US Airways outsources ULD management to save $2 million over 5 years

US Airways is the first U.S. international carrier to outsource Unit Load Device (ULD) management in a sale and leaseback deal that furnishes ownership and administration of the airline’s ULD fleet to Jettainer GmbH. As part of its corporate cost-savings initiatives, US Airways has transferred its entire fleet of air cargo and passenger flight containers and pallets to Jettainer. Jettainer will manage the airline’s entire ULD operations for a monthly fee which covers ULD supply chain management services including order management, repair and maintenance, tracking and tracing, account management and other fleet administration services. Jettainer is expected to save US Read more

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Aer Lingus appoints corporate advisors for privatisation process

Aer Lingus, the Irish state owned airline, confirmed the appointment of Merrion Capital and Goldman Sachs as advisors to the company. The advisors will assist Aer Lingus in the privatisation process already initiated by the Government. New investment in the airline is essential to fund fleet acquisition and other development expenditure required to underpin growth in both the medium and long term. Dermot Mannion, Chief Executive, Aer Lingus said, “This appointment of our corporate advisors comes as discussions on the privatisation process are now entering a critical phase. Merrion Capital and Goldman Sachs will begin their work immediately”.

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Ryanair Dublin pilots each receive EUR50,000 share option windfall

Ryanair confirmed that many of its Dublin pilots will exercise share options which at the current share price have a profit of approx. EUR50,000 each. These share options (which formed part of the 5 year pay, benefit and share option scheme collectively negotiated directly between the Dublin pilots and the airline in November 2000) fall due to be exercised at the end of November. The total value of the shares held by each qualifying pilot under the scheme are presently valued at over EUR175,000.

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U.S. Department of Transportation proposed new foreign ownership rules

The U.S. Department of Transportation proposed new rules to help US airlines to raise foreign money. U.S. airlines would have more opportunities to obtain financing from investors under a new rule announced today by U.S. Secretary of Transportation Norman Y. Mineta. The proposed rule would allow international investors more say in some aspects of airline operations, but retain current domestic ownership and labor protections in U.S. airlines, Mineta said. The notice of proposed rulemaking would allow global investors more input in marketing, routing and fleet structures. However, the proposal would ensure current protections guaranteeing that U.S. citizens own at least Read more

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Northwest still hopes to reach out of court agreement with unions

Northwest Airlines filed an 1113(c) motion with the bankruptcy court on October 12 to secure labor cost savings if the company and its unions do not achieve consensual agreements (as previously reported).Northwest has been in discussions with The Air Lines Pilots Association (ALPA), The International Association of Machinists and Workers (IAM), and The Professional Flight Attendants Association (PFAA) regarding the possibility of extending the deadline for the Section1113(c) hearing to mid-January in order to allow all parties more time to reach consensual labor cost saving agreements. In light of Northwest

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