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Main News September 30

Collective bargaining at AA

For the first time in the carrier’s history, passenger service agents working at American Airlines have backed union representation for collective bargaining. The vote will affect about 14,500 agents who work at both American and US Airways. These workers will be represented jointly by the Communications Workers of America and the International Brotherhood of Teamsters, which represented agents at US Airways for more than a decade before its merger with American in 2013. The CWA said that in all, 9,640 agents voted for the union while another 1,547 opposed it.

The National Mediation Board has also ruled that the Allied Pilots Association, which represents pilots at American Airlines, will bargain on behalf of US Airways’ pilots in future contract negotiations, according to a spokesperson.

Federal grant for de-icing facility

The US Department of Transportation is making available over US$7.2m for a project that will see the construction of a de-icing containment facility at Gerald R Ford International.

There have been worries over the quality of water adjacent to the airport and further afield, where pollutants from the de-icing process have been detected. The new facility will be treating the diluted fluids after the de-icing operation, removing heavy metals and other contaminants, before allowing a discharge of the cleansed water to the nearby river system.

Airport administrators have said that the facility should be fully functional by October 2015.

Swallowing the tablet

American Airlines has won approval for the swapping of flight attendants’ paper manuals for electronic tablets, in a change that ought to bring with it savings totaling nearly USD$1m a year.

The move, which does not yet affect attendants at its subsidiary, US Airways, comes a year after American Airline’s cockpits abandoned paper. This is just one of various strategies that airlines have rolled out in an effort to reduce weight and save on fuel.

Already, Delta and United have distributed smart devices to their pilots, while next month Delta has plans to roll out an electronic manual for its flight attendants.

More minimum wage demands

Seattle started it. Next, Los Angeles jumped on the bandwagon. Now, a group of workers at Minneapolis-St Paul International are pinning their hopes on an hourly minimum wage of US$15. In all, over 800 staff have signed a petition asking the Metropolitan Airports Commission for an increase in salary.

The initiative becomes the latest in a nationwide effort to boost wages for the lowest-wage earners. However, earlier in the year, the Minnesota Legislature raised the minimum wage from US$6.15 an hour for large employers to US$8. By 2016, it will be US$9.50, thereafter indexed to inflation, which will start in 2018.

Needless to say, worker groups there have been flagging up the above two stations as examples of success in this wage demand.

Whether they will be as lucky as their colleagues remains to be seen: officials at Minneapolis have said that the only salaries it might be able to enhance at the airport would be those of its own employees, all of whom earn more than US$15 an hour anyhow. It would require the intervention of the state Legislature to change wages for the remainder of the workers.

In Brief

American Airlines has set October 20 as the date that American and US Airways will become one cargo organization. This transition comes ten months after the merger between the two airlines became official.

 

Main News September 12

Simply does it

Menzies’ Simplicity ground handling product has ousted the SkyWest Airlines operation with United at Denver International, with the loss of over 600 jobs. Menzies was successful in its below-the-wing bid for the carrier after the airline had revealed that the incumbent had experienced problems with on-time reliability. The win marks another step forward for Simplicity’s presence in the US.

De-icing operation now a Yingling service

Yingling Aviation recently purchased the assets of the aviation de-icing company, ICT Aviation Services, in order to enhance its service offering. Thanks to this acquisition, Yingling will now be able to furnish de-icing and anti-icing services at Wichita Mid-Continent airport. Contracts have been signed with airlines operating at the station and it is envisaged that the contracts will allow Yingling to de-ice commercial aircraft at the station whilst being on hand to provide a back-up service, as and when required. Anything up to a B767 will be accommodated and included in the sale were two de-icing rigs. The de-icing season at Mid-Continent typically runs from October to April, so this is seen as a useful adjunct to the company’s main portfolio: both Type 1 and Type 4 fluids will be available.

Study finds Atlanta is the place to be

According to a new ranking of global airports, Atlanta International has come out as the most efficient airport in the world. The report was compiled by a team of international aviation academics at the University of British Columbia’s Sauder School of Business.

In the study, the ATRS Global Airport Benchmarking Report compares the operational and management efficiency, as well as the cost competitiveness, of 200 airports and 26 airport groups around the US, Europe, Asia and Oceania.

