metro and bus transport in France last week.
(Reuters)
Janet Silvera, Senior Tourism Writer 
Dr. Jean Holder, chairman of LIAT.
San Juan, Puerto Rico:
After one year of merger negotiations, LIAT is closer to signing with regional carrier Caribbean Sun and by the end of November it is expected that its accumulated debt of EC$350 million (US$130 million) will be wiped clean.
LIAT, which operated in the red for years and had to be bailed out by the shareholder governments on several occasions, was able to reverse losses of EC$61 million (US$22.7 million) in 2006, to just about EC$3 million (US$1.1 million), the airline’s chairman, Dr. Jean Holder revealed .
LIAT, falls under the umbrella of three major shareholders, Barbados, Antigua and Barbuda and St. Vincent and the Grenadines.
Speaking with The Gleaner at the 30th Caribbean Tourism Conference (CTC-30) in San Juan, Puerto Rico, Dr. Holder said he hopes to sign the deal with Texas millionaire R. Allen Stanford, owner of Caribbean Star and the defunct Caribbean Sun within days.
“All terms have been agreed on and as a result of the alliance both airlines were able to remove the suicidal competition that ensued before we signed a commercial agreement in February,” explained Dr. Holder.
The term ’suicidal competition’ was coined shortly after the commencement of fierce rivalry between the two airlines and the flooding of the market with flight capacity exceeding the demand.
LIAT with 51 years under its belt and which serves 22 destinations daily, transporting some 750,000 passengers annually, almost had its name placed in bankruptcy court, when Caribbean Sun and Star entered the region operating 30 thirty-seven-seater Dash 8s.
By entering the commercial agreement in February, both airlines were able to downsize the fleet to suit the demand, Dr. Holder said. LIAT has since restructured and Caribbean Sun was closed. He added: “With the merger, the agreement is that Caribbean Star will close once the parties have signed off, and we will be buying all their assets.”
October 23, 2007 –
The US government pressured airlines on Monday to cooperate with efforts to reduce delays at New York’s John F Kennedy Airport by ensuring it can impose schedule cuts if carriers fail to act voluntarily.
In a regulatory filing one day before the Transportation Department convenes an unusual JFK scheduling conference with the airlines, the Federal Aviation Administration gave the facility its rarely used worst congestion rating.
The designation ensures schedule reductions for spring and summer travel will occur whether airlines agree to them or not. It also formally extends FAA authority to cut schedules of overseas carriers at JFK, if necessary. Dozens of international airlines operate flights there, including British Airways and Air France KLM.
Delays at Kennedy and other New York area airports can affect flights nationally. The FAA already limits the number of takeoffs and landings at LaGuardia, which is close to JFK.
Transportation Secretary Mary Peters called the two-day scheduling meeting after President George W Bush ordered her to devise a strategy to improve airline service and cut delays, which are on a record pace in 2007.
Chicago O’Hare, where peak-hour flights were reduced three years ago to ease delays, is the only other US airport that operates under the “Level 3″ congestion designation.
At the meeting starting Tuesday, domestic airlines will discuss JFK scheduling for the busy spring and summer season, the most lucrative for carriers.
“Our strong preference is to develop market-based solutions that will address delays and preserve passenger choice,” Peters said in a statement. “But we will consider scheduling reductions as a last resort in order to prevent a repeat of this summer’s nightmare delays.”
Schedule changes would affect airlines including JetBlue Airways and Delta Air Lines. JetBlue is based at JFK, while Delta has a major hub there. Other carriers also operate there but have fewer flights.
According to the FAA, preliminary flight schedule information for summer 2008 shows that airlines plan to increase flights at JFK. The agency wants no more than 80 flights per hour between 6 a.m. and 2:59 p.m. and 8 p.m. to 10 p.m. From 3 p.m. to 7:59 p.m., the cap would be 81.
Daily operations at JFK increased 41 percent from March 2006 to August 2007 compared with the same period a year earlier. At the same time, on-time arrivals fell from 69 percent to 61 percent. Delays exceeding more than one hour were up 114 percent.
This past summer, weekday demand at 4 p.m., the busiest time of the day, was more than 110 scheduled arrivals and departures. Airlines exceeded the airport’s capacity at other times of the day as well, the FAA said.
The Port Authority of New York and New Jersey, JFK’s operator, said the FAA’s proposal would cut flights to levels not seen since the late 1960s and hurt business.
“The FAA’s action would simply put a ‘no vacancy’ sign up at one of the nation’s busiest airports and then simply walk away from the problem,” Port Authority Executive Director Anthony Shorris said in a statement.
(Reuters)