Amadeus will increase its prices to airlines 5.2% as of Jan. 1 and offer them a territorial pricing option in which cost varies for different parts of the world depending on origin of the booking. In a letter to airline subscribers explaining the price increase, Amadeus said it will focus on providing better tools based on the industry's requests to manage distribution. Many tools, such as Encoded Rules or Automatic Ticket Number Transmission, will remain free.
Robert Brown, who will become president and chief executive of Bombardier succeeding Laurent Beaudoin, joined the company in 1987 after a long career in government service. Brown, who assumes his new positions Feb. 1, is currently president and chief operating officer of Bombardier Aerospace (DAILY, Dec. 14).
The Association of Flight Attendants formally asked FAA to enact a standard limit on carry-on bags. Six months after FAA released a circular on carry-ons, consumers are more confused than ever and the only solution is a single rule that all airlines can follow, AFA said.
Federal Express and the Fedex Pilots Association were "very close" to a tentative contract agreement yesterday as the FPA board of directors and negotiators met late in the afternoon to consider the latest proposal. Under FPA procedures, negotiators tell the board that talks are complete and the board passes a resolution to accept an agreement, which then goes to the rank and file for ratification.
Northwest spent $9.4 million in the first three quarters of 1998 on Year 2000 computer fixes, bringing its total to $19.4 million so far. It expects to spend $55 million all told, and so far it believes 70% of its systems are Y2K compliant.
Appleton, Wis., United Express affiliate Air Wisconsin traffic surged 79.5% in November to 76.9 million revenue passenger miles as capacity climbed 48.6% to 116.1 million available seat miles. The load factor for Air Wisconsin, a BAe 146 jet and Dornier 328 turboprop operator, jumped 11.4 percentage points to 66.2% from 54.8%. Boardings were up 82.3% to 249,131. Nov. 1998 Nov. 1997 11 Mths 1998 11 Mths 1997 RPMs 76,885,000 42,834,000 789,402,000 557,055,000
...Embraer CEO Mauricio Botelho took one final shot at Canada this week, charging that in the "unlikely and unfortunate event that the WTO panel does find in favor of the Canadian claims, a clear message would be sent out. If you are an exporting company from a developing country, you cannot expect to be able to conduct your business on a fair and even playing field with competing companies from developed countries, regardless of the superior quality of your product or services." Certain provisions of the WTO rules are exempted in the case of developing countries.
Transport Canada has granted type certificates to Pratt&Whitney Canada's PW306A PW306B engines. The 306B, which develops a sea level takeoff thrust of 6,050 pounds, will power the Fairchild Dornier 328JET regional jet and the 306A will power Israel Aircraft Industries' Galaxy long-range business jet. The 34-seat 328JET regional jet and its corporate derivative, the Envoy3, are scheduled to be certificated and enter service in the first half of next year.
Rep. Jack Metcalf (R-Wash.), a member of the House Transportation aviation subcommittee and one of 10 House members who agreed voluntarily to limit their terms in the House, is going ahead with plans not to run for re-election in 2000. "We are retiring in 2000," a Metcalf aide confirmed. But Rep. J.C. Watts Jr. (R-Okla.), another aviation subcommittee member who agreed to limit his House career, apparently is having second thoughts. House Republicans voted last month to make Watts chairman of the House Republican Conference, the No.
European Commission probably will consider further the effects of imposing conditions on the already-established Star Alliance rather than issuing a ruling expeditiously, United believes. In hearings before the EC this week on proposals to cut alliance capacity in some markets of alliance members United, Lufthansa and SAS, the Europeans heard a unified front from the airlines, the Association of Star Alliance Pilots (DAILY, Dec. 17) and top airport officials from Chicago and Washington (DAILY, Dec. 15).
FAA issued a Notice to Airmen advising civil aircraft operators of hostilities in the airspace over Iraq and warning that they may spread to airspace over nearby nations and waters in the Arabian Peninsula, including the Persian Gulf and the Red Sea. In the U.S., FAA said travelers at airports may notice increased security measures - more K-9 explosives detection teams and uniformed police will be on patrol, parking restrictions are being strictly enforced, and more FAA inspectors are active at U.S.
