Air Canada capped Canadian and U.S. travel agent commissions on tickets purchased for flights to international and Caribbean destinations, effective Jan. 4. Commissions are capped at US$100 or Canadian $140 roundtrip and US$50 or Canadian $70 one way. Air Canada said it decided to implement the change in January to give travel agents time to adapt.
US Airways will celebrate the launch of MetroJet service at Washington Dulles Airport with a ribbon-cutting ceremony tomorrow. MetroJet began orations June 1 with service from Baltimore Washington Airport and Cleveland, Fort Lauderdale, Manchester, N.H., and Providence, R.I. MetroJet operates 21 aircraft to 16 cities and in January will operate 24 aircraft, with plans to grow to 54 during the next year.
Eight airlines have joined Amadeus Global Distribution Systems (GDS) at the Standard Access Level, Amadeus said. The carriers are Swiss World Airways, O'Connor Airlines, Transtate Airlines, Sunshine Express Airlines and National Jet Systems, all in Australia; Pan Am Air Bridge, North America; Canada 2000, and Air Tahiti Nui. Seven airlines have upgraded in Amadeus to Access, Direct Access or Standard Access - Air One and Alitalia Team, Italy; Transavia, Netherlands; Alaska Airlines; Bellview Airlines, Nigeria; Philippine Airlines and Helgoland, Germany.
Cathay Pacific continues to negotiate to acquire a major stake in Philippine Airlines (PAL) despite reports to the contrary during the past week. Both airlines told The DAILY in Manila that the talks are progressing, even though Cathay wants to alter the total investment strategy and PAL executives and Philippine government officials appear unequivocally opposed to Cathay's intention to improve PAL's cost structure through more layoffs. PAL Senior VP Avelino Zapanta confirmed that the talks are continuing in advance of the Dec. 7 restructuring deadline.
American Trans Air and Pleasant Hawaiian Holidays, which have just completed a five-year partnership, have formed a new 10-year alliance. The agreement will give Pleasant access to more than 540,000 scheduled airline seats on American Trans Air annually between Los Angeles, San Francisco and Hawaii.
American and British Airways tomorrow will sign the agreement under which they will purchase 10% of Iberia, said Spanish Industry Minister Josep Pique last week in Madrid. BA intends to purchase a 9.1% stake, while American will buy 0.9%. The carriers intend to set up a joint venture to hold their Iberia stake, paying a total of 58 billion pesetas (US$403 million).
Hudson General has agreed to be acquired by members of its senior management for $57.25 per share cash. The group is led by Chairman and Chief Executive Jay Langner and Vice Chairman Richard Segal. Shareholders will vote on the buyout at a special meeting in the first quarter of 1999. Hudson General provides services at airports throughout the U.S. and Canada.
The emergency landing Nov. 29 in Singapore of a Swissair MD-11 after the flight crew detected an odor was not connected to the crash of a Swissair MD-11 earlier this year in Nova Scotia, airline officials said yesterday in Zurich. The aircraft was ferried back to Zurich and inspected by airline personnel and Boeing. As a result, a water-air compressor and a loose flap in the air conditioning were replaced. The reason for the odor was not detected. The aircraft will go back into service today between Zurich and Los Angeles.
American, United and Delta, in cooperation with Inter-Continental Hotels and Resorts, are awarding 1,000 frequent flyer miles to each of two adults who share a room at one of Inter-Continental's 35 properties through Jan. 31.
Singapore Airlines Chief Executive Cheong Choong Kong finally revealed his hand, saying it is "more likely now that we'll join" the Star Alliance. After months of speculation, Cheong used a news briefing at the Association of Asia Pacific Airlines annual meeting last week in Manila to confirm his intentions. After concluding alliances recently with Lufthansa and SAS, he is actively seeking closure on agreements with other Star airlines. The final decision and announcement will be made "very soon," he told The DAILY.
Kiwi Holdings said it has entered into a non-binding letter of intent to acquire 100% of the assets of Toler Development Corp., a Panamanian corporation. Kiwi also provided a capital improvement loan to Toler, the owner of a 256-cabin luxury cruise liner valued at $90 million. Kiwi plans to complete construction and operate the ship. Kiwi Holdings holds a 20% interest in Kiwi Airlines.
