KLM has signed with Internet firm Pandesic LLC to reach new markets and increase its role in the flower distribution business. Pandesic, a company formed by Intel and SAP, is partnering with KLM to create NewFlowers.com to push the sale of flowers via the Internet from international points to the U.S. market. Pandesic is providing accounts receivable, credit management and other tools, and it has set up a system by which orders can be bundled into a larger purchase order.
National Airlines asked DOT to allow it to begin issuing tickets and accepting payments April 19, before it receives FAA operating authority. The startup carrier plans to begin service May 27 from its Las Vegas hub, and it said FAA advised DOT on Tuesday "that it expects to grant National operating authority within seven to eight weeks." DOT issued National a conditional certificate under Docket OST-98-4538 to conduct scheduled combination service in a final fitness order on Feb. 11.
City Pair Markets With Regional Jet Service Grouped By Passengers Per Day One Way Passengers Per Day Under 50 57% 50 - 99 19% 100 - 199 11% 200 - 299 7% 300 - 399 3% 400 - 499 1% More Than 500 2%
A U.S.-China aviation agreement initialed Tuesday in China, likely to be signed today, will allow a fourth U.S. carrier to serve China in 2001 and will double over the next three years the number of U.S.-China flights each country's airlines can operate. The fourth U.S. carrier is a concession by China, which has three carriers operating international services and had been reluctant to expand U.S. rights beyond parity. Each country may designate a fourth carrier on April 1, 2001.
Correction: John Douglass, president and chief executive officer of Aerospace Industries Association, was misquoted March 31 by The DAILY. Douglass said the U.S. aerospace industry "can be proud of its trade record and continuing growth in the global market, especially when our national trade deficit is at an all-time high."
Fairchild Corp. will reserve a $32.7 million stock-sale gain in this year's third fiscal quarter to offset expenses it will incur disposing of its Fairchild Technologies Division. The gain is from selling AlliedSignal common stock recieved in January 1998 by Banner Aerospace, and it will be reserved in the quarter that ended March 28. Fairchild Technologies ran into what Fairchild Corp. termed "problems in the Asian market" and has been accounted for as a discontinued operation since February 1998. Fairchild Corp.
Northwest traffic, which dropped 6.8% in January and 3% in February year over year, increased 0.8% in March. Capacity declined 0.5% and the load factor was 76.7%, up 1.0 percentage point. Domestic traffic rose 2.2% on 1.3% more capacity, which lifted the load factor 0.7 points to 73.5%. International traffic declined 1.3% on 3.3% less capacity, and the load factor increased 1.6 points to 82%. Cargo traffic grew 0.5% to 186 million ton miles, but domestic cargo was down 17.7% in March.
Iberia is demanding 4 billion pesetas (US$26 million) in damages from its pilots' union, Sindicato Espanol de Pilotos de Lineas Aereas (SEPLA), the Spanish carrier said yesterday in Madrid. Iberia argues that the staggered strikes of March 26, 27, 29 and 31 and April 1, 2, 4 and 5 caused an "abusive and disproportionate prejudice," and that the union did not act "in good faith" as required by Spanish law. The airline said the strike led to a 12% reduction in reservations, a loss of 100,000 passengers, during the Semana Santa holiday week before Easter.
The Fedex Pilots Association still is waiting to sign the contract its members ratified early this year (DAILY, Feb. 5).The contract kicks in May 31, and the union says that although FedEx has made no effort to delay the signing, it doesn't have a date. FPA continues to plan for the FedEx acquisition or merger it's convinced may be just around the corner. "We do not know what plans the company has in this regard, but the rumors are certainly prevalent," FPA VP Wally Huggins said this week in a recorded message to pilots.
Airlines operating small airplanes will get little help from manufacturers in developing the engineering-based inspection system mandated under a newly proposed FAA rule, and it is "unrealistic" to expect them to be able to do it on their own, the National Air Transportation Association said. The proposal, part of FAA's aging aircraft initiative, would apply to aircraft older than 14 years (DAILY, April 5). NATA said large and regional carriers that operate transport-category aircraft will get "strong support" from manufacturers in complying with the rule.
Delta's proposed U.S.-Russia third-country code share is intended to "restrain competition...and pre-empt Continental's code share with Air France," and American's would do no more than add capacity on a route already served by nonstops, Continental told DOT. American, Continental and Delta have applied for two U.S.-Russia designations available Jan. 22, 2000. Arguing that its proposal is the only one that will "expand competition between airline networks and add new hub gateways for on-line U.S.-flag service between the U.S.