Atlanta was followed by Douglas International in second place and Minneapolis in third in the rankings: these constituted the category with over 15m passengers per annum. For airports under the 15m passenger mark, Oklahoma came out on top; Calgary took the runner-up position, with Raleigh-Durham making third place. In Canada, Vancouver took first place, followed by Victoria and Calgary.

“Our report finds that the highly efficient airports are more likely to generate a large share of total revenues from concession and other retail activities in terminal buildings, as well as parking, office rentals and real estate development on airport lands,” commented UBC Sauder School of Business Professor Tae Oum, who led the study.

Fuel company in expansion mode

Air BP has confirmed an agreement that will see it purchase the aviation fuel business Statoil Fuel & Retail Aviation from Canadian company Alimentation Couche-Tard. The deal will add around 73 new airports in the Nordic countries and Northern Europe to Air BP’s 600-strong global fuels network. The deal, which is subject to regulatory approvals, is expected to close by the end of 2014. On completion, around 59 SFR Aviation employees, currently based in Norway, Sweden and Denmark, are expected to join Air BP.

United jobs to go at Detroit

United Airlines has said that it is preparing to lay off 109 staff at Detroit Metro airport and outsource their job functions. Those affected include 51 customer service representatives, 49 ramp workers and various other positions. The redundancies are expected to be implemented at the start of October; United announced the terminations in a notice filed with state officials.

The carrier said that the restructuring was needed so that it would have “sustainable financial success and run an efficient and reliable operation.” The notice did not identify the new vendor or specify whether the workers would be able to find re-employment.

Passport kiosk initiative

Delta Air Lines has unveiled ten new passport kiosks at Los Angeles International to enhance its customers’ level of convenience. The kiosks are located at Terminal 5, which is currently undergoing a US$229m renovation.

Delta thus becomes the first carrier to offer kiosks at this station: its competitors, such as American Airlines and United Airlines, have delayed installation at their respective terminals because of the ongoing airport renovation work.

The new kiosks are part the company’s plan to reduce waiting times for those requiring passport and customs clearance.

Main News August 29

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.”

Main News August 15

Under the Weather…

India is again proving a tough testing ground for foreign handlers.

The latest attempt by Universal Weather & Aviation to handle there has been unsuccessful, even though it tried to form a joint venture company in India in order to offer its own ground handling services. The irony is that this Houston-based company is no stranger to the Indian continent, having provided trip support for the past decade; moreover, its agents have acted in supervisory rôles for the local handlers that it uses.

According to the Indian government, a hundred percent foreign equity is not allowed when it comes to ground handling providers. The JV was applied for some 12 months back and only now has the company been notified that the application has been denied; employees of the joint venture (which is known as Universal Aero Flight Services India Private) will not therefore be granted ramp access.

Jetbridges and power for Wichita

JBT AeroTech has been awarded a contract exceeding US$8m to supply gate equipment for the Wichita Mid-Continent airport. The order, placed by the Wichita Airport Authority, includes glass-sided Jetway passenger boarding bridges, JetAire preconditioned air units and Jetpower 400 Hz ground power units. As such, it represents one of the largest orders for glass-walled boarding bridges in the US.

Collective agreement ratified

At the end of July, Servisair and Teamsters Local 419 finally ratified a collective agreement for members working at Toronto Pearson International airport. The new collective agreement will assure a continuation of service for both the traveling public and commercial cargo operations.

The agreement was reached with some assistance from the Labour Program’s Federal Mediation and Conciliation Service: this provides dispute resolution and dispute prevention assistance to trade unions and employers under the Canada Labour Code.

Cherry ripe…

Were you aware that Sea-Tac’s key export is the humble cherry?

This year has been exceptional in terms of the crop yield, with experts saying that it is the second best year ever. That, in turn, has created many opportunities for extra cargo flights. Eight cargo airlines that use freighters have carried cherries this summer out of Seattle, in addition to the conventional belly cargo carriers.

Amongst the carriers that have added capacity are EVA, Asiana, China Eastern, China Airlines, Korean Air and Nippon Cargo: all have all added extra flights or charters.

At the time of writing about 22m, 20 pound boxes of cherries had been filled – with more to come.

