US Airways' Envoy Class service has won the 1999 Presidents Award of Distinction for Innovation in First and Business Class Service, given by the International Inflight Food Service Association. The award was presented in recognition for outstanding achievement based on menu selection and presentation, serviceware and table linen, spirits and wine, and special presentations such as dessert, amenities and cabin service.
US Airways flight attendants, who have been in contract talks with the company for about two years, plan to rally at Wednesday's shareholders meeting in Charlotte, N.C., to protest proposed cash incentives in addition to what they consider outrageous pay to President and Chief Executive Rakesh Gangwal and US Airways Group Chairman Stephen Wolf. US Airways' Association of Flight Attendants President Steve Hearn said Wolf "raked in $34 million last year.
China's reduction of its civil aviation infrastructure levy (CAIL) will help China Eastern Airlines (CEA) return to profitability after a US$61 million loss last year, CEA Chairman Fu Yunbi told The DAILY. CEA made a profit of US$74.9 million in 1997. Fu said the $23.6 million earned from the sale (Continued) of 13 Boeing MD-82s also would help the carrier improve its finances. CAIL is the government's charge on all Chinese airlines for revenue earned on domestic and international services for one calendar year.
Peruvian President Alberto Fujimori has extended AeroPeru's bankruptcy proceeding from May 17 to June 1. According to DAILY affiliate Aviation Latin America&Caribbean, Continental executives are set to meet with Fujimori May 24. Reports say the Houston-based airline is prepared to invest up to $70 million to relaunch AeroPeru - $40 million for liabilities and $30 million for working capital. Two other airlines are waiting in the wings in Lima. LanChile is backing LanPeru, while Grupo TACA is helping fund TransAm Airlines.
Japan Airlines yesterday named Kazunari Yashiro chief executive officer, the Americas. He replaces Yukio Ohtani, who has returned to Japan to become president of Japan Air Charter, which will become a scheduled carrier. Based in New York, Yashiro will be responsible for JAL's business in the U.S., Canada, Mexico and Central and South America. He previously was senior VP and deputy general manager of JAL's corporate planning department. It is Yashiro's second U.S. assignment, after directing the airline's government affairs from 1979 to 1984.
Great Lakes Aviation has been tentatively selected by DOT to continue to provide subsidized essential air service at Manistee/Ludington, Mich., for two years from Dec. 29, 1998, through Dec. 31, 2000, at an annual subsidy rate of $361,808. Great Lakes provides - and will continue to provide - two one-stop roundtrips per day, six days a week, with Beech 1900s, from Manistee to Chicago O'Hare. Objections are due May 25. (Docket OST 96-1711)
US Airways' Air Line Pilots Association Master Executive Council last week unanimously approved a deal that will for the first time cover pay and work rules for pilots in supervisory positions. The union also is asking for volunteers to help new pilots transition from training to flying the line. US Airways expects to hire 25 pilots per week through the yearend.
Spirit Airlines reported an 87.9% leap in traffic on 87.6% more capacity for April 1999, compared with the same 1998 month, which pushed the load factor up 0.2 percentage points to 80%. The airline saw a 67.7% gain in passengers carried. Year-to-date, Spirit flew 82.4% more passengers as traffic climbed 106.7% and capacity 101.5%, growing the load factor 2.1 points.
American filed a supplement yesterday to its reply on U.S.-Russia applications (see story, Page 100) calling reports that Delta may sign a code-share agreement with Aeroflot "yet another reason" for DOT to deny Delta's bid for a third-country code-share designation with Air France. Delta flies its own aircraft in the market and code shares with Swissair. (Dockets OST-99-5286, 98-4522, 98-4328)
DOT should designate American immediately for U.S.-Russia third-country code sharing with Finnair and defer selection of Continental or Delta for the second available designation until Air France has chosen between them as its long-term alliance partner, American told the department. Air France's decision, expected this year, will leave one of the two carriers without its Russia code-share partner when the designation becomes effective in January 2000.
Construction of a parallel runway at Tokyo Narita Airport is running into problems and the project may be suspended. Kurono Masahiko, Japan's deputy transport minister, said the ministry still believes it is possible to begin construction this year. But two farming families living in an area where the runway is to be built still are rejecting requests by the ministry to talk about a possible move. The ministry seems to have decided on a cooling-off period but says it never will give up entirely on the runway program.
