Sen. Harry Reid (D-Nev.) last week introduced the Safe and Friendly Skies Act of 1999, which would increase the civil penalty for unruly passengers from $1,100 to $25,000. Reid cited a sharp increase in unruly behavior by airline passengers despite increased instances of civil penalties imposed by the FAA.
In a newly released list of Taiwan's largest 500 corporations in terms of revenues generated in 1998, China Airlines ranks number five in the service sector and number 11 overall with total revenues of NT$51.9 billion (US$1.56 billion) while EVA Airways ranks number six in the service sector with total revenues of NT$42.9 billion (US$1.29 billion). CAL fell by one position in the ranking from fourth place a year earlier while EVA rose by one position from number seven. The ranking was compiled by China Credit Information Services Ltd.
U.K. regional carrier Brymon Airways will acquire its first jets following an order last week for up to 21 aircraft. The airline has a firm order for seven 50-seat Embraer ERJ-145 regional jets, with options on 14 more. The airline may upgrade to the planned 70-seat jet. The list price for the orders and options on 21 aircraft plus spares is $420 million. Delivery of the seven jets will begin in early 2000 and all aircraft will be acquired on operating leases. They will be powered by Rolls-Royce Allison engines.
Japan Airlines completed fiscal 1998 with a net profit of 26.3 billion yen (US$219 million), even though business travel was down throughout the year. Rival All Nippon Airways, with a more concentrated domestic route network, posted a loss last year (DAILY, May 28). JAL said overall international demand was flat year over year and systemwide cargo traffic declined. Revenue fell 5.1% to 1.16 trillion yen ($9.6 billion) for the year ended March 31. Yields dropped, JAL said, due to increased competition and "generally lower demand."
After five months as acting president, Sandy Liu has been officially installed as president of China Airlines (CAL). Liu's leadership was evident when he successfully negotiated the sale of CAL's two Boeing 747SPs and six Airbus A300B4s recently. Liu, however, would not reveal who the buyers were or how much the planes sold for, but he indicated that little was expected from the transactions. Liu was prepared to write off the eight aircraft as scrap metal if CAL had failed to sell them in June.
Positive initial comments following recent U.S.-U.K. bilateral talks may be just a stage in negotiations."I would caution against excessive enthusiasm about the prospects of a U.K. deal," David Marchick, deputy undersecretary of state for transportation affairs, told The DAILY. "Both governments are committed, but the price will be high in terms of access to Heathrow." More talks are expected this month.
United Chief Executive Gerald Greenwald, commenting on US Airways Chairman Stephen Wolf's complaints about United's rapid buildup at Dulles: "US Airways views the Washington metro area as its area. We have never shared that view."
In a bid to keep itself afloat, Air Niugini (ANG), has embarked on a cost- cutting exercise, including job reductions. The national carrier of Papua New Guinea has offered early retirement to about 110 long serving workers and plans to lay off another 20% of the remaining 2,000 employees. According to ANG Managing Director Andrew Ogil the airline also is evaluating a plan to outsource non-core activities. "This will allow the carrier to focus strictly on its airline activities and also reduce overheads," Ogil said.
Transavia Airlines ordered four Boeing 737-800s with options for 12 more. Two are to be delivered in 2000 and two in 2002, joining eight previously ordered 737-800s and replacing the oldest 737-300s in the carrier's fleet.
Senate Commerce Committee Chairman John McCain (R-Ariz.), who makes it a practice every year to go after money not approved by the House or Senate but added in conference, this year showed he plays no favorites. On his list is Commerce aviation subcommittee language added in conference that makes available $2.3 million for costs associated with facilities rental in Calverton, N.Y., for assembling TWA 800 wreckage.
Some 1,800 commercial airline and military mechanics are being asked to retake certification tests following conviction last week of two Orlando here who helped applicants cheat on FAA licensing tests during the past four years. Fifteen mechanics already have surrendered their credentials after prosecutors won guilty verdicts on 17 fraud and conspiracy counts from a jury in U.S. District Court against the owner of a Sanford, Fla.-based testing center and an examiner who worked for him.
