Kevin O'Toole/LONDON
British Airways appears to have scaled back plans for its low-cost, long-haul franchise partner Airline Management (AML). The rethink follows a change of ownership for Flying Colours, the charter carrier which has been providing AML with cabin crew and management.
AML was set up a year ago to serve routes to the Caribbean and Florida, initially using a McDonnell Douglas DC-10 tri-jet and cockpit crew provided by BA on a "damp lease" arrangement.
BA increased the fleet up to three DC-10s earlier this year and had plans to move to Boeing 777s in 1999, with the longer-term aim of building the operation up to five of the new airliners. The carrier had also unveiled controversial plans at the turn of the year to move mainline pilots over to AML on secondment, a move opposed by the unions. BA first officers would have been offered early captaincies in the AML fleet, effectively creating an independent operation.
That has now been abandoned, with a union agreement in place for three 777s to continue to be flown by pilots under existing BA contracts as part of the overall fleet.
The proposals have yet to be accepted by AML, but it is not clear what alternatives it could pursue to continue to provide the BA services, which it has contracted to under an agreement signed last year. AML has essentially operated as a shell company with only three management pilots and no aircraft.
A further complication has been the acquisition of the Flying Colours Leisure Group by UK tour operator Sunworld, an arm of travel giant Thomas Cook. AML was set up by Flying Colours chairman Errol Cosey and the company's management board is largely from the charter airline. The AML air operator's certificate was granted on the basis of senior roles, such as chief pilot, being filled by Flying Colours personnel.
BA is understood to have had discussions with Thomas Cook over the future of its tie-up with Flying Colours, agreeing to keep the co-operation in place at least until the end of the year.
Speculation continues over BA's continuing ambitions to create a larger low-cost, long-haul operation. Ahead of AML's emergence, the airline had raised the concept of setting up its own tourist-style division, but that was roundly rejected by unions.
Source: Flight International
