Thailand's Ministry of Transport and Communications (MTC) has proposed a computer reservations system code of conduct that would give the Amadeus CRS a monopoly for all domestic bookings made on Thai Airways International. The move would shut out Abacus International, which for four years has been asking Thai authorities to liberalize the CRS market instead. Abacus Chief Executive and President William Liu has urged Thailand to open up its CRS market to free and fair competition for the benefit of the country's travel trade.
America West reported a 3.8% rise in December traffic on 6.5% more capacity, lowering the load factor 1.6 percentage points to 62.8%. Traffic levels of 1.3 billion and 16.4 billion revenue passenger miles set records for December and the full year, respectively. The airline carried 17.85 million passengers last year, 2.6% less than the 18.33 million passengers transported in 1997. Dec 98 Dec 97 12 Mths 98 12 Mths 97 RPMs 1,337,052,000 1,228,226,000 16,370,438,000 16,204,139,000
Clinton administration has resubmitted to the Senate the names of Norman Mineta, John Paul Hammerschmidt and Ohio financier Robert Clark Browne to be members of the Metropolitan Washington Airports Authority. Mineta was nominated for a six-year term, Hammerschmidt for four years and Brown for a term expiring Nov. 22. The nominations were made last Wednesday, the opening day of the new Congress.
U.S. Airports Operating and Financial Summary Small Hub Airports* Fiscal Year 1997 (Dollar Amounts in Thousands) Non- Operating Operating Total Operating Revenue Revenue Revenue Expenses Akron/Canton 3,593 2,387 5,980 3,347
Korean Air is the only carrier operating nonstop service from Seoul to the U.S., the U.K. and Switzerland following pullouts by Delta, United, Northwest, British Airways and Swissair, notes Craig Jenks, president of New York-based Airline/Aircraft Projects Inc. "It may be a comment on Korean Air's tenacity to stay in markets," he said, and it shows beyond-Tokyo rights to be "tactically very valuable in a point of economic downturn." When Korea's economy improves, he predicts re-entry with smaller aircraft, such as Boeing 777s.
Delta said yesterday it will add a $1 surcharge each way for each published fare component on all U.S. domestic service, including San Juan and the U.S. Virgin Islands, because of higher distribution costs in some channels.
FAA yesterday issued a final rule imposing severe payload limits on 727s that have been converted to cargo aircraft until the floor structure is reinforced or requalified to carry heavier loads. The agency said it will hold a meeting Jan. 20 in Seattle to "clearly communicate" the requirements of the long-anticipated airworthiness directive. The ADs affect about 270 aircraft in the U.S. fleet at an estimated cost of $192 million, according to FAA. Since there are four supplemental type certificate holders on the conversions, there are four separate ADs.
Airline management has spent the past year pushing employee groups that historically have not opted for representation into the arms of waiting unions, and 1999 will be the year unions reap the rewards. This will be the year that drives to organize the remaining non-unionized ground workers, ticket counter and reservations agents will succeed, especially as automation rises to threaten jobs.
Delta Air Line Pilots Association unit's current contract becomes amendable May 2, 2000, but Master Executive Council Chairman Chuck Giambusso handed Chief Executive Leo Mullin a proposal Friday to begin talks in September.The union is asking for early openers to solve some issues it believes might complicate negotiations, citing working conditions and eroding pilot morale. Giambusso asked Mullin to respond by Jan. 18.
Northwest traffic for December fell 4.2% on 1.6% less capacity, forcing the load factor down 1.6 percentage points to 69.4%. International traffic declined 8% on 6.1% less capacity, resulting in a 73.3% load factor, down 1.5 points. Domestic traffic dropped 1.5% on 2% more capacity, reducing the load factor 2.0 points to 67%. The airline carried 50.5 million passengers in 1998, 4.16 million fewer than in 1997. Last year, Northwest's traffic fell 7.3% on 5.8% less capacity, resulting in a 73.1% load factor, down 1.2 points. Cargo volume decreased 14.4%.