Bombardier is forecasting a need for 2,500 aircraft in the 80- to 110-seat jet segment - the niche of its proposed BRJ-X - over a 20-year delivery period, a Bombardier Aerospace executive said (DAILY, Sept. 9 and 11). Steve Ridolfi, VP-marketing and aircraft programs, commenting in a prepared statement, said, "The BRJ-X family of aircraft will be designed to have the lowest possible operating costs in terms of fuel, crew, maintenance and ownership." Bombardier is considering three powerplants for the proposed RJ - the CFM56-9, BR715 and PW6000.
London City Airport has taken delivery of new de-icing equipment. A US-built FMC LA1000 vehicle was purchased at a cost of 36,000 pounds - US$60,127 - and brings the airport's inventory of de-icing rigs to three (DAILY, Nov. 25). The airport, meanwhile, chalked up its highest passenger traffic level in November with 125,585 passengers - a record for the airport and an increase of 16% compared with one year ago.
World Trade Organization panels investigating illegal export subsidy allegations against each other by Brazil and Canada held their final hearings on Friday and Monday in Geneva and are scheduled to issue preliminary reports to the parties on Feb. 10 and the final reports to the parties March 5, following a possible additional meeting with the parties on Feb. 24. They will be circulated to all WTO member countries from March 8-12. Then an appeals process, based on issues of law and panel legal interpretations only, could take an additional 60 days...
Air France was preparing yesterday for potential fallout from a strike today against refueling companies at Paris Charles de Gaulle airport, which could delay or force the cancellation of some regional flights. Air France spokesman Dean Breest said the walkouts would have "an extremely small impact," and no long-haul disruptions were expected. The work stoppage was expected to last just one day.
Carry-on baggage restricting templates at Chicago and Los Angeles have improved United's on-time departure rate at those cities. The templates have been in use since Nov. 1 at security checkpoints at United's Terminal 1 at Chicago O'Hare and since Nov. 16 at Terminals 7 and 8 at Los Angeles.
US Airways filed yesterday to renew for two years its not-yet-operated Charlotte-London Gatwick exemption. It said that although several senior U.S. officials have made "repeated assurances" that the U.S. will help it secure Gatwick access, it has not been able to operate the service because for each of the last three traffic seasons - including initial 1999 summer season allocations - it was offered non-viable slots that missed connection banks, with some slots staggered at various times throughout the week.
American asked DOT yesterday to dismiss a complaint filed in November by United States Travel Agent Registry, arguing that USTAR's claim of discrimination against U.S. agents is unfounded and that DOT does not have authority to regulate commission rates airlines pay travel agents as USTAR demands. USTAR charged American with discriminatory and unfair practices in selling tickets after it capped travel agent commissions. USTAR claimed American singled out agents in North America, abusing its dominant position in the market.
AAR Corp. said net income for its second quarter, which ended Nov. 30, increased 19.3% to $10 million while sales rose 27% to $228.8 million. For the half, net income grew 25% to $19.7 million and sales 26.7% to $446.7 million. All four amounts are records.
A third 717-200 has entered the flight test program, Boeing said yesterday. The aircraft will be used to test performance during takeoff, cruise and landing, certify airplane performance and systems, and evaluate pilot workload and type rating. Six production airplanes are in final assembly at the Long Beach Division and deliveries are to begin in mid-1999.
Sixteen large regional airlines saw revenue passenger miles jump an average of 34.2% in November, versus an average increase in available seat miles of 25.2%. That is a nine-point spread between traffic and capacity growth. United Express Atlantic Coast was the group leader in traffic growth with RPMs up 99.2%, 28.3 percentage points higher than its ASM growth of 70.9%. Air Wisconsin, another United Express carrier, saw its traffic increase 79.5%, a 30.9-point spread over its capacity growth year over year of 48.6%.
American, with its new single-flight mainline-jet service from Boston to New York Kennedy, may be laying a foundation for future service into Kennedy and use of new American Eagle acquisition Business Express. The new service comes on top of one of the few other mainline-jet services operated by United. Eagle currently operates nine daily frequencies in the market, versus 11 trips by Delta/TWA affiliate Trans States and eight by United Express Atlantic Coast.
Atlanta-based Atlantic Southeast, a Delta Connection carrier, will launch nonstop service between the new Northwest Arkansas Regional Airport and Atlanta on May 2 using 50-passenger Canadair Regional Jet aircraft. VP-Sales and Corporate Communications Sam Watts said the airline will relocate its operations from Drake Field to the new airport and begin service to Atlanta with three daily CRJ roundtrips timed to maximize connection opportunities with Delta. ASA also will offer six daily roundtrips between Northwest Arkansas Regional Airport and Dallas/Fort Worth.
