Spanair and United asked DOT to amend their code-share authority to add Denver as a co-terminal point. United now displays Spanair's designator code on flights to 14 U.S. co-terminal points beyond Washington. Spanair operates Washington Dulles-Madrid service. The carriers told DOT the proposed service would benefit passengers at United's Denver hub and provide competition to code-share services by Iberia/American, which hold authority to operate Denver-Spain service. The U.S.-Spain bilateral provides for Spanish carriers to serve up to 15 U.S.
Air cargo carriers operating at Dubai failed again to come to an agreement on a common base rate, and a subsequent meeting on proposed rates was canceled due to poor attendance. It is unlikely an agreement on rates will be reached before the end of April, according Vasco Furtado, chairman of the carriers' Yield Improvement Committee.
Following disappointing 1999 earnings due to significant overcapacity across its network, KLM said yesterday it will not increase its capacity during the peak summer season. The move to suspend several European routes beginning next month is seen "as a first step towards restoring an acceptable level of profitability." Beginning March 26, KLM will cease operations on routes between its Amsterdam hub and Karachi, Riyadh, Jeddah, Baku, Santiago de Chile, Basel/Mulhouse, and London Gatwick. KLM's Amsterdam-Kristiansand service will be suspended as of July 3.
Expedia and Worldspan confirmed they are jointly developing a new airfare pricing technology that will be phased over 18 months to improve the speed of Expedia's web portal. The companies announced yesterday that the first phase of implementation would include "new features" aimed at small-business and leisure travelers using Expedia.com to purchase tickets.
Boeing established a New Ventures Activity led by VP Anil Shrinkhande that is expected to generate growth initiatives, including electronic-commerce businesses. "It will take advantage of our expertise and serve as an incubator for new e-business initiatives in a networked economy," said Chairman Phil Condit.
The Fractional Aircraft Ownership Aviation Rulemaking Committee this week presented its recommendations to FAA for a rulemaking on the fast-growing business. FAA plans to revise its rules covering operations by aircraft in such programs. The proposed revisions would define fractional ownership programs and their various participants, more clearly allocate responsibility and authority for safety of flight operations and ensure that the operations maintain a high level of safety.
DOT made final its tentative order finding Cardinal Airlines fit for scheduled service and the carrier was issued its certificate. The Melbourne, Fla.-based airline, now in midst of a public offering, plans all-first-class service to East Coast markets, using two DC-9 aircraft, with initial service to Baltimore. It intends to begin service in September or October, with one fare for each destination, whether tickets are purchased "30 days or 30 minutes before the flight, kind of like buying a Saturn," according to President and Chief Executive Watson.
Boeing Airplane Services (BAS) and BFGoodrich Aerospace Aviation Services have signed a letter of intent to develop a landing gear overhaul alliance for Boeing aircraft equipped with the latter's landing gear. Both companies expect to conclude an agreement within 30-60 days. The Boeing 777 would be used as a prototype for the first offering under this program.
Jet fuel spot prices in New York ended last week at $0.77 per gallon, up 1% from the beginning of the week and up 140% from a year ago, according to Deutsche Banc Alex. Brown. Crude oil futures traded at $29.92 per barrel, up 53 cents yesterday.
America West's board approved an extension of its stock repurchase program authorizing the company to buy up to 3 million shares of its publicly traded Class B common stock. The stock plummeted 29% since Jan. 1 and closed yesterday at $14 a share, a new 52-week low.
Summary of U.S. Major Carriers Domestic Traffic August 1999 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change Alaska 1,320 2.94 847 1,118,660 0.72
Rainer Hertrich, co-chief executive of the yet-to-be-established European Aeronautic Space and Defense Company (EADS), will replace Manfred Bischoff as CEO of DaimlerChrysler Aerospace in March. DASA plans to merge with Aerospatiale Matra and CASA to form EADS this year.
British Airways named Agency.com as the exclusive services partner for its new eCommerce division, unveiled earlier this week. In a multiyear agreement valued at more than US$30 million, Agency.com will work with BA to design and implement its online initiatives. New York-based Agency.com plans to dedicate strategy, marketing, creative and technology staff to the airline.
Lufthansa Technik (LHT) plans to take advantage of the Asian economic turnaround to increase its market share from the current 8% to about 10% by yearend. Aiding the effort will be LHT's integrated maintenance, repair and overhaul (MRO) packages, said Executive Board Bember August-Wilhelm Henningsen. He estimates that the Asian economies will grow 1-5% this year, while the airline industry will maintain its high growth potential for several decades. The MRO market, which has about 2,000 active aircraft, will grow at an annual rate of 4.5% until 2003.
Taesa, grounded since November, was declared bankrupt by a Mexican judge this week. The carrier had $60 million in assets but sought a three-year period to repay $660 million in debt. The court rejected the plan. The low-fare carrier suffered after a Nov. 9 crash that killed 18.