Standard&Poor's named Continental one of its 1999 "PowerPicks" stocks, a group of 26 that it thinks should outperform the 1,050 stocks it tracks. Last year's PowerPicks portfolio returned 31.5%. Continental is the only airline or aviation firm on this year's list.
A study of 46,620 passenger itineraries of connecting trips across the Atlantic has found that transatlantic alliances result in ticket prices that are 36% lower on average than simple interline fares, and the proposed American-British Airways pairing would do the same, despite fear of the opposite. "Many have said when airlines team up it's a threat to passengers, but there are price benefits to alliances that are not really seen," Jan Brueckner, economist with University of Illinois at Urbana-Champaign, told The DAILY.
Findings from investigating the September 1998 Swissair accident prompted the National Transportation Safety Board to recommend yesterday that FAA require, "on an expedited basis," an inspection of the cockpit wiring in MD-11s (DAILY, Jan. 11). The board said Canadian investigators found signs of electrical arcing in the wiring of the Swissair MD-11 that crashed Sept. 2 off Nova Scotia, killing all 214 passengers and 14 crewmembers. FAA said there is "no evidence" that the wires identified in the recommendation are related to the crash.
The briefing last week by The John Hopkins Applied Physics Laboratory on whether the Global Positioning System (GPS) can provide sole-means navigation and landing services was a "status report" and represented "preliminary conclusions,"a knowledgeable source said yesterday (DAILY, Jan. 11). FAA, Aircraft Owners and Pilots Association, the Air Transport Association, which commissioned the study, and others were briefed. The risk assessment concluded that an augmented GPS probably can provide the services.
Airbus Industrie set a record in 1998 with 556 firm orders for aircraft worth $39 billion, the European consortium reported yesterday. It said that in 1997, it received 460 orders valued at $29.6 billion, making 1998's performance 30% better in terms of sales and 20% better in terms of aircraft units. Airbus said that in addition to the firm orders for 556 aircraft, it received 174 announced commitments in 1998, bringing the total to 730.
Transport Workers Union has won the right to represent America West's 2,000 fleet service employees. The vote was 1,054 for TWU and nine for other unions. Under the National Mediation Board's rules, at least 50% plus one of eligible voters must cast votes for the union. TWU said it will begin preparing for collective bargaining. TWU has been campaigning for a representation election for about five years. The union lost two previous elections.
Baltic International USA sold its remaining 8% interest in Air Baltic Corp. SIA to Scandinavian Airlines System (SAS) for $2.14 million. The company will use the proceeds to repay a $2 million note to a shareholder.
TWA said it will not know for several months the economic impact of last week's midwest storm and flight cancellations but by Friday it was returning to normal. A severe winter storm hammered operations at TWA's St. Louis hub, preventing about 70 employees from one shift from reporting for work. Spokesman Jim Brown said the airline had to cancel about 600 flights and put several hundred passengers up in hotels last week. Flights were further delayed because low cloud ceilings hampered visibility and air traffic controllers slowed arrivals and departures.
American Trans Air is offering a fare sale to Ireland through Jan. 25 for travel June 3-Sept. 7. Sample one-way fares to Shannon and Dublin are $245 from New York Kennedy, $275 from Chicago Midway and $319 from Los Angeles.
Our Neighbor Is A Strange, Strange Man by Tres Seymour with illustrations by Walter Lyon Krudop. A picture book for readers ages five to nine that tells the story of Melville Murrell, a little-known aviation pioneer who in 1876 built a human-powered flying machine. Orchard Books; $15.95. To order, call 800-621-1115.
Delta will launch a second daily Cincinnati-Frankfurt nonstop on June 1. The seasonal flight will end Oct. 2. The announcement came three days after Delta said it would start new service to Athens, Barcelona, Istanbul, Shannon and Dublin this summer (DAILY, Jan. 6).
Delta's request that DOT link approval of Chicago O'Hare slots for Japan Airlines to improved access at Tokyo Narita for Delta should be denied, the Japanese carrier told DOT.
