Frankfurt airport company Flughafen Frankfurt/Main AG, often designated by the acronym FAG in German, will change its name to "Fraport" before its initial public offering, scheduled in the second quarter next year. The new name and corporate image will be launched in December. "In 2001, an image campaign and an IPO campaign will be launched as platforms for communicating the new 'Fraport' brand to the general public," the airport said. The first syllable of the new name, "FRA", is the aviation industry's international code designating Frankfurt.
U.S. aviation negotiators will hold talks aimed at extending open skies with Senegal, Dakar, Nov. 29-Dec. 1, building on discussions held during last month's international transportation symposium, a senior U.S. official told The DAILY. U.S. and Russian representatives meet Dec. 6-8 in Moscow to discuss possible expansion of cross-polar and Russian Far East routings, overflight matters, customs issues and smoking on flights to and from the U.S, he said.
United late last week initiated what Wall Street analysts describe as a "massive increase" in average business fares, raising most unrestricted walk-up fares by $50 or $100, depending on the distance. United, which is battling its Machinists and canceling flights, also moved its walk-up fare into a three-day advance category. UBS Warburg Airline Research analyst Jamie Baker said it was the single largest increase in walk-up fares in recent years, and possibly ever. "This increase is inconsistent with recent moderation in demand," Baker said.
DOT could issue an order awarding April 2001 U.S.-China rights this week, industry officials tell The DAILY, while some government sources contend that DOT will defer action to the new administration. Given the shortened Thanksgiving holiday week, if DOT does not announce China by Tuesday, "that would give credence to rumors" that DOT Secretary Rodney Slater may have decided not to make the decision under his watch, an industry source said.
New York jet fuel spot prices ended last week at $1.08 per gallon, up 11% from the beginning of the week and up 60% from a year ago, according to Deutsche Banc Alex. Brown.
Polish flag carried LOT posted a pre-tax loss of 63.9 million zlotys (US$14 million) in the first nine months of 2000, up 96% from the previous year, the airline said last week in Warsaw. LOT attributed the larger pre-tax losses to rocketing fuel prices. In the same period, its revenues increased 14.5% to 2.2 billion zlotys (US$480 million). The airline carried 2.15 million passengers between January and September, up by 7.2%. LOT said the increased traffic was made possible by the introduction of five new Embraer EMB145 and one Boeing 737 aircraft.
Delta next summer will expand further from New York Kennedy with new domestic and international flights to the Middle East, and within the U.S. to California and Florida. For the first time in its history, Delta will launch nonstop service to Tel Aviv and will be the first U.S. carrier to serve Dubai, United Arab Emirates. It will start in June one daily nonstop between JFK and Tel Aviv with MD-11s. Delta's own flight will be in addition to its new code share with El Al, which is planned to launch this spring.
CIT Aerospace took delivery of its first IAE V2500-powered Airbus A321 and leased it to Asiana Airlines. The aircraft was delivered to the airline directly from Airbus' Hamburg assembly line.
America West Friday began Phoenix-Oxnard, Calif., service, operated by code-share partner Mesa. Mesa will offer twice-daily roundtrip service using de Havilland Dash 8 aircraft.
Delta and its pilots union said Friday they will make a joint application for federal mediation. They also agreed to an aggressive negotiating timeline with a possible April 1 deadline. They will engage in intense mediation for 90 days beginning Dec. 1, and if they fail to reach a tentative agreement by Feb. 28, they will be released to a 30-day cooling-off period ending on or about April 1.
Japan Airlines on Friday reached agreement with Boeing to sell its entire MD-11 fleet of 10 aircraft and replace them with two new 767-300ERs and eight new 777-200ERs. The 10 MD-11s will be phased out from 2002 to 2004. Replacing the MD-11s will help JAL improve cash flow by about 10 billion yen annually. Its operational costs for the 777 and MD-11 "are almost the same," but the 777-200ER has greater range and capacity. The new aircraft could be used to fly nonstop from Tokyo to the U.S. East Coast or to Europe. JAL currently operates 10 777s domestically.
Peru's Special Commission on Airports (CEA) last week awarded a 30-year concession to operate Jorge Chavez International Airport in Lima to a consortium comprising Frankfurt Airport (42.75%), Bechtel (42.75%) and Peru's Cosapi (14.5%). Frankfurt Airport will be the operator. The concession provides for the consortium to invest up to $1.2 billion during its tenure and pay annual royalties of 46.51% on the airport's revenues, estimated at $5.33 billion for the life of the concession.
House aviation subcommittee may hold a hearing early next month after Congress returns Dec. 4 on FAA's plan to restrict flights at New York LaGuardia in January. Last week, the Senate Commerce Committee postponed an ATC hearing, and it has not been rescheduled.
AIRCRAFT TRANSACTIONS FOR AUG 24 - 30, 2000 Seller/ New Type / Previous Operator Owner Engine Operator Fairchild- Atlantic Coast First Security Fairchild Dornier Jet Bank 328JET/ PW306B Airbus Lufthansa Lufthansa Airbus
Delta has investments in 14 Internet companies and is currently evaluating 40 additional deals, according to Delta Senior VP of E-Business Vince Caminiti. He told The DAILY that he evaluates partnerships partly on their ability to boost revenue streams and lower distribution costs. Caminiti still is content with the carrier's Priceline.com participation, noting it is still "the biggest brand on the web and an excellent yield management tool."
British Midland renewed its agreement with Discover the World Marketing to provide international sales and marketing representation for the airline in 51 markets around the world for the next three years. The two companies have been partners for seven years and the renewal "is critical because it brings so much more depth to our global sales effort," said General Manager Brian Brett.
Much-criticized and complex airfare pricing methods used by airlines "create massive confusion and a widespread sense of unfairness," Delta CEO Leo Mullin told the Wings Club last week in New York. Mullin offered no solution and stopped short of supporting a "one-price-fits-all" approach as "a bad fit for both customers and airlines." But he urged the industry to "fix the issues that are fixable," such as flight delays, especially ATC troubles at New York LaGuardia.
