Express I Airlines, which does business as Northwest Airlink, flew 10.3% fewer passengers in April compared with the same 1998 month. The airline posted a 7% drop in traffic on 12% less capacity, which grew the load factor 2.8 percentage points to 62.3%. Year-to-date, traffic was down 2% and capacity 6.5%, boosting the load factor 2.7 points. Passengers flown declined 7%.
Federal Express and its Fedex Pilots Association yesterday signed their first contract, giving pilots a 17% raise over five years. The contract will take effect May 31. The hard-won deal covers retirement, pay, work rules, scope, scheduling and other issues important to the company's 3,600 pilots. "This is an historic occasion -- a long time in the making," said FPA President Mike Weiland.
Air France is offering summer travelers from New York to Paris three Concorde promotions, including connections to more than 70 destinations worldwide. (1) Passengers who pay the roundtrip business-class fare of $6,380 receive a free Concorde upgrade in one direction and free continuing flights to 64 points in Europe. (2) A roundtrip first-class fare of $8,486 entitles passengers to fly Concorde roundtrip with free continuing fights to 74 cities in Europe, Africa, the Middle East and Western Asia.
Rep. John Sweeney (R-N.Y.), vice chairman of the House Transportation aviation subcommittee, has sent a "Dear Colleague" letter to members of the New York congressional delegation urging support for AIR-21, the Transportation bill that would greatly increase FAA funding. Sweeney says the bill will provide airports in the state with the money to expand and attract more carriers, reducing ticket prices. "We need to bring competition into the intrastate airline industry, so we will not be held hostage by these exorbitant prices," he said.
DOT granted Air Europe, S.p.A., d/b/a Air Europe Italy a one-year initial exemption to conduct scheduled foreign combination service between Pisa/Venice and New York, at a frequency of six weekly roundtrips. Italy designated the carrier for service at the level approved by DOT, consistent with the U.S.-Italy memorandum of consultations, signed shortly after the carriers agreed to open skies pending antitrust immunity for an Alitalia-Northwest alliance (DAILY, Nov. 13, 1998). Northwest, KLM and Alitalia applied jointly at DOT for an immunized alliance (DAILY, May 13).
TWA and its International Association of Machinists union unit will resume contract talks today in Washington, D.C., with the National Mediation Board. The two sides, who entered a 30-day cooling-off period May 11, have agreed to a news blackout.
DOT granted Air Exel Netherlands two-year initial exemption authority to display Northwest's designator code on flights between Amsterdam and Antwerp, Belgium. The Dutch carrier, which has a marketing agreement with KLM, has an exemption to carry Northwest's code on flights between Amsterdam and other points in The Netherlands and between Paris and Eindhoven, Netherlands (DAILY, Sept. 23, 1998). Air Exel, which applied for the Amsterdam-Antwerp exemption in early February, planned to expand its code-share arrangement with Northwest by March 28.
Lufthansa Group Chairman Jurgen Weber is calling for the creation of a transatlantic aviation pact that would move "stalled" liberalization onto a greater stage and for governments on both sides of the ocean not to create legislation that could "shackle a free market regime." On both sides of the Atlantic, "I can see the specter of re-regulation lurking," he said in a speech to the International Aviation Club in Washington yesterday. Weber derided governments - especially in Europe - for not focusing on infrastructure improvements that are desperately needed.
FAA yesterday gave Las Vegas-based startup National Airlines its air carrier operating certificate. The airline was granted its DOT initial certificate of public convenience and necessity in February. National Chief Executive Michael Conway said that with its FAA operating certificate in hand the airline can begin to offer service May 27, as planned. The airline will begin service from Las Vegas to Chicago Midway and Los Angeles first, followed by flights to New York Kennedy June 14 and San Francisco June 24.
The Air Line Pilots Association executive board yesterday approved to send $2 million from its major contingency fund to help finance strategic planning, strike preparation and pilot and family communications programs at Midwest Express. Midwest Express ALPA Chairman Segundo Andrew said he was "gratified" that ALPA is backing his group. "Since the beginning, we have come to the negotiation table prepared to talk, while management has stalled, delayed and generally refused to negotiate in good faith.
