Boullioun Aviation Services has placed four new 737s valued at $120 million with new customers. Three 737-400s originally leased to China Airlines of Taiwan are now placed with the Republic of China Air Force in Taiwan, Virgin Express in Brussels and Pro Air in Seattle. A 737-300 formerly operated by Virgin Express was placed with Romanian carrier Tarom.
International Air Cargo Association named George Batchelor, former chairman of Arrow Air; Joseph Berg, former president of Air Express International and Circle Freight; Michael Chowdry, chief executive of Atlas Air, and Gerard Fisher, chairman of Panalpina Worldtransport, to The International Air Cargo Association Hall of Fame.
- American and American Eagle are offering discount BreakAAway Fares for travel Jan. 9-Feb. 9. A seven-day advance purchase is required. Outbound travel must begin on a Saturday and the return trip must begin the following Monday or Tuesday. Sample roundtrip fares include $88 Dallas/Fort Worth-Shreveport, $158 New York- or Newark-Chicago and $198 Miami-Atlanta.
Fedex Pilots Association leadership has voted to ask members to continue a dues assessment for an extra six months to cover the costs of recent round-the-clock negotiations and setting up a special committee to answer members' questions on the tentative contract agreement it negotiated last month (DAILY, Dec. 21).Part of the proceeds will cover trip pay loss for negotiation committee members and directors, and printing and mailing costs.FPA said it is 2.9% over budget.
Intelsat promoted Ramanarayan Potarazu to VP operations and chief information officer and appointed Michael Garreau VP-engineering and Mario Leonel VP-corporate development.
The U.K. Civil Aviation Authority chose Virgin Atlantic over British Airways to serve Shanghai from London Heathrow after finding that the Virgin award will best promote U.K.-U.K. and U.K.-foreign airline competition, and that denial of the authority would be more serious for Virgin than for BA. The decision covers only the two roundtrips per week beginning this summer authorized under a U.K.-China memorandum of understanding signed in October, but each carrier based its proposal on acquiring the two additional weekly frequencies that will be available in summer 2000.
FAA said it has found that Kuwait complies with safety standards set by the International Civil Aviation Organization and has been rated as Category 1.
U.S. Carriers Rental Expense Third Quarter 1998 Major Carriers % Of Total Rental Operating Expenses Alaska 50,885,000 13.77 America West 82,947,530 18.52 American 269,903,000 7.26 Continental 218,566,000 12.30 Delta 262,541,000 7.91
U.S. Carriers Maintenance Expense Third Quarter 1998 Major Carriers % Of Total Maintenance Operating Expenses Alaska 34,452,000 9.32 America West 63,633,820 14.21 American 500,125,000 13.45 Continental 192,374,000 10.83 Delta 325,953,000 9.81
DOT tentatively awarded seven U.S.-Brazil combination frequencies to Continental nearly four months after the frequencies became available for use by U.S. carriers in a proceeding that was instituted seven months ago (DAILY, May 21). Continental's bid to operate Houston-Sao Paulo nonstops offered the only new U.S. gateway service, DOT said in its order. Delta is the backup carrier for the frequencies with New York-Sao Paulo service.
One filing in DOT's proceeding on competition issues at airports highlights the minutiae sometimes attached to the aviation business. At Miami International, the airport does not lease gates to airlines but controls gate assignments on a daily basis. Advance planning usually keeps assignments close to airline ticket counters, but when weather delays or changes in gauge disrupt plans, MIA has a 26-point scale prioritizing which airlines get preference.
Iberia is offering 12% commissions to travel agents on P and J class tickets and 8% on Y tickets with no caps for international travel sold in the U.S. and Canada, effective this week. Iberia said it made the changes because it recognizes the importance of the travel agent distribution system to its overall success in the U.S. and Canada.
Airports filing documents at DOT told the department they were innocent of practices that inhibit competition, although some said factors out of their control such as the high-density rule and congested airspace limit their ability to boost it. They also said in some cases that a lack of funds to expand their facilities is a major factor limiting new entry. Airports and other parties made their comments in filings submitted to the department in its examination of competition issues at airports.
The brouhaha over carry-on bags arises from concerns over competition, not safety, Continental Chairman and Chief Executive Gordon Bethune told the Luggage and Leather Goods Manufacturers of America (LLGMA) last week. Bethune, in a letter to LLGMA President Anne DeCicco, said he disagreed with the premise of LLGMA's petition to FAA for a rule on a standardized carry-on bag program among domestic carriers.
United Parcel Service raised its rates for most domestic air express and ground delivery services by 2.5% effective Feb. 8, saying the increase is its smallest in 11 years. Residential deliveries will continue to cost $1 more than commercial ground rates. Rates for international services from the U.S. will not change.
