PAL deadlock: Only DoLE can avert strike

MANILA, Philippines—Philippine Airlines (PAL) has asked the labor department to take immediate steps to avert a strike at the flag carrier after a cabin crew union Wednesday served notice that it would proceed with its planned work stoppage following a deadlock in conciliation talks.

Unless the Department of Labor and Employment (DoLE) assumes jurisdiction over the labor dispute, the Flight Attendants and Stewards Association of the Philippines may legally hold a strike by next week, FASAP said.

“The talks are deadlocked. FASAP finds no more need to meet with PAL and will now concentrate on preparing for the strike,” FASAP president Bob Anduiza said in a statement.

FASAP filed a notice of strike on Sept. 9 following dispute in its collective bargaining agreement with management. A 30-day “cooling off” period followed, during which the DoLE’s National Conciliation and Mediation Board (NCMB) hosted several rounds of mediation.

Anduiza said the strike could happen “between the end of October and the first week of November after the mandated cooling-off period and the holding of the strike vote.”

PAL spokesperson Cielo Villaluna assured the public that “a strike will not happen overnight.”

“Management is asking DoLE to immediately step in to avert the strike and protect the interests of the riding public,” she said.

The labor secretary can assume jurisdiction over the dispute and resolve the case, especially one involving a company imbued with national interest.

When the DoLE assumes jurisdiction, no strike may be held and workers already on strike are ordered to return to work. The company may not lock down its premises against its workers.

A DoLE official, who asked not to be named, said he believes the DoLE would assume jurisdiction even without the labor or management panel asking for it.

The union said the strike was to protest PAL’s “outdated and sexist policies.”

“This is not merely about pay increases, this is mainly about the respect and dignity of female flight attendants. It’s about discrimination,” said Anduiza.

Anduiza accused the airline of insincerity during the compulsory mediation talks.

“PAL is playing games and is insisting on its unreasonable retirement age limit. They are not serious in resolving the dispute,” he said.

The airline countered that it had “bent over backwards” to meet FASAP halfway.

“Contrary to FASAP’s claims, there will be no layoffs as a result of the mixed crew scheme. There will also be no reduction in flight assignments and pay of international cabin attendants,” Villaluna said.

She noted that the policy of having flight attendants retire earlier than the law-mandated 60 years old is benchmarked to policies of other carriers in the region.

Over 1,000 cancel JAL reservations amid Senkaku Islands dispute

TOKYO —

More than 1,000 people have canceled Japan Airlines seat reservations for flights between Japan and China in view of strained bilateral ties stemming from the arrest of the captain of a Chinese fishing boat on Sept 8 off the Senkaku Islands and subsequent Chinese responses, the JAL chief said Wednesday.

Japan Airlines Corp President Masaru Onishi made the disclosure at a news conference. ‘‘I suppose we will be able to maintain the number of flights’’ on the airline’s Japan-China routes, Onishi said.

But JAL ‘‘may have to consider reducing the number of flights’’ in the event that the drop in demand proves to be prolonged, he said.

Speaking at the same venue, Hideo Seto, trustee of the government-backed Enterprise Turnaround Initiative Corp of Japan that is overseeing the airline’s turnaround, said JAL may give notice to staff if the number of JAL employees applying for the airline’s early retirement program falls short of the target set as part of its court-supervised bankruptcy proceedings.

‘‘We may have to steel ourselves to dismiss employees for consolidation,’’ Seto said.

JAL’s restructuring plan—submitted to the Tokyo District Court on Aug 31—calls for cutting, by next March 31, the combined workforce of member companies in the JAL group by 16,000, or 30% of its total payroll as of the end of March this year.

It appears that only half of the 16,000 are likely to consent to quitting the workforce, JAL sources earlier said.

The JAL management has already briefed its labor unions on its readiness to fire some workers.

JAL Chairman Kazuo Inamori told the same news conference, ‘‘I want them to cooperate (with the restructuring plan) though I find it intolerable’’ to ask them to do so.

JAL’s core airline unit, Japan Airlines International Co, has been soliciting workers’ applications to comply with its voluntary retirement plea from Sept 3 with a view to shedding 1,500 jobs, but has so far met with little success.

Earlier this year, JAL filed for bankruptcy with the Tokyo District Court.

Wing flaps on Delta flight malfunction; part of everyday anomalies, airline says

Smoke in the cockpit forces a Monday night flight to turn back to Atlanta.

Heavy rain causes a plane to skid on a wet runway.

And an ex-president gets airsick en route to Cleveland.

It’s been a long week for Delta Air Lines.

Or has it?

“On any given day there are a number of anomalies that can impact flights,” Anthony Black, a spokesman for the Atlanta-based airline told the AJC.

A Delta flight from Philadelphia made an emergency landing at Hartsfield-Jackson International Airport around 5 p.m. Wednesday because the wing flaps wouldn’t close.

“It landed with its flaps in the ‘up’ position, so as a precaution, they declared an emergency,” Black said.

That’s just one of the issues, which include mechanical troubles, medical emergencies or stormy weather, that could cause a plane to make an emergency landing or divert to another airport, officials say.

Black ticked off a list from this week that included a medical emergency: Former President Jimmy Carter getting airsick on a Delta flight Tuesday, and bad weather: Heavy rain in Savannah contributed to a Delta plane skidding on the runway, past the point it could taxi back to the airport on its own.

“At Delta, passenger safety is our crew’s top priority, and these trained professionals are prepared to quickly respond to events that occur on board the aircraft,” Black said.

That aircraft includes Delta’s connection-carriers, such as Atlantic Southeast Airlines. Carter was flying on one of those. Delta and its connection partners such as ASA operate more than 6,000 flights a day, or more than 2.1 million flights a year.

ASA was also operating the plane that made an emergency landing at John F. Kennedy Airport Sept. 25.

The landing, while dramatic, also caught the nation’s attention because video and audio tape of a flight attendant repeating the words “heads down, stay down,” was broadcast nationwide for days.

“Every air craft that declares an emergency – the emergency is thoroughly investigated by the airline and the FAA,” Lynn Lunsford, a spokesman with the Federal Aviation Administration told the AJC. “We’re constantly looking at things that go wrong and trying to see if it points to a larger trend.”

