DOT granted Continental a two-year exemption to provide scheduled combination service between points in the U.S. and Budapest, which the carrier requested for an indefinite period. Under the U.S.-Hungary bilateral, Continental needs the authority to sell services in Hungary and remit revenues collected there. It intends to conduct the service by linking its existing flights to Europe with those of its European partners serving Hungary (DAILY, Dec. 21, 1998). (Docket OST-98-4929)
China Airlines has received investment interest from U.S. insurance giant American International Group, owner of International Lease Finance Corp. and a major investor in Asia and Taiwan. AIG is considering acquiring 8% of CAL, according to Taipei-based Economic Daily News.
Southwest said it will add nonstop flights from Nashville to Fort Lauderdale and Seattle on April 4 and nonstop service from Chicago Midway to Houston and Phoenix on May 5.
American's employees like working for the company, but few think senior management is doing a good job communicating or interacting with them. In an internal survey, employees said they believe management focuses too much on costs and numbers and not enough on employee skills. They also cited competition and lack of cooperation between departments. Management is setting up meetings to find solutions.
American and American Eagle are promoting discount fares for Miami and Fort Lauderdale residents who want to get out of the area during Super Bowl weekend. Roundtrip fares range from $88 to $298. Tickets must be purchased on line at www.AA.com. Outbound travel must occur Jan. 28-30 with return Jan. 31-Feb. 1.
AirTran has introduced AirTran Vacations, a new leisure product offering packaged vacations, including air and ground transportation, hotel accommodations and sightseeing tours. AirTran Vacations is operated by Adventure Vacations, a wholesale travel company in Hunt Valley, Md. Travel currently is available from all cities AirTran serves to 11 destinations within its route system. Two-night packages range from $178 to $429, while three-, four- and seven-night packages range from $247 to $1,267.
Although a Johns Hopkins assessment indicates that GPS and its augmentations might provide a sole source of navigation (DAILY, Jan. 15), FAA recommends that if a redundant system is required, "consideration should be given to Loran-C to fulfill all or part of this role.The cost avoidance could be several hundred million dollars during a 20-year life cycle compared to sustaining hundreds of VOR/DMEs."
Sponsors of the Florida Overland Express (FOX) high-speed rail project think one of its largest sources of riders will be air transfer - travelers who fly for one portion of their trip and shift to rail through a code-share deal with FOX, according to the General Accounting Office. Some 1.2 million riders would be diverted from the local air market in the Tampa-Orlando-Miami corridor. "At least 11 other corridors in the U.S. are in various stages of developing high-speed rail projects," GAO says.
DOT - Approved an initial one-year exemption for AeroMexico to conduct scheduled combination services between Monterrey, Mexico, and Laredo, Texas...Approved a two-year exemption renewal for Delta to operate scheduled foreign combination services between Atlanta and Lima, Peru, to be combined with its existing certificate and exemption authority, and renewed for an indefinite duration the carrier's allocation of seven weekly U.S.-Peru combination frequencies...Approved a one-year exemption renewal for TACA to conduct scheduled combination services between Belize City, Beli
U.S. Major Carriers Traffic December, 12 Months 1998 (000) December December % 1998 1997 Change Alaska Revenue Passenger Miles 970,000 909,000 6.7 Available Seat Miles 1,418,000 1,328,000 6.8 Load Factor (%) 68.4 68.4
Nationwide survey by Opinion Dynamics found that 80% of respondents believe air traffic controllers do a good or excellent job, 85% believe controllers' work is more stressful than the average occupation, and 81% would be willing to pay an extra dollar on airline tickets if the money went to upgrade ATC equipment. The survey was commissioned by the National Air Traffic Controllers Association.
Avidyne Corp. said it has received FAA Technical Standard Order approval of its flight situation display radar. Its four fully certified products now include the radar, navigator, charters and lighting. The radar starts at $12,000.
Austrian Airlines yesterday matched other international airlines and lowered its travel agent commission rate to 8% for tickets purchased in the U.S. and imposed a $100 maximum fee for roundtrips and $50 for one-way tickets. Tickets purchased in Canada also will earn an 8% commission and C$140 maximum, C$70 one-way fee. The changes are effective Feb. 1.
