Sky Talk

No verdict on F-35 production

Chief Pentagon weapons buyer John Young is apparently still deliberating on how to proceed with development and acquisition of the F-35 Joint Strike Fighter.

Young, undersecretary of defense for acquisition, technology and logistics, is still evaluating proposals to authorize production of 12 F-35s in the wake of last week's Defense Acquisition Board meeting, according to a statement issued by his office Monday.

Congress appropriated funding for the 6 F-35A (conventional take off) and 6 F-35B (short takeoff, vertical landing) low-rate production airplanes in the fiscal year 2008 defense budget and additional funds to buy long lead time parts for 19 aircraft expected to be authorized in fiscal year 2009.

_ Bob Cox

Champion Air calls it quits

Charter carrier Champion Air, which has a daily flight to Cancun from Dallas/Fort Worth Airport, is ceasing operations effective May 31. Fuel prices and a declining market for charter flights have taken their toll on the carrier, which was originally formed as MGM Grand Air in 1987.

The airline has between 50 and 100 pilots, flight attendants and ground workers based at D/FW, said spokesman Jon Austin. They will all continue to receive pay and benefits until service ends, he said.

Here's what Lee Steele, president and CEO of the Bloomington, Minn.-based carrier, had to say in a news release:

"This is a sad day for the entire Champion family. The men and women of this airline have poured themselves into providing safe, reliable and pleasing service to millions of customers over our 11 years in business. Unfortunately, however, our business model is no longer viable in a world of $110 oil, a struggling economy and rapidly changing demand for our services. Those factors also have impeded our efforts to attract new capital and new investors. Accordingly, the management team and our board of directors have decided that the best course of action is to cease flying and to wind up our operations in a responsible, deliberate manner.”

The airline has a fleet of 16 Boeing 727-200 jets, with six in a 56-seat first class configuration and the rest in a 173-seat coach configuration.

- Trebor Banstetter

Storms will miss D/FW, major delays unlikely

Severe storms in the region won't get close enough to D/FW to have much of an affect on flights, airport officials say. Here's a bulletin the airport just issued:

The National Weather Service has informed DFW that it anticipates the most severe storms in the area right now will miss DFW International Airport.

The Airport Operations Center at DFW is watching the weather closely and will communicate with passengers in terminals if needed. So far, airlines have not reported any major cancellations or delays. Latest reported delays were 30 minutes. 

The FAA has issued a ground stop for aircraft approaching DFW, but departing flights continue. The Airport has not received any measurable rainfall at this hour, but will be ready to take emergency precautions as needed. DFW has activated its Concessions Plan for this evening to accommodate passengers should any major delays or cancellations occur.

- Trebor Banstetter

Graves leaves AMR board

Earl G. Graves, founder and publisher of Black Enterprise magazine, has retired from the board of AMR Corp. effective today, according to an SEC filing this morning.

- Trebor Banstetter

AA attendants blast bonuses

The new leadership of the Association of Professional Flight Attendants is unveiling a campaign against the American Airlines executive bonus program at a news conference tomorrow. The union's new president, Laura Glading, is going to ask the airline's executives to defer their 2008 bonus payments.

“It’s hypocritical for these corporate executives to continue 'sharing the gains,' while the employees at American continue to sacrifice billions of dollars to save our airline from bankruptcy,” Glading said in a release Monday morning. “Our lives have been turned upside down. People are working harder than ever to support their families and keep up with the skyrocketing cost of living. Now we see a handful of already wealthy executives pocketing the sacrifices we made. It’s outrageous.”

- Trebor Banstetter

Virgin America CEO's new look

Over the past few years I've had the opportunity to visit with David Cush, a former American Airlines executive who took over as Virgin American's CEO about three months ago. Cush typically wore what many refer to as the "American Airlines uniform" - a conservative blue suit and white shirt.

