With no full-blown recovery in air transport demand predicted before 2005, regional airlines will be looking for low-cost fleet development solutions for the next couple of years, according to BAE Systems Regional Aircraft senior v-p of asset management Paul Stirling.
Aviation International News » January 2003
Phoenix-based Mesa Air Group has asked its employees to accept a voluntary 5-percent pay cut for one year in return for an incentive program tied to quarterly profits. The appeal coincided with 20-percent salary reductions for chairman and CEO Jonathan Ornstein, president Mike Lotz and executive vice president Peter Murnane. According to SEC filings, the three top executives’ base pay equals $200,000, $175,000 and $150,000, respectively.
The FAA has proposed fining American Eagle $363,000 for alleged violations of maintenance FARs. The agency claims the Fort Worth, Texas-based airline operated a Saab 340B with an inoperative windshield defogger. According to the FAA, the airplane’s maintenance log indicated a problem with the defogger, but mechanics on duty failed to inspect or repair the system.
The 255 pilots flying for Mexican regional airline Aerolitoral ended a two-day strike on December 2 after agreeing to a 5.5-percent salary increase. Although the settlement appeared to differ little from a rejected offer that included a 0.3-percent benefits improvement, government intervention and promises of further unidentified perks helped parent company Cintra convince the striking pilots to return to work.
Air Wisconsin last month placed a firm order for six more 50-passenger Bombardier CRJ200s to serve its recently inaugurated code-share relationship with Orlando, Fla.-based AirTran Airways. The transaction, valued at $140 million, represents the partial conversion of a conditional order for 26 of the Canadian jets. It increases the size of the Appleton, Wis.-based airline’s order book to 64 airplanes, 27 of which it has already accepted.
Billings, Mont.-based Big Sky Airlines officially became part of the Mesaba Holdings stable early last month after Big Sky’s shareholders tendered some 90.9 percent of their outstanding shares of common stock in a $3.5 million offer that expired on November 27.
Brazil’s Embraer last month signed a long-anticipated agreement to build a production unit in China through a joint venture with AVIC II subsidiaries Harbin Aircraft and Hafei Aviation. The contract creates a new company called Harbin Embraer Aircraft Industry Co., of which Embraer will maintain 51-percent ownership.
It doesn’t have any airplanes. In fact, it doesn’t even have a name yet. But Matt Andersson has nevertheless announced the intent of his company, Aviation Development Holdings, to launch “a clean-sheet, breakthrough regional airline jet service, independent and decoupled from the major airlines.”
Fairchild Dornier on December 20 sold its Airbus components manufacturing and general maintenance businesses to Switzerland’s RUAG Aerospace after weeks of intense competition between the Swiss firm and the Russian partnership of Irkutsk Aircraft Works and Basic Element.
In a move that drew groans from local politicians and airport authorities of small- and medium-sized cities across the British isles, British Airways has decided to cut 21 routes from its UK regional network and announced a complete withdrawal from its bases in Leeds- Bradford, in West Yorkshire, and Cardiff, Wales.