Smoke in the cabin caused a Houston-bound Delta flight to return to Atlanta Monday night. A bird had been sucked into the plane’s exhaust system, Black said.

That almost makes the situation somewhat light-hearted, but not everyone found it funny.

One passenger contacted the AJC after a story appeared online Monday night.

“It was just unbelievably frightening,” passenger Lynne McBride told the AJC. McBride said the flight was already delayed because of heavy rain. Almost immediately after McBride said she felt the wheels close up, she began to smell smoke.

She said the plane’s crew members began filling the aisle, and the captain announced over the loudspeaker that he was aware of the problem. Within 10 minutes, the plane turned around and headed back to Hartsfield.

For McBride, those 10 minutes felt like an eternity, she told the AJC.

But her eternity was all in a day's work for the Delta crew.

More Punishment Likely For Air Freight Carriers In Cartel Scandal

EUROPE - After our story earlier this month telling how Argos is taking legal action against Maersk Line for alleged breach of contract over pre agreed shipping container prices, and tales of collective anti trust suits against air freight companies and forwarders involved in various price fixing allegations, comes a report that some big European hitters are about to launch their own legal campaign against the air cargo carriers.

According to reports Dublin based company Claims Funding International (CFI)are to launch a class action for around half a billion dollars on behalf of various manufacturing leviathans such as Ericsson and Philips against the sixteen airline cartel on an upmarket ‘no win – no fee’ basis. Air cargo carriers in the legal sights include Air France-KLM and Martinair and the case is likely to prove the biggest such action of its type in Europe.

Documents are due to be lodged with an Amsterdam Court tomorrow and the outome may prove to be a heavy burden to bear for some of the companies involved. Air France-KLM for example are already almost $440 million adrift in penalties and compensation after US legislators ruled against the company (or companies in legal terms as the two are considered separate entities by the Courts)in July.

Spokesmen say several hundred companies are lining up to join the action with numerous European countries involved in the case. The litigation is hardly surprising, only two weeks ago CFI bemoaned the fact that the SAS Cargo Group and Scandinavian Airline System agreed to compensate US freight forwarders to the tune of almost $14 million for their breach of anti competition laws yet offered little to the European victims of the scam. Whilst forwarders are to be paid (and it seems unlikely they would be the ones to suffer directly having passed on all freight charges), their indirect clients are set to receive nothing.

The claims arise out of a global cartel in international air freight services which is believed to have occurred between January 2000 and late 2006. SAS have pleaded guilty to price fixing to the regulatory authority in the US and was fined $52m. The SAS case followed US settlements with Lufthansa, Air France-KLM, Martinair, JAL and American Airlines.

CFI, in partnership with London lawyers Hausfeld and BarentsKrans in the Netherlands are pursuing the cases across the continent. Hausfeld & CFI have signed a formal co-operation agreement to co-ordinate the pursuit of claims for shippers within the EU. British Airways plc faces an action brought by flower importers and a growing group of other shippers in the English High Court by Hausfeld & Co. LLP. Other shipper actions are pending in Australia, Canada, New Zealand and South Korea. The European Commission has still not delivered a decision on the cartel despite having investigated it since December 2007.

European freight forwarders should not all be too happy about possible compensatory remuneration as they face anti competition accusations of their own both in their own individual states and across the EU.

Qantas boss turned down Etihad alliance

Etihad last week received interim approval from Australia's competition regulator for an alliance with Virgin Blue.

Despite rejecting the Etihad proposal, Qantas urged the Australian Competition and Consumer Commission (ACCC) to block the deal with Virgin.

Mr Joyce says Qantas was offered the same arrangement to fly into Abu Dhabi, but "we looked at the numbers and we didn't believe it could be economic".

"In terms of our deal with Etihad, we saw that deal as limited because we have our own operation into London and we've got a great relationship with British Airways," he told a business audience in Sydney.

"The economics of it did not stand up for us and we very much looked at our relationship with British Airways and our relationship with Air France, which is the way we service the European markets, as being very key to us."

When asked if he thought Virgin would make money from the Etihad deal, Mr Joyce said he could not speak for his opponent, but for Qantas it was not a feasible proposal.

Mr Joyce says he objects to Etihad's alliance with Virgin because the airlines were not being put through the same process that Qantas and British Airways had to once endure.

"We objected to the process they were going through, not to the deal itself, because the process for us, it is not the same process Qantas had to go through," Mr Joyce said.

He added that although he is a big supporter of airline partnerships, a consolidation is harder in practice than in theory.

Yet despite his belief that "joint ventures are the way for the airline industry to go forward", Mr Joyce says he will not be looking for any partners in the Middle East.

"We don't see the need with the Middle Eastern carriers, because what is happening with the Middle Eastern carriers is that they are competing with the Asian-hub carriers."

Mr Joyce is confident that Qantas's relationship with British Airways will enable it to compete against the Middle East carriers.

"The Middle Eastern carriers are taking share from Singapore Airlines, Malaysian and Thai Airways and there's a battle of the hubs happening," Mr Joyce said.

"But because of our links with British Airways, we're staying out of it and our performance has been stable compared to what we've been seeing with the Middle Eastern carriers."

Mr Joyce also said he did not think the Virgin-Air New Zealand deal would eventuate.

"If you read the ACCC determination on this, it is quite strong so I think this one will be quite difficult," he said.

Gulf airlines squeezed, says Qantas

QANTAS says its Middle Eastern rivals such as Emirates are struggling to compete on the key route between Australia and Europe and have been forced to reduce flights.

The airline's chief executive, Alan Joyce, said the Middle Eastern airlines were losing substantial amounts of money and faced a ''huge amount of competition'' on the so-called kangaroo route.

''Even Emirates are now struggling with some of the capacity in the Australian market. Emirates have just pulled a service out of Sydney,'' he said yesterday. ''They are finding it very difficult with lower load factors to compete with Qantas and British Airways.''

Qantas is eager to form alliances with other airlines but Mr Joyce said it did not see a need for one with any of the Middle Eastern airlines, which were competing aggressively against so-called ''Asian hub carriers'' such as Singapore Airlines and Malaysia Airlines.

''There is a battle of the hubs happening which Qantas, because of its relationship with British Airways, is staying out of, and its performance is stable,'' he said.

