EgyptAir will resume flights to Libya later this month after an eight-year hiatus. According to the Middle East News Agency of Egypt, the airline will start three weekly flights to Libya, including two between Cairo and Tripoli and another between Cairo and Benghazi.
Airport an Airway Trust Fund -- Income Statement October 1, 1999 - April 2000 RECEIPTS (Revenues) April 2000 Revenues: Excise Taxes (Transferred from General Fund): Liquid Fuel other than Gas 69,288,000.00 Transportation by Air, Seats, Berths, etc. 561,060,000.00 Use of International Travel Facilities 104,498,000.00
Malaysia Airlines has proposed to increase its domestic fares 50% soon to reduce losses in its current fiscal year. According to MAS Executive Chairman Tajudin Ramli, the airline has applied to the government for the increase. Last year, the carrier's proposal to increase fares 20% was shot down by the Cabinet. Tajudin claims that MAS is losing an average of M$1 million (US$266,000) a day on domestic operations. He noted that the depreciation of the Malaysian dollar against major currencies three years ago has taken its toll on the airline.
US Airways placed its fifth Airbus A330-300 into service this week from Philadelphia to Rome. The first A330 entered service May 4 on Philadelphia-Paris and the seventh will arrive by yearend.
Delta will recognize a $228 million non-cash, pre-tax gain during the quarter ended June 30 thanks to a Priceline.com stock exchange. During its fiscal fourth quarter, Delta exercised its right to exchange six million shares of Priceline.com common stock for six million shares of Priceline.com convertible preferred stock. The carrier already sold 11.1 million shares of Priceline.com worth $711 million. Delta changed accounting for frequent flyer mileage credits sold to partners due to new SEC rules, which it retroactively adopted as of July 1, 1999.
Varig plans to start a series of "red-eye" flights departing at dawn from major cities in Brazil to domestic destinations. Rotatur, a Varig subsidiary which has managed mostly charters, will operate and market these no-frill services.
Spain's Minister of Economy Rodrigo Rato said Tuesday that Spain's majority stockholders in Aerolineas Argentinas will not let the airline go broke as occurred with Venezuela's Viasa. Viasa went under while under Spanish control five years ago. Rather, the SEPI rescue plan closely follows guidelines that turned Iberia around from near bankruptcy five years ago to its current profitable status.
BAE Systems Regional Aircraft and West Air Sweden launched a jointly funded freighter program for the ATP regional airliner. The launch follows the purchase of six West Air Sweden ATPS formerly operated by United Feeder Service of the U.S. West Air placed options on the remaining three ATPs in the UFS fleet. West Air, which has a fleet of 11 BAe 748s, on which the ATP airframe is based, will be responsible for making the freight door and door installation.
Taiwan's Civil Aeronautics Administration (CAA) is warning all local carriers that it will not hesitate to suspend the operations of any airline that fails to adhere to safety and maintenance procedures. Persistent offenders could have their air operating certificate canceled without hesitation. The warning comes in the wake of the suspension recently of two carriers, regional operator U-Land Airlines and domestic carrier Daily Air for two weeks and four weeks, respectively.
Emirates plans to launch nonstop flights between Dubai and Chennai, India, on Sept. 1. The airline will offer four weekly nonstops and the route will be served with an Airbus A310-300 in a three-class configuration. Air India will code share with Emirates on all flights. Chennai is the largest city in southern India.
British Airways named TRX Europe to handle the fulfillment of bookings for the direct version of their new online business travel management system. BA developed two systems -- one for travel agent use and one for small- to medium-sized businesses who choose to book direct. TRX will handle servicing of bookings for companies that choose the direct system, including issuing all tickets directly to passengers.
German tourism giant C&N has bought the travel division of its French competitor Havas Voyages. The company declined to name a price. C&N is owned by Lufthansa and German retail chain Karstadt AG. Havas Voyages has a market share of 20% in the French market with a turnover of $890.5 million. C&N CEO Stefan Pichler has set out the strategy to grow through acquisitions to become a leading competitor in Europe.
