Quick Takes

AirNet Systems [ANS], the nation's largest overnight courier of cancelled checks, last week disclosed in an SEC filing that it was losing another bank client. The unnamed bank will terminate its AirNet contract on March 3. Last year this client's contract generated about $1.1 million in sales for AirNet. The...

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• AirNet Systems [ANS], the nation's largest overnight courier of cancelled checks, last week disclosed in an SEC filing that it was losing another bank client. The unnamed bank will terminate its AirNet contract on March 3. Last year this client's contract generated about $1.1 million in sales for AirNet. The courier is adjusting its route schedule and exploring other cost reductions. It has thus far identified savings that would compensate for about 60 percent of the anticipated loss, according to the file. AirNet has been losing bank contracts over the last year primarily because of Check 21, a federal law that took effect in October 2004, which permits banks to digitally transfer check data between bank branches.
• ALPA recently ratified a new pact with Piedmont Airlines, a unit of US Airways. The new agreement came about at the mid-way point in the contract that is amendable in 2009. The contract permitted one mid-term agreement to address limited economic issues. The new accord covers scheduling, reserve-duty enhancements, vacation protections and other items that will improve the quality of life for the pilots, according to an ALPA statement.
• The European Court of Justice recently upheld the airline passenger bill of rights, which was adopted by the European Commission (EC) in 2004. The European Regions Airline Association (ERA), the European Low Fares Airline Association and the International Air Transport Association (IATA) had all opposed the legislation. The suit that began in the United Kingdom High Court was referred to the European Court of Justice, the European Union's highest court. The airlines contend the new law will cost the industry $726.6 million annually in refunds and other compensation to travelers whose flights were delayed or cancelled. The ERA has claimed that its members may get stuck paying for refunding the whole ticket price when the regional carrier is only responsible for the last leg.
• British Airways has renamed CitiExpress, its regional unit, as BA Connect. It has also reduced fares by 40 percent and aircraft will be configured in a single-cabin format.