Delta shifts stance on fuel supply

Delta Air Lines has cancelled a multi-year contract with BP with a view to exchanging refined fuels from Delta’s Trainer refinery for more jet fuel. This comes in the wake of a product exchange contract between Delta’s subsidiary Monroe Energy and BP, which was terminated at the start of July.

Delta has said that it has replaced BP with another, as yet unnamed, party. The airline added that the termination was early, but it did not say when the contract had been due to expire.

When Delta bought the 166,000 barrel per day Philadelphia refinery in mid-2012, it struck several agreements to supply crude and buy its refined products, thereby reducing its need to trade directly in the oil market. One of those was a multi-year agreement with BP, which was to buy some of the refinery’s non-jet fuel products, such as gasoline and diesel, and sell jet fuel back to Delta. It struck a similar deal with Phillips 66 to swap Trainer’s refined products for more jet fuel.

The SEC filing made no mention of another agreement from 2012, that of a three-year deal under which BP was to supply crude oil to the refinery.

Extension to screening program agreed

US Customs and Border Protection recently extended its Air Cargo Advance Screening pilot program for a further year, following representations from freight forwarding representatives. It has also reopened the application period for new participants.
In fact, the pilot scheme was set to expire in July but will now be extended until 26 July 2015.
The program, which analyzes advance data on inbound air shipments to the US in order to assess the level of risk, is currently in its pilot phase, although US Customs and Border Protection has indicated that over time it intends to expand it to apply to all inbound air cargo.

 

Main News July 25

IAM in staff agreement ratification at US Airways

Three workgroups at US Airways, which are represented by the International Association of Machinists, have ratified three collective bargaining agreements that in total cover more than 11,000 employees. The agreements will remain in effect for US Airways’ employees until a joint collective bargaining agreement (extending to the 30,000 employees of the new American Airlines) has been reached.

Doug Parker, Chairman and CEO of American Airlines, expressed his pleasure in reaching the agreements. He added that these agreements would allow the company to focus on the next steps for the airlines’ fuller integration, and in so doing, would pave the way for bringing the two employee groups together.

Whilst it has been a long haul for the two airlines to get this far, other staff negotiations and agreements are in place, or at least are in the pipeline.

Delta hoping to profit from domestic crude

Monroe Energy, one of Delta Air Lines’ subsidiaries, has signed into a five-year agreement with Bridger (a midstream energy company), to supply 65,000 barrels of domestic crude oil daily to its refinery in Pennsylvania.
This agreement, which will supply about a third of the crude oil that is refined every day at the facility, is a significant step forward in Delta’s strategy to manage its jet fuel expenditure. This cheaper domestic crude oil from the Bakken fields in North Dakota will replace the more expensive crude that historically has been imported to the refinery.


Newark Liberty wages still undecided

According to sources, the matter of workers’ wages at Newark Liberty International could be resolved in the near future.

United Airlines, the airport’s primary carrier, has said that it still questions whether the agency has the legal power to impose a wage hike. But the airline has also said that its vendors may be contractually bound to comply with the order.

The Port Authority in January ordered wage increases of US$1 an hour after July 31 for workers who were making less than US$9 per hour; this category included baggage handlers and cabin cleaners. The agency also said that workers could be earning US$10.10 an hour by February 2015 and might see subsequent increases tied to the Consumer Price Index.

Improved service for Calgary

Cathay Pacific Airways has said that it will be enhancing its freighter services in Canada with the introduction of a twice-a-week scheduled service to Calgary: this is set to get underway in October this year. The Calgary service is to be operated with Boeing 747-8 freighters, which will be transporting machinery and perishables from Calgary to Hong Kong.

Job cuts at Buffalo create uncertainty

United Airlines has said that it will be outsourcing jobs at Buffalo Niagara International airport to a vendor. This cost-cutting move is likely to affect upwards of 70 employees and comes in the wake of the carrier posting a loss of US$609m in the first quarter of this year.

The action isn’t in isolation, though: United is going through the same process at a dozen US airports in all. The change will take effect in October this year, and will involve a range of employees such as baggage handlers and ticket and gate agents.

The impending outsourcing will create a degree of uncertainty for United employees at the airport. The vendor (PrimeFlight Aviation Services) will make the staffing choices and it is expected that those signed up will be on a lower salary level than at present.