So when he arrived in Phoenix on Friday to speak on the executive panel of the International Aviation Symposium, plenty of people noticed that he was sporting a stylish dark European-cut suit. It was an outfit that isn't going to be seen very often in American's executive suites. And the always outspoken Doug Parker, who sat next to Cush on the panel, couldn't help himself.

"I've got to ask, did (Richard) Branson make you dress like that?" asked Parker, who is CEO of U.S. Airways. "I've known this guy for 20 years, he always showed up in the Bob Crandall, American Airlines uniform."

The good-natured Cush just laughed and responded that "this is the first time in my career that I've had shorter hair than my boss."

(Associated Press photo)

- Trebor Banstetter

AA still working on new London route

AA’s Henry Joyner gave an update on his airline’s new service from JFK Airport in New York to Stansted Airport in London. That’s the route that competes directly with Eos, an all-business-class startup.

“We’re happy with the front (business class) of the airplane,” he said, citing business travelers who prefer Stansted to Heathrow because of that airport’s close proximity to London’s financial district.

But he added that “we still have some work to do” filling up the coach cabin.

American currently operates one flight between the two airports, but is ramping up to add another daily flight in August.

American had previously had another upstart competitor, MaxJet, on that route, but that carrier closed up shop late last year.

- Trebor Banstetter

Another D/FW-Beijing bid?

Could we see another bid from American Airlines to fly to China from D/FW?

Perhaps for 2010, according to Henry Joyner, American’s senior vice president of planning. I had the chance to sit down with Joyner in Phoenix at the International Aviation Symposium.

“The international case (for 2010 China service) will start to crank up by the end of this year,” he said.

Readers may recall that American applied to fly from D/FW to Beijing, but that proposal fell apart after American and the Allied Pilots Union failed to come to an agree for pilots to fly the 16-hour-plus trip.

But pilots are negotiating a new contract, and there is hope that a new long-haul agreement could be part of the eventual contract.

“D/FW to Beijing would still be one of our top opportunites,” Joyner said, though he cautioned that no decisions have been made on what route American will ultimately pursue.

- Trebor Banstetter

Vought turns part of 787 role over to Boeing

Boeing Co., moving to straighten out its snarled 787 Dreamliner production line, is buying and taking over a portion of Vought Aircraft Industries role in building the new airplane.

Boeing, the two companies announced, will buy Vought's share of Global Aeronautica. Global Aeronautica, a 50-50 joint venture between Vought and Italian aircraft manufacturer Alenia Aeronautica, was formed in 2004 to assemble major sections of the 787 in Charleston, S.C.

Vought will continue to manufacture two major sections of the 787 fuselage at its own Charleston plant, adjacent to the Global Aeronautica facility.

Vought Chief Executive Elmer Doty said in an interview that the scope of the work required of Global Aeronautica proved to be far broader and more extensive than initially envisioned by either Boeing or Vought.

As a result, Boeing had already had to commit far more engineering and management personnel to the joint venture than expected.

Boeing and Vought "came to a realization gradually over the last year" that change was desirable and, Doty said, Vought initiated the sale of its interest back to the jetliner manufacturer.

"We agreed it was the sensible thing to do," Doty said.

In a statement, Boeing 787 program head Pat Shanahan said: "All three partners in this transaction -- Boeing, Vought and Alenia -- believe these changes will enable the 787 team to continue to overcome supply-chain challenges of the program."

-- Bob Cox

Delta tries a $10 fare hike again

Delta Air Lines is trying again to hike fares another $10 roundtrip, increasing its fuel surcharge by that ajount today at noon, Rick Seaney of farecompare.com reports.

"What would a typical Thursday in 2008 be without another attempted airfare hike by a legacy airline," Seaney says.

This marks the sixth fare increase attempt in in five weeks, and the 10th attempt this year, Seaney said.

But don't worry too much about the pace. " I don't think the pace of 40 this year will hold," Seaney says.

On the heels of a successful hike by United, Delta tried raising fares by another $10 last week, but that crumbled over the weekend.

-- Scott Nishimura