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Wednesday February 13, 2008

UK Home Secretary Jacqui Smith told reporters yesterday in Washington that the US is asking EU members to enhance security measures on westbound transatlantic flights in exchange for relaxed visa regulations. An MOU reportedly was sent to the 27 EU member states asking them to allow US air marshals on all flights operated by US carriers, The Guardian reported. Currently, seven countries allow US marshals to board flights at their point of origin.

"There is interest in how and whether it's possible to strengthen the security of those traveling between Europe and the US. This is a request to the EU to look at the conditions around that travel to see what more we can do to strengthen it," Smith said, without confirming the marshal provision. However, Czech Republic Foreign Minister Karl Schwarzenberg told the paper that "lamentably, it seems marshals will be necessary in the future."

Residents of the 12 nations that have joined the EU since 2004, save Slovenia, are required to have visas to enter the US, according to The Guardian. "In any visa waiver scheme there are expectations from any country for whom you waive your visa requirements," Smith said. New terms also call for the provision of PNR data for passengers overflying the US but not landing in the country, the paper said. Assn. of European Airlines called that possibility "absurd" and said there is "no international legal foundation" for such a requirement.

All flights to and from Greek airports will be cancelled from Tuesday midnight until Wednesday midnight due to air traffic controllers' participation in a general strike called by Greece's two largest unions, which are protesting the government's plans to reform pensions.

Separately, French ATC staff are conducting strike actions this week, affecting mainly flights at Paris Orly. The CGT union is opposing plans to move ORY controllers to Roissy before regrouping them on one site near Paris in 2015, Reuters reported. The more moderate CFDT union withdrew plans for similar action after talks with French civil aviation authorities. Owing to the minimum service set up by DGAC, Air France yesterday was able to operate 40% of its short-haul schedule at ORY and all scheduled flights at Paris Charles de Gaulle. EasyJet cancelled several flights to/from France Monday, Tuesday and today.

JetBlue Airways CEO Dave Barger confirmed that the LCC hopes to unveil its "enhanced cabin" next month. The product, designed to appeal to business travelers and passengers willing to pay higher fares, will feature seats with extra legroom in the front of its A320s, he told Bloomberg News. The carrier introduced a refundable fare option last month.

Barger also told Bloomberg that JetBlue expects to increase unit revenue 11% in 2008, assuming it pays less than $2.50-$2.55 per gal. for fuel after hedges. It is targeting a 50% year-over-year gain in ancillary revenue, bringing nonfare income to more than $250 million, although it has no plans to charge for a second piece of luggage like United Airlines (ATWOnline, Feb. 5). He expects demand to rise. "Historically, low-fare carriers in the US have performed better when the economy gets rough. A JetBlue ticket is one of those affordable luxury items, and we're seeing rising demand," he told the news service.

Separately, JetBlue named Interim CFO Ed Barnes as permanent CFO. Barnes took over the position in November after serving as principal accounting officer and senior VP-finance.

Ryanair will establish its 26th European and fifth Spanish base at Reus, outside Tarragona. From October, the LCC will base two new 737-800s at the airport and add five new routes, bringing the number of destinations served from Reus to 12. New flights will go to Palma, Paris Beauvais, Santander, Santiago de Compostela and Seville. It will add a Birmingham service in June. It also has a base in Girona, approximately 100 km. northeast of Barcelona. REU is some 90 km. southwest of Barcelona. Ryanair expects to handle 1 million passengers at REU next year.

Air France KLM's negotiations with Alitalia received a slight boost this week when Renato Brunetta, an official with the Forza Italia party that has been an opponent of the sale, told reporters that while FI believes the government succeeding that of outgoing Prime Minister Romano Prodi should conclude the deal, if one is struck between AF KLM and AZ in the meantime FI "would respect it." FI reportedly is leading opinion polls ahead of the April elections (ATWOnline, Feb. 7).

DHL Express said it will reduce its workforce in the US by 600 employees, part of an ongoing effort by the German delivery giant to cut costs in its money-losing US business. The reduction will be achieved through layoffs, attrition and the suspension of some existing open positions. "This action is one of several measures we are taking to improve our competitive position in the US market, which is strategic to our global growth plan," DHL Express USA CEO Hans Hickler said. "These changes will help us better align our cost structure."

Air Malta signed a three-year labor agreement with the Air Line Pilots Assn.-Malta retroactive to Aug. 1, 2007. Air Malta said pay increases are weighted toward the end of the contract "in line with the airline's requirement to continue its financial recovery."

Iberia flew 4.35 billion RPKs in January, up 1% from the year-ago month. Capacity climbed 1.4% to 5.63 billion ASKs, lowering load factor 0.3 point to 77.3%.

Iberia won three contracts with Iberworld for aircraft maintenance and logistical support services to be conducted at its shops in Madrid. Slated to begin this month and continue to December 2009, the first contract covers inspections and maintenance as well as disassembly and assembly of 10 CFM56-5Bs powering A320s. The second calls for Iberia Maintenance to service Iberworld aircraft components. The third contract entails complete maintenance of Iberworld's Airbus aircraft including overhauls, structural and interior inspections and modifications.

Thales on Monday opened a 15,240-sq.-m. facility in Montreal to accommodate 145 employees and future growth. The inauguration marked the company's 10-year anniversary of aerospace operations.