Club Airways, the Geneva-based members-only executive airline, has resumed operations under new ownership and management; it had filed for bankruptcy in late April. The company has resumed service with Citation IIs, Vs and Bravos between Geneva and Paris with three weekly flights, and plans to step up to two daily flights in late August. As in the past, Club Airways does not operate aircraft, but wet-leases them from the charter market.
Keenly aware that code-share partner US Airways might not survive the growing threat of another bankruptcy, Mesa Air Group has expanded its contingencies to include starting a discount airline, à la Atlantic Coast Airlines.
Fort Wayne, Ind.-based Shuttle America will sever all ties with US Airways effective October 2, leaving four more destinations without scheduled service from Pittsburgh International Airport. Last month Shuttle America ended all service between Fort Wayne and Pittsburgh, and between Bedford, Mass., and Trenton, N.J.
GE Capital Aviation Services last month secured $220.8 million in financing from Brazil’s BNDES development bank for 10 Embraer 170s destined for US Airways, LOT Polish Airways and Alitalia. The deal came after BNDES president Carlos Lessa told Embraer last year to start seeking other sources of financing for this year’s airplane deliveries. Embraer blamed financing delays for last year’s disappointing financial performance.
A federal arbitrator’s ruling to award the Allied Pilots Association $23.2 million for American Airlines’ scope-clause violations appears to have achieved its desired effect.
You don’t expect to see a 59-year-old, gray-haired guy who looks like a middle linebacker choking up as tears well up in his eyes, but then this is John Goglia.
With election time nearing, look for presidential candidates to fuss, fret and be defensive about government spending. The Congressional Budget Office (CBO) issued a report that took issue with President Bush’s promise to cut the budget deficit in half in five years. Bush predicts a budget drop from $521 billion this year to $239 billion in 2009.
The struggling airline industry produced another casualty last month with Boeing’s announcement that it will put the brakes on its once ambitious Air Traffic Management unit (AIN, July 2003, page 85). Boeing established the business in 2000 with the hope of convincing the federal government and airlines to overhaul ATC to include satellite-based navigation systems and sophisticated airborne data transmission.
“It’s the most important piece of undiscovered aviation property east of the Mississippi,” asserted Tom Carver, president of the New Jersey Aviation Association. And what piece of property was he referring to? The Trenton-Mercer Airport, close by the northwest corner of the state capital city.
US Airways can no longer point to the lack of a pilot deal for any further delays in the launch of MidAtlantic Airways, as members of the Air Line Pilots Association dropped a grievance over Embraer 170 payscales. Under the settlement, the pilots accepted pay on par with that of American Eagle CRJ700 pilots, and dropped their demands