Boeing expects to announce a buyer during the second quarter for its Boeing Information Services (BIS) subsidiary, which provides information and systems integration services to the federal government, the company said yesterday.
Former American Chairman Bob Crandall was the highest paid executive in the company last year, even though he retired May 20. This and other facts were revealed in recent days in filings with the Securities and Exchange Commission. Leaders of Continental, US Airways and American received sizable pay increases and bonuses in 1998, while United's executives received smaller raises and maintained pay rates lower than competing carriers.
TWA's traffic for March rose 4.7% on 2.4% more capacity, which raised the load factor 1.7 points to 77.2% and enabled the carrier to post its best boarding total for a March since 1978. The February load factor also was a record. Domestic traffic rose 7.9% on 4.8% more capacity, which boosted the load factor 2.2 points to 75.9%. International traffic dropped 10.6% on 11.1% less capacity, resulting in a load factor of 85.4%, up 0.5 points. TWA boarded 2.3 million passengers last month, up 7.5%.
United's traffic increased 6.1% in March on 4.6% more capacity, which forced the load factor up 1.0 percentage point to 71.6%. Domestic traffic grew 4.7% on 5.9% more capacity, which lowered the load factor 0.9 points to 70.6%. Pacific traffic rose 2.4% on 5.7% less capacity year-over-year, resulting in a load factor increase of 5.8 points to 73.0%. March was the ninth straight month the Pacific load factor grew. Atlantic traffic jumped 22.6% on 19.3% more capacity, pushing the load factor up 2.2 points to 81.4%. "Demand for travel between the U.S.
Market Profile of U.S. Regional Jet Operations Total Cities Served 159 (Includes Markets in Canada Mexico and the Caribbean with service to the U.S.) City Pairs Served 354 Average Daily Regional Roundtrips 2.6 Average Stage Length (Miles) 412 Average One Way O&D Passengers Per Day 84
Minneapolis/St. Paul-based Sun Country Airlines and the Metropolitan Airports Commission have agreed to make Sun Country the anchor tenant at a new $53 million, 300,000-square-foot terminal opening in April 2001 near the Hubert H. Humprhey Terminal, where Sun Country currently operates. Sun Country will occupy four of the first eight gates at the new facility, which will provide for expansion of up to 18 gates to accommodate Sun Country's growth. The carrier will remain at HHH terminal for 24 months, until the new facility is built.
Southwest traffic grew 14.1% in March after a 17.2% increase during February. Last month, capacity increased 11% and the load factor rose 1.9 percentage points to 69.9%. During the first quarter, traffic has gained 16.6% on 10% more capacity, raising the load factor 3.7 points to 64.9%. The airline carried 4.9 million passengers in March, up 9%. In the first quarter, Southwest carried 12.9 million passengers, 1.1 million more than in the first quarter of 1998.
American is offering 10,000 bonus frequent flyer miles to customers who book vacation packages featuring participating hotels in Oahu and Maui. The deals are available on packages booked and purchased through May 31 for travel between April 7 and Dec. 16.
American and the Allied Pilots Association recessed mediated talks Tuesday and plan to continue discussions in hopes of reaching a deal on their dispute over American's acquisition of Reno Air. American issued a statement quoting Mediator George Nicolau as saying talks will resume soon at his call. Both sides have agreed to a media blackout on negotiation details until talks are concluded. So far, the two sides have met for a total of five days. APA is scheduled to return Monday to the U.S.
Top executives from two airlines that often battle on policy issues have written DOT, Justice and State Department officials hoping to fend off a development they fear could threaten exclusive code-share agreements among airlines.
AirTran's traffic grew 10.5% in March on 4.4% more capacity, boosting the load factor 3.6 percentage points to 66.1%. The carrier flew 313.6 million revenue passenger miles on 474.3 million available seat miles. Passenger volume jumped 25% to 581,318. Year-to-date RPMs climbed 14.8% and ASMs 9%, increasing the load factor 3.1 points. Passengers flown rose 20.1%.
United is overhauling its web site to make it easier to use.Among \capabilities the carrier expects to introduce soon is a frequent flyer section that allows members to check balances and select awards. United is selling 2,500 tickets each day via the Internet, 3%-4% of its total.