London Gatwick-based CityFlyer Express has signed to acquire an eighth AVRO RJ100 quadjet, British Aerospace said. The aircraft, configured for 110 seats, will be delivered in spring 2000. The British Airways franchisee, which already has five of the aircraft, will take delivery of its sixth and seventh RJ100s in July and August this year. CityFlyer foresees a need for additional RJ100s, with which it will replace smaller turboprop aircraft at Gatwick, BAe said.
KLM, with 66.9% of Amsterdam's total seat capacity, dominates its hub more than other European airlines dominate theirs.Next come SAS in Copenhagen, 63.7%, and Air France at Paris Charles de Gaulle, 63.1%. But no European carrier approaches the level of U.S. airline domination, such as US Airways' 90.8% of seats at Charlotte and 87.6% in Pittsburgh, and Delta's 90.8% at Cincinnati.
China Eastern Airlines, confident after the success of recent Shanghai-Paris cargo and passenger additions, intends to convert another MD-11 passenger aircraft into a freighter during the next six months. China Cargo Air, the airline's joint venture with shipping firm Cosco, eventually will manage all of China Eastern's freight capacity.
Regional airline revenue passenger miles grew by an average of 30.2% in March, based on a survey of 16 of the nation's largest regional carriers. Available seat miles increased an average 27.4% year over year. United Express Air Wisconsin, which assumed some of the Denver markets previously served by Mesa Air Group, was by far the leader, with a 93% jump in traffic and a 79.5% increase in capacity. The carrier has added Dornier 328 turboprops and CRJs to its existing 18 BAe 146 quadjets.
FAA yesterday issued its screening-based proposal to strengthen security of domestic checked baggage, a key recommendation of the Commission on Aviation Safety and Security. The proposal would require airlines to apply additional security to the checked baggage of some customers, but the agency said the Justice Department has determined that criteria for determining whose baggage is checked are not discriminatory.
Delta exceeded analysts' expectations yesterday by posting a net profit of $216 million for the first three months of 1999, up 10.8%, versus a $195 million profit in the March quarter of 1998. The airline saved $26 million in jet fuel expenses in the first quarter, and without the savings profits would have been flat. Still, Delta's operating margin increased 0.2 points to 10.2%, above that of many competitors. Without fuel benefits, the operating margin would have decreased to 9.2%.
The list of prerequisites identified by a Johns Hopkins study before satellite navigation can provide sole means/sole service is so extensive that it amounts to a "significant system redesign," according a Litton paper. For the Wide Area Augmentation System, "almost every major component is impacted - the number of ground stations, the number of satellites, the ground receivers, the avionics and the correction algorithms," according to Victor Strachan, director of strategic development, Litton Aero Products.
Some 87% of FAA's mission-critical systems - 370 of 422 - are ready for Year 2000 operations, and the agency has "consistently met or exceeded deadlines" for ensuring compliance of all National Airspace System components by its self-imposed deadline of June 30, DOT Deputy Secretary Mortimer Downey told the Special Senate Committee on the Year 2000 Technology Problem.
Malaysia Airlines is investing US$135 million to enhance its interactive inflight entertainment system (IFE) and its communications system facilities for its 777 and 747 aircraft. Senior VP-Marketing Services Shamin Ahmad said the upgrade will be carried out in two phases over eight years. The first phase, already started, involves 12 aircraft - eight 777s and four 747-400s - and the second seven 777s and six 747-400s. Another feature is an in-seat fax service that transmits keyed-in messages to fax machines in any part of the world.
Delta said yesterday it will defer delivery of four 777-200s scheduled to arrive between December 1999 and April 2000 because it has been unable to reach a timely agreement with its Air Line Pilots Association unit on pay for flying the aircraft. Delta said it was obligated to tell Boeing this week whether it would take delivery or defer.
Regional jets and small airports are "not exactly bread and butter," says analyst Michael Boyd. "In fact, RJs can have and will have, and will continue to cause reduced service at small airports." He was critical of consultant GKMG claims that small towns are missing RJ service because of union scope clauses. "That is sheer...nonsense." He said the intended RJ mission has not changed. They are used where their capacity and performance make sense to generate revenue. "Small airports that can barely support Saab 340s are not much in the picture," he added...