It has had an alliance with BA on the route for more than a decade.

Last week the competition regulator gave interim approval to Virgin Blue's planned alliance with the Middle Eastern Etihad Airline. Mr Joyce said Etihad did approach Qantas for a similar arrangement before it went to Virgin Blue, but he decided it did not make commercial sense.

He also said it would be hard for Virgin Blue to convince regulators to overturn their initial objection to its alliance with Air New Zealand on the trans-Tasman route.

But he said it would be positive for airlines if US regulators dropped their opposition to Virgin Blue's proposed tie-up with Delta on the US-Australia route because it would lead to a much-needed reduction in capacity.

''We believe [the alliance] is a positive thing for the trans-Pacific route to be granted because … rationalisation is needed,'' he said.

He expected the Australia-US route would become profitable for Qantas this year but it was dependent on a recovery in the business market and less fare discounting.

He said it was ''patchy in different markets'' across the Qantas network and Britain and the US were not experiencing the level of recovery evident in the Asia-Pacific region. The airline's yields on international routes had risen 12 to 14 per cent in the first quarter compared to last year.

Southwest-AirTran Merger Details

In one of its smartest moves to revive stalled growth, Southwest Airlines Co. (LUV - Analyst Report) the largest U.S. low-cost airline, agreed to buy AirTran Holdings Inc. (AAI - Snapshot Report) for $1.4 billion. The acquisition is expected to close in the first half of next year and will be fully operational by 2012.

The total transaction value is approximately $3.4 billion, including AirTran's debt and capitalized aircraft-operating leases. AirTran shareholders will receive $3.75 in cash and 0.321 Southwest share for each share of AirTran, whereas Southwest will pay about $670 million in cash and will assume $2 billion in AirTran debt.

The merger enables Southwest to expand its presence in several markets including Atlanta, Washington D.C., Boston, Baltimore and New York City and gain access to more traffic, revenue and passengers.

The merger may result in increase in fares, elimination of jobs and might pose major challenges to carriers, especially American Airlines, a wholly-owned subsidiary of AMR Corporation (AMR -Snapshot Report) and US Airways Group Inc. (LCC - Snapshot Report).

According to the Wall Street Journal, Southwest will have cost synergies of more than $400 million by 2013. Southwest expects the acquisition to be accretive to earnings after three years, with one-time acquisition-related costs of $300 million to $500 million.

As per the agreement, all the airplanes will adopt the Southwest logo and the Southwest policy on fees. A combined Southwest-AirTran will boast a fleet of 682 Boeings. After the merger, Southwest Airline will pose a greater threat to its competitors Delta Airlines Inc. (DAL - Analyst Report) and US Airways.

Previously, Southwest failed in its attempt to buy Frontier Airlines, which was in bankruptcy. The airline was eventually bought by Republic Airways Holdings Inc. (RJET - Snapshot Report) for almost $108.8 million.

With the strongest balance sheet in the industry, competitive strength, low costs, various revenue initiatives and network optimization, we believe the company sustained even in a difficult operating environment and will continue to do so in the near future. However, Southwest Airlines is investing heavily in technology to code share with other airlines and to fly to international markets.

Ticket prices are the major concern as the company has been discounting heavily to stimulate demand. In addition, the lack of international and business travel exposure will likely keep revenue growth in the near term under pressure.

We maintain our long-term Neutral recommendation on Southwest Airlines. It is currently a short-term Zacks #3 Rank (Hold) stock.

Mistaken identity? US apologizes to Praful

The United States has apologized to aviation minister Praful Patel for being questioned at Chicago's O'Hare airport on Monday when he flew in there from London due to a case of mistaken identity. 

American secretary of homeland security Janet Napolitano expressed regret on meeting Patel and senior aviation ministry officials in Montreal for a bilateral do on sidelines of an International Civil Aviation Organisation (ICAO) meet there. 

According to the ministry the issue was raised by Patel's aides, following which Napolitano apologized to Patel. "The secretary has assured US will make necessary amends to prevent any such incident in the future," a ministry statement said. The problem arose as there's a Praful Patel on US watch list who, apart from just the name, also shares his birthday with the aviation minister. As a result, he was taken aside for questionning which lasted a little longer as NCP leader was travelling on personal passport and not diplomatic ones that ministers use. 

Indian officials at the airport to receive him also rushed to his aid following the delay in Patel emerging from the immigration check area. Once convinced they had the wrong Praful Patel, the immigration authorities let him go. In fact, Patel was once stopped at New York airport also for the same reason.

Read more: http://timesofindia.indiatimes.com/india/Mistaken-identity-US-apologizes-to-Praful/articleshow/6655022.cms#ixzz10yKpNPFH

Fly the Hungry Skies? Airline Eliminates Free Snacks

Expect to pay up if you want a snack while flying the friendly skies!

Continental Airlines has just announced free snacks and meals will soon be a thing of the past on domestic flights under six-and-a-half hours.

Starting October 12th, a new food-for-purchase menu will replace complimentary meals and snacks currently served in the economy cabin on select routes.

Continental's new pay-as-you-go menu will offer economy passengers salads, burgers and snacks. Prices range from $1.50 to just over $8.

One passenger at Cleveland Hopkins Airport said, "I don't think you need to be wined and dined but some moderate service needs to be given."

Another passenger told FOX8 News, "I'm not surprised at all. It really doesn't affect me that much. If I want to bring a snack, I'll throw something in my purse."

The new price menu is exciting news for one local company. Family-owned "Weaver Meats" in Painesville has been selected by Continental as its new vendor for beef jerky.

That means passengers everywhere will be able to purchase "Wild Beef Jerky" for $3.50.

Virgin denies media ban after latest glitch

Airline Virgin Blue has denied banning the media from its terminals around the country after its reservation system crashed again this morning.

The airline says Australian Federal Police (AFP) officers kept the media from terminals to avoid adding to congestion.

Passengers had to be manually checked in during the shutdown, which delayed thousands of people between 5:10am and 7:00am.

The system is now running again, but is slower than usual.

"We have had some delays this morning because of that outage, but we've got the systems operational again," Virgin Blue's Colin Lippiatt said.

"As I say, there will be some delays but we're getting back to normal throughout the morning. We're urging everyone to arrive at the airport at their normal scheduled check-in time."

