Aviation Organizations Launch Safety Information Exchange

Montreal – The International Air Transport Association (IATA), along with three governmental aviation safety organizations, took the first step to creating a global information exchange to improve aviation safety.

IATA, together with the International Civil Aviation Organization (ICAO), the US Federal Aviation Administration (FAA), and the Commission of the European Union (EU), has signed a Declaration of Intent to exchange safety data. The signing took place during the ICAO High-Level Safety Conference in Montreal.

“Today’s milestone agreement marks the first time the global aviation community has come together to work on a global safety information exchange. Data must drive our actions so that we can focus our joint efforts on reducing the greatest risks,” said Giovanni Bisignani, IATA’s Director General and CEO.

“Working together with governments using global standards, safety has improved tremendously. In 1945, there were 9 million passengers and 247 fatalities. In 2009, 2.3 billion people flew with 685 fatalities. Every fatality is a human tragedy and reminds us that we must do better. Today’s agreement is one more important step to make a safe industry even safer,” said Bisignani.

Audit data will be a key element in the project. IATA, ICAO, the FAA and the EU conduct audit programs that collect complementary safety information. “We must understand safety trends, not just from the handful of accidents each year, but by bringing together and analyzing data from millions of safe flights. With this we can take more effective action to reduce risks and improve safety performance,” said Bisignani.

“There is no competition when it comes to safety. Cooperation is the way forward. We have a common goal of zero accidents and zero fatalities. The safety data from audits and oversight programs contains important parts of a whole picture. Agreeing to put this data together is a major step forward,” said Bisignani.

The four organizations will now start work on a way to standardize safety audit information and ensure compliance with local privacy laws and policies. This is targeted to be completed within 12 to 18 months.

The 2009 global accident rate, measured in hull losses per million flights of Western-built jet aircraft, was 0.71. This is a significant improvement of the 0.81 rate recorded in 2008. Compared to 10 years ago, the accident rate has been cut 36% from the 1.11 rate recorded in 2000.

Source: IATA.org

January Demand Shows Further Improvement - Industry to Remain in the Red For 2010 -

Geneva - The International Air Transport Association (IATA) anounced last week that January 2010 demand for international scheduled air traffic showed continuing improvement. Compared to the previous year, January passenger demand was up 6.4%. Against this improving demand, a 1.2% increase in passenger capacity in January pushed load factors to 75.9% (up from the 72.2% recorded for January 2009). 

International cargo demand showed a 28.3% improvement with only a 3.7% increase in capacity. This pushed the cargo load factor to 49.6% which is a significant change from the 40.1% recorded in January 2009.

The large increases in year-on-year comparisons reflect a steady improvement from the precipitous fall in demand that characterized the early part of 2009 rather than a dramatic improvement in January. Compared to December 2009, and adjusting for seasonal variations, passenger demand grew by 0.5% while air freight volumes increased by 3.0%.

“Airlines have lost 2-3 years of growth. Demand is moving in the right direction. The 3.0% increase in freight volumes from December to January is particularly encouraging. We can start to see the future with some cautious optimism, but better volumes do not necessarily mean better profits. Passenger yields are still 15% below peak. And we expect 2010 losses to be US$5.6 billion,” said Giovanni Bisignani, IATA’s Director General and CEO.

There are large geographical differences in the improvements. The strongest upturns have been seen in markets where economic recovery from the recession has been strongest—Asia, Latin America and the Middle East.

International Passenger Demand
Compared to the low point in the cycle (February 2009) international passenger traffic is up 8.6%. The market has not yet recovered from the losses of 2008 and early 2009. Demand must improve by a further 2% to return to the peak levels of early 2008.

• Asia-Pacific carriers experienced a 6.5% increase in demand compared to the previous year. Of the improvement in demand seen since the early 2009 low point, 31% has been realized by carriers in the region which is leading the global economic recovery.
• Carriers in North America and Europe saw demand increase by 2.1% and 3.1%, respectively. Although both regions have gained 6% from the early 2009 lows, they remain 4-6% below the early 2008 peak levels. This reflects the jobless recovery from the recession in which consumers are focused on paying down debt.
• Middle Eastern carriers grew throughout the recession. Growth accelerated to 23.6% in January.
• Latin American carriers saw demand increase by 11% in January on the back of a strong regional economy.
• African carriers recorded a 6.3% improvement in January, assisted by robust regional economic activity.

International Cargo Demand
Compared to the low point in the cycle (December 2008 - January 2009), international freight traffic has regained about 28%. This is still 3-4% below the early 2008 peak level.

