Nearly four months after Boeing acquired all of FlightSafety International’s interests in FlightSafetyBoeing Training International, set up five years ago to provide training in Boeing airplanes, Boeing is renaming the venture Alteon. Following a transition period, Alteon will become the official name for the company. During the transition period, the company will continue to be known as FlightSafetyBoeing.
Economy of the United States
Memphis-based Northwest Airlines subsidiary Express Airlines I on May 8 officially changed its name to Pinnacle Airlines ahead of an initial public offering expected to raise $400 million.
EXXONMOBIL INTRODUCES FBO TRAINING PROGRAM
Under pressure to help their employer meet financing conditions set by regional jet lessor GECAS, the pilots of US Airways voted to ratify a new agreement that will allow the troubled airline to transfer delivery positions for Embraer 170s and Bombardier CRJs from wholly owned subsidiaries to independent US Airways Express carriers. Only 74.1 percent of the eligible active pilots cast ballots.
The board of directors of Memphis-based Pinnacle Airlines has elected company president and CEO Phil Trenary to join the seven-member board. Currently chairman of the RAA, Trenary joined Pinnacle Airlines on April 1, 1997, after a 12-year stint as head of Lone Star Airlines, the San Antonio-based Fairchild Metro operator he established in 1984. Trenary also serves as a director of EnVectra Hazardous Waste Management and Bancorp South.
What started as an annoyance three years ago appears to have turned into a legitimate threat to the essence of the Air Line Pilots Association’s long-held strategy for protecting mainline pilot interests.
The regional airlines became an economic safety net of sorts after September 11, when the majors quickly realized they could not survive flying large airplanes nearly empty. The options–cut flights and market presence entirely or replace mainline jets with smaller aircraft–presented airlines with a clear course of action. Code-sharing regional airliners quickly delivered cost-effective solutions.
The September 11 terrorist attacks on the World Trade Center and Pentagon set the stage for an upheaval in the U.S. airline industry unseen since the dawn of deregulation. But while virtually no one besides the enemies of America welcomed the negative economic effects, some airlines may very well emerge from the crisis in a stronger competitive position.
The sagging market valuations of airlines across the U.S. since September 11 have prompted Continental Airlines to reconsider plans to spin off its wholly owned regional subsidiary into an independent entity. As a result, the airline has postponed its planned initial public stock offering of ExpressJet from parent company Continental Airlines until market conditions warrant renewed consideration of such a move.
Less than six months after Shuttle America filed for Chapter 11 bankruptcy protection, the Windsor Locks, Conn.-based de Havilland Dash 8 operator signed a new code-share agreement with US Airways covering new service from Boston Hanscom Field to Philadelphia and Trenton, N.J.