New lounge for Dallas?

Dallas/Fort Worth has been looking into the possibility of adding a premium travel lounge for international travelers at its Terminal D. To that end it is considering a study into the viability of the subject. The consultants will also look at other international customer lounge offerings at global airports with a view to evaluating possible partners to run a premium lounge at this airport.

The idea has been prompted by the arrival of new carriers from the Persian Gulf and Australia, along with new flights to Asia. Added to this is the fact that the airport is now serving more international First Class and Business customers. Those numbers are expected to grow as Qantas and Emirates look to add the A380 to their routes later this year.

Since the airport’s current lounges are close to capacity and do not have the same amenities available at other international airports, the time seems propitious for the concept.

Global still performing well

Revenues increased at Global Ground Support by 1% compared to the first quarter of the previous fiscal year. Global posted an operating loss of approximately US$180,000 for the quarter, compared to US$6,000 in the comparable period for 2013. Inefficiencies in production caused by an unexpected shipment delay, severance expenses, bad debt expenses and increased depreciation expenses were put forward as explantions for the performance. Order flow, though, remained above last year’s levels, with a backlog (as at June 30) of US$21.8m.

Post-merger clarification

The International Association of Machinists and Aerospace Workers and Transport Workers Union have petitioned the National Mediation Board for confirmation that in the wake of the merger between American Airlines and US Airways, the companies are now operating as a single transportation system in terms of the employees in the Mechanic and Related, Fleet Service and Stores classifications.
The filing is necessary before a National Mediation Board election to certify the TWU-IAM Employee Association (an alliance between the IAM and TWU formed last year), as the collective bargaining representative for all employees in the affected classifications at the new airline.

Sea-Tac: light at the end of the tunnel

The hourly minimum wage for airfield workers at Seattle-Tacoma International will be increased to US$11.22 in January next year. This will be enhanced to US$13 an hour by January 2017, according to a final vote by the Port of Seattle Commission.

Readers will know that Seattle has been the focus of media attention for some months now in the wake of demands for higher wages at the airport. This agreed increase will affect some 3,500 contract workers at the airport, and will include those who handle cargo and baggage. Check-in staff and PRM providers, as well as those involved in catering, cleaning and maintenance, along with refuelers and dispatchers and security personnel, all fall under this umbrella.

Following the new policy, a worker’s total minimum hourly compensation, which includes tips, healthcare and sundry other benefits, will total US$13.72 by January 2015. These workers will also be entitled to paid leave at the rate of one hour for every 40 hours worked.

In round terms, the minimum compensation will swell to US$15.50 by the beginning of 2017, thereafter increasing on an annual basis in line with the prevailing rate of inflation.

However, it should be noted that both restaurant and retail workers are not covered by this wage deal. The reason has been that the bulk of these staff belong to unions and are already considered to be on an adequate wage. However, these two sectors are likely to be reviewed later in the year when the airport’s Master Plan is studied. This is good news indeed for many staff at Sea-Tac but the actual total falls far short of the much-debated US$15 minimum wage that hit the news headlines.

BBA records good growth

Aircraft services provider BBA Aviation has reported a 3% rise in first-half revenues. This has been down to an upsurge within the US aviation industry, which has driven demand for its flight-support services.

BBA’s underlying pre-tax profit rose to US$79.2m in the six months ended June 30 from US$78.4m a year earlier.

Revenues rose to US$1.15bn from US$1.11bn a year earlier. Revenues in its flight-support services unit, which is its largest entity, rose by 12% to reach US$775.5m.

German group opens up in the US

At the start of August the Fraport Group expanded its international portfolio in the global airport market by acquiring 100% of US-based AMU Holdings, which owns Airmall USA Holdings (Airmall). One of the leading airport concessions developers in North America, Airmall markets space at the aviation hubs of Baltimore, Boston, Cleveland and Pittsburgh. Together, these four hubs serve a total of about 70m passengers per year. Airmall currently oversees about 34,000 square meters (around 366,000 square feet) of space in the passenger terminals at the four airports, with about 270 retail and food and beverage outlets operated by international, national, regional and local tenants.

Fraport’s Executive Board Chairman, Dr Stefan Schulte, welcomed the acquisition. “The retailing business at our Frankfurt homebase has always been a growth engine and we have repeated this success story consistently over the years at our other Group airports worldwide. With the acquisition of Airmall, we have established a promising platform for developing our US business in the future.”