The Star Alliance is creating an electronic ticketing system (EITX) that will serve the entire network. The system, to be completed by December and commissioned before Jan. 1, 2000, "will see all the partner carriers interline compliant with one another," said Dietmar Kramer, Lufthansa general manager for Malaysia, Singapore and Brunei. Kramer, a recent appointee, said electronic ticketing is gaining popularity among passengers. "The goal is to have entirely ticketless travel in the entire Star Alliance network," he said.
Atlas Air expects no negative financial impact from the recent decision by its approximately 590 pilots to vote for Air Line Pilots Association representation. Atlas Chairman, Chief Executive and President Michael Chowdry said, "We respect the decision that our crew members have made....At the same time, we are committed to maintaining our efficient and competitive cost structure." Chowdry said the company expects costs to decline initially because pilots are no longer eligible to participate in Atlas Air's profit-sharing program.
Worldspan Commercial World Net is offering an easy-to-use Internet-based travel planning and booking solution custom-made for travel agencies' small corporate clients. Commercial World Net gives business travelers online access to arrange their own travel, while relying on travel agencies for travel management expertise, ticketing and quality assurance. It also offers corporate travelers real-time Internet booking capabilities for airline, car and hotel reservations. A basic Internet connection links users to the Worldspan global database.
European Union transport ministers, meeting informally during the weekend at Dortmund, "maintained the idea that the hushkit ban will be adopted on 29 April," a spokesman for the EU Council of Ministers said yesterday in Brussels. A German government spokesman confirmed yesterday in Luxembourg that "there will be a ban. We will stick to the EU's decisions on noise standards." The EU's foreign ministers, meeting yesterday in Luxembourg, were briefed by the European Commission on the state of three current EU-U.S. trade issues - hushkits, bananas and beef.
Sundstrand reported yesterday that first quarter sales increased $19 million or 4% to $504 million and net earnings rose 16% to $56 million from $51 million. Sales for the aerospace group increased 10%, or $28 million, to $317 million. Operating profit increased 16% to $71 million, and the operating profit margin increased to 22.4% from 21.1%. The company said commercial original equipment and aftermarket sales are expected to continue growing and military sales are expected to remain relatively unchanged from 1998 levels.
GRC International and Eclypse International said yesterday they are developing jointly an electrical system test program that could help provide advance notice of aircraft wiring degradation. The test program, Automated System Quality Assurance (ASQA), will provide wiring configuration management, electrical test planning, electrical testing and data capture, and post-test analysis to help identify potential wiring problems. ASQA is intended to span the life of an aircraft, from initial design to final retirement.
DOT's tentative grant of antitrust immunity for the American-LanChile alliance will be effective on implementation of the U.S.-Chile open-skies agreement, initialed 18 months ago (DAILY, Oct. 30, 1997). The show cause order excludes operations on the Miami-Santiago route, and DOT said it will review this limitation within 18 months. DOT said it would eliminate from the carriers' agreement any exclusivity clause that would restrict LanChile from interline or market arrangements with U.S.
IATA Director General Pierre Jeanniot warned Europe last week against going it alone and reversing decades of liberalization into a market-driven aviation system. Jeanniot cautioned the Airports Council International "Greenport" conference in Amsterdam against "any futile attempt at restricting the availability of aviation products to consumers by counter-productive energy-related taxation."
United and the International Association of Machinists (IAM) reached a tentative agreement Friday in a contract affecting 20,000 customer service, reservations, freight and city ticket office workers. The deal calls for a 5.5% across-the-board pay increase, effective April 13, elimination of C-scale wages, a $750 signing bonus and new job security and layoff protection.
Nine of the 21 countries at the Asia-Pacific Economic Cooperation forum's Transportation Working Group meeting last week in Santiago, Chile, said they back further aviation liberalization. APEC comprises a diverse group of countries, including the U.S., Canada, a number of Pacific Rim powerhouses and smaller countries, and has been a persistent force for liberalization.
DOT -- Approved a two-year exemption renewal for American to provide scheduled combination service between Miami and Santa Cruz and La Paz, Bolivia, which the carrier had requested for an indefinite period...Approved an Apple Vacations West charter using a Mexicana A320 for 245 roundtrips carrying 174 passengers between Chicago and Cancun, Nassau, Montego Bay, Zihuatanejo and Puerto Vallarta and Denver and Cancun and Zihuatanejo routing May 1-Dec.
American plans to launch year-round nonstop service between Hartford Bradley Airport and Los Angeles July 2. The flights will be operated with new 737-800 aircraft configured for 20 first-class and 126 coach seats.
Spencer, Iowa-based Great lakes Aviation reported record operating revenues of $30.2 million for the first quarter 1999, a 60% increase from the same 1998 period. Net loss totaled $746,000 or 9 cents per share, an improvement over the previous year's net loss of $3.9 million or 51 cents per share. The company posted operating income of $147,000, the first such earnings in five years for a first quarter. Passenger revenue jumped 56.8% to $23.7 million and public service revenue gained 53.6% to $4.3 million. Total operating expenses grew 37.3% to $30 million.
Delta used a one-day sales tactic Friday to generate Internet ticket sales for its Florida flights. The airline offered a 1,000-mile frequent flyer bonus for web bookings of rock-bottom roundtrip fares, including $188 for either New York-Orlando or Washington-Tampa. The sale covered the May 7-June 24 period, typically the start of the summer season.
The House leadership sees floor action on passenger bill of rights legislation in three to six months.Transportation Chairman Bud Shuster (R-Pa.) and others have introduced consumer protection bills, and DOT says the number of passenger complaints per 100,000 passenger boardings was 26% higher in 1998 than in 1997. The leadership expects Science Committee approval and House action by mid-May on the administration's $206 million fiscal 2000 request for FAA research, engineering and development programs.
Boeing said it has signed an agreement granting exclusive marketing and distribution rights for surplus commercial airplane parts to THE AGES Group, a Volvo Aero company. Surplus parts are those no longer required for production and therefore not maintained in the normal Boeing inventory. The agreement calls for Boeing and AGES to share the net revenue of the surplus parts sales.
United Airlines Cargo said that "for the first time ever" the shipping community can make reservations on-line through the company's new dedicated Internet web site, at www.ualcargo.com. The web site enables registered users to receive enhanced shipment tracking information, access flight availability and instantly create and modify reservations on any United flight, including DC-10 freighters. Jim Hartigan, VP-cargo, said, "Currently, we are the only airline to offer this level of functionality to the shipping community."
FAA -- In Federal Register dated April 16...Issued an airworthiness directive on certain Douglas DC-10 aircraft requiring inspections of the rear spar cap of the horizontal stabilizer...
Coltec Industries said its net income increased 11% to a record $27 million in the first quarter as aerospace revenues grew 15% to $190.6 million and operating income rose 17% to $30.5 million. John Guffey, chairman, said the results reflect increased shipments of landing gear systems for Boeing's new-generation 737s and higher profits in its landing gear overhaul and maintenance businesses. Crew-seating business also achieved significantly higher results due to aftermarket orders, he said.
Endorsing a declaration last month by its National Air Traffic Services (NATS) subsidiary, the U.K. Civil Aviation Authority announced last week that an independent review of the nation's aviation infrastructure shows it will be in "good shape" for 2000. The government said it plans to issue advice on the Y2K safety of foreign airlines and airports by Oct. 1 and "will withdraw foreign airline operating permits if necessary." The U.K.
The two U.S. airlines that added the most capacity in the first quarter, Southwest and Continental, showed the biggest load factor gains - 3.7 and 2.5 points, respectively.
