Delta, requesting a waiver of 90-day dormancy requirements on its seven U.S.-Japan frequencies for proposed Portland-Osaka nonstops, assured DOT that it remains committed to launch the service and continue development of Portland as a gateway to Asia. The carrier said it delayed launching the service due to economic conditions in Asia but has "firm plans" to begin serving the market in June 1999. Delta was awarded the frequencies in May, with a proposed startup date of Oct. 28. It began Portland-Osaka nonstops Oct. 29. (Docket OST-98-3419)
An Air Transport Association official yesterday tentatively endorsed the new administrative ticketing program FAA will introduce next June (DAILY, Dec. 23). Robert Frenzel, senior VP-aviation safety and operations, said the airlines have not seen the actual ticketing policy but from press releases, "it appears that [FAA Administrator Jane] Garvey did take industry concerns into account." The new policy has dropped "on-the-spot action" and now permits an appeal, Frenzel said. "This appears to be a step in the right direction."
Iridium LLC reached an agreement to buy Claircom Communications Group Inc., an inflight telephone services company, from AT&T and Rogers Cantel for $65 million in cash and debt, Iridium executives said yesterday. "We believe that Iridium having a presence in the airline industry is of critical importance to us globally." Leo Mondale, Iridium senior VP, said in a telephone conference.
American has signed a code-share agreement with Air Pacific to put the AA code on flights from Los Angeles to Nadi, Fiji. Air Pacific operates the route four times a week using 747s.
The City of Fort Worth will appeal DOT's declaration that federal law governing Love Field pre-empts conflicting local agreements and laws limiting routes or services of certificated airlines. "I think DOT prejudged the issue in June," said Fort Worth attorney Dee Kelly. "We think these are judicial issues that should be decided by the courts of Texas." In November, Texas District Judge Bob McCoy of Fort Worth denied a claim by Legend Airlines that Fort Worth was using a double standard in opposing Love Field service while developing Alliance Airport (DAILY, Nov.
Raytheon Premier I entry-level business jet made its first flight Dec. 22 from Beech Field in Wichita. The aircraft has an all-composite fuselage and wing skins made from a single piece of aluminum.
Gate Gourmet, Swissair's catering subsidiary, is moving into two new airport markets in Europe and the Far East. New services, operated jointly with Manila Integrated Airport Services and Kuwait Aviation Services, opened at Manila Airport last week, and on Jan. 1, Gourmet and partner Iberia will open a third joint flight kitchen in Spain at Barcelona Airport. The site employs 240 people and initially will provide meals for 140 daily flights.
Air Guadeloupe has taken delivery of the second ATR-42-500 turboprop it ordered in July. The airline's fleet of five ATR aircraft operates with merger partner Societe Martinique Aeronautique.
Malaysia Airlines is offering for sale through Fortis Aviation two 747-400s and one 747-300. The 747s are combis, with the -400s powered by CF6 engines and the -300 with JT9s. Fortis said several other aircraft also are available. MAS has experienced the same kind of financial problems as several other major Asian carriers due to the economic crisis in the region.
Canadian Airlines is marketing holiday fares, with discounts up to 85% for last-minute domestic and transborder travel on Christmas Day and beyond. Dates of travel include Dec. 25-Jan. 1 (except Dec. 29-30) and Jan. 5. Sample roundtrip fares are $299 Vancouver-Toronto, $389 Calgary-Honolulu and $219 Ottawa-Boston.
SAS is postponing a planned long-haul jet order because of weak market forecasts and stalling talks with unions. Airbus and Boeing have been competing for several months to win the favor of SAS, which is considering replacing its 14 767-300s with 777 or A330-A340 aircraft. A decision was expected at the end of the year, but an SAS spokesman said "it is not necessary to make a decision in 1998. If we want to, we can fly our 767s for several more years." Like many other large airlines, SAS expects traffic growth to slow down in 1999.
The Fedex Pilots Association (FPA) board voted 15-3 to recommend ratification of the latest tentative contract agreement. FPA President Frank Fato, in a recorded message to pilots, said the board met for more than 12 hours on Tuesday to review the tentative deal reached between FPA and the company last week. Fato said board members asked "specific and pointed questions" on each of the contract sections and side letters, especially on scope, work rules, scheduling, retirement, insurance, training and compensation.