• The sharp improvement in air freight, which accelerated to 3.0% in January compared to December, is being driven by businesses re-stocking depleted inventories. This part of the inventory cycle will not last much longer. Durable air freight growth will require consumers to start buying again and businesses to return to making investments. While these improvements are beginning to be seen in Asia, Europe and North America lag behind.
• With an 11.6% improvement in January compared to the previous year, carriers in Europe stand out for their sluggish demand recovery. Freight volumes are only 7% above the December 2008 low and 15% below the cycle peak.

“We are starting to see some encouraging signs in demand, albeit with large differences among the regions. Unfortunately, the constraints of the archaic bilateral system limit airlines from being able to respond as normal businesses to market opportunities. Political borders limit opportunities for consolidation. And we still require governments to negotiate open markets,” said Bisignani.

Under the auspices of IATA’s Agenda for Freedom initiative, in November 2009, seven governments (Chile, Malaysia, Panama, Singapore, Switzerland, the United Arab Emirates, and the United States) and the European Commissions signed a multilateral statement of policy principles focused on liberalization of the air transport industry. Premised on maintaining a level playing field, the policy principles support liberalization of ownership, market access and pricing. Its latest impact can be seen in the recent signing of an open skies bilateral agreement between Panama and Colombia.

“With each open skies bilateral, we take a step in the right direction. Recovering from the years of lost growth as a result of this crisis is a long and hard journey. Governments should not make it any more difficult by maintaining policies that restrict airlines ability to do business,” said Bisignani.

Source: IATA

EUROCONTROL and IATA en-route for a collaborative approach to ATM Safety and Navigation

08/03/2010

EUROCONTROL and IATA are combining forces in the field of ATM Safety and Navigation. Close partnership between stakeholders is essential in these two areas and will contribute to reaching Single European Sky objectives of safety, flight efficiency and reduced CO2 emissions. 

In the field of safety, the partnership will concentrate on Voluntary ATM Incident Reporting. The core part of the work will relate to data collection, analysis and identification of main concerns and experts will ensure follow up with the proper solutions. The two Organisations will make better use of safety data available on the European level, sharing databases, data related to the aircraft equipment as well as networks and projects. “The partnership between IATA and EUROCONTROL is part of a proactive approach to safety. It will allow the two Organisations to react quicker, better and together on a number of safety issues,” said the chairman of the EUROCONTROL Safety Team, Erik Merckx. Navigation is the second area covered by the partnership. Performance Based Navigation (PBN) is key to making better use of en-route and terminal airspace. 

 

The joint efforts of IATA and EUROCONTROL will speed up the PBN programme and ensure that the right priorities are set. Through the precision obtained, more direct routes and continuous descent approach (CDA) will be designed, increasing as a result flight efficiency, reduction of fuel consumption, CO2 emissions and safety of flight operations. “The Single European Sky creates a major opportunity for the ATM industry to work much closer together than today, resulting in better targeting, synergies and major savings.

 

 I am convinced that partnerships between various stakeholders are a must, at national as well as international levels,” said David McMillan, Director General of EUROCONTROL. “Safety is our industry’s number one priority. Improving environmental performance is a shared responsibility for all industry players. And efficiency is a matter of survival for airlines that, as an industry, have lost US$5 billion a year for a decade. Effective air traffic management plays a role in all three of these critical areas. Our enhanced partnership with Eurocontrol will help us to take advantage of the opportunities created by an effective Single European Sky to make flying safer, greener and more efficient,” said Giovanni Bisignani, IATA’s Director General and CEO. 

 

Source: Air Transport News

FAA confirms examination of Southwest maintenance

Maintenance at Southwest Airlines is again under investigation by the US FAA.

The agency has confirmed an investigation is underway, but explains it cannot comment while the examination continues. A report in the Dallas Morning News indicates the probe is focusing on fuselage repairs carried out at a repair station in the Seattle area.

Southwest has experienced two highly publicised maintenance investigations during the last two years. The first instance in 2008 occurred after the discovery that Southwest operated 46 Boeing 737s on 59,761 flights after the carrier missed fuselage inspections required under an airworthiness directive issued in September 2004.

In 2009 unapproved parts were discovered on 82 of Southwest's 737s.

Film Director Fuels Row Over 'Fat' Plane Passengers

Film director Kevin Smith has reignited a heated debate about airlines' treatment of overweight passengers after being thrown off a flight for being too large to fit in one seat.

