Air Jamaica drops London
Air Jamaica is to axe its only long-haul service as part of a new tie-up with Virgin Atlantic Airways. The carrier will cease serving London Heathrow at the end of October. Virgin Atlantic at the same time will launch services from London Gatwick to Kingston. Last year it launched a Gatwick-Montego Bay service and will add Air Jamaica's code on this route and its new Kingston service. As part of the deal, Air Jamaica has sold all its Heathrow slots to Virgin Atlantic. The deal mirrors a similar transaction between British Airways and BWIA successor Caribbean Airlines, which this year axed its only transatlantic service. Caribbean Airlines has been pushing for the creation of a single carrier in the region and has met Air Jamaica to discuss collaboration.
Varig wins more time
Brazil's bankruptcy court has again ordered civil aviation agency ANAC to extend the deadline for Varig to use or lose dormant international route authorities. ANAC rejected Varig's recent request for an extension, but the court ordered ANAC at the end of May to delay Varig's mid-June deadline. Last year ANAC successfully appealed against a similar order. Assuming ANAC does not ignore the new court ruling, Varig will have until at least November to revive dormant routes.
Hawaiian cuts jobs
Hawaiian Airlines will lay off 98 workers and eliminate 38 vacant staff positions in a bid to cut annual costs by $4 million. But it says that the job cuts, which came as it outsourced a call centre to the Philippines, do not stem from the inter-island fare wars begun after the June 2006 launch of Mesa subsidiary go.
US pilots plan strategies Some 70 leaders of US pilot unions - including the Air Line Pilots Association (ALPA) and the smaller Allied Pilots Association at American Airlines and the Southwest Airlines' Pilots Association - met in June to plan strategies to win back the estimated $55 billion in wages and work rules they collectively gave up between 2001 and 2006. Shortly after, Continental Airlines agreed to hold early contract talks with its ALPA unit. ALPA units at Northwest and United Airlines are also now seeking early talks.
Source: Airline Business
