Judge Extends BA-Amex Lawsuit DeadlineU.S. District Court Judge John Martin heeded a request by British Airways and American Express to extend the date of complete discovery in the lawsuit BA last year filed against Amex for terminating a merchant agreement. Martin initially gave both parties until June 30 for complete discovery, which amounts to each party compiling expert depositions and substantiating each case with documents. Both parties last month sought to extend the date until December, as BA and Amex pursue a "possible business resolution of this matter." When the date for discovery originally was set, "the claims and counterclaims at issue involved only two contracts between the parties." However, the companies in January extended the litigation to "encompass eight separate contracts." The parties would not elaborate which contracts are under dispute.
Citing Hub Structure, AA Closing In On Network DecisionsAmerican Airlines last week said it was nearing "tough" network and infrastructure decisions targeting streamlined operations. Specifically, the world's largest commercial airline is examining route performance, airport facilities and the structure of its three mid-continent hubs: Chicago, Dallas Ft. Worth and St. Louis. "The reality is we will not be able to fly every nonstop route we fly today, nor will we be able to provide the same level of service in markets that cannot profitably support our current flight schedule," said AA CEO Gerard Arpey. The airline in 2000 committed to St. Louis when it acquired assets from Trans World Airlines, but fueled by a chronic overcapacity throughout the industry, speculation for months has swirled around potential strategies to eliminate or downsize hub operations. Thus far, America West Airlines, which retreated from Columbus, Ohio, is the only major U.S. carrier during the current industry downturn to abandon a hub.
AirTran Selects Boeing For Massive Fleet ExpansionAirTran Airways last week announced a 110-airplane order from Boeing, including 50 firm orders and another 50 options for B737-700 and -800 aircraft and up to 10 additional B717 jets. AirTran is transitioning from DC-9s to the 717s, which will number 73 by year-end. The first of the new planes, secured through a mix of purchase and lease arrangements, will begin arriving next summer, with monthly deliveries continuing through 2008. "AirTran Airways is poised to move into the next stage as one of the country's major carriers," said chairman and CEO Joe Leonard. The carrier said the 737s will enable it "to compete more vigorously in the longer-haul or transcontinental U.S. markets." The AirTran order is the latest in a string of fleet expansion announcements from low-cost carriers, including JetBlue Airways
(BTN, April 28) and Europe's EasyJet and Ryanair.
JetBlue Adding LegroomTaking a partially abandoned strategy from transcontinental rival American Airlines' playbook, JetBlue Airways this fall will add two inches of legroom to two-thirds of all seats on every plane in its fleet. The low-fare carrier expects to re-introduce the first reconfigured Airbus A320 on Sept. 6 and complete the changes to all 44 current aircraft by mid-November. JetBlue expects the added comfort—34 inches of seat pitch, up from 32—to strengthen its brand, which, "together with yield management," will offset any potential revenue decline stemming from decreased capacity. Each of JetBlue's aircraft will lose one row, or six seats, as the extra legroom is applied to all but the first nine rows. The carrier, however, said the new configuration will not impact its fare structure. American, which is battling JetBlue on certain transcon routes
(see story), in May announced a series of initiatives meant to better position itself against expanding low-cost competition
(BTN, May 21). One decision, a return to "standard seating" on 23 percent of its fleet, was a retreat from the popular More Room In Coach product.
MPI Names Medical Association Exec. As New CEOMeeting Professionals International late last week named Colin Rorrie, the executive vice president and CEO of the American College of Emergency Physicians, its new president and CEO. Rorrie, a 21-year veteran of ACEP, also has served as chairman of the board of the American Society of Association Executives, where he was a board member since 1984. MPI officials said the association's CEO search committee considered 170 candidates since the April 30 departure of former CEO Ed Griffin was announced in November. Until Rorrie comes aboard Sept. 1, MPI Foundation executive vice president David DuBois will continue to lead MPI on an interim basis.