Continental and COPA, seeking antitrust immunity for their alliance, countered a request by American and Grupo TACA to consider their similar request concurrently and grant both bids. American and TACA, which have a pending application for alliance immunity (DAILY, March 22, 2000), want DOT to process and grant their request, in Docket-00-7088, "on a parallel track" with the Continental/COPA application (DAILY, Jan. 4). TACA includes Aviateca, LACSA, Nicaraguense de Aviation, TACA International and TACA de Honduras.
Airbus said it "met and exceeded" its objectives for the year 2000 with 520 firm orders valued at $41.3 billion, its best year ever in terms of order value. Airbus said it won 46% of the market with 520 firm orders -- 388 for the A320 family of aircraft, 130 for its A330/A340 series and two for the A300-600 freighter. "These figures do not include 50 firm commitments for the A380, Airbus said.
Cameroon Airlines has taken delivery of its first Boeing 767. The airplane is being leased through an agreement with Ansett Worldwide Aviation Services. The 767-300ER seats 244, with 24 in business and the remainder in economy class.
Flughafen Frankfurt Main AG will soon announce the opening of a casino in its Terminal 1, an airport spokesman confirmed this week in Frankfurt. The casino has been operational in a test phase since the beginning of this year but has been kept relatively discrete. "We have been interested in having a casino for several years," the spokesman said. But so far, the German authorities have refrained from authorizing it, partly because the airport is located close to some of Germany's most ancient and famous gambling locations, in Wiesbaden, Mainz and Bad Homburg.
American, following a major court ruling last weekend, proved yesterday it is already planning its strategy to integrate TWA's operation into its own vast system. Even before TWA's asset auction begins, American made plans to provide airport business lounge access to TWA passengers in an effort to win over frequent flyers. Reciprocal access begins next month, pending regulatory approval.
Continental Express yesterday took delivery of an Embraer ERJ-145, bringing its total jet fleet to 100. Continental Express was the North American launch customer for the ERJ-145 and the ERJ-135. It now operates 79 ERJ-145s and 21 ERJ-135s.
IATA Director General Pierre Jeanniot announced the launch of the IATA ABC -- Aviation Business Continuity -- program, which provides a forum for companies to share ideas and experiences. ABC Protocols or best prices are being developed and a major conference, Business Continuity Planning for the Aviation Industry, is scheduled March 14-15 in London. Founding members of the program include airports, airlines, service companies and Eurocontrol. For more information, contact [email protected].
Legend Funding Group, which has promised $20 million to restart Legend Airlines, told the carrier yesterday that it was close to coming through with the money. But Legend CEO Allan McArtor said the group has been making the same promise for the last two weeks and he is continuing to seek other funding sources. Legend will be in bankruptcy court this morning where the judge will conduct a hearing on a motion to reconsider a final funding order. "It could be down to the wire or a tragic story of the lender not coming through," McArtor told The DAILY.
John Flaherty was named chief of staff by DOT Secretary Norman Mineta. Flaherty, who has extensive Capitol Hill and public affairs experience, was then-Rep. Mineta's chief of staff from 1988-92.
While SAirGroup's new leadership team assesses the situation after Philippe Bruggisser's resignation, the aviation group's various subsidiary carriers have reason to be increasingly worried about their own futures. Not only has the new management made clear that it is not prepared to invest more money in any of the struggling airlines, but it also will re-evaluate the benefits of holding on to all of its existing stakes.
DOT granted approval and antitrust immunity to expand United's alliance with Lufthansa and SAS to include Austrian and Lauda Air. While the expanded immunized Star Alliance increases presence, market share and concentration in the U.S.-Europe market, it does so "only slightly," DOT noted, adding that the alliance faces "vigorous competition" from other carriers -- both U.S. airlines and their alliance partners -- in the market.
Southwest Airlines has selected Lufthansa Technik for a consulting project aimed at improving its maintenance management. The goal is to optimize maintenance of its entire fleet and identify ways to reduce costs. The carrier plans to adopt as much as possible LHT's maintenance program at its Dallas center, where engineers from Frankfurt are now at work.
