TNT Worldwide Express and Hsin Chu Transport, Taiwan's second largest transportation firm, have signed a comprehensive cooperation agreement, accelerating the trend toward consolidation in Taiwan's air express industry. Insiders say it also is likely to change the shape of air express in Taiwan. Under the pact, TNT becomes the first foreign express company to give a local partner a significant degree of control over its local business. For its part, HCT will gain immediate access to an extensive international network.
A major revamp of Royal Brunei Airlines (RBA) is under way to turn the airline into a "boutique" carrier with a focus on Asian routes. The government has appointed a six-member board, led by the permanent secretary to the Ministry of Defense, Sheikh Jamaludin, to review the airline's operations. Jamaludin said the main objective of the new board is to make RBA a leaner, efficient and more effective organization with emphasis on quality. "We will make sure that customer needs are looked into.
DOT issued a show cause order tentatively selecting Delta to serve Johannesburg, South Africa, under code share with Air France. Delta and Continental sought designation as the third U.S. carrier to serve South Africa under code-share arrangements with third-country carriers, effective Nov. 1 (DAILY, Aug. 5). Both carriers applied to serve South Africa with Air France via Paris - Delta for service from Atlanta, Boston, Cincinnati, Chicago, Los Angeles, New York, San Francisco and Washington, and Continental from Houston and Newark.
British Airways and Virgin Group have expressed interest in bidding to supply air transportation for Queen Elizabeth and the British royal family under invitations for commercial tenders issued last week by the U.K. Ministry of Defense. The Royal Air Force has provided short- and medium-range service since the 1930s, currently using three BAe 146s, six BAe 125s and two Eurocopter AS355F1 Twin-Squirrel light helicopters. The helicopters, on a three-year lease from McAlpine Aviation, which maintains and supports the aircraft as RAF crews operate them.
Market conditions experienced by Asian airlines during the past two months are as bad as they are likely to get, regardless of continued economic weakness in the region, according to a report from Salomon Smith Barney. Carriers in the region are close to their "cyclical nadir," the investment firm said in its Asia/Pacific Airline Industry Review. "While traffic levels and earnings are not certain to recover in the short term, we believe that airlines are aware that they must listen to their survival instincts or risk everything," wrote analyst Peter Negline.
Summary of U.S. Major Carriers International Traffic June 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change Alaska 62 13.50 1,103 67,941 20.72
Allied Pilots Association (APA), which represents American's 9,000 pilots, said yesterday that allowing the Northwest-Continental code-share agreement to go through could be the first step toward consolidation of the domestic airline industry. APA President Rich LaVoy said the airline industry already has seen the world consolidate through international alliances, and "now we're seeing it rebound back into the domestic system with Northwest and Continental Airlines' code-sharing alliance.
Comair is offering Thanksgiving and Christmas holiday fares with its Weekend Traveler booklets. A $299 booklet contains four travel coupons valid for up to one year from the date of purchase. Passengers using booklets during Thanksgiving may travel Nov. 26 through noon Nov. 30. Christmas travelers may leave on Dec. 25 and return any day through noon Jan. 4. Coupons are good for travel to more than 65 cities that Comair serves nonstop from its Cincinnati hub.
Boeing donated $50,000 to the American Red Cross and the company's employees contributed $92,500 to the Red Cross, Feed the Children, Northwest Medical Teams and World Vision, all for relief efforts for victims of Hurricane Mitch in Central America.
Taiwan's Aerospace Industrial Development Corp. (AIDC) has signed a deal with Sikorsky Aircraft Corp. and Astronautics Corp. licensing AIDC to set up a service station for equipment on the Sikorsky S-70 helicopter. Under the agreement, Astronautics will provide AIDC with the technology required to service Astronautics' equipment installed in the S-70. AIDC and Sikorsky reportedly are in talks on a number of other possible ventures, including helicopter manufacturing, assembly and testing, parts fabrication, maintenance and pilot training.
WestJet Airlines has finalized a C$27 million fixed rate loan facility with Newcourt Capital. The Calgary, Alberta-based airline, which operates 10 737s, will use the funds to expand.
Southwest Airlines Vacations, the Salt Lake Convention Visitors Bureau and a group of ski resorts in Utah are offering family vacation ski packages that let kids ages 2-11 fly free and stay and ski free with the purchase of an adult Southwest Airlines Vacation to Alta, Brighton, Park City Mountain Resort, Snowbird or Solitude for two or more nights. Southwest will give adults their second-day lift ticket free for packages booked by Jan. 31.