The U.S. and the U.K. resumed talks on an expanded aviation bilateral yesterday, but U.S. government officials are not hopeful this latest round will produce a deal. Officials said they believe both sides have a lot of work ahead of them, and nothing less than an open skies pact with all the essential elements that mark other similar agreements will be acceptable to the U.S. The British probably will not take any definitive action on open skies until the turbulence at British Airways settles down.
ARINC was awarded a contract to determine the safety impact of reducing separation standards in South Atlantic airspace known as the Europe-South American Corridor, which contains routes carrying a growing number of flights between major Europe and South American cities. The study is being conducted for AENA, the air traffic service provider of Spain. AENA will work with the South Atlantic Task Force to implement reduced lateral and vertical separation standards for operations between 29,000 and 41,000 feet.
Kitty Hawk International (KHI) wants authority to transfer its certificate to a new, wholly owned subsidiary to be called Kitty Hawk Air. All outstanding stock of the subsidiary will be sold to Conrad Kalitta, who will file at DOT for fitness qualification. The stock and certain assets would be transferred, for which KHI would receive "a maximum of $700,000." Its certificates are valued at $650,000, KHI told DOT. KHI ceased operation May 1 and filed for Chapter 11 bankruptcy protection. Other subsidiaries continue to conduct air carrier operations, KHI said.
TWA has told investment firm Global Aviation that the airline is willing to discuss a merger. TWA CEO Bill Compton on Friday sent Global's chairman a letter saying he wants to talk and asked Global to contact TWA's New York investment banker, Rothschild, said Global spokesman John Scott. Compton asked about the stock dividend and five year convertible preferred bond portions of the offer, Scott said, noting that Global hopes to start negotiations soon and finalize a transaction by the end of July. Global plans to meet with the pilots to talk about the deal.
A business class passenger who traveled on Singapore Airlines flight SQ320 from Singapore to London on June 24 was arrested by police on arrival at London Heathrow for being abusive and a nuisance on board. At the parking gate, only first class passengers were allowed to disembark while police took statements from other passengers in the same business class cabin before the passenger, a British man, was handcuffed and taken away by police. Disembarkation of the rest including economy class passengers was held up for 30 minutes.
Swissair CEO Jeff Katz resigned from the airline yesterday to return to the U.S. to lead the Orbitz travel web site, in yet another major change within the complex structure of SAirGroup. Katz, a former AMR Corp. executive, joined Swissair in April 1997 but decided to accept an offer from Orbitz to become its chairman, CEO and president effective immediately. "The time is right for me to make a change and I think that Swissair is well prepared for the consolidation phase that is now underway in the European air transport sector," Katz said in a statement.
Aviation Industry Stock Performance June 2000 Closed Closed MonthlyChange Majors 06/30/1999 05/31/00 ($) (%) Alaska Air Group ALK 27.125 31.125 (4.000) (12.9) America West (Class B) AWA 17.125 18.000 (0.875) (4.9) AMR 1 AMR 26.438 28.688 (2.250) (7.8)
FAA said that Costa Rica complies with international safety standards set by ICAO following a reassessment of the nation's oversight of its air carriers. Costa Rica, a U.S. open skies partner, previously did not comply with ICAO standards, FAA said. FAA recently downgraded the safety rating of El Salvador, another open skies partner in Central America (DAILY, June 15). The lower rating means that Grupo TACA operations from San Salvador to the U.S. is limited to current levels and come under heightened FAA surveillance.
DOT Secretary Rodney Slater yesterday announced that American Trans Air, National Airlines, Frontier, Spirit, Midway, Midwest Express, TWA and America West were awarded new slots at Washington National (DCA). In a hotly contested battle for the first long-haul flights from DCA in decades, there were nine applicants for beyond-perimeter exemptions seeking a total of 44 slots. Eleven airlines sought 60 within-perimeter exemptions. Of the eight carriers awarded slots, only three were major airlines.
Japan's three major airlines -- Japan Airlines, All Nippon Airways, and Japan Air System -- launched their joint shuttle service between Tokyo and Osaka on July 1. The service operates between Tokyo's Haneda airport and Osaka's Itami and Kansai airports. The three will operate upwards of 30 daily flights that depart about every 30 minutes. In the first trial of a shuttle program in Japan, the carriers aim to persuade a portion of high-speed train passengers to shift to air travel.