The airline's computer system failed on Sunday, causing hundreds of flight delays and leaving customers stranded in airports nationwide.

This morning passengers at Brisbane Airport were being checked in manually and flights were delayed at Melbourne, Sydney and Darwin airports. There appeared to be no delays at Adelaide or Perth airports.

A spokeswoman for the airline described this morning's problem as just a "slight glitch".

She said the problem emerged during tests on the book-in system, but staff are now working to clear the backlog of delayed passengers and IT problems have been resolved.

Passenger Kayla Hides was supposed to fly to Townsville at 6:00am but was delayed at Brisbane Airport.

"It was just absolute chaos," she said. "There were no real lines for anything, everyone was just crowded around the front desk not really knowing what's going on.

"Everyone's pretty angry, like I'm going to have to miss work today. I was meant to start at 9am but who knows when I'll even arrive."

Yesterday Virgin boss Richard Branson apologised for the weekend's check-in chaos.

"It's been a terrible 24 hours with the computer system going down," he told Channel Seven in Jakarta.

The airline has blamed its information technology provider, Navitaire, for the chaos, and legal action is being considered.

Row over business class upgrade forces flight back

An airline spokeswoman says a US-bound Polish plane was forced to return to Warsaw airport shortly after takeoff after a rowdy passenger scuffled with the crew.

LOT airline spokeswoman Marta Marczak said yesterday that a Polish man flying business class demanded that his son be moved from economy class to business class and scuffled with the crew when his request was refused.

Concerned for the security of other passengers on the Chicago-bound flight, the pilot decided to return to Warsaw airport.

The troublesome passenger was turned over to border guards upon arrival and arrested.

The other were passengers to fly to Chicago late yesterday.

American Airlines suffer slashed shares

Investment analysts have lost faith in the former largest carrier American Airlines (AMR) following American-Airlines Inc. poor revenue projections for the third quarter.

AMR shares closed at $6.28 a decrease of 8.7 percent after figures showed unit revenue would come up short of analyst and investors’ expectations at 9.8 percent to 10.8 percent during the three months ending 30 September, The Dallas Morning News reported.

“Sharply lower than expected revenues are leading us to slash our estimates and reduce our target price to $6 from $7,” Soleil Securities Corp analyst Jim Higgins said.

Mr Higgins said he dropped his AMR profit estimates from 74 cents to 33 cents a share.

However, some analysts are still showing hope for the company cutting shares up to 28 cents to 31 cents.

“Softer revenue trends should not come as a surprise to many given the spate of poor consumer related economic data during the third quarter,” Stifel, Nicolaus and Co. airline analyst Hunter Keay said.

“However, consensus estimates are likely to be revised lower following misses to the revenue line and minimal changes to costs,” Mr Keay said.

The news came as a large sting to the airline that was the only carrier from the six largest American airlines to report a drop in shares.

However, share prices may not necessarily reflect the company’s overall success with The International Air Transport Association (IATA) predicting the airline will achieve a $3.5 billion profit this year, compared to the $2.9 billion loss from last year.

3 other landing gear problems before NYC emergency

Model Aircraft from a Canadian company that built the jetliner involved in an emergency landing in New York City last weekend have experienced at least three other landing gear problems in the past two years, Federal Aviation Administration documents show.

But a Bombardier Inc. spokesman insisted Tuesday that its aircraft are safe, noting they have been involved in tens of millions of landings and takeoffs for dozens of airlines worldwide.

Several aviation experts said Tuesday that while a plane landing without its full gear can be harrowing for those on board, usually such landings result in few injuries or fatalities.

"It creates a lot of sparks and damages the airliner to some extent," said Doug Moss, a pilot who runs AeroPacific Consulting in Torrance, Calif. "The general rule is no one gets hurt and they are fairly infrequent."

Delta Connection Flight 4951, operated by Atlantic Southeast Airlines, made an emergency landing at John F. Kennedy International Airport on Saturday night after the flight crew declared an emergency with the jet's landing gear. The CRJ-900 twin-engine jetliner from Atlanta was diverted from White Plains, N.Y., just north of New York City, to Kennedy at the request of the cockpit crew.

Video captured on passengers' cell phone cameras showed sparks flying as the aircraft's right wing dragged along the tarmac before it came to a stop, but no one was hurt. The cause of the landing gear emergency is under investigation.

FAA documents reveal Bombardier aircraft also were involved in the following landing gear emergencies since late 2008:

_ On Dec. 15, 2008, a Mesa Airlines CRJ-900 landed safely at Chicago O'Hare Airport after the crew noticed an indicator light showing trouble with the landing gear.

_ On June 11, 2009, an Atlantic Southeast Airlines CRJ-200 couldn't extend its left landing gear but landed safely in Atlanta's Hartsfield Airport.

_ On May 23, 2010, a Skywest Airlines CRJ-200 couldn't extend its nose landing gear but landed safely at an Ontario, Calif., airport.

The New York Daily News, which first reported Tuesday on the landing gear problems, also noted that in April a "gear disagree" message appeared on a South Africa Express CRJ-200 flight approaching Windhoek Airport in Namibia. The nose gear was involved that time.

Bombardier spokesman Marc Duchesne, when asked Tuesday if there are any concerns with the landing gear of the CRJ series planes, said, "Absolutely not."

"These aircraft are in service with more than 60 airlines over the world," he said. "The aircraft has logged more than 27 million flight hours and more than 22 million takeoff and landing cycles, so these are very good and reliable aircraft."

He declined to comment on any of the prior problems, noting investigations are ongoing.

Separately, Bombardier, which has more than 60,000 employees in its air and rail transportation operations worldwide, said last month some of its Q400 planes needed to be inspected as a precaution after an airline found cracks near the turboprop aircraft's landing gear.

Australia's Qantas Airways grounded five of the 21 Q400s operated by regional airline QantasLink after low-cost flier Flybe raised concerns about the fittings on its fleet. Cracks were found in the rear spar nacelle, the cover that houses the engine. The aircraft's main landing gear is attached to the nacelle.

Duchesne noted the CRJ series and Q400 are different aircraft. He also said last month's issue was unrelated to incidents in 2007 that resulted in emergency landings in Denmark and Lithuania.