Kiwi International Airlines will begin seasonal Boston-Palm Beach service Friday at fares starting at $99 with no advance purchase or Saturday night stay required. The fare is available until Dec. 15. Northwest is offering Phoenix travelers deals on one-way fares for travel Jan. 1-5. Sample unrestricted fares include $374 to Boston, $575 to Miami and $486 to New York. Through Nov. 30, Northwest will offer double WorldPerks miles for flying on selected coach-, first- or business-class service.
DOT on Friday granted Polar Air Cargo a one-year exemption, through Dec. 31, 1999, from its startup deadline for a weekly all-cargo U.S.-Thailand frequency, one of two allocated under a certificate issued in 1996 enabling the carrier to operate service from points in the U.S. to points in Thailand. The certificate included a startup deadline of April 1, 1997. One frequency already has reverted to DOT. The department earlier granted Polar extensions of the startup date for the remaining frequency through Dec. 31.
Dulles, Va.-based Atlantic Coast Airlines plans to upgrade to United's ORION revenue management system early next year. ACA President and Chief Executive Kerry Skeen said the system "will help manage the thousands of different passenger origins and destinations that flow over our combined systems every day." ORION uses IBM's "Deep Blue" computer to carry out the calculations involved in the analysis.
All Nippon Airways and Shanghai-based China Eastern Airlines will cooperate on Japan-China service, beginning in February, under an agreement signed Friday in Tokyo. Initial joint operations will be on Kansai-Shanghai service and Kansai-Beijing service via Qinado. The carriers hope to serve Tokyo-Shanghai jointly soon.
Business travelers are not returning to pre-strike levels at Northwest, BT Alex Brown analyst Susan Donofrio said as she downgraded the carrier's investment rating.Based on talks with NWA management two months after its pilots strike, Donofrio expects revenue per available seat mile to drop nearly 15% in the fourth quarter.
Dallas/Fort Worth Airport has hired its first environmental director and plans next month to consider its first environmental policy in light of new concerns over its contribution to worsening air conditions over the Dallas/Fort Worth "Metroplex." The Environmental Protection Agency, which ranks the area's ozone problem as "serious," may up the rating to "severe," which would trigger required compliance with more stringent anti-pollution rules.
In a bid to increase revenue, Singapore Airlines (SIA) plans to target the corporate sector directly through its marketing department. The airline would offer its largest corporate customers net fares and corporate incentives. When told that such a move could lead travel agents to boycott the airline, SIA Manager-Passenger Marketing Tan Chong Beng said the agents "would be consulted" before the program takes off. Tan said SIA offices around the world would cater to passengers who want a point-to-point ticket.
Federal Express and the Fedex Pilots Association, which represents most of the company's 3,500 pilots, are meeting today in Washington, D.C., with the National Mediation Board (NMB) to try to resolve the bitter contract dispute that threatens to set off a pilots strike in December. Discussions began yesterday after NMB ordered the parties back to the table, sources close to the talks said yesterday, and they probably will continue through tomorrow.
Delta, which applied for authority to operate a daily Atlanta-Rome nonstop immediately after DOT issued a notice inviting U.S. carriers to apply for seven additional weekly U.S.-Italy frequencies (DAILY, Nov. 16), announced plans for new service from New York Kennedy to Venice and from Atlanta to Milan, which would complement its daily New York-Milan service. The carrier said it will extend its second daily New York-Rome flight from summer to year-round service.
Taiwan and Australia have signed a memorandum of understanding (MOU) for a plan to cooperate in aviation safety. The MOU was signed by Liu Po-luen of the Taipei Economic and Cultural Office in Australia and Sam Gerovich, representative of the Australian Commerce and Industry Office. Also attending the signing ceremony were Weng Cheng-i, chairman of Taiwan's Aviation Safety Council, and Rob Lee, director of the Australian Bureau for Air Safety Investigation (BASI). With the signing of the MOU, BASI becomes Taiwan's first official partner in aviation safety.
AirTran is offering special fares through Nov. 19 starting at $39 one way, for travel through Jan. 31. Sample fares from Atlanta include $79 to Boston, $69 to Miami or Washington Dulles and $49 to Newport News.
Summary of U.S. National Carriers Systemwide Traffic June 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change AirTran Airlines 480 33.75 489 235,000 10.08