Sunworld applied for an exemption to operate scheduled combination service between Newark and the coterminal points St. Lucia and Antigua. The carrier has an exemption to operate such service between Cincinnati and St. Croix, U.S. Virgin Islands, and St. Maarten, Netherlands Antilles, and operates weekly scheduled Cincinnati-Grand Cayman service. It operates public charters in the Caribbean. Sunworld said there is an "immediate public demand" for its proposed weekly flights on the route, and it plans to use 170-seat Boeing 727-200s. (Docket OST-99-5731)
People Airways, aiming to revive commercial service at Concord, Calif., is seeking investors via its peopleairways.com web site. For a $5,000 minimum, owners get one preferred share for each dollar invested and unlimited 75%-off standby travel on the future airline. The carrier plans to "only target markets that we can dominate" and to "show outrageous acts of kindness and consideration to our customers."
FAA told the Joint Aviation Authorities that it supports JAA's proposal to permit single-engine commercial cargo flight at night and in instrument conditions. Nick Lacy, director of Flight Standards, told JAA in a May 20 letter that the "expanded single-engine IFR authority provided a higher safety standard for United States operators."
KLM has met one of two conditions for its proposal to reduce the number of outstanding shares by completing a secondary offering of 35% of the outstanding shares of Galileo International priced at $45 per share. KLM held 10.6 million shares in Galileo and total proceeds to the carrier amounted to $466 million after fees. KLM announced May 4 that it plans to reduce outstanding shares by up to 25% through a reverse stock split and a capital redemption to shareholders.
National Airlines, which launched service last week from Las Vegas to Chicago Midway and Los Angeles, said it will keep Midway service even if its application for O'Hare slots is approved.
United's public contact employees, who voted last July to be represented by the International Association of Machinists (IAM), ratified a tentative agreement reached in April with the company (DAILY, April 26). Ballots were cast by 70% of employees eligible to vote, with 70% voting in favor of the agreement. The contract covers more than 19,000 U.S.-based customer service, reservations, ticket office and cargo air freight employees.
Bombardier's 70-passenger CRJ700 made its first flight late last week, marking the start of the flight test program with service entry planned for the first quarter of 2001. The company to date has firm orders for 96 aircraft from six airlines, with options for another 140. Customers are Brit Air, Morlaix, American Eagle, Atlantic Southeast, Lufthansa CityLine, Comair and Horizon Air.
Summary of U.S. Major Carriers International Traffic November 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (miles) (000) Change Alaska 93 27.68 1,148 106,785 29.27
Summary of U.S. National Carriers Systemwide Traffic November 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (miles) (000) Change AirTran Airlines 475 54.82 539 256,254 36.76
-- In Federal Register dated May 17...Issued an AD on Bombardier Regional Jet and Challenger aircraft requiring inspection of the cable harness of the integrated drive generator in the right engine nacelle...Proposed an AD on several Learjet models to require inspection of the electrical wire leads of the horizontal stabilizer anti-ice system.
The International Civil Aviation Organization last week hailed an agreement reached by member states that ICAO President Assad Kotaite said will mean better protection and compensation for victims of international air accidents. "We have succeeded in modernizing and consolidating a 70-year- old system of international instruments of private international law into one legal instrument that will provide, for years to come, an adequate level of compensation for those involved in international air accidents," he said.
FlightSafety International named Jerry Hill manager of the Bethany Learning Center. B.H. Aircraft elected Don Fuqua to the board of directors. Bombardier Business Aviation Services named Jim Lundeen customer service manager in Denver; Kirk Schiebelhut, Wichita; Don Nolan West Coast regional manager; Tom House Great Lakes regional sales manager and Heinz Tom regional manager for Europe, the Middle East and Africa for Lufthansa Bombardier Aviation Services in Berlin.