BAA plc's seven U.K. airports handled 10 million passengers in October, more than in any previous off-peak month and 6.4% more than in October 1997. As in earlier months, Stansted Airport grew fastest, at 30.8%, as European scheduled flights increased 90% year over year to become its largest market sector. Its new #16.8 million (US$26.8 million) facility for international passengers, opening this month, will increase capacity by 2 million passengers per year.
Summary of U.S. Major Carriers Domestic Revenues and Expenses Second Quarter 1998 (In Dollars) Total Operating % Passenger Freight Revenues Change Revenues Revenues Alaska 378,766,000 9.57 325,873,000 17,783,000 America West 512,524,124 8.89 479,210,705 5,934,969
Greek state-owned airline Olympic Airways has pledged to increase its productivity drastically under a five-year management contract signed last week with the Greek government, the airline said last week in Athens. Between 1998 and 2002, Olympic is expected to cut personnel costs 2% and grow revenues 25%. Employee productivity will be enhanced by the reorganization of work procedures and more use of computers. Revenue passenger kilometers are expected to jump 21% and available seat kilometers will rise 11.6%.
IATA Director General Pierre Jeanniot is less than generous about how pilot interference is hurting world airlines."It is most unfortunate that all those who claim to really know how to run an airline have chosen to become pilots," he said Friday in Manila.
FAA has renovated 99% of all computer systems, including all air traffic control systems, to meet the March 31, 1999, Office of Management and Budget deadline to prepare for the Year 2000 computer problem, an FAA spokesman said yesterday. He said the new IBM G-3 computers, due to be in use at all air route traffic control centers by next September, must be Year 2000-compliant. The requirement for Year 2000 compliance is being written into all new computer contracts, the spokesman added. OMB and the General Accounting Office deadline of last Sept.
Air-India has applied for renewal of exemption authority to serve Washington Dulles-Delhi, India, under a code-share agreement with United. Air-India's exemption authority for this route expires Jan. 6.
Startup Swiss World Airways (SWA) will go bankrupt unless it receives an injection of CHF3 million ($2.1 million), said airline's Chairman Philippe Rochaton last week in Geneva. SWA has been operating six weekly services between Geneva and Newark since Sept. 10 with a Boeing 767-200 leased from Australian company Ansett. Office Federal de l'Aviation Civile (OFAC), the Swiss civil aviation organization, reported that the airline's average load factor had been 25% since the launch of its operations.
American has applied to DOT for renewal of its exemption covering seven weekly frequencies granted in January to fly New York-Cuzco, Peru, via Lima. The current exemption expires in January 1999.
FAA issued an emergency order requiring the operators of 160 727s converted to cargo aircraft to inspect and repair fuselage skin lap joints or come up with an alternate means of compliance. Inspections must occur within 60 landings and repairs within 120 days or 250 landings. The agency issued the orders after inspections of several aircraft "found some problems," Steve Alterman, president of the Cargo Airlines Association, said yesterday. The cargo group will meet with FAA tomorrow and Thursday.
Global Air Cargo, Inc. has asked DOT to waive dormancy provisions and extend Global's not-yet-effective certificate for six months through June 12. Global told the department it needs time to meet financial fitness criteria for startups and fulfill requirements for a Part 121 FAA certificate.
The European Commission has sent a "questionnaire" to Airbus and Boeing and is "examining their response," according to a spokesman for European Competition Commissioner Karel Van Miert. There also were press reports that the U.S. Federal Trade Commission was investigating alleged price- fixing. The FTC yesterday declined to confirm it has an investigation under way. Boeing had no immediate comment on why it would collude on prices that resulted in recent huge losses.
City of New Orleans and the New Orleans Aviation Board last week asked DOT to move quicky in granting TWA's application to launch New Orleans-Mexico City service on Jan. 31. In a joint filing, the parties said TWA would provide the only nonstop service on the route, enhance capacity for the city and provide additional service to New York. (Docket OST 98-4725)
CityBird of Belgium signed a contract for two A300-600 freighters, with delivery scheduled in mid-1999. The aircraft, which accommodates up to 56 metric tons, will be powered by GE CF6 engines.
Nav Canada told the Standing Committees On Industry that 100% of its computer systems are ready for Year 2000 certification. "Nav Canada has long been aware of the potential hazards surrounding Y2K," said John Crichton, president.