Frontier Airlines has unveiled its new livery on a giant IMAX screen at the Denver Museum of Nature and Science. The design will appear on its new Airbus fleet, beginning in May. The new logo will pan the entire fuselage with large, silver letters, with Frontier's tagline "The Spirit of the West" placed prominently toward the front of the aircraft with green lettering.
AIRCRAFT TRANSACTIONS FOR NOV 10 - NOV 13, 2000 Seller/ New Type / Previous Operator Owner Engine Operator Transair Prest Beehcraft Beech France Affair UE-50 1900D/ Leasing PT6A-67D Boeing Hapag-Lloyd Hapag-Lloyd Boeing 737-800/
Aeroperlas, which started as a commuter airline between Panama and its resort-oriented Pearl Islands, is now a domestic carrier operating to 24 destinations and soon will go international in an alliance with Grupo TACA. The alliance will invest $200 million in a network that includes Buenos Aires, Santiago, Sao Paulo, Lima, Caracas, Bogota, Medellin, Cali, Santo Domingo and Central America. The cities will be served with 150-seat Airbus 319s and 320s and Boeing 111-seat 737s, starting in July.
Mesaba, which remains in talks over a possible buyout by Northwest, yesterday reported net income of $2.3 million for the quarter ended Dec. 31, down 72%. Mesaba attributed the results to industry-wide pilot shortages, adverse weather and a $4.8 million reserve for an unresolved payment dispute with Northwest. Northwest withheld $3.4 million in payments to Mesaba over a disagreement about the rate of certain RJ flying. Northwest wanted a lower rate to apply on some RJ operations.
DOT seeks applications from U.S. carriers for the two U.S.-Turkey third-country code-share designations and 14 weekly frequencies that become available April 1 under the phased U.S.-Turkey open-skies accord. The agreement was negotiated in March 2000 and signed in May. Three designations and 21 frequencies available at that time were allocated equally to Delta, Northwest and United for service with respective code-share partners Air France, KLM and Lufthansa. Northwest had requested 14 frequencies.
Three foreign companies bidding for a stake in Malaysia Airlines are pushing the Malaysian government for a minimum 45% stake to make their investments worthwhile. Securing the stake would allow the successful bidder to gain management of the airline with at least two senior positions, including the CEO's. The executive chairman, to be appointed by Minister of Finance Diam Zainuddin, would be Malaysian. Former Chairman of the National Electricity Board Tajudin Ali is strongly tipped to take the hot seat.
Continental has a larger presence in Mexico than any other U.S. carrier, according to Carlos Enrique Hernandez, the carrier's operations director for Mexico. It is using its hub at Houston George Bush Airport to distribute 53 flights south of the border much more efficiently than from Mexico City, he said. Sustaining solid growth strategy both in operations and market share, Continental's Mexico routes are now linked to the U.S. via Leon and Aguascalientes, not Mexico City.
FAA Management Advisory Committee's (MAC) air traffic control subcommittee holds an organizational meeting tomorrow, The DAILY has confirmed. The five-member ATC group will select the Air Traffic Organization's CEO, who will report to the FAA administrator.
Three major U.S. air cargo and courier services are committed in the long run to compete for the Latin American market, growing at a steady clip of more than 12% a year. UPS recently announced the acquisition of domestic courier companies and the construction of a $30 million terminal in Miami. DHL plans $5 million investments to beef up storage facilities, fleet and systems in Brazil, where it has 650 employees and billings of $50 million a year.
U.S. Major Carriers Pacific Share of Service Second Quarter 2000 Total Revenue Departures American 908 Continental 363 Delta 721 Northwest 5,929 United 5,089 Total 13,010 Average Number of
Sen. Henry Reid (D-Nev.) yesterday introduced a bill that would require airlines to give passengers accurate and timely explanations of flight delays and cancellations and another that would give DOT the authority to intervene in a market and roll back fares in which three or fewer airlines account for more than 70% of scheduled traffic.