In 2007, three Scandinavian Airlines Bombardier Q400 turboprops crash-landed in a two-month span because of landing gear problems, which triggered the airline to drop its entire fleet of turboprops. No one was seriously injured.

The emergencies were found to be caused by corrosion of a bolt that prevented the landing gear from locking. Duchesne said it was a maintenance problem by the carrier.

Bombardier, along with landing gear company Goodrich Corp., agreed to pay Scandinavian Airlines $164 million in compensation. The agreement excluded any admission of fault, and Scandinavian Airlines agreed to purchase more turboprops from Bombardier.

Airline safety consultant Keith Mackey said regional jets, because they fly more frequently, may encounter landing gear problems more often.

"A Boeing 747 typically flies longer-distance flights, but some of these (regional) planes can do 30 landings a day," he said. "Each time you cycle the landing gear, the probability goes up."

Aviation expert John Nance agreed, but with reservations: "Obviously it puts more stress, but I'd be careful drawing a line to that too tightly."

Both agreed that other factors, including proper maintenance, would be more important

Continental, United airlines merger can proceed, judge says

CLEVELAND, Ohio -- A federal judge in California has struck down a claim that the merger of United Airlines and Continental airlines will create a monopoly.

U.S. District Judge Richard Seeborg said plaintiffs who sued to stop the merger failed to establish that it should be blocked on antitrust grounds because it would hurt consumers. In a written order Monday, Seeborg denied a motion for a preliminary injunction to halt the deal.

United and Continental expect to close their $3.2 billion all-stock merger Friday.

The judge noted that none of the 49 plaintiffs -- travel agents and others with connections to the travel industry -- testified about any specific impact the merger would have on their clients.

Seeborg's ruling also said the plaintiffs had not shown that they personally would be harmed by the merger. None of them testified to having flown regularly, and only one said that she is likely to use United or Continental when she does fly, Seeborg wrote.

"We are gratified by the court's decision to deny the plaintiff's motion," said Continental spokeswoman Julie King.

The plaintiffs claimed that the merger would result in higher ticket prices, elimination or curtailment of air service in some cities, job losses, deteriorating customer service and substantial cutback of traffic to hubs.

The plaintiffs' attorney, San Francisco antitrust specialist Joseph Alioto, could not be reached Tuesday.

In earlier comments to The Plain Dealer, Alioto said he thinks Continental revised plans for deep cuts at Cleveland Hopkins International Airport after he introduced an internal Continental document in court suggesting they might occur. The document said that the merged airline might lower domestic departures from Hopkins by 84 percent, from 210 to 33 a day.

"I can assure you that had that not come out, Cleveland would have been the first to be cut," Alioto said.

Continental declined comment on Alioto's remarks. But in a statement earlier this month the airline said that the "hub stats" document that Alioto introduced was just one of several merger scenarios it modeled and that it represented a worst-case scenario.

In May, Ohio Attorney General Richard Cordray launched a separate investigation into the merger's impact on the state and nation, but particularly Cleveland.

Cordray and executives of Continental and United settled the investigation with an agreement announced Sept. 13 on the merged airline's Hopkins activity. It binds the new United to maintaining departures out of Hopkins at no less than 90 percent of United and Continental's combined departures today. What happens in the final three years of the five-year pact hinges on Cleveland's profitability for the new United.

After the announcement Monday that Southwest Airlines plans to buy AirTran Airlines, Alioto asked Seeborg to consider what he called "undeniable evidence" that the United-Continental merger will lead to further industry consolidation.

"It is now even more difficult to imagine that U.S. Airways will seek to remain independent and not attempt to merge with American Airlines," he wrote.

Southwest, the busiest domestic carrier in the U.S., plans to buy AirTran in a $1.4 billion deal. Analysts said the combination of the two low-cost carriers could ramp up pressure on established major carriers, and also lead to higher fares in some markets.

Virgin Blue may sue over check-in woes

At 8am on Sunday, Virgin Blue's check-in and reservations system New Skies, provided by Accenture subsidiary Navitaire, suffered a hardware failure that forced staff to switch to a manual check-in system. The system crash led to long delays and flight cancellations for thousands of passengers on Sunday, and although the system was brought back up later that same day, the results of rescheduling flights led to further delays and flight cancellations into Monday.

Some customers unable to catch flights were forced to stay in hotels for two nights.

As services began to return to normal today, Virgin Blue group executive Andrew David said legal action against Navitaire for the ordeal is being considered.

"The service agreement Virgin Blue has with Navitaire requires any mission critical system outages to be remedied within a short period of time," David told reporters in Brisbane on Monday. "This did not happen in this instance."

Navitaire's parent company Accenture told ZDNet Australia yesterday that it did not comment on service agreements it had made with clients including Virgin Blue, but indicated that the delay in bringing the system back up was in part due to testing.

"Navitaire and Virgin Blue worked together to bring the systems back online, which included detailed testing prior to turning them back on," Accenture said in a statement.

Virgin boss Richard Branson apologised for the chaos, telling Network Seven in Jakarta it had been a "terrible 24 hours".

Arlanda bomb suspect remains in Sweden

"We tried to get him on a flight yesterday but the airline refused to take him. We are now working to try to resolve the situation so that he can get away to Pakistan," said Per-Åke Wallberg, detective-inspector at Arlanda police.

The 28-year-old man was on his way to Pakistan to be married when the plane on which he was travelling was forced to land at Stockholm Arlanda Airport on Saturday morning after a woman had called Canadian police warning that there may be explosives on board.

Swedish police closed the case on Sunday after extensive interviews with the 28-year-old, fellow passengers and crew, calling the whole incident a "misunderstanding".

The man told police in interviews that he has siblings and parents in Canada. The idea was that he would travel ahead to Pakistan and prepare for the wedding and then the rest of the family, including his elderly mother, would follow later.

"He was so happy that she was not on the plane as she has a weak heart. He did not think that she would have survived this," Wallberg said.

The man was reported to have been calm when he was apprehended by police onboard the plane which was on its way from Toronto to Karachi, Pakistan.

"I understand, it is 'national security', he said. Then we had a positive chat," said Wallberg.

"That which has emerged and become the gist of the story is that everything is one big misunderstanding. Someone has accused him of this and he is totally innocent," said Wallberg.

