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Smooth Sailing

By Sandra Arnoult

Strong demand for turboprops and large RJs is keeping regional aircraft OEMs smiling.

The Path to the Dream

By Katie Cantle

The ARJ21 is only the first step toward fulfilling China's ambitions in aircraft manufacturing.

Asiana's Magic

By Geoffrey Thomas

South Korea's second largest carrier builds success on operational excellence and a strong network to China.

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BA, AA, Iberia reportedly pursuing antitrust immunity

Friday July 4, 2008

American Airlines, British Airways and Iberia are close to applying for antitrust immunity to form a transatlantic revenue- and profit-sharing joint venture, the Financial Times reported yesterday, citing executives at the carriers. [more]

AMR tells employees 8% of workforce will be cut by year end

Friday July 4, 2008

American Airlines parent AMR Corp. told its employees this week that more than 6,700 of them will be cut by year end, representing about 8% of the company's total workforce. [more]

Continental employees, former Concorde officials to stand trial in Paris crash

Friday July 4, 2008

Eight years to the month after the crash of an Air France Concorde began the countdown to the end of the age of supersonic air travel, a French judge ruled that five individuals as well as Continental Airlines should stand trial for manslaughter in the disaster. [more]

Delta, ExpressJet 'mutually agree' to terminate contract from Sept. 1

Friday July 4, 2008

Delta Air Lines and ExpressJet Airlines "have mutually agreed to cease all ExpressJet Delta Connection operations" effective Sept. 1, DL said yesterday. ExpressJet currently operates 23 ERJ-145s on Delta Connection flights primarily from Los Angeles and Salt Lake City. DL said it intends "to award a portion of this flying," including all SLC flights, to another unidentified carrier. "With the losses we were experiencing from our Delta pro-rate flying combined with our ability to return aircraft to the lessor, this termination of service is in the best interest of our company,'' ExpressJet President and CEO Jim Ream said.

DL last month told regional partner Pinnacle Airlines that the capacity purchase agreement the two signed in April 2007 will be terminated on July 31, claiming that the Memphis-based airline has failed to meet ontime performance standards (ATWOnline, June 11). In April DL announced it would end its agreement with Mesa Air Group subsidiary Freedom Airlines, which operates 34 ERJ-145s on Delta Connection flights. But Mesa won a preliminary US court injunction in May that prevented DL from pulling the plug (ATWOnline, May 30). ExpressJet, meanwhile, last month signed an expansive new seven-year capacity purchase agreement with Continental Airlines that will see it operate a minimum of 205 aircraft for CO in the first year of the deal that kicked in last week and a minimum of 190 in following years (ATWOnline, June 9).

Jazz to cut fourth-quarter capacity by 5%, lay off 270

Friday July 4, 2008

Jazz Air said yesterday that owing to planned fourth-quarter capacity reductions by Air Canada, with which it has a contract to operate regional flights, it will reduce its flying by 5% in the year's final three months and cut 270 employees. AC said last month that it will reduce total system capacity by 7% year-over-year in this year's fourth quarter and the 2009 first quarter and slash its workforce by 2,000 (ATWOnline, June 18). Jazz President and CEO Joseph Randell said those cuts necessitated that the regional follow suit. "These are difficult times for our industry and the decision to reduce our workforce was not reached lightly," he said. "We are in a period of great uncertainty and cannot predict where the price of fuel is going." In order to offset fuel costs, Jazz has frozen all hiring and eliminated "noncritical" staff overtime.

Friday July 4, 2008

Germanwings will phase out four of its 29 A319s Nov. 1. "We don't want to make the mistake of expanding at any cost. The business of our industry has changed, especially the high fuel prices. We have to be profitable. That's why we have to reduce our fleet," MD Thomas Winkelmann said. It was not clear whether any destinations will be removed from the network or if there will be any employee reductions.

Friday July 4, 2008

Alaska Airlines on Tuesday began charging $25 for a second checked bag weighing up to 50 lb. Additional bags will cost $100 each, but first class passengers, premium loyalty program members and customers on intra-Alaska routes will be exempt.

Separately, Alaska yesterday announced that it will move to an all-cashless cabin on Aug. 5 and no longer will accept cash for inflight purchases. GuestLogix will provide the card reader used by cabin staff.

Also, it promoted Director-Reservations Lane Kemper to MD-customer service/call centers.

Friday July 4, 2008

AirTran Airways was awarded a US General Services Administration flying contract covering 119 city-pairs worth an estimated $47 million during FY09, a more than 30% year-over-year increase.

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