A new airline that hopes to offer first-class service from the low-yield Florida market has filed with the Securities and Exchange Commission for an initial public offering of 2 million shares. Cardinal Airlines aims to begin service from Melbourne, Florida, to the New York and Washington markets in mid-1999 using two MD-80 aircraft. The company intends to offer eight flights a day, offer first-class seating throughout, and sell seats at one price. At $11 per share, the offering could fetch $22 million.
KLM Engineering&Maintenance, a division of KLM Airlines, and United Technologies' Hamilton Standard unit executed a letter of intent to form a joint-venture company serving European, Middle Eastern and African repair and overhaul markets for all large commercial aircraft pneumatic components. Hamilton Standard, based in Windsor Locks, Conn., said it will own 51% of the company, and KLM will hold the remainder. The company, which will employ about 50 people, will be based near Amsterdam Schiphol Airport in The Netherlands and is expected to open in early 2000.
Statutory and regulatory requirements do not guarantee that airports obtain written declarations that proposed noise mitigation projects are consistent with local plans, according to the General Accounting Office (GAO). It recommended that FAA require written declarations that a project has local support as called for under the Airport Improvement Program. "If the agency chooses not to require written declarations, we recommend that this requirement be removed from the grant assurances," the GAO report said.
U.S. Airports Sources of Airline Generated Operating Revenue Medium Hub Airports* Fiscal Year 1997 Dollar Amounts in Thousands Terminal Terminal Apron, Cargo Area Revenue Per Landing and Hangar Rental Passenger** Fees Space Rental Albuquerque 10,431 3.23 10,619 1,519
Singapore Airlines will stop serving Berlin on March 24, after a worldwide review of the airline's route structure showed the city did not meet expectations for revenue in light of Asia's economic difficulties. It is the third city from which SIA has withdrawn recently. The airline ended service to Sendai, Japan, last September and Hangzhou, China, in November. SIA served Berlin twice weekly via Zurich since September 1990.
United said yesterday it will temporarily suspend a portion of its flagship round-the-world Flights 1 and 2 between London and Delhi and between Hong Kong and Delhi, effective April 4 (DAILY, Dec. 10, 1998). "We are suspending these flights due to disappointing profitability and the likely slowdown in traffic during India's summer season," said Stuart Oran, senior VP-international, in an internal communique. United intends to resume service to Delhi and is considering alternatives, including nonstop U.S.-Delhi flights.
Air Dolomiti, based in Trieste, has awarded FlightSafety International's Houston training center a new three-year contract for ATR 42/72 training of both flight crew and maintenance technicians.
Mesa Air Group is being investigated by the Internal Revenue Service for tax adjustments to filings made for the years ending Sept. 30, 1993, and 1994. The IRS has issued a report to the company calling for a proposed settlement of $1.9 million. "Although the ultimate outcome of the examination cannot be predicted," Mesa said in its securities filing Jan. 12, "management is of the opinion that adequate provision exists in the consolidated financial statements for the estimated impact of the examination."
Fiji's national carrier Air Pacific plans to increase capacity about 70% this year, according to Chief Executive Michael McQuay. The move contrasts directly with actions by other Asia/Pacific carriers that have shelved expansion or scaled down operations because of the economic crisis in the region. McQuay said despite a drop in air travel in most Asian countries, leisure and business travel to and from Fiji is on the rise. "As we have the landing rights for expansion and with the rise in air travel, this is an opportunity for Air Pacific to expand," he said.
Japan Airlines and British Airways intend to code share only on Osaka-London in their alliance. London-Tokyo and Nagoya-London have not been named as code-share routes (DAILY, Jan. 14).
Continental's web site has been ranked No. 1 for user friendliness among all major carrier web sites, according to a survey by the NPD Group, a marketing research firm. The survey ranked Continental's web site as first in customer satisfaction and loyalty. The survey compared travel experience, site usage and overall satisfaction. Of travelers surveyed, 78% ranked Continental's site as excellent to very good, 62% said it was better than other airlines', and 79% said they would revisit the site.