An angry tirade posted on his Twitter page about the way he was treated by Southwest Airlines last weekend has fuelled a wave of protests from some angry passengers while other travellers have stood by the airline's decision.

"If you look like me, you may be ejected from Southwest Air," wrote Smith, posting a photograph of himself on the plane, puffing out his cheeks.

Smith, director of the new Bruce Willis movie "Cop Out" as well as "Clerks" and "Chasing Amy," said a Southwest Airlines pilot ejected him off a flight from Oakland to Burbank, California because the pilot believed Smith didn't fit properly into just one seat and was a "safety risk."

"I'm way fat... But I'm not THERE just yet," he wrote.

Smith said he had actually booked and paid for two seats on a later flight but moved to an earlier flight as a standby passenger that only had one seat available. His posting prompted a barrage of angry responses from other disgruntled customers, adding to an ongoing debate over the treatment of overweight customers by airlines and whether they should have to pay for two seats.

Air France found itself at the centre of this heated debate last month after it was misreported that the airline was planning an extra charge for passengers unable to fit into a single seat. Air France has, since 2005, offered overweight passengers the option to buy a second seat at a 25 percent discount.

Southwest Airlines says its policy requires travellers to be able to fit safely and comfortably in one seat and be able to lower their armrests, or buy a second seat. United Airlines also has this policy and both airlines have a policy that overweight passengers can claim a refund on the second seat if the plane is not full. These policies were introduced after complaints from neighbouring passengers. But after a barrage of angry comments from Smith and other passengers, Southwest Airlines apologised to Smith by phone, on its own Twitter account and in a statement on its website. The airline said it was unusual for it to be so public in handling such matters but decided this case was different because so many people were involved. "We would like to echo our Tweets and again offer our heartfelt apologies to you," said the airline. The airline said it put Smith on a later flight and gave him a USD$100 voucher for his inconvenience.

But not all of the comments supported Smith. Other people sided with the airline. "Being heavy is not something to be proud about. I wish more companies would not tolerate the lifestyle of fatness!" read one comment on Smith's Twitter account.

Crisis management consultant David Margulies questioned whether the airline was being too polite by apologising to Smith when its policy was both fair and reasonable.

He said too many companies backed down from reasonable policies because they are scared of negative publicity, in this case especially after Smith's online anger.

"Southwest has taken a very reasonable and fair approach to dealing with the issue of overweight customers and should be applauded for their actions," Margulies said in a statement.

"This is the time that customers and employees should take to the Internet in defence of the company."

Source: Airwise

UK Airport Scanners May Violate Human Rights

The use of full-body scanners at British airports may breach human rights laws, the country's equality commission said on Tuesday, potentially undermining the latest weapon against terrorism.

The new technology has been hurriedly introduced at London's Heathrow airport and Manchester airport in northern England after a botched attempt to bomb a US-bound passenger aircraft from Amsterdam on Christmas Day.

Nigerian suspect Umar Farouk Abdulmutallab is alleged to have boarded a US aircraft on December 25 with explosives hidden undetected in his underwear. The full-body scanners, which see through clothes to produce an image of the whole body, might have detected the explosives, experts have said. Rights campaigners have said they fear an invasion of privacy and disproportionate scrutiny of Muslim travellers.The Equality and Human Rights Commission (EHRC) said the scanners might be breaking discrimination and privacy laws, and it had "serious doubts that the decision to roll this (body scanning) out in all UK airports complies with the law."

The Commission said one of the chief concerns was over how people would be selected for the scans. In a letter to Transport Secretary Andrew Adonis, the EHRC expressed concern "about the apparent absence of safeguards to ensure the body scanners are operated in a lawful, fair and non-discriminatory manner".

The Transport Department said it was committed to ensuring that all security measures are used legally, proportionately and in a non-discriminatory way. It said it was "absolutely clear that those passengers who are randomly selected for screening will not be chosen because of any personal characteristics", and that it had published an interim code of practice which addressed privacy concerns.

Source: Airwise.com

South America’s Airport Overhaul

Much attention has been focused on the remarkable growth of the aviation sectors in China, India and Asia; so much so that the rise of South America has almost gone unnoticed. The 2014 World Cup and 2016 Olympics, both of which will be hosted by the continent, have created an interesting contest between South American countries eager to show economic superiority, technological advancement and Latin flair.

