Fuel Cost and Consumption U.S. Majors, Nationals and Large Regionals November 1997 - October 1998 Total Total Cost Cents Per Gallons (Dollars) Gallon 1997 November Domestic 1,106,321,778 692,536,476 62.598 International 410,341,421 280,394,193 68.332
Cathay Pacific is taking a new approach to promoting its hub - offering a $25 room at leading Hong Kong hotels for the first night's stay. The offer extends through 1999 and includes roundtrip airport transfers, which could cost more than $25.
Japan Airlines, facing increased domestic, regional and transpacific competition, is altering its route structure to reflect the changes and its new alliances with American, British Airways and Cathay Pacific. JAL will stop code shares with Varig and Air France on several long-haul routes.
Iowa Attorney General Tom Miller last week told the National Research Council's committee on airline competition that high air tariffs can harm a city's economic growth. Miller, speaking at a two-day forum in Washington, D.C., said the multi-state Airline Working Group, of which he is a member, strongly supports DOT's competition guidelines. "DOT guidelines are the best known remedy to the situation" of predatory behavior, Miller said. He said that in 1996 Vanguard established Des Moines-Chicago service at $100 roundtrip.
United Airlines Cargo on Feb. 1 will introduce "TD.Guaranteed," which will guarantee shippers access to space and on-time delivery or their money back. The service initially will be available on all direct flights between Chicago and London, Paris, Frankfurt, Dusseldorf, Tokyo, Osaka, Hong Kong, Taipei, Manila and Sao Paulo. United VP-Cargo Jim Hartigan said the service will expand to all United U.S. gateway cities and international points, replacing the carrier's Small Package International and WWX services.
Southwest's net income increased 24.6% year-over-year to $100.4 million in the fourth quarter of 1998 and 36.4% to $433.4 million for the year on considerably lower percentage increases in revenue, the company reported yesterday. Decreases in unit cost - 1.9% for the quarter and 1.1% for the year - accounted for the performance. Lower fuel prices offset increases in other cost categories, and Herb Kelleher, chairman, president and chief executive, said the carrier has hedged on most of its early-1999 fuel requirements.
Canadian Airlines is expanding service for business travelers at its lounge in Toronto. The newly redesigned and renovated two-level 10,000-square-foot domestic lounge offers high-tech business centers, conference rooms, Internet browsing stations, music listening areas, massage chairs, showers, games areas and fresh food. It is on the domestic concourse level of Terminal 3 at Toronto Pearson Airport.
Britten-Norman, touting the suitability of its BN2B-20 Islander for coastal patrol missions, is sending an Islander on a demonstration tour of Australia, the manufacturer said. The aircraft, just purchased by Celsius Hawker Pacific, the regional distributor for the aircraft, will be used in demonstrations focusing on its "rugged short field operating characteristics, twin-engined safety and...renowned suitability for short-haul and high-frequency operations." The aircraft also will take part in the Australian International Airshow Feb. 16-21.
Pro Air has promoted Detroit City Station Manager Hayes Jones to VP-community development. Jones, who won the Olympic gold medal in 1964 for the 110-meter hurdle, will coordinate the carrier's community affairs while developing government and corporate relationships in the cities Pro Air serves.
City of Chicago has filed in support of eight foreign carriers seeking slot exemptions from DOT for service to Chicago O'Hare during the 1999 summer season. Air France, SAS, Lufthansa, Japan Airlines, All Nippon Airways, Mexicana, Iberia and Czech Airlines, turned down for slots by FAA, asked DOT to grant their requests for operations to begin about April 1, under DOT's slot exemption authority, which the city said it "continues to support the liberal use of...to ensure the highest and best use of O'Hare's available capacity."
FAA's Standard Terminal Automation Replacement System (STARS), a key element of air traffic control modernization, has run into so many problems it is close to collapse, according to Rep. Frank Wolf (R-Va.), chairman of the House Appropriations transportation subcommittee.