During the questioning of passengers, it emerged that the man was perceived to have behaved strangely on the plane but it all turned out to have logical explanations.

"It was the first time he had gone abroad and he was flying long distance. Of course he was a bit jumpy and nervous."

Someone also said that he had switched seats in the aircraft, and changed his clothes. But even this turned out to be completely innocent.

"It was a gesture on his part. He offered to trade places with a mother so that she could sit with her children. When he changed places, he took off his jacket and people perceived this to mean that he had changed clothes," Wallberg said.

The plane, a Boeing 777 operated by Pakistan International Airlines, was on its way from Toronto to Karachi, Pakistan when it was forced to make an emergency landing at Arlanda shortly after 7.30am.

The landing was prompted after Canadian police, through the country's air traffic authorities, contacted the pilot in the air and said that there may be a suspicious person on board.

Shortly before 7am local time, the pilot contacted air traffic control at the airport and requested landing rights, saying there was a person suspected of having explosives on board.

Passengers were evacuated from the plane and led inside the terminal two hours after landing, where they received food and assistance.

The airplane left for Manchester at 5pm local time to continue its journey to Karachi because the crew was too tired to complete the flight to Pakistan, Arlanda Airport spokesman Jan Lindqvist said.

Regular air traffic at Arlanda was unaffected by the threat. Terminals remained open as usual and all remaining flights left on schedule.

"We have so much capacity that we can put a plane to the side so that it doesn't affect other traffic," Anders Bredfell, press director at the airport, told TT earlier on Saturday.

Separately, Canadian police said Saturday they were looking into whether the bomb alert was a hoax. Under Canadian law, a "terrorist hoax" is a crime punishable with prison time, a spokesman with the Royal Mounted Police in Toronto, Marc Laporte, told AFP.

While the Canadian police remain in the dark over the identity of the caller, the 28-year-old has his suspicions.

"He has a theory over who might have called," said Per-Åke Wallberg.

Swedish police have now contacted their colleagues in Canada to assist with information that can help them in their investigation

Malaysia Airlines Orders Two More A330-200Fs

Malaysia Airlines has placed a firm order with Airbus for two more A330-200F freighters, following the conversion of two existing options.

This latest contract increases the airline's firm orders for the type to four, all of which will be operated by the carrier's subsidiary MASkargo.

The aircraft will be powered by PW4000 engines from Pratt & Whitney.

"We are confident that the A330-200F is set to become a game changer in the mid-size freighter market," said MASkargo Managing Director, Shahari Sulaiman. "The aircraft will enable MASkargo to efficiently match capacity closely to demand on many medium lift sectors across our cargo network, and especially those operating via intra Asia."

"This additional order underscores the increasing popularity of the new A330-200F as it enters airline service," said John Leahy, Chief Operating Officer Customers, Airbus. "With this aircraft we are bringing new levels of efficiency to the freighter market and we are extremely pleased that MASkargo will be one of the early operators of the type."

The A330-200F, all-cargo aircraft, is capable of carrying 65 tonnes over 4,000nm/7,400km or 70 tonnes over 3,200nm/5,900km.

PAL Needs $230 Million a Year to Survive, Stay in Operations

MANILA, Philippines – Philippine Airlines (PAL) needs US$230 million yearly, half of which must come from cost savings, the rest from sales and marketing. Hence, the flag carrier has to reduce its manpower and spin-off of non-core units in order to survive, stressed PAL spokesperson Cielo Villaluna.

Following huge losses due to the global recession and other factors beyond PAL's control, all of the airline's departments have to be more cost-efficient. Funds saved from belt tightening efforts are earmarked for payment of maturing dollar obligations, fuel costs, salaries, aircraft maintenance and other expenses.

Cabin crew reduction is just one of many cost-cutting measures, she pointed out. "The cabin crew union demands that funds saved from manpower reduction should be equally divided among them. But this, unfortunately, is not the aim of the whole exercise. If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term."

Last July, cabin crew complement in PAL’s Boeing 747 aircraft was reduced to 16 from 18. However, this is still one crew higher than the minimum safety requirement of 15 crews for a B747 as mandated by international safety standards and by the Civil Aviation Authority of the Philippines, according to Villaluna.

Since the program’s start last July 1, PAL’s Cabin Services Department has not received any complaints about service quality, proof that the airline’s dedicated staff have been able to meet passenger expectations despite the reduced 'manning' complement.

“Contrary to the cabin crew union’s claim, there has been no diminution of employee rights or benefits. They work a little bit more for the same pay, which simply means more efficiency,” she noted. "Estimated savings from crew reduction as measured by our Cabin Services is about P70 million a year, not P141-million as claimed by the Flight Attendants' and Stewards' Association of the Philippines."

Most global airlines are still recovering from the global recession that caused a slowdown in travel. PAL is not alone in efforts to cut costs to be more efficient, the flag carrier’s spokesperson reiterated.

Despite better-than-expected passenger traffic in the first semester, PAL is still strictly adhering to its survival plan that was crafted after the airline lost more than US$312 million in the last two years. "The survival plan became imperative especially after the airline's equity dipped to just over US$1 million in February 2010," she explained.

“Programs like crew reduction are being implemented as a management prerogative. We informed the crew union beforehand as a matter of professional courtesy,” Villaluna went on.

Australian airline grounded by IT failure

Virgin Blue blames Accenture subsidiary for booking system error that affected 50,000 passengers this weekend

Up to 50,000 air passengers were unable to board flights in Australia this weekend after the Virgin Blue airline suffered a technical glitch with its booking system.

The airline blamed IT services company Navitaire, a subsidiary of Accenture, for the fault, which caused hundreds of flights to be cancelled. “Navitaire … had a hardware failure and we were forced to switch to a manual system, which created the delays,” said Virgin Blue in statement.

Virgin Blue chief executive Andrew David later claimed that Navitaire had failed to resolve the fault as quickly are they are contracted to do. “"The service agreement Virgin Blue has with Navitaire requires any mission critical system outages to be remedied within a short period of time,” he said, according to Australian Associated Press. “This did not happen in this instance."

All systems were back online this morning, but the airline said that delays will continue as it works through its backlog of flights. Virgin offered to pay for the accommodation of stranded passengers.