The current economic growth in South America of 3.9% per year will drive air traffic to grow by about 7%, according to Boeing, a figure well above the global average growth rate of 5%. The delivery of an estimated 1,640 new aircraft worth $150bn to the region is also forecast over the next two decades.

Continent-wide investment

Airport development work to cater for this growth can be seen across the continent. In Colombia, El Nuevo Dorado International Airport in Bogota is in the process of major work. The airport is managed by Operadora Aeroportuaria Internacional (OPAIN) and Swiss airport operator Unique (Flughafen Zurich AG).

The Colombian Government awarded a contract for a viable external investment of $650m for the expansion and modernisation of El Nuevo Dorado International to OPAIN. Work on the airport began in 2007 and the construction of a new international terminal, the upgrade of an older terminal and the installation of new baggage handling technology have been completed.

"The delivery of an estimated 1,640 new aircraft worth $150bn to the region is forecast."The next phase will involve the completion of an office building and the construction of a new maintenance area with a turbine tester and sound barriers. Construction is scheduled to be complete by 2012 and will increase the airport's capacity to 16 million passengers a year.

In Peru rising investment and improved terms of trade have helped stabilise the economy. A recently-signed free-trade agreement with the US and increased trade with China, Brazil and Chile have contributed to a surge in movements of goods and air travel.

Peru is reported to have had the best economic growth rate in 2009 of any Latin American country in relation to the economic crisis.

The country's prime gateway is Jorge Chavez International Airport in Lima. Early in the last decade it was in a poor state, with dilapidated infrastructure and technology. With the assistance and experience of its shareholder, German firm Fraport AG, Jorge Chavez International is now an award-winning airport and considerable upgrade work is being undertaken.

A terminal extension was inaugurated last year and provided 28 gates, 19 of which have boarding bridges. Internal remodelling of the control tower and a 12,000m² extension of the south apron were also carried out. The airport is expected to install a ILS CAT III system this year to help with fog landings. A second runway is also scheduled to be operational by 2014 in time for the world cup, as more visitors are expected from Brazil.

Fraport AG reports that Jorge Chavez International registered 4.2 million users in the first half of 2009, up 6.3% on the same period the previous year. Investment should prepare the airport for a capacity of 10 million passengers annually in the next three to four years.

Airport growth seems to be running at a slower pace in Venezuela as the country's economy has been severely affected by the economic crisis. The country has failed to diversify its oil-dependent economy and is facing a sharp slowdown from the global oil bust while experiencing Latin America's highest inflation rate of 30%. Political interference and negotiations with neighbouring governments on issues of technology transfer and service agreements have caused problems with large infrastructure projects for the country in the past.

"Airport development work to cater for air traffic growth can be seen across the continent."In 2004 Unique (Flughafen Zurich AG) and its Chilean affiliate signed a contract with Venezuela covering the expansion and operation of the international airport on Isla de Margarita for 20 years. This agreement was later declared void by a newly elected provincial governor.

After a series of interventions and court appearances, the final ruling was for a revised joint operation of the airport by all stakeholders, including the local government.

In terms of how the situation stands today, a statement from Unique (Flughafen Zurich AG) said: "We will try the case against Venezuela at the International Centre for Settlement of Investment Dispute (ICSID) in Washington if no amicable settlement can be achieved in the next few months." Unique (Flughafen Zurich AG) is, however, engaged in nine other airports in four Latin American countries that are successful and run without major problems.

South American powerhouse

Brazil's economy outweighs those of all other South American countries, helped by well-developed mining, agricultural, manufacturing and service sectors. Sustained growth is expected over the next few years. One of the first sectors to reflect this change is commercial aviation.

As host country for the 2014 World Cup and 2016 Olympics, airport modernisation is underway throughout the country. Brazil's airport operator INFRAERO is spending $2.5bn on upgrades and the construction of new airports. The International Air Transport Association (IATA) says air transport supports 2.6% of Brazil's economy, creating thousands of jobs and billions of dollars in business.

Brazil has adopted a new civil aviation national policy and IATA is pushing for the country to use the new policy to build a more competitive industry by overcoming major fiscal and infrastructure handicaps.

IATA's director general and CEO Giovanni Bisignani mentioned two critical areas:

•Airport concessions: Brazil is contemplating future airport concessions to help speed infrastructure improvements. "Private investment with the right conditions can help improve infrastructure but concessionaires must be governed by robust economic regulation," Bisignani says.

