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Friday June 26, 2009 British Airways said that 6,940 employees, about 17% of its total workforce, have agreed to either unpaid leave, part-time work or unpaid work in a move that will save the airline up to £10 million. CEO Willie Walsh called it "a fantastic first response." Unpaid leave/work was available for 1-4 weeks, with the pay deduction spread over 3-6 months.
Lufthansa said its Passenger Airlines segment will present details of "a new profit saving program" on July 30, when the company releases its first-half results. "The financial crisis and its repercussions pose major challenges for airlines worldwide. Lufthansa is also impacted by the persistently weak demand development in both the passenger and freight businesses, structural changes in passengers' travel behavior and rising fuel prices," it said. At an investors day yesterday, LH said it has cut capacity by 2.6% this year and removed 23 aircraft from its fleet. CFO Stephan Gemkow said work hr. would be cut for some staff and that the company's range of cost-cutting initiatives is designed to save €300 million ($421.5 million) this year, Deutsche Welle reported.
Air India announced formation of a "turnaround committee" comprising management and union representatives who will "make presentations identifying areas where savings can be effected." The Indian government told the airline this week that aid will be tied to performance improvements (ATWOnline, June 25). Yesterday AI announced a voluntary leave (for up to two years) without pay option, according to The Economic Times, although a union leader told the Press Trust of India that employees will not negotiate wage cuts.
Civil Aviation Minister Praful Patel said he expects a full restructuring plan within one month and that "this is one last chance Air India has got," The Times of India reported. Patel suggested that AI might transition to a low-cost model. "If someone has a capacity that can't be supported by a full-service model, what choice does he have," he asked. "The management will be restructured within a month. Eminent people will be brought on the airline's board, including functional directors. Induction of new aircraft into the fleet will not be slowed down as Air India will phase out its old aircraft."
Air France said yesterday that the body of Flight 447's captain and that of a flight attendant have been recovered by search crews. So far, 50 bodies have been found from among the 228 passengers and crew aboard the A330-200 that crashed some 360 mi. off Brazil's northeast coast on May 31 (ATWOnline, June 18).
Ambassador John Bruton, head of the European Commission Delegation to the US, is raising concerns about a proposal in Congress to charge foreign visitors at least $10 each to fund a new quasi-governmental corporation that will help promote travel to the US. Congress currently is considering the Travel Promotion Act of 2009 (S 1023), "which would establish a nonprofit corporation to better communicate US entry policies to international travelers and promote leisure, business and scholarly travel," according to a statement from Bruton. Funding will occur by means of a fee placed on foreign visitors "as part of a traveler's application for an Electronic Travel Authorization which is required for every visitor traveling to the US under the Visa Waiver Program."
In his statement, Bruton noted that "the imposition of the fee is a change in the understanding under which ESTA was established as a security program" by the US. He warned that the program "remains unpopular in the EU" owing to the data collection requirements. "Charging a fee as well will not help matters," and could lead to a challenge from the EC and possible retaliation by EU member states, he said.
Pratt & Whitney cut 200 salaried positions across its US-based operations (including approximately 170 in Connecticut) this week as part of a restructuring initiative announced in March by parent United Technologies (ATWOnline, March 30). "It is clear that this is not a short-term economic downturn. Engine orders as well as maintenance, repair and overhaul activities are lower, requiring us to make difficult decisions," the company said.
Other News
Friday June 26, 2009 British Airways said that 6,940 employees, about 17% of its total workforce, have agreed to either unpaid leave, part-time work or unpaid work in a move that will save the airline up to £10 million. CEO Willie Walsh called it "a fantastic first response." Unpaid leave/work was available for 1-4 weeks, with the pay deduction spread over 3-6 months.
Lufthansa said its Passenger Airlines segment will present details of "a new profit saving program" on July 30, when the company releases its first-half results. "The financial crisis and its repercussions pose major challenges for airlines worldwide. Lufthansa is also impacted by the persistently weak demand development in both the passenger and freight businesses, structural changes in passengers' travel behavior and rising fuel prices," it said. At an investors day yesterday, LH said it has cut capacity by 2.6% this year and removed 23 aircraft from its fleet. CFO Stephan Gemkow said work hr. would be cut for some staff and that the company's range of cost-cutting initiatives is designed to save €300 million ($421.5 million) this year, Deutsche Welle reported.
Air India announced formation of a "turnaround committee" comprising management and union representatives who will "make presentations identifying areas where savings can be effected." The Indian government told the airline this week that aid will be tied to performance improvements (ATWOnline, June 25). Yesterday AI announced a voluntary leave (for up to two years) without pay option, according to The Economic Times, although a union leader told the Press Trust of India that employees will not negotiate wage cuts.
Civil Aviation Minister Praful Patel said he expects a full restructuring plan within one month and that "this is one last chance Air India has got," The Times of India reported. Patel suggested that AI might transition to a low-cost model. "If someone has a capacity that can't be supported by a full-service model, what choice does he have," he asked. "The management will be restructured within a month. Eminent people will be brought on the airline's board, including functional directors. Induction of new aircraft into the fleet will not be slowed down as Air India will phase out its old aircraft."
Air France said yesterday that the body of Flight 447's captain and that of a flight attendant have been recovered by search crews. So far, 50 bodies have been found from among the 228 passengers and crew aboard the A330-200 that crashed some 360 mi. off Brazil's northeast coast on May 31 (ATWOnline, June 18).
Ambassador John Bruton, head of the European Commission Delegation to the US, is raising concerns about a proposal in Congress to charge foreign visitors at least $10 each to fund a new quasi-governmental corporation that will help promote travel to the US. Congress currently is considering the Travel Promotion Act of 2009 (S 1023), "which would establish a nonprofit corporation to better communicate US entry policies to international travelers and promote leisure, business and scholarly travel," according to a statement from Bruton. Funding will occur by means of a fee placed on foreign visitors "as part of a traveler's application for an Electronic Travel Authorization which is required for every visitor traveling to the US under the Visa Waiver Program."
In his statement, Bruton noted that "the imposition of the fee is a change in the understanding under which ESTA was established as a security program" by the US. He warned that the program "remains unpopular in the EU" owing to the data collection requirements. "Charging a fee as well will not help matters," and could lead to a challenge from the EC and possible retaliation by EU member states, he said.
Pratt & Whitney cut 200 salaried positions across its US-based operations (including approximately 170 in Connecticut) this week as part of a restructuring initiative announced in March by parent United Technologies (ATWOnline, March 30). "It is clear that this is not a short-term economic downturn. Engine orders as well as maintenance, repair and overhaul activities are lower, requiring us to make difficult decisions," the company said.