The airline upgraded to Navitaire’s New Skies system last year. When budget airline Ryanair deployed New Skies last year, it warned customers to expect delays following some “small bedding down issues” with the system.

Unruly Passenger Grounds Delta Flight at Sea-Tac

SEATTLE -

An unruly passenger on a flight bound for Amsterdam forced pilots to return the plane to Seattle-Tacoma International Airport shortly after take-off Saturday, a Delta spokeswoman said.

Flight 224 left the Seattle-Tacoma International Airport just after 6 p.m. Saturday, said Airline spokeswoman Leslie Parker.

About 30 minutes after takeoff, Parker said, a passenger disturbance prompted pilots to return to Seattle. The plane landed safely at 7:27 p.m. No one was hurt.

Parker did not go into further detail about the disturbance. She said the flight was canceled, and that another flight, specifically for the Amsterdam-bound passengers, would depart Sunday. A Transporation Security Administration spokeswoman told The Seattle Times that the disruptive passenger was taken to a local medical facility.

Taiwan's China Airlines to pay $40 mln fine in US case

TAIPEI — Taiwan's China Airlines said on Monday that it has agreed to pay a 40-million-dollar fine in exchange for an end to a US probe into its role in an alleged fuel-surcharge price-fixing case.

The island's leading carrier said that it had agreed to sign a plea agreement with the US Department of Justice (DOJ), under which it will pay the fine in annual installments over five years.

"If approved by the court, the agreement will resolve the DOJ investigation as to China Airlines," the airline said in a statement.

China Airlines (CAL) is among the 16 major international cargo carriers to have entered plea agreements with the DOJ, including Lufthansa, British Airways, Korean Air, Qantas, Japan Airlines, Air France-KLM, Cathay Pacific, Asiana Airlines and Northwest Airlines.

The DOJ in 2006 issued a grand jury subpoena to CAL asking for documents as part of its investigation into alleged fuel-surcharge price fixing.

CAL complied with the subpoena, produced documents to the DOJ and has cooperated with the DOJ since 2006, it said.

Southwest Airlines to Buy AirTran

Southwest Airlines agreed to acquire AirTran Holdings Inc. for $1.4 billion in cash and stock, the first major merger among healthy U.S. discount carriers.

The proposed deal follows Southwest's failed effort to acquire Denver-based Frontier Airlines earlier this year and would revive its stalled efforts to launch international services by accessing AirTran's network to the Caribbean.

The deal sent shares of fellow discount carrier JetBlue Airways Corp. up 10% to $6.54 while US Airways Group Inc., which has its roots as a low-cost airline from its days as America West, climbing 3.2% to $9.28.

Under the deal, AirTran shareholders will receive $3.75 in cash and 0.321 Southwest share for each share of AirTran, valuing it at $7.69 a share, a 69% premium to Friday's closing price.

There's a bracket around the per-share price at $7.25 to $7.75. After the deal closes, expected in the first half of next year, AirTran holders would have about 7% of the combined company.

Including AirTran's net debt and capitalized aircraft-operating leases, the transaction is valued at about $3.4 billion.

Southwest Chairman and Chief Executive Gary C. Kelly said the move gives the company "significant opportunities" in Atlanta—the largest U.S. market the company currently doesn't serve—and expands its presence in other major airports including New York LaGuardia, Boston and Baltimore/Washington, as well as gaining entry to many smaller domestic cities.

Southwest expects the acquisition to add to earnings in the first year after the deal closes after one-time acquisition-related costs of $300 million to $500 million.

The company sees cost savings of more than $400 million by 2013. Its shares closed Friday at $12.28 and were inactive premarket.

Passengers capture emergency landing on video from inside plane

"Brace for impact," a deep voice says on the intercom.

"Heads down! Stay down! Heads down! Stay down!" a woman commands for more than 30 seconds.

Two passengers aboard a Delta Airlines flight from Atlanta, Georgia, to White Plains, New York, captured the dramatic moments of the flight's emergency landing Saturday night at John F. Kennedy International Airport in New York.

The footage from Flight 4951 shows sparks outside a window of the plane's cabin.

The flight experienced landing gear problems, according to a recording of a pilot's conversation with air traffic control.

"We have 64 souls on board," the pilot said, according to LiveATC.net, which provides audio from air traffic control radio communications.

"We've been running all the checklists and talking to our maintenance and approach, our maintenance and dispatcher and we have not been able to get the landing gear down," the pilot said. "Our preference would be to proceed over to JFK and execute an emergency landing over there ... and if it's not completely obvious, we just want to confirm, we are declaring an emergency."

The pilot and an air traffic controller arrange for the plane to land at JFK.

"Emergency equipment standing by midfield as a precautionary measure," the air traffic controller says.

The plane lands safely with no injuries reported.

After passengers evacuate, a man embraces a pilot with a bear hug.

The Federal Aviation Administration has not released a cause for why the plane's landing gear malfunctioned.

B747-400 Northwest Model Airplane B747-400 Northwest Model Airplane

Northwest Airlines currently operates sixteen Boeing 747-400 in commercial service, however, with the recent merger with Delta means this livery will become history.

The Boeing 747 is a widebody commercial airliner, often referred to by the nickname "Jumbo Jet". It is among the world's most recognizable aircraft, and was the first widebody ever produced. Manufactured by Boeing's Commercial Airplane unit in the US, the original version of the 747 was two and a half times the size of the Boeing 707, one of the common large commercial aircraft of the 1960s. First flown commercially in 1970, the 747 held the passenger capacity record for 37 years.

The four-engine 747 uses a double deck configuration for part of its length. The Boeing 747 Model Aircraft in particular was expected to become obsolete after 400 were sold but it exceeded its critics' expectations with production passing the 1,000 mark in 1993. As of June 2009, 1,416 aircraft have been built, with 107 more in various configurations remaining on order.

The Boeing 747-400, the latest version in service, is among the fastest airliners in service with a high-subsonic cruise speed of Mach 0.85 (567 mph or 913 km/h). It has an intercontinental range of 7,260 nautical miles (8,350 mi or 13,450 km). The 747-400 passenger version can accommodate 416 passengers in a typical three-class layout or 524 passengers in a typical two-class layout. The next version of the aircraft, the 747-8, is in production and scheduled to enter service in 2010.