On the plus side, all senior staff have been offered jobs, albeit not necessarily at the same station. Workers could well find posts at other United bases, such as Denver, Honolulu, Phoenix and Dulles, where staff are actively being sought. It is understood that severance packages are also available.

Main News July 11

Alliance partners boosting lounge at LA

The Tom Bradley terminal at Los Angeles International now has a new and improved Business and First Class lounge.

Qantas, along with oneworld alliance partners Cathay Pacific and British Airways, has unveiled the new premium class lounge, which is complete with showers, a bar serving specialty cocktails and coffees, and a taco stand.

Business, First Class passengers and certain frequent fliers with status will have a wide choice of seating areas, some social, some quiet for business purposes. A highlight is the communal fireplace, with ample seating surrounding it.

For now, the lounge is about 11,000 square feet. When it is completed early next year, it will be around 40,000 square feet in all, and will be able to accommodate up to 600 people.

Raising the bar – at last

A comprehensive wage and benefits proposal from the Port of Seattle Commission would raise minimum wages for thousands of airport workers to US$13 by January 1, 2017.

The proposal, unveiled at a recent port meeting at Seattle-Tacoma International, includes provision for airport worker benefits and vacations, as well as training for additional advancement.

The port’s re-examination of wages and benefits was spurred in part by City of SeaTac’s voter approval of a US$15 minimum wage late last year. However, the court ruled that the municipal minimum wage boost did not apply to the 14,000 staff then on low wages at the airport.

Luggage to go

Despite all the media coverage about charges for bags and the increasing cost of ancillary services on today’s carriers, travelers, it appears, are still quite happy to shell out for the luxury of taking their luggage with them.

These, at least, are the findings from surveys conducted by The GO Group, an international ground transportation service provider, and GO Airport Express, a GO member and Chicago-based ground transportation company serving O’Hare International and Midway airports.

More than 917 travelers were polled in this year’s survey on luggage preferences. The survey records that 32% of respondents said that they prefer to check in their luggage whilst 21% said that they prefer to carry on bags, with 26% admitting that they both check in and carry on bags. Some 27% admitted that their decision depended on the situation, such as the length of their trip and the number of bags they were carrying.

This compares with a 2013 poll of 570 travelers, in which 28% said that they checked their bags. Just 19% said that they always carry on bags whilst 23% said that they did both. In 2013 30% cited that it depended on the situation.

According to the Bureau of Transportation Statistics, passenger airlines collected US$797m in baggage fees, or 1.6% of total operating revenues, in 2013.

Lounge joint venture

At the start of the month American Airlines and Iberia announced the joint operation of their new Admirals Club/Iberia VIP Lounge at Ezeiza International airport in Buenos Aires. American had originally opened the Admirals Club at Ezeiza International back in 1991. However, in order to further enhance the travel experience for its customers, American has decided to team up with Iberia to build the new joint lounge in Terminal B on the upper level. The new VIP lounge is conveniently close to the boarding gates for Iberia flights.

In Brief

Global Ground Support has renewed the lease for its 112,000 square foot manufacturing facility in Olathe. In addition, the de-icer specialist expects to add 25 new jobs over the next five years.

Main News June 26

Wage optimism yet to crystallize

Philadelphia is the latest airport to start looking at wage rates and remuneration for its staff.

Despite the fact that an executive order was signed some weeks ago by the town’s mayor, at the time of writing no tangible progress had been made in moving the statutory wage from US$7.50 an hour up to US$10.88.

The order actually applies to any bids or proposals issued after May 20, and starting January 1, all proposals and contracts will include a US$12 an hour minimum wage requirement. However, city officials have said that they cannot enforce current contractors and subcontractors to pay the minimum wage until new contracts are signed. In the interim, the service employees union, SEIU 32BJ, which represents the airport workers, is pressurizing City Hall and airlines to force subcontractors employing cabin cleaners and wheelchair attendants to comply with the order.

Mass cargo handling: cause for concern?

