China Southwest grounded its remaining Tu-154 trijets after the crash of one of that type last week, which killed all 61 people aboard. The domestic carrier, whose 39 aircraft include 20 737s and 13 757s, has recovered the flight data and cockpit voice recorders from the crash in Wenzhou, in the eastern province of Zhejiang, according to China's state-run news agency. The aircraft reportedly exploded before it crashed. The families of uninsured victims - expected to be the majority - will receive 70,000 yuan, about US$8,500.
The Chinese government has warned all carriers that it will remove their top management if they continue to post losses at the end of this year. This follows heavy losses reported by 34 of the country's 38 airlines in 1998. Lui Chenge, director of the Civil Aviation Administration of China (CAAC), told The DAILY the government is determined to eliminate deficits among Chinese carriers by implementing aggressive measures, including stemming cut-throat price competition and readjusting routes and flights.
Northwest has upgraded its web site to provide faster access to key features and pages, including direct links to the information and services customers want most, such as its CyberSavers fares, flight schedules, reservations and frequent flyer information.
Summary of U.S. Major Carriers Domestic Traffic July 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change Alaska 1,196 3.65 873 1,044,717 5.97
Lucas Aerospace will supply Boeing 747 conversion kits and cargo handling systems to Cargo Conversions LLC of San Francisco, a 10-year, $250 million deal it said will double its share of the aircraft conversion market. The company said it already holds the largest share of the market for supplying cargo systems to original equipment manufacturers, and the Cargo Conversions sale puts it into the non-OEM market as well. It said Cargo Conversions is second only to Boeing in converting 747s from passenger to freighter configurations.
Delta hopes the Salt Lake City Olympic bribery scandal is resolved soon.Spokeswoman Katie Moussouri declined to say how much Delta pumped into the 1996 summer Olympics in hometown Atlanta or the 2002 games in Salt Lake City, its third-largest hub. Delta's donations were strictly above board and in good faith, she said. "We believe in the Olympic movement and are hopeful an appropriate and prompt resolution will come."
Pilots of Air Nova and Air Alliance, both represented by the Air Line Pilots Association, International, have ratified a four-year contract with management at their respective carriers. Pilots and management have been negotiating since last November, when plans were announced to consolidate the regionals' operations. The ratified contract, retroactive to May 1998, was approved by 95.5% of Air Nova pilots and 90% of Air Alliance pilots.
Garuda Indonesia, in an effort to remain lean and work toward profitability, has embarked on several cost-cutting measures. It has asked 3,000 of its 12,732 workers, including several pilots, to go on voluntary retirement, moved its head office from downtown Jakarta to Soekarno Hatta Airport, where rents are lower, and made Denpasar in Bali the hub of its international operations. Bali is Indonesia's prize tourist destination. The airline also shut down operations to 14 destinations in Europe and Asia and returned 16 aircraft to lessors.
Some airports will not be prepared for the year 2000 and the problems these airports experience could impede traffic flow throughout the nation, according to the General Accounting Office. These airports are using an "ad hoc" approach to preparing equipment for the year 2000; some will not complete preparations by FAA's recommended June 30 deadline and currently lack contingency plans, GAO said in a report to Congress.
Aviall, one of the largest independent distributors of new aviation parts, said it has retained Merrill Lynch to "assist the company in exploring possible strategic alternatives to improve shareholder value." Eric Anderson, chairman, said Aviall's operations "represent strong business with significant growth potential.
DOT shortened the answer period on its show cause order tentatively selecting Delta's Atlanta-Rome proposal for U.S.-Italy service (DAILY, Feb. 24). Delta asked for immediate authority, so it can begin marketing and selling the service to compete with other U.S.-Italy carriers, which are now marketing their summer services. US Airways, selected for backup authority, urged DOT to finalize its decision quickly (DAILY, March 1). Answers, which would have been due March 8, are due today and replies tomorrow. (Docket OST-98-4854)
Germany is proposing a compromise to soften the ban of duty-free sales to passengers traveling inside the European Union. The ban is scheduled to enter into force July 1, and Bonn, which holds the presidency of the EU, suggests that value added taxes be applied to duty-free goods as planned at that time. Excise duties would be reintroduced gradually, however, over a period of two and a half years. France supports a similar proposal, but several EU nations demand the complete ban, as of July 1.
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.
