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%.
Travelocity.com is offering discounts on tickets on TWA for customers who book travel through the web site. By purchasing an electronic ticket, customers can receive up to $100 in savings for travel on TWA within the U.S. and to Toronto. Discounts depend on the price of the tickets, which must be purchased by Dec. 30. A maximum discount of $30 off fares of $150 or more is available to customers who purchase their e-tickets for travel originating in St. Louis. Travel must be completed by March 31. Discounts are valid for travel Monday through Thursday and Saturday.
Air Line Pilots Association and DHL Airways yesterday ratified a new five-year labor contract after a relatively painless set of negotiations. The agreement, approved by 93% of DHL pilots, provides for better job security and scheduling and improves compensation and retirement benefits. "In this tumultuous era of acrimonious airline labor negotiations, we have proven that an environment of cooperation really does work, and benefits all parties involved," said Captain Dan Brannan, chairman of the ALPA unit at DHL.
Washington-based Harbor Air has launched an updated and enhanced web site at www.harborair.com. The new site offers more information on the carrier, its history and its services, including up-to-date flight schedules, route system and photos of the fleet.
Nuance Global Traders, SAirGroup's travel retail subsidiary, has negotiated more favorable business terms for its operations at two airports hit by the downturn in Asia's economy. At Hong Kong's new Chek Lap Kok Airport, Nuance Global and its Asian-based retailing partner, Watson, have agreed with airport authorities on improved concession fees for 25 sales outlets. The outlets started operations in July with the airport's opening. Nuance also struck improved rental and concession terms with Vancouver Airport.
Austrian Airlines, aiming to become a smoke-free carrier in 1999, will ban smoking on all flights within Europe and to Northern Africa, starting Jan. 1. Currently, it prohibits smoking only on transatlantic flights. The final phase will start March 28 with the carrier's summer season, when all services will become smoke-free.
Northwest as of midday yesterday was forced to cancel about 64 departures and 68 arrivals in Memphis because of weather. Memphis experienced severe icing on runways, ramps and aircraft surfaces. Northwest said it expects further cancellations and delays, and a spokeswoman said travelers should contact the airline's web site at www.nwa.com or call 800-225-2525 for information.
United and Air Canada will expand their code share in January by adding flights to Mexico City and Auckland. Air Canada's code will be placed on United's flights between Los Angeles and Auckland and between Chicago and Mexico City. United said it is a "significant step" for the alliance, since the partnership initially was designed to capture additional traffic between the U.S. and Canada. Code sharing on Los Angeles-Auckland will start Jan. 17 and Chicago-Mexico City Jan. 25.
Air France denied American's claim that it controls Paris airport slot allocations "any more than American controls, or is involved in, the reciprocal FAA slot allocation process." Slot allocation procedures in France are consistent with European Commission regulations, Air France told DOT. American, unsuccessful in seeking slots at Paris Orly Airport for Los Angeles service, charged that Air France has strong links to the slot allocation authority - it is headed by a former employee who is expected to return to the carrier (DAILY, Dec. 21).
Total world airline traffic as well as international scheduled traffic increased just 1% in 1998, according to preliminary figures from the International Civil Aviation Organization issued yesterday. The 1% rise compares with an average annual increase of 7% during the last five years and 8% in 1997. ICAO attributed the drop mainly to the Asia/Pacific slowdown.
LanChile will launch four weekly flights Dec. 27 from Miami to the Chilean port city of Iquique, known for its beaches and salt-water fishing. The airline offers connections from Iquique to the northern Chilean cities of Arica, Calama and Antofagasta.
Pegasus Aviation said it will acquire six aircraft from International Air Lease - two MD-83s on lease to Allegro and AeroMexico,, two hush-kitted 727-200 freighters on lease to Aeropostale, one 727-200 freighter on lease to Custom Air Transport and one 727-200 passenger aircraft for which a lease is being negotiated. Pegasus said the six aircraft will generate $27 million in lease contract revenue.
DOT, moving forward with its assessment of the impact of airport practices on airline competition under Docket OST-98-4025, selected 13 airports for case studies to "delve into individual airport's decision-making process," according to Jim New, DOT director of planning and special projects, who is coordinating the studies. The airports chosen for review - Atlanta, Baltimore/Washington International, Charlotte, Cincinnati/Northern Kentucky, Dallas/Fort Worth, Denver International, Detroit Metro, Houston International, Minneapolis/St.
In a further consolidation of Taiwan-based airlines, Far Eastern Air Transport (FAT) will purchase a 9.83% holding in TransAsia Airways in a deal worth more than US$43.4 million. The transaction, scheduled to be completed before yearend, surprised many in Taiwan's aviation industry as the reported purchase price of NT$29.49 (US$0.91) per share is far above the recent trading range of NT$9-$10 per share.
Howard Attarian, a Detroit-based 757 pilot for Northwest, was appointed executive administrator of Air Line Pilots Association, International. He is currently serving his second term as Northwest ALPA Master Executive Council secretary/treasurer.
American objects to a Northwest-Continental code share to Mexico, but United wants to delay a decision, hoping U.S.-Mexico talks due to begin soon can produce progress on code sharing for all airlines involved. American noted that there is no provision in the U.S.-Mexico bilateral for code share by U.S. carriers. "As the department is aware, the United States has been seeking the negotiation of such a provision for several years, but the government of Mexico has refused," American said.
American has agreed to be the launch customer for The Sabre Group's new Marketing Messages program, part of its Sales Manager suite of products. Bruce Chemel, president of American AAdvantage Marketing Programs, said being the first customer for the product makes sense because "we're always testing the waters. The AAdvantage Program is very innovative and they [Sabre] had a good business plan. We have a lot of partners we'd like to bring extra value to."
United Shuttle said yesterday it will reconfigure overhead bins in its 737 aircraft to accommodate more carry-on bags in an effort to improve the boarding process and on-time performance. The new stowage space will accommodate four instead of two bags that meet United's 45-linear-inch guidelines. The bins were tested at Los Angeles in October, and the retrofit is scheduled to be completed by May.
American Eagle will launch nonstop regional jet service between Jackson, Miss., and Dallas/Fort Worth Airport on Feb. 19. The carrier will replace turboprops with new 50-seat ERJ-145s on three of the six roundtrip flights.
DOT extended the comment period on its proposed airport rates and charges policy yesterday from Dec. 30 to Jan. 31.The department acknowledged that industry groups, already attempting to reply to its proposed airport competitive practices by Dec. 31, need more time.
The European Commission approved a grant of 2.6 million European currency units (US$3.1 million) for the reconstruction of Sarajevo Airport. The funds will be used for the rehabilitation of the interior of the airport terminal, which was severely damaged during the war in Bosnia Herzegovina. Repairs are scheduled to be completed by April 1999. In total, the European Union will grant approximately ECU6.9 million ($8.1 million) for the rehabilitation of the facility.
TWA has named John Stelzer to the newly created position of senior VP-planning, subject to election by the TWA board of directors at its next meeting. Stelzer previously was VP-airline planning. He will report to Chairman and Chief Executive Gerald Gitner and will oversee revenue management and pricing, schedule development and implementation, and airline planning and forecasting. Stelzer was instrumental in setting up negotiations with Boeing and Airbus, a spokesman said.
FAA, which achieved its landmark contract agreement with its air traffic controllers this year, still considers labor relations one of its top priorities, according to Administrator Jane Garvey. "We still have a lot to do in this area," she said.