Southwest Research Institute in San Antonio received a $9 million grant from FAA to refine a computer software tool that could help prevent uncontained disk failure due to metal defects. Such defects are difficult to spot using current non-destructive inspection methods. The new tool was demonstrated this week to industry and government officials. The National Transportation Safety Board has urged work in this area, particularly following the fatal crash of a DC-10 a decade ago in Iowa.
Senate Judiciary antitrust subcommittee's planned hearing into anticompetitive airline practices next month will "probably be a little wider" than an examination of American, subject of a Justice Department lawsuit, a spokesman for subcommittee Chairman Sen. Mike DeWine (R-Ohio) said yesterday.
Two days of informal talks between U.S. and U.K. negotiators concluded yesterday in London after "productive discussions" of ideas for a transition from the current restrictive bilateral to open skies, a DOT spokesman said yesterday. The U.K. presented its strategies, which he said were "broad and preliminary - and the gaps are many," and the U.S. provided an "initial reaction." The U.S., whose initial reaction was positive, will respond further after U.S. representatives consider the ideas put forth by the U.K. on structuring a transition.
Airport managers' commitment to "promoting competition at their airports is critical to the success of failure of new-entrant air carriers," DOT Assistant Secretary Patrick Murphy said this week in Phoenix. He asked airport managers attending the annual conference of the American Association of Airport Executives whether federal, state and local officials are doing enough to promote competition and competitive access at airports.
Emery Worldwide applied at DOT for an exemption to provide scheduled all-cargo service between Nashville and Guadalajara, Mexico. The carrier asked for the exemption on an emergency basis, telling DOT it wants to begin the service immediately. It plans to operate five times weekly on a Dayton-Nashville-Guadalajara routing, using its McDonnell Douglas DC-8 aircraft. No other carriers - all-cargo or combination - fly the route nonstop.
Frontier has formed a corporate travel advisory board to enhance the airline's brand among industry groups, including the lucrative business travel segment. Board Chairman Tom Allee, Frontier's national sales director, cited a recent survey by the National Business Travel Association predicting greater use of low-fare carriers, like Frontier, by business travelers and cost-conscious corporate travel managers. He said the carrier wants "to ensure the Frontier product meets and exceeds the expectations of this important constituency."
America West Holdings Corp. shareholders yesterday approved an amendment to the company's Incentive Equity Plan and elected new directors. The amendment, approved by a majority of 88%, increases by 1.5 million the number of shares of the company's Class B common stock available for awards under the Incentive Plan. The plan is the company's stock-based, long-term compensation program under which executives may be awarded stock options, restricted stock and other stock-based compensation.
Air fares declined for the eighth consecutive month, according to a study by the Air Transport Association, while an American Express study concludes that the gap is widening between the lowest unrestricted fares used mostly by business travelers and the heavily restricted tariffs favored by leisure travelers.
US Airways Chairman Stephen Wolf, and other officers, are eligible for bonuses of up to 500% (DAILY, May 20). The board recommended a 220% bonus target for 1999. Wolf's potential compensation makes him eligible for $56 million in options, and President Rakesh Gangwal $36 million, amounts that have not been awarded.
Lauda Air's new nonstop Vienna-Orlando service has bookings above expectation, the airline said. The first flight arrived in Orlando May 10. Lauda also added capacity to its Vienna-Miami service.
KLM stopped all bird shipments following an incident last week at Amsterdam Schiphol Airport when 226 birds of a consignment of 1,648 died after being improperly packaged and shipped from Johannesburg. The shipment originated in Mozambique and was destined for a Dutch import firm, but the consigner had not packaged the birds according to IATA Live Animal Regulations.
EasySabre, the industry's first travel web site, will stop operations June 15. Members are being directed to Sabre's growing Internet site, Travelocity.com.
Canadian Airlines has opened an Asian regional office in Hong Kong to increase revenue in Taiwan, China and Hong Kong markets, said newly appointed Managing Director Derek Galpin. The Hong Kong market was well developed, while Taiwan was strong and China offers huge potential, he added. Starting June 1, Canadian will increase capacity on its weekly Hong Kong-Vancouver flights and launch four weekly Shanghai-Vancouver flights from the new Shanghai Pudong Airport Oct. 1, the same day the facility opens.