The coming Air Cargo Advance Screening Program has had a lengthy gestation but there are still those who are worried that testing has not been as thorough as it could be. In this respect the Airforwarders Association, the National Customs Brokers and Forwarders’ Association, the Express Delivery and Logistics Association and The International Air Cargo Association have all contacted the TSA and the Customs and Border Protection to voice their fears.

The problem seems to revolve around the fact that whilst ACAS has been operating as a pilot program, it has only been with a very small number of forwarding companies, and working out of a limited number of locations.

There is, though, plenty of evidence to suggest that Congress is keen to see the ACAS concept adopted, despite the fact that further testing may be desirable.

Sao Paulo automation coming

Come August, travelers passing through São Paulo International in Guarulhos who are over the age of 18 and have an electronic passport will be able to take full control of their terminal experience. This will be made possible through the automated border control eGates that are being installed in terminals 2 and 3 at the airport. These work through the expedient of facial recognition and secure documents to provide passengers with an autonomous experience that is divorced from contact with the federal police.

The most trusted…?

We all know that carriers enjoy their catchphrases but once these take the form of statements of fact rather than aspirations, what then? Can an airline legally claim hold of something as intangible as a description, especially one that is open to conjecture? Delta certainly thinks so – which is why it is in the process of trying to trademark the epithet of “The world’s most trusted airline.”

Is it?

And if it is successful in its bid, will a traveler be more likely to opt for the Delta experience in the future?

Environmental progress for Air Transat

Air Transat has become the first US carrier to complete the initial stage of IATA’s Environmental Assessment (IEnvA) Program. The voluntary program is based on the core principles of compliance with environmental obligations and a commitment to continual environmental management improvement. Adopting the standard IEnvA procedures and recommended practises, says IATA, allows an airline to focus resources on improving its environmental performance rather than having to develop an Environmental Management System from scratch.

The actual program follows a two-stage implementation approach which involves a detailed assessment of flight operations, corporate and management activities that allows for early recognition of environmental management achievements. In this manner Air Transat joins the likes of Finnair, South African Airways, LAN, LAN Cargo, Malaysia Airlines and Kenya Airways as the only airlines so far to have achieved Stage 1 certification.

AA in agreement

American Airlines Group has said that it has reached a tentative agreement with mechanics and ground workers at its partner US Airways. The airline confirmed that the three-year contract agreements will be subject to member ratification and that they will cover 11,000 workers who are represented by the International Association of Machinists.

This union, it should be noted, was the only labor group at US Airways and American Airlines that did not publicly support the merger.

The Transport Workers Union represents both mechanics and ground workers at the pre-merger American Airlines. The machinists and the transport workers had previously agreed to represent the work groups jointly after the merger, and after the machinist groups had received a new contract.

On time ratings improve

The US’s largest carriers posted an on-time arrival rate of 79.6% in April. This represented an improvement on both the 77.3% on-time figure recorded in April 2013 and the 77.6% on-time rate posted in March 2014, says the latest US Department of Transportation’s Air Travel Consumer Report. The reporting carriers canceled 1.1% of their scheduled domestic flights in April: this was down from both the 1.8% cancellation rate posted in April 2013 and the 1.9% rate declared in March 2014.

Main News June 10

Two new beneficiaries from IAG

Global businesses are set to benefit as Montevideo in Uruguay and Santa Domingo in the Dominican Republic are added to IAG Cargo’s worldwide network, which comprises more than 350 destinations in total. Flights to the two new cities will start on September 1 and will build on the strength of the IAG Cargo network in Latin America, which will grow to 16 destinations. The new routes will be served from IAG Cargo’s hub in Madrid by Iberia Airbus A330 and A340-300 aircraft. Each flight will deliver between 9.4 and 12.7 tonnes of capacity on the Madrid–Santo Domingo route, and between 6.5 and 11.7 tonnes of capacity on the Madrid–Montevideo route.

SMS at core of new standard

The National Air Transportation Association, along with the International Business Aviation Council, has announced the creation of the International Standard for Business Aircraft Handling (known as IS-BAH).

This represents a set of global industry best practices for business aviation ground handlers, at the heart of which lies a safety management system. The IS-BAH follows the long-established structure of the International Standard for Business Aircraft Operations Program and incorporates NATA’s Safety 1st Ground Audit Program. IS-BAH is set to provide standardization to handlers and operators around the world to meet the coming SMS requirements that have been mandated by the International Civil Aviation Organization.

