New AirTran President, Chief Executive and Chairman Joseph Leonard said that as of this week AirTran customers can upgrade at the gate for $25 on a first-come first-served basis. The marketing strategy is one step in the former AlliedSignal chief's plan to draw higher-yield business travelers and return the airline to profitability. The company is in a major campaign in the Atlanta region to bring more business travelers on board and has signed "a significant number of contracts," Leonard told The DAILY.
British Airways will boost capacity from the U.K. to Ireland this spring with the launch of jet flights between London Gatwick and Cork. The service, to start March 28 with two daily flights on weekdays, will be operated by BA CityFlyer with 100-seat British Aerospace Avro RJ100s. ATR turboprop services will complement the jet operation on weekends. To promote the upgrade to jet equipment, BA will offer an introductory roundtrip fare of #89 (US$141.51), including passenger taxes.
US Airways asked DOT to make final "without further delay" its selection of Delta for Atlanta-Rome service beginning April 1 (DAILY, Feb. 24). DOT expedited the proceeding so the chosen carrier could launch service in time to succeed in the summer season, US Airways said, and "it is important to maximize the value" of transitional services the U.S. secured under the open-skies agreement initialed last fall (DAILY, Nov. 13, 1998), which will be implemented following U.S. approval of antitrust immunity for an alliance including Alitalia.
New Air Corp.'s application for 75 new-entrant slots at New York Kennedy, filed in advance of an application for FAA and DOT certification, drew a flurry of opposition as well as support from another startup carrier.
SAS was forced to cancel about 100 flights in Europe last week because of a wing inspection on its DC-9s. An SAS spokeswoman in Copenhagen said the airline's maintenance officials discovered that routine inspections had not been performed regularly. The inspections will be completed in about one week.
British Airways' low-cost unit Go will add service to Spain and Portugal, starting this month, with flights from London Stansted to Malaga March 29, Bilbao May 20 and Madrid July 1. Service to Faro, Portugal, begins March 28. Go also will fly two daily Stansted-Lisbon flights, starting March 24.
American Trans Air parent Amtran Inc. reached an agreement in principle Friday to purchase all the outstanding shares of Chicago Express Airlines. The privately owned regional carrier serves ATA at Chicago Midway. No value was attached to the transaction.
-- In Federal Register dated Feb. 19...Issued an airworthiness directive on certain Airbus A330 and A340 aircraft requiring checks of the valves of the main landing gear...Issued an AD on Saab 340 aircraft requiring inspection of the support straps of the flaps...Issued an AD on Boeing 777 aircraft requiring inspection of the outboard leading edge flaps...Issued an AD on Airbus A300-600 aircraft requiring a new fuel-level sensing amplifier.
DOT published a proposed rulemaking Friday in The Federal Register to extend the expiration date on its rules covering carrier-owned computer reservations systems for one year, to March 31, 2000. Current rules would remain in effect without disrupting compliance by CRS operators while DOT continues its "re-examination of the need for CRS regulations." The sunset date on the rules was last amended in December 1997.
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British Aerospace said its 20% share of Airbus caused a loss of $40 million last year, and it attributed the results to an aircraft price war with Boeing. This would mean the consortium lost about $200 million. Boeing reported its first annual loss in 1997. But even though the Airbus consortium lost money, its partners made a profit through the sale of parts to Airbus. Other consortium partners are DaimlerChrysler Aerospace, Aerospatiale and CASA. Attempts to turn Airbus into a public limited company have not been successful.
Delta's new brain, an O&D yield management system that goes on line March 17, will generate $100 million in incremental revenue this year and $185- $290 million in 2000, according to Merrill Lynch. Delta has a lot to gain - its old system is behind the competition and the airline carries more connecting traffic than others its size.
KLM said Friday it will offer 12,296,600 seats during the summer 1999 travel season beginning March 28, a 2.5% increase from last summer. The carrier will add three cities and increase frequencies to a number of European destinations. KLM will add no new service across the Atlantic, an area of increasing scrutiny because of the abundance of existing capacity. In total, KLM will have 43,630 roundtrips over the 217-day period until Oct. 30. The airline will begin twice-weekly service from Amsterdam to Shanghai, using a 747-400 Combi.
Virgin Express Holdings will seek shareholder approval April 13 of a plan to repurchase $15 million of its outstanding shares. The company initially would buy $7 million in stock if net earnings were at least $8 million this year. "We have no debt and a strong cash position," said Chief Executive Jim Swigart. "The repurchase of our shares should also be accretive to earnings per share."
TWA has "no more latitude for mistakes and missteps as it tries to find its place in this industry," TWA Air Line Pilots Association Master Executive Council Chairman Joe Chronic told pilots last week in a recorded message. Addressing TWA's alliance prospects, Chronic said he is watching what will happen now that America West has taken itself out of the acquisition market. "The big question, of course, is will - or can - there be some combination of events which would...lift us out of the sinkhole we seem to be stuck in....Things cannot stay status quo.
National Business Aviation Association named Bill deDecker, a partner with Conklin&deDecker, to the Associate Member Advisory Council. Wings Club named Marsha McGhee director-sales.