Mexicana has applied at DOT for an exemption to provide service between San Luis Potosi, Mexico, and San Antonio, Texas. Mexicana would provide the service through code-sharing partner Aeromar, which would use 48-passenger ATR 42 turboprops for the service. (Docket OST-99-5006)
United's labor unions and the Justice Department will kill any potential merger of United and America West, and if the deal survives them, Continental would consider seriously its right of first refusal to acquire 50% of partner America West, Continental Chairman Gordon Bethune said yesterday. Bethune's statement was one of several that cast a shadow over United's terse admission Wednesday night that it has expressed interest in "a possible acquisition" of America West, which would be the largest industry move since Delta's purchase of Western Airlines in 1987.
Denver-based Frontier has signed a five year agreement with EDS to improve its ability to offer internal booking through EDS's SHARESweb booking engine. The agreement also will increase Frontier's ability to offer special fares and programs for customers who use the web site to book travel. The new service will enable travel agents to offer their clients electronic ticketing on Frontier. In order to use EDS's services, Frontier is upgrading its participation level in some of the four major computer reservations systems.
The prospective merger of British Aerospace and Marconi Electronic Systems (DAILY, Jan. 20) is "an obstacle to the integration of European air manufacturing industry" and "too unbalanced" for continued talks about a potential German-British alliance, DaimlerChrysler Aerospace of Germany said.
Washington Dulles-based Atlantic Coast has hired The Stern Agency, Columbia, Md., to handle a new print and broadcast advertising campaign for the company. The campaign, which premiered today in a Washington Post ad but which later will be extended to media in key outstation markets, targets frequent East Coast business travelers, who are "the majority of ACA's passenger mix," the carrier said.
The Sabre Group says Delta's $1 surcharge on domestic flight segments not purchased through its Internet site constitutes a penalty to travel agencies and travelers who choose to purchase airline tickets from an unbiased source. Sabre was responding in part to Delta's claims that it imposed the surcharge because of rising distribution costs, including higher computer reservations system fees. Sabre spokeswoman Taylor Cole said over the last six years Sabre has raised its fees about 4% annually.
Northwest has strengthened its ownership position in Airlink Mesaba Holdings to 40.9% with stock warrants, an increase from the former stake of about 30%. The carrier has built its ownership to 9.8 million of nearly 24 million outstanding shares of common stock. The warrants are tied to the delivery of up to 36 BAe Avro RJ85 regional-jet aircraft to Mesaba from Northwest unit Northwest Aircraft as well as earlier turboprop aircraft. Northwest acquired Express Airlines I from Michael Brady, which may be an indication of its plans for Mesaba.
DOT has tentatively decided to renew the rights of Ellis Air Taxi to provide subsidized essential air service at Gulkana, May Creek and McCarthy, Alaska, for the two-year period beginning Feb. 1, 1999, through Jan. 31, 2001. DOT proposed annual subsidy rates of $84,082 for Gulkana service and $36,627 for May Creek and McCarthy service. (Dockets OST 1996-2009 and 1995-492)
Wrangell Mountain Air applied at DOT for certificate authority for interstate scheduled service. The Alaska-based carrier is 75% owned by Kelly Bay and 25% owned by his wife, Natalie Bay, an Australian citizen. (Docket OST-99-5010)
Zurich Kloten Airport, privatization of which began in 1998, intends to develop its business rapidly in an attempt to avoid being taken over by competitors. "We will and must double our turnover within three years. Otherwise, we take the risk of losing our independence," said Josef Felder, chairman of Flughafen Immobilien Gesellschaft (FIG), the company that owns Kloten's real estate and infrastructure.
Excerpts from the Jan. 20 Senate Commerce Committee hearing on Airport Improvement Program reauthorization will be shown on Aviation News Today, to air Sunday on Washington's NewsChannel 8 at 12:30 a.m. and 1:30 p.m.