De-icer and distributor to form venture

Integrated De-icing Services and GTA Aviation have announced the formation of a strategic agreement to develop new business opportunities within Canada.

Both companies are industry innovators, with IDS widely considered as one of the most technologically advanced independent providers of de-icing/anti-icing services. The company is presently de-icing aircraft at 15 airports in the US and Europe. IDS also operates the largest fleet of forced-air de-icing trucks in the world and has twice earned a spot on the Inc. 5000 list of America’s Fastest Growing Companies. GTA is a leading global distributor of high quality ground support equipment. The Canadian company offers a wide variety of new and refurbished ground handling equipment to airlines and airport authorities in dozens of countries.

Better boarding: time for change?

What’s the best way to board an aircraft?

It’s a thorny issue, and probably one that has dogged the sector’s logistics experts for many a year. A recent survey from the GO Group has found that the most favored method, at 55% of the vote, was that of boarding from the back. This was deemed most efficient of all, along with boarding from window seat to aisle seat, although there were other methods suggested.

Almost 300 people were sampled for the study, which was conducted in response to news some airlines have been testing boarding from back to front as well as outside in, with window passengers first, then middle seats then aisles.

Other suggestions included a desire that carry-ons be placed in bins above the owner, rather than being scattered around the cabin. Random boarding was also put forward as a method worthy of adoption, on the basis that everything is spread out and therefore bottlenecks would not occur.

The findings, though, don’t look as if they are going to change the status quo. After all, whether boarding is conducted from the back or front is immaterial provided that row numbers are clearly called out and, perhaps more importantly, travellers actually follow the boarding instructions in the first place…

Main News May 16

Airline investing in the future

Alaska Airlines is to pledge a total of US$1.5m towards job training at Seattle-Tacoma International airport.

This local investment will be made over the next four years in collaboration with the Port of Seattle, with an initial contribution to Port Jobs, a non-profit organization that is committed to preparing workers for the Port of Seattle economy.

In the first year, Alaska’s grant should help Port Jobs expand access to college courses through the Airport University, effectively doubling the number of courses, college credits and students. The grant will also enable Port Jobs to add more advanced courses than are currently offered. Alaska Airlines has been involved with Port Jobs since its inception in 1993 and has several key executives serving on its Board of Directors.

“As one of the largest employers at Sea-Tac airport, we believe it’s important to invest in a strong local workforce for the future of our business, our regional economy and the many families who rely on jobs at the port,” explained Toby Skey, Managing Director of Human Resources and board member at Port Jobs.

The Port of Seattle supports more than 200,000 jobs and generates US$6.8bn on its payroll. Alaska Airlines employs more than 7,000 workers at the company and partner vendors in the Seattle area to a greater extent than any other air carrier. Over the duration of the jobs training grant, Alaska expects to fill 2,000 family wage jobs in the Seattle market, and will be working closely with the Port of Seattle and Port Jobs to prioritize hiring graduates of the program.

Monterey on a roll

Monterey Regional airport has been celebrating its handling operation.

The efforts of the 42 staff, who take care of customer baggage, as well as other services, have culminated in the winning of the Outstanding Baggage Performance of the Entire Year 2013 award from United Airlines. The ground handling crew was the only station in the Western Region to win the award but sadly it comes from an airline that recently announced its plans to end a major route with the airport.

How good is the operation? The airport received 37 complaints about baggage operations in 2012, just 13 last year and has recorded none so far this year.

Baggage handling used to be effected by all the individual airlines, each with its own workers. But in mid-2012, the airport switched to just one company, Envoy Incorporated, to take care of the whole operation.

The crew also won two awards, which they received at the start of the year, for work in 2013. They were the Proppy Award (from Horizon Air) for Excellent Leadership and Performance and the Commitment to Safety award, from American Eagle Airlines.

New venture looks to help GSE acquisition

Sasser Family Holdings has announced the launch of its ground support equipment finance and asset management subsidiary, that of Xced Aviation Services. Xced is positioned to provide single investor equipment financing solutions and life cycle management relevant to all GSE for the North American market.

The new company will be headed up by William R Long, who joined the organization in January 2014 to help establish this particular service offering.

