Delta COO Describes Merger Complexities
Dateline Minneapolis -- The integration of Delta and Northwest to create the world’s largest airline is “on track,” although acquiring a single operating certificate presents a big challenge, Stephen E. Gorman, Delta’s chief operating officer, said Monday.

Delta and Northwest have 325 manuals between them and 110 major processes, ranging from duty time to deicing. “We start with the manuals and start looking for the differences -- 325 manuals is just mind-boggling,” Gorman said. “Think of that when you have two airlines with that much heritage and history. And both of them have been the product of a tremendous amount of mergers and acquisitions over the years.”

Gorman gave the keynote address to the joint opening session of the AMC and AEEC annual meetings in Minneapolis. His speech coincided with the most visible manifestation yet of the Northwest merger, which was concluded Oct. 29. Delta announced Monday that 40,000 Northwest flight attendants, pilots, airport lounge representatives, ticket counter and gate agents have switched to Delta uniforms. New Delta signage now adorns 400 ticket counters, gates and baggage claim areas at major hubs Detroit, Memphis and Minneapolis-St. Paul. Until now, most of the integration has been conducted behind the scenes, Delta said.

Gorman, who served as CEO of Greyhound Lines from 2003 to 2007 before joining Delta, offered an insider’s view of the complexity of the merger to the airline maintenance and engineering personnel attending the joint conferences. “The question I get a lot internally is how in the heck can you have this many different fleets and make money? … We need those different [aircraft] sizes in order to maximize the revenue on the breadth of the network we have,” Gorman explained.

Delta, he noted operates 751 mainline aircraft of 10 different types. The airline reports more than 6,000 daily departures to 379 destinations.

With all of its operating processes, “This is not a time for innovation, he said. “No matter what process we use, we want to make sure we have subject matter experts at one of the two (operating) certificates that know that process, that can help in the course of putting together implementation and training programs and changing the manuals. … The last thing we want is something that no one knows about that we have to train everybody on.”

The challenges notwithstanding, Delta is making continued progress toward achieving a single operating certificate from FAA by the end of the year, Gorman said.

For more AMC News check out Bill Carey’s Blog.

Second CSeries Customer Booked
Yesterday’s announced that Lease Corporation International Aviation Ltd. became the second firm customer for Bombardier’s newly renamed CSeries puts the program on a firmer footing and is expected to usher in other firm orders for the aircraft, including the possibility of Air Canada.

Lease Corporation International Aviation ordered three CS100s and 17 CS300s, with options for another 20 CSeries in a deal valued at a potential $1.44 billion. The company joins Lufthansa in putting the program on a firm footing. The purchaser is a wholly owned subsidiary of Lease Corporation International Limited (LCI). LCI is a privately owned aircraft leasing company that owns and leases planes to major airlines.

"We are excited about the future of Bombardier's CSeries jetliner family," said LCI Chairman, Adam Tomazos. "Market studies carried out by ourselves and other organizations see a large worldwide demand for aircraft in the 100- to 149-seat category over the next two decades and the CSeries jetliner family is a perfect fit."

In addition to Bombardier's fourth-generation transonic composite wing design, the company is also using its Reconfigurable Engineering Flight Simulator II (REFS II) to develop customized 'fly-by-wire' control laws specific to CSeries aircraft. This simulator is the first of many devices planned, as part of an extensive integrated test regime, to ensure the CSeries aircraft achieves consistently high levels of reliability when it enters service.

"This firm order for both CS100 and CS300 aircraft adds to the momentum we anticipated for CSeries aircraft following the initial firm order by Deutsche Lufthansa AG. Moreover, LCI's purchase confirms the flexibility designed into this technologically advanced aircraft family as required by all our customers, but especially leasing companies," said Gary R. Scott, president, Bombardier Commercial Aircraft. "We are grateful for LCI's confidence in the CSeries aircraft and delighted to welcome them as the launch leasing company customer. We look forward to working with them on further development of the aircraft for its entry into service in 2013."

Lease Corporation International (LCI) is a privately owned aircraft lessor founded in 2004. Since its inception LCI has acquired aircraft valued at over $3.5 billion. Its customer list includes national flag carriers and major airlines such as Singapore Airlines, British Airways, Air France and Virgin Atlantic. The company's highly experienced management team works closely with airframe and engine manufacturers, and with major financial institutions to provide aircraft leasing solutions for airlines worldwide.

Controller Rest Rules Forces ANZ Cancellations
A new requirement for controller rest breaks is forcing Air New Zealand to cancel about 25 flights to Gisborne, Napier, New Plymouth, Rotorua and Invercargill because it calls for breaks at specific times rather than retaining the flexibility they’ve had in the past. The rule, under the Employment Relates Act, forces the Civil Aviation Authority to close five towers twice a day for 30 to 45 minutes.

ANZ Group Manager Short Haul Airlines Bruce Parton called the situation “farcical” but said the move will lost $3 million in revenue with the loss of 2,500 seats weekly in five markets. He cited the New Zealand Air Line Pilots Association, which represents the controllers, for undermining vital links to these communities, and urged local authorities and tourism officials to lobby for a change.

Overnight News

Airlines Hopeful of Summer Upturn

American Adds to Web-Ready Planes

Man Charged in Opening of Plane Door

It's easier than ever to earn elite frequent-flier status

Even frequent fliers sometimes get afraid to fly