American subsidiary Bonanza Acquisitions has acquired a majority of shares in Reno Air, completing a major portion of the merger between the two airlines. American spent more than $111 million in cash to acquire 84.5% of Reno's common stock and 99% of preferred shares. "Now that we have the majority of the shares, we'll work to acquire the remainder," said American spokesman Tim Kincaid. "The next step is to consummate the merger - all the many details." When completed, American will spend $124 million for Reno.
Merrill Lynch lowered its fourth quarter earnings estimates for American, Delta, United and US Airways, following earlier downgrades for Continental and Northwest. The investment firm cited weak unit revenue performance due to Northwest's post-strike sales, the lack of a U.S. fare increase and effects of upheavals in financial markets.
New Aircraft Orders And Options September 1998 Last 12 Months Firm Orders Options Orders Options Carrier # Type # Type Engines Del. Dates # Type # Type Air New Zealand* 1 747-400 - CF6-80C2 Sep98 3 737-300 - Air New Zealand - - - - 1 747-400 -
Delta and its Air Line Pilots Association unit will begin talks in February on pay and work rules for Boeing 777 aircraft, said Master Executive Council Chairman Chuck Giambusso.The union named negotiators recently and adopted a plan stipulating pay increases and work rules for flying the new equipment - and job actions if the pilots and the company can't reach a deal.
United is offering holiday fares through its Internet site, www.ual.com. Customers must click on the E-Fares page. Discount fares are available for $69-$299 roundtrip in designated markets. Outbound travel must occur Dec. 24 or 25 and return Dec. 31 or Jan. 1. Sample roundtrip fares are $69 Tuscon-Los Angeles, $99 Des Moines-Chicago and $299 Phoenix-Washington Dulles.
Creditors for Philippine Airlines, including aircraft lessors, have rejected a proposed financial reorganization that would have injected $150 million into the airline but given little money to the companies that have been keeping the airline afloat. The latest setback for PAL could be its last, since creditors involved in this week's decision lease more than half the 22-jet fleet that is currently operational. Creditors, who lease 12 Airbus A330s and A340s to the carrier, were represented by French bank Credit Agricole Indosuez.
Jack Schenendorf, chief of staff to the House Transportation and Infrastructure Committee, discusses the panel's agenda for 1999 on Aviation News Today, to air Sunday on Washington's NewsChannel 8 at 12:30 a.m. and 1:30 p.m.
Raleigh/Durham-based Midway Airlines will begin two new daily nonstop jet flights to New Orleans Feb. 4 instead of Feb. 8 as previously announced. Service will be aboard a new Canadair Regional Jet. Senior VP-Marketing and Sales Mark Coleman said the service was pushed up to accommodate passengers going to New Orleans early for Mardi Gras Feb. 16.
TAM Brazilian Airlines, which recently began Miami-Sao Paulo nonstop service, is adding flights from Sao Paulo to Recife and Fortaleza, in northern Brazil. The flights use A330-200s and connect with TAM's Super Shuttle service, including 20 daily flights from Sao Paulo to Rio de Janeiro and 11 to Belo Horizonte.
Carriers may operate "largely unrestricted service" from Dallas Love Field as long as they use aircraft with no more than 56 seats consistent with the Shelby Amendment, DOT said late Tuesday in a declaratory order aimed at resolving legal issues in local disputes. Operations at the airport are subject to federal law, which "does not permit the local restrictions as presently constituted," DOT said. Ruling on federal issues regarding Love Field operations, DOT cited U.S.
U.S. Carriers Labor Expense Third Quarter 1998 Major Carriers % Of Total Labor Operating Expenses Alaska 126,185,000 34.14 America West 107,125,999 23.92 American 1,196,359,000 32.19 Continental 464,467,000 26.14 Delta 1,066,491,000 32.11
TAP Air Portugal posted a 9.2% rise in revenue passenger kilometers for October and an 8% year-to-date increase. The airline carried 382,000 passengers in October, up 8.2%, and 3.9 million in the first 10 months, up 9.7%.
