DOT made final its decision to withdraw four U.S.-France frequencies allocated to Tower Air and allocate seven weekly frequencies to American for Los Angeles-Paris service, seven to United for Chicago-Paris and seven to U.S. Airways for Philadelphia-Paris, all beginning next spring. The action follows a show cause order issued last month (DAILY, Oct. 22).
Singapore Airlines has been ranked the best international airline in four surveys during the past month. Conde Nast Traveler magazine rated SIA the top international route airline for the 10th time in 11 years. SIA scored 82.5 points out of a possible 100, outdistancing second-place Swissair by 8.3 points. Japan Airlines was third with 72.1. The 1998 French Business Travel Survey, which charts 29 categories from punctuality to cabin design, named SIA best long-haul airline for the second straight year. Cathay Pacific and Japan Airlines were second and third.
Ansett Australia asked DOT for an exemption for scheduled mail service between Japan and two points in Australia, Sydney and Melbourne, under a mail code share with Northwest. It asked that the exemption remain in effect as long as the code share. Northwest will transport mail from eight U.S. points to Japan, where it will be transferred to flights Ansett already operates to Australia. (Docket OST-98-4773)
Debonair has launched twice-daily BAe 146 service from London Luton Airport to Pontoise Cormeilles (Paris Express) Airport, 35 kilometers northwest of the city. U.K.-based Debonair, which has offered low fares on European routes since June 1996, expanded its product last month with the introduction of Affordable Business Class (ABC) offering flexible and refundable tickets, Fast Track check-in, a dedicated reservations line, complimentary bar service and fares 30-35% less than business-class tickets on major carriers.
Continental, joining competitors, reduced travel agent commissions on international flights to 8% with a $100 cap on roundtrip and $50 on one-way tickets.
Northwest completed its purchase of Continental stock Friday, saying the deal will bring more competition to the Big Three. Northwest bought 8.66 million shares of Class A Continental stock from Air Partners, headed by David Bonderman, and its affiliates. The stock was deposited in a voting trust. Under the deal, originally announced in January, the two carriers will code share on 850 domestic and international flights to 95 cities. International code sharing will require government approvals. Reservations for code-share bookings will be accepted starting Dec.
US Airways and its US Airways Shuttle flight attendants, represented by the Association of Flight Attendants, have reached an "agreement in principle" in contract negotiations. The agreement is subject to approval by the US Airways Shuttle AFA Master Executive Council and ratification by the membership.
Northwest is offering holiday sale fares for travel Dec. 17-Jan. 4 in the continental U.S., Canada, Mexico City and Cancun. A seven-day advance purchase is required. Sample one-way fares include $79 New York-Milwaukee, $139 Miami-Toronto and $189 Boston-Seattle. The deepest discounts are available for travel Dec. 17, 25 and 31 and Jan. 1.
Continental and its flight attendants, represented by the International Association of Machinists, reached a tentative agreement Friday on extension of their contract. The deal will improve pay, benefits and job security. The current agreement was scheduled to be reopened late next year. The extension is subject to ratification by the rank-and-file and will become amendable December 2001.
American buys fuel in forward-purchase contracts rather than the hedge programs used by many airlines. "Our experience in the airline business is that when the price of fuel increases, our ability to get our prices up involves a delay or time lapse," Chief Executive Don Carty said in a talk with BT Alex Brown analyst Susan Donofrio. American layers swaps and call options to lock in fuel costs as much as 24 months in the future.
Frontier selected Denver-based Hanifen Imhoff Inc. as investment counsel on financial issues. The airline expects to grow 20% annually, and Hanifen Imhoff will help it develop its long-term financial plan and enhance institutional investor support.
America West flight attendants, represented by the Association of Flight Attendants (AFA), have given management until noon today to respond to an offer of arbitration to settle their contract dispute, or face CHAOS (Create Havoc Around Our System). Negotiations ended last week when the carrier refused to improve its offer on pay and other economic issues, AFA said. Flight attendants have voted 99% to strike. The arbitration offer was submitted to the company and a federal mediator.
Air Aruba and Aserca Airlines of Venezuela each took delivery of an MD-90 leased from Hwa-Hsia of Taiwan. Hwa-Hsia has purchased three MD-90s, and Air Aruba will lease the third. Boeing said the MD-90 is the first new airplane delivered to a Venezuelan airline in more than 10 years.
Moody's Investors Service assigned a Baa3 rating to United's $750 million revolving credit facility. Moody's cit ed United's improving balance sheet and good geographic diversification as factors in the positive rating.
Aerolineas Argentinas' board approved the purchase of 12 A340s - six newly launched A340-600s, four A340-200s and two A340-300s. The A340-200s and A340-300s, to be delivered starting in March, will be powered by CFM56 engines. The A340-600s are to be delivered beginning in 2004 and will be powered by Rolls-Royce Trent 500 engines. The new aircraft will be used to serve Auckland, New Zealand, and points in Europe, including Paris and Rome.
US Airways named Gregory Taylor VP-financial planning and analysis and Peter George, chairman of Hilton International and chief executive of Ladbroke Group, to the board.
FAA's proposal to create a Part 66 regulation specifically for mechanics contains "five separate ways for mechanics to have their privileges suspended, and there is no mechanism to notify the individual or the employer about the suspension," the National Air Transportation Association complains. The unknowing employer would be liable for work performed by the mechanic, and none of the aircraft the mechanic returned to service would be considered airworthy, NATA says.
Mesa Air Group, which lost money in the last eight consecutive quarters, was profitable in October and its cash situation will continue to improve, according to Merrill Lynch. Driving the improvement is Mesa's profitable operation of 18 regional jets, six of them for America West and 12 for US Airways.