“I am excited about this opportunity. Even this early on, I know that the level of service that Xced will be able to provide the industry is remarkable. Thanks to the expertise of our parent company, and our team, we’re entering the market with the immediate ability to provide tailored solutions to the marketplace,” he stated.

Xced’s services will include lease financing and traditional fixed purchase option financing structures on new and used ground support equipment, as well as a wide range of incremental asset management services, including trade-in of used ground support equipment, purchase and selling services, refurbishment services and refurbishment financing.

Baggage fees on the wane?

It’s official: a recent report has highlighted the fact that airlines are raking in less money from bag fees than they did two years ago. That said, they are actually making up for it by adding charges for extras, which includes securing a favorable seat.

The government has reported that US airlines raised some US$3.35bn from baggage fees in 2013, which was actually down 4% on 2012. That is the biggest decline since fees to check in a bag first appeared, back in 2008.

It’s known that some passengers will try to avoid bag fees through the use of airline credit cards or through earning elite level frequent-flier status. Others simply carry their bag on board in the hope of finding a slot in the overhead storage compartments.

The bag fee statistics were part of the information released by the US Department of Transportation, which added that airlines earned US$7.3bn in the fourth quarter of last year, reversing a loss of US$188m experienced during the same period in 2012.

The airlines also raised US$2.81bn in 2013 from fees for changing a reservation or ticket: this represented a 10% hike compared to the previous year. All that said, fees for checked bags, along with reservation changes and other services, have become a larger share of airline revenue and a principal reason why (some) airlines are now in the black.

Main News May 6

Over a barrel?

Delta Air Lines made the headlines when it bought the former ConocoPhillips refinery in Trainer a while back, with the aim of securing an alternative source of jet fuel. The move was criticized by some at the time as a drastic measure with no short-term benefit. That point of view was underlined this month when the refinery posted losses of US$41m in the first quarter or 2014. However, it is expected to be profitable by the end of the second quarter. The refinery is operated by Delta’s subsidiary, Monroe Energy, in agreement with BP and Phillips 66.

In its defense, Delta said that one major unit at the refinery had been shut down for scheduled modifications, and that this had led to a decrease in production. Another fly in the ointment has been the impact of the rising cost of Renewable Identification Numbers credits: these are credits that refiners purchase to comply with the Environmental Protection Agency’s Renewable Fuel Standard and they have created pressure on fuel prices.

Delta is now making infrastructural changes to the plant in order to increase refined production and boost jet and diesel production to around 50% of the refinery’s total output.

Five out of five for Southwest Cargo

Southwest Airlines Cargo was recently named the Airforwarders Association’s “Domestic Carrier of the Year” for the fifth year in a row. It also earned the Express Delivery & Logistics Association’s “Domestic Airline of the Year” accolade. This represents the fourteenth year in a row that Southwest has won the award.

The Airforwarders Association awarded Southwest the designation as the carrier of the year based on its on-time performance, customer service, problem resolution, claims handling, technology support, service options and its overall value.

Queues and views

A recent survey of passengers at US airports has come up with little conclusive evidence to suggest that travelers are unhappy with the laborious process that typifies check-in at today’s airports in a post 9/11 world.

In fact, Americans appear to be less than concerned about the level of security provided by Transportation Security Administration screenings at US airports, although most are in favor of the agency’s more fluid Pre-check program.

In the Harris Poll, only half of those surveyed said that they thought security screening performed by TSA agents was making air travel any safer. This figure compares with 43% who believed that the screenings made flying neither more nor less safe.

Overall, some 48% say that they believe the screenings are an effective deterrent to hi-jacking. This compares with 36% who reckoned that it made little difference one way or the other. Interestingly, some 15% felt that such security measures represented an ineffective deterrent overall.

In brief

Landmark Aviation has announced that it has signed a definitive agreement to acquire Ross Aviation, a US-based FBO network, from investment funds affiliated with Centre Partners Management LLC and management. The acquisition will be subject to satisfying customary closing conditions.

JBT has said that its JBT AeroTech business has been awarded services contracts totaling more than US$7m by the United States Air Force to support its fleet of Halvorsen 25K cargo loaders. The services contracts continue through March 2015.

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