DOT plans to issue an order keeping its hands off Continental's international route authority for one year, a department source said, despite the sale of company equity to Northwest. DOT has the power to alter, revoke or transfer international route authority with a change in airline control, but in this case, the department will grant a one-year exemption on Continental's routes, monitor the Justice Department's suit against the deal "and see if there has in fact been a de facto transfer" of control, the source said.
Spanair has introduced a complimentary limousine ride to and from Washington Dulles Airport for first- and business-class passengers who book full one-way or roundtrip fares. Spanair, which operates five weekly Washington-Madrid nonstops, has contracted with RMA Chauffeured Limousine for the service.
Milwaukee-based Midwest Express reported an 18.7% increase in traffic and 21.1% more capacity for November 1998, compared with the same month last year, which depressed the load factor 1.2 percentage points to 62%. Midwest flew 129.6 million revenue passenger miles and 209.2 million available seat miles. Passenger boardings grew 17.7% to 150,970. Year-to-date RPMs were up 15.1% and ASMs 13.1%, boosting the load factor 1.2 points. Passengers flown increased 13.4%.
US Airways is selling vacation packages through its web site, www.usairwaysvacations.com. To celebrate launch of the site, the carrier is giving away a four-night Paris vacation for two. Visitors must register by Dec. 31.
Appleton, Wis.-based Air Wisconsin, which flies as United Express, flew 76.9 million revenue passenger miles last month, a 79.5% increase from November 1997. Capacity climbed 48.6% to 116.1 million available seat miles, driving up the load factor 11.4 percentage points to 66.2% Enplanements 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 ASMs 116,143,000 78,172,000 1,164,595,000 874,247,000
Atlas Air has taken delivery of its fourth 747-400 freighter from Boeing. Atlas expects a fifth delivery within two weeks. Atlas said that, due to the configuration of its aircraft, the FAA directive concerning 747 fuel tanks "should have minimal impact on our operations." Atlas also said the production cutback announced by Boeing will not affect its delivery schedules.
Aerospace Industries Association President John Douglass said yesterday aerospace exports reached record level this year. The trade surplus will total $37 billion, 15% higher than the record level set in 1997. "This year, we exported a record $59 billion in aerospace products. The bulk of that figure is $48 billion in civil exports." Civil sales were up $8.6 billion, or 22%, to $47.2 billion. Douglass predicted sales this year will reach a record $140.5 billion. "That is an increase of $6.8 billion, or over 5%.
Kellstrom Industries said this week it is buying the Solair subsidiary of Banner Aerospace for $57 million cash and other considerations. The acquisition will place Kellstrom in the market for avionics and high-end after-market rotables when the deal closes Dec. 31. Banner said it expects to realize a book loss of about $12.5 million from the sale. Kellstrom purchases, overhauls, resells and leases aircraft and engines.
American's plan to buy Reno Air passed the mandated waiting period under the federal Hart-Scott-Rodino antitrust act, satisfying one condition of the acquisition. The deal cleared at midnight Tuesday.
"Open skies has now become the norm in the transatlantic and other aviation markets," DOT Deputy Assistant Secretary Patrick Murphy said at this week's Airports Council International's international air service seminar, and "we want competition to be the principal guiding force in our international aviation industry" into the next century.
TWA said yesterday it plans to order 50 A318 aircraft from Airbus and 50 717s from Boeing - 100-seat-class aircraft that Chairman Gerald Gitner insisted perform different roles. One reason for acquiring the 717s is that they will be available sooner than the A318s, he said. Chief Financial Officer Mike Palumbo declined to describe financing pending firm orders for 125 aircraft - including 25 other A320-family airplanes - but The DAILY learned that 12 of the A318s will come from International Lease Finance Corp.
DOT Secretary Rodney Slater met yesterday with Israeli Ambassador to the U.S. Zalman Shoval and El Al Chairman Joseph Ciechanover, who outlined a plan to allow third-country code-share service by U.S. carriers, according to a DOT official. Israel, which has denied such code sharing by Northwest/KLM and United/Lufthansa while pushing for bilateral code-share rights for El Al, will formalize with DOT its proposal for both bilateral and third-country code shares.
Alaska Air Group said yesterday that Alaska Airlines and subsidiary Horizon Air have signed a letter of intent to enter a marketing partnership with American Airlines/American Eagle. Alaska said it has no intention of dropping longtime partner Northwest, and has notified the airline of its intention to pursue an agreement on both fronts.
Frontier Airlines has named management staff for three new destinations scheduled to begin Dec. 17. Kelly Smith is city manager for Atlanta, Pamela Olson for Dallas/Fort Worth and Robert Knotts for Las Vegas.
United traffic for November grew 4.2%, faster than the 3.2% capacity growth, boosting the load factor 0.6 percentage points to 68.4%. Pacific traffic fell 8.1% on 13.8% less capacity, lifting the load factor 4.5 points to 72.4%. Domestic traffic rose 7.5% on 6.4% more capacity, resulting in a 69% load factor. Atlantic traffic was up 9.8% on 17.4% more capacity, forcing the load factor down 4.4 points to 64.1%. Latin American traffic increased 7.6% on 10.7% more capacity, lowering the load factor 1.7 points to 58.4%.
Mercury Air Group has promoted Joseph Czyzyk to president and chief executive. He was chief operating officer. Seymour Kahn, who was chairman and CEO, will continue as chairman.
United is contemplating cessation of its round-the-world service, sources say.The carrier may end its current London-Delhi-Hong Kong flights because it has other uses in mind for its London Heathrow slots, which could include additional frequencies to the U.S.
BMW Rolls-Royce testing of the BR700 core engine with a new combustion chamber "reveals a significant reduction of emissions at all thrust levels," the manufacturer reported. The tests, conducted at the altitude test facility of the University of Stuttgart, involve a staged combustion chamber developed recently to reduce exhaust emissions of future engines.
Clayton Jones will succeed John Cosgrove as president of Rockwell Collins when Cosgrove retires Jan. 1, Rockwell International said. Jones, 49, has been executive VP of Rockwell Collins since November 1996. He also was elected a corporate senior VP.
Delta yesterday reorganized its international management, forcing more decisions in the future to be made downstream in Europe, Asia and Latin America. The carrier will create geographic groups for each of the three regions and give them responsibilities previously handled in Atlanta. The downstream decisions will include sales, financial performance, marketing, human resources and corporate issues pertaining to local needs. "Stronger geographic teams will help Delta present a single face and voice in the market," said Fred Reid, chief marketing officer.
Finnair yesterday became the second European carrier in the oneworld alliance and the first addition since the alliance was started in September. With 58 aircraft, Finnair serves 21 cities in Finland and 39 elsewhere in Europe.
