Briefs

SWISS International Airlines is planning to create a new subsidiary, operating as SWISS Express. Service will begin with the 2003-2004 winter season. The new regional carrier expects to reduce costs by about 20 percent from its current levels operating as part of the larger organization. This will make it a competitively-priced operator tailored to the regional air travel market, according to airline executives. The fleet is expected to consist initially of Saab 2000 turboprops and Avro RJ 85/100 and Embraer 145 regional jets. It will eventually take delivery of Embraer 170 and 195 RJs. The new dual operation of SWISS International and SWISS Express will be reminiscent of the old Swissair and CrossAir.

Air Omega, an Augsburg, Germany-based cargo operator, has purchased two Fairchild Dornier 328JETs and signed a lease agreement for two more to introduce passenger service from Augsburg to Berlin Templehoff, Dusseldorf and Hamburg. Total value of the contract is $44 million. The two leased aircraft will be obtained from Ozark Management for introduction of service next month. The two purchased 328JETs will be delivered ready for service later this year. Armin Peuker, Air Omega CEO, said that the 328JETs were selected over the competition because of their short-field performance, cabin size and the quality of the Dornier product. "Runway length at our Augsburg home base is only 1,200 meters. No other production aircraft could match the 328 payload performance from Augsburg." He said that Air Omega plans to use the short-field capability of the aircraft to operate into close-in airports such as Templehoff and eventually London City Airport, "as well as smaller communities with short runways."

Mesa Air Group employees who participated in the airline's pay reduction bonus program will receive a bonus as a result of Mesa's $12 million profit in the first quarter. Mesa had promised the employees that in exchange for agreeing to a 5 percent cut in their base pay for one year, they would receive a bonus equal to the amount of the reduction during each quarter that showed a profit.

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