•Congestion: the issue of congestion at Brazil's busiest airport, Sao Paulo's Guarulhos International, is causing concern and is an issue IATA is trying to address. "We offer support for early implementation of IATA's Worldwide Scheduling Guidelines that help airports around the world manage congestion. Congestion pricing is not the solution," Bisignani says.

INFRAERO has launched an upgrade of its airport network infrastructure by leveraging 3Com's H3C enterprise network solution. With an increased demand for bandwidth from passengers and employees, INFRAERO estimates that by using H3C it will achieve a 100-fold increase in the performance of the airport's data, voice and video applications used for flight information systems, air traffic control, surveillance and IP telephony systems. 3Com has a similar upgrade development at Beijing International in China.

Foreign investment favourites

Argentina's 32 commercial airports are recording steady growth, according to airport company Aeropuertos Argentina 2000. Since 2002 traffic has reportedly risen almost 40% as the economy has seen a period of relatively stable growth. Domestic traffic is still down, however, with growth primarily coming from international services at Buenos Aires Ezeiza Airport.

"Argentina's market recovery has been directly linked to the rise in international traffic from Ezeiza."Domestic flights are currently operated at nearby Jorge Newbery Airport. Following a $400m investment in Ezeiza the southern wing of the airport will accommodate domestic operations for the first time. It will also rely on flexible design features, allowing it to be used for international flights if required. Work is expected to finish this year. Argentina's market recovery has been directly linked to the rise in international traffic from Ezeiza.

Copper-rich Chile is a long-time favourite of foreign investors and recently announced a $2bn investment plan. Unique (Flughafen Zurich AG) is involved in three airport projects in Chile, El Tepual, La Florida and El Loa as part of the first wave of privatisation in the country.

Internal mining activities have prompted a rapid development of domestic airports. It is also widely believed that the main airport, Santiago Arturo Merino Benitez, lacks the facilities of airports in other South American countries. But Chile, too, considers tourism a major economic driver that will boost airport growth. It is focusing on sustainable and special-interest tourism, mainly targeting long-haul travellers.

South America receives about 70 million international arrivals annually and tourism in the region accounts for $60bn in revenue. Throughout most of the continent tourism is on the shortlist of industries to form the basis of further economic development. The 2014 World Cup and 2016 Olympics, coupled with increasing tourism and trade, will be the main driving force in airport growth in this region for the next few years.

Source: Airport Technology

DOT Proposes Approval of oneworld Antitrust Immunity Application

The U.S. Department of Transportation today proposed to grant antitrust immunity to American Airlines and four international partners to form a global alliance. Under the proposal, the airlines must agree to conditions to protect consumers and preserve competition.

If the decision is made final, American and its “oneworld” alliance partners British Airways, Iberia Airlines, Finnair and Royal Jordanian Airlines would be able to more closely coordinate international operations in transatlantic markets.

In today’s show-cause order, the Department tentatively found that granting antitrust immunity to the oneworld alliance would provide travelers and shippers with a variety of benefits, including lower fares on more routes, increased services, better schedules and reduced travel and connection times. The Department also said the proposed alliance would enhance competition around the world by creating competition with the existing Star Alliance and the SkyTeam alliance, which already have been granted immunity.

However, the Department also noted that the alliance could harm competition on select routes between between the United States and London’s Heathrow Airport, oneworld’s primary hub, where the availability of landing and takeoff slots is limited. As a condition of approval, the Department is proposing in its show-cause order that the applicants make four pairs of slots available to competitors for new U.S.-Heathrow service. The Department also would require changes to the agreement to ensure capacity growth, and require the carriers to submit traffic data and implement the proposed alliance within 18 months of a final decision.

Interested parties are invited to show cause why the proposed decision should not be made final. Objections are due in 45 days, and answers to objections 15 days afterward. Following the comment period, the Department will review all filings and then issue a final decision.

 

Source: Air Transport News

Boeing 747-8F First Flight

The Boeing 747-8 Freighter successfully took to the sky for the first time on Monday 8 February 2010.

With 747 Chief Pilot Mark Feuerstein and Capt. Tom Imrich in the flight deck, the newest member of the 747 family took off at 12:39 p.m. local time from Paine Field in Everett and landed at Paine Field at 4:18 p.m.

"It was a real privilege to be at the controls of this great airplane on its first flight, representing the thousands of folks who made today possible," said Feuerstein. "The airplane performed as expected and handled just like a 747-400."

This flight was the first of more than 1,600 flight hours in the test program for the newest member of the Boeing freighter family. The airplane followed a route over Western Washington, where it underwent tests for basic handling qualities and engine performance. The airplane reached a cruising altitude of 17,000 feet (5,181 m) and a speed of up to 230 knots, or about 264 miles (426 km) per hour.