Southwest Airlines hustles to reduce turnaround times

Monitoring a computer screen in Southwest Airlines' new operations center at Denver International Airport, customer service supervisor Jim LaFrenz sees flight 658's scheduled arrival from San Francisco is going to be delayed by at least an hour because of the Bay Area weather.

After dropping off and picking up passengers in Denver, it is scheduled to fly to Chicago and then on to Hartford, Conn., in a classic case of the airline's hopscotching service across the country.

LaFrenz determines that at least 41 passengers — many boarding in Denver — could miss connections in Chicago. So, he kicks off a process of trying to reach as many of the travelers as possible to rebook them on an earlier flight.

 Agent reach some on their cellphones and others with public address announcements. The carrier got 16 passengers on the earlier flight and had five rebook for the next day, LaFrenz said.

In the end, "we were able to get all of the passengers to (Chicago) in time to make their connections."

Avoiding the hub system favored by rivals, Southwest has built itself into one of the nation's largest airlines with point-to-point service and the creation of nine "megastations," including DIA.

DIA is its fifth-largest and fastest-growing, said Dave LaPorte, the airline's station manager in Denver.

After starting at DIA with 13 departures and two gates in January 2006, the airline now operates 144 departures out of 17 gates on the C concourse. Southwest handles about 30,000 passengers daily in Denver.

Watching the airline's DIA operation for an afternoon shows how the carrier constantly monitors luggage check-in times, the minutes it takes to get a plane in and out, bag delivery times and more to make it all work.

Connecting opportunities

One of LaPorte's challenges is to make Southwest's operation at DIA work efficiently for connecting passengers.

To avoid long layovers between flights, the airline has built what it calls "intentional connecting opportunities," or ICOs, into its Denver schedule.

"We have six flights arrive at exactly the same time, and all leave 35 minutes later," LaPorte said.

In the morning, Southwest has an east-to-west ICO, with planes scheduled to arrive at DIA from Omaha; Indianapolis; Detroit; Minneapolis; Kansas City, Mo.; and Washington Dulles, all at 8 a.m., and then depart for Spokane, Wash.; Seattle; Portland, Ore.; San Francisco; Oakland, Calif.; and Ontario, Calif.; at 8:35 a.m.

Southwest's model of megastations with ICOs offers some of the revenue-maximizing opportunities of a hub, but not all, said James Higgins, an industry analyst who follows the carrier and other airlines for Soleil Securities in New York.

Hubs allow airlines to concentrate revenue generation by having a large number of connecting flights arriving within a relatively short period of time, he said.

At a typical hub, planes may be on the ground for 90 minutes to maximize connections, Higgins said. That's in contrast to a Southwest system built around faster turnaround times.

The bags

For ICOs to work, Southwest not only needs flights to arrive on time, but it also requires nearly flawless execution from ramp agents who load and unload aircraft and ferry bags between planes.

The goal is to have Denver-bound passengers' bags on the luggage carousel 20 minutes after a plane reaches the gate.

That's a challenge because Southwest tug drivers hauling luggage carts must travel at least 1 1/4 miles in underground tunnels to reach the terminal.

As challenging as it is to accommodate destination passengers, "transfers are the most difficult," LaPorte concedes. "Frankly, it's a headache."

To move bags from one plane to another, Southwest typically had assigned a tug driver to pick up all transferring bags from an inbound flight and distribute them to multiple outbound flights.

At DIA, Southwest is reversing the process.

"ICOs got us thinking; what if we tied a transfer driver to an outbound flight?" LaPorte said of the current system that has drivers collecting bags from numerous arriving flights for a specified departure.

The effectiveness of that approach still is in question.

Southwest's current goal at DIA is to not exceed 6.5 reports of lost bags ("mishandled bags" in industry parlance) per 1,000 passengers.

Some days, the airline meets the goal, other days it doesn't, LaPorte said.

U.S. airlines as a group experienced 3.79 mishandled bag reports per 1,000 passengers in July, according to the U.S. Department of Transportation. Systemwide, Southwest strives for 3.5, according to LaPorte.

He said Southwest, which doesn't charge for checked luggage, typically carries more bags per traveler than its fee-charging competitors.

The ramp

Southwest is famous for its quick "turns," flights that arrive, empty out travelers and luggage, and then quickly reload, refuel and depart.

"How do we do 25-minute turns? It starts nine months out with proper staffing, equipment and facilities," LaPorte said of the long-range planning.

Southwest ramp agents like Raymond Seiberlich, Van Cooper and Tyler Martin help carry out the plan.

At gate C-34, flight 414 from Nashville has just pulled in.

Carts already are staged in the gate area with bags to be loaded on the plane for its departure to Sacramento.

The workers line up belt loaders at the forward and aft cargo holds of the jet.

Seiberlich climbs into the forward bin and starts loading luggage and freight on the belt. Cooper, sweat glistening on his bald head, works outside the plane, taking bags off the belt and tossing them on carts, separating those destined for the terminal from transfers.

"Ramp agents are the hardest- working people at Southwest," says ground operations supervisor Tim Stawski.

In total, the airline employs about 500 people at DIA and will be hiring another 60 to 70 in coming months.

"We hire for attitude and train for aptitude," Stawski said, adding that Southwest looks for employees with a "fun-loving" attitude and a "servant's heart."

At 4:10 p.m., Martin, in a tractor, pushes flight 414 from the gate, 31 minutes after it arrived.

The ticket counter

At Southwest's check-in counter in the terminal, it uses other metrics.

The airline wants passengers in the area 1 1/2 hours before departure and travelers should expect to wait in line an average of about 10 minutes before they get to a kiosk, said Michele Benze, assistant station manager for customer service at DIA.

No line means the carrier may be overstaffed behind the counter, yet if the wait-time stretches beyond 20 minutes, it's too long, Benze said.

The goal is to have travelers avoid "lobby shock" — a condition that sets in, she said, when a passenger enters a ticket lobby, sees a long line, and thinks "Oh, my gosh, I'm going to miss my flight."

To help speed the flow, Southwest recently installed Express Bag Drop kiosks that read a bar code on a preprinted boarding pass and eliminate the need for passengers to type in travel information.

The express kiosks have shaved a minute off each check-in transaction, LaPorte said.

"It's made a huge difference in our line times," he said.