Powered by four General Electric GEnx-2B engines, the 747-8 Freighter will transition its testing program to Moses Lake, Wash., and Palmdale, Calif., where the other two test airplanes will join it in the coming month.

The 747-8 Freighter is the new, high-capacity 747 that will give cargo operators the lowest operating costs and best economics of any freighter. The airplane is 250 feet, 2 inches (76.3 m) long, which is 18 feet, 4 inches (5.6 m) longer than the 747-400 Freighter. The stretch provides customers with 16 percent more revenue cargo volume compared with its predecessor. That translates to an additional four main-deck pallets and three lower-hold pallets.

Boeing launched the airplane on Nov. 14, 2005, with firm orders for 18 747-8 Freighters: 10 from Cargolux of Luxembourg and eight from Nippon Cargo Airlines of Japan. All told, Boeing has secured 108 orders for the 747-8, of which 76 are orders for the new freighter. Cargolux, Nippon Cargo Airlines, AirBridgeCargo Airlines, Atlas Air, Cathay Pacific, Dubai Aerospace Enterprise, Emirates SkyCargo, Guggenheim and Korean Air all have ordered the 747-8 Freighter.

 

Source: Air Transport News

American Airlines and Japan Airlines Apply to the U.S. Department of Transportation for Antitrust Immunity

American Airlines and Japan Airlines (JAL) today filed an application with the U.S. Department of Transportation (DOT) for antitrust immunity to forge a closer relationship and implement a Joint Business Agreement (JBA) governing the operation of their flights between North America and Asia. The airlines also will notify the Ministry of Land, Infrastructure, Transport and Tourism in Japan of the transaction.

"An immunized JBA will benefit the public, offer new competition in the fast-growing Asian aviation marketplace and strengthen the relationship between American and Japan Airlines, which will support JAL's successful restructuring," said Gerard Arpey, American's Chairman and CEO. "It will improve customer choice by giving the oneworld(R) Alliance, of which American and JAL are key members, strong hub operations at Tokyo, thus allowing more vibrant competition with other global alliances in northeast Asia and beyond."

"With immunity to enter a JBA, Japan Airlines and American Airlines will be able to cooperate more tightly in raising the quality of our services and thus encourage healthy competition in this promising region for the industry," said JAL Group Chief Operating Officer and President Masaru Onishi. "Furthermore, not only will both carriers be able to improve operational efficiency but most importantly, our valued customers will receive greater benefits and convenience which we hope will place us in a position to always be the airlines of their choice."

Antitrust immunity between American and JAL is made possible by the Open Skies accord reached by the United States and Japan in December 2009. When that agreement becomes effective, it will eliminate the restraints on competition.

More Consumer Benefits, Choices and Travel Options

Under an immunized JBA, American and JAL will cooperate commercially on flights while continuing to operate as separate legal entities. They will coordinate fares, services and schedules in order to attract new customers and boost revenues. By more closely integrating their networks, the airlines will be able to improve efficiency, find opportunities to lower costs and have greater ability to invest in products, services and fleets.

By working together to provide links for connecting passengers, the airlines can expand customer choice by offering new routes and supporting existing routes that would not be economically viable for the airlines individually. American and JAL expect more opportunities to expand their codeshare arrangements on flights within and beyond Japan and the U.S. and to create new competition in the trans-Pacific marketplace. Consumers also will continue to receive reciprocal frequent flyer benefits, and eligible customers will continue to have access to the airport lounges of both airlines.

Employees and other stakeholders are expected to benefit from the airlines' improved competitive position and financial stability.

The JBA will be "metal neutral," meaning American and JAL will benefit from a customer's ticket purchase regardless of which one carries the passenger, as the airlines will share revenue on all JBA flights. The revenue growth resulting from the JBA will provide both airlines with substantial support towards improving profitability.

Enhanced Trans-Pacific Competition

The closer cooperation between oneworld Alliance members American and JAL will improve network competition with the other alliances. Through the JBA, the two airlines will offer a fully-integrated network between trans-Pacific gateway airports, ensuring all customers a third robust global airline alliance from which to choose, and more options for time-sensitive business travelers.

Source: Air Transport News

Definition:  Exemption from prosecution under antitrust laws. In the transportation industry, firms with antitrust immunity are permitted under certain conditions to set schedules and sometimes prices for the public benefit.