Boeing said yesterday it has established firm delivery dates for 25 aircraft in 1999 and 2000 to support Delta's fleet modernization program and provide for "modest" growth. The aircraft comprise 14 737-800s, eight 757-200s and three 767-300ERs. Boeing also confirmed 24 orders Delta announced previously, including 16 737-800s, six 757s and two 777-200ERs. The new aircraft will replace equipment being retired, including 727s. They will be replaced with 737-800s by 2005, and the 767s will replace L-1011s.
Private express couriers operating in Europe are up in arms at the German postal authority's latest move into their territory and want European Union competition authorities to review what they call "a very serious threat to the goal of fair competition in a fully liberalized European postal market." The European Express Organization (EEO) says the European Commission should prevent Deutsche Post AG (DP) from buying the Switzerland-based international freight forwarder, Danzas.
US Airways yesterday introduced an Air Travel Card that offers corporate travelers enhanced benefits and more travel information capabilities. including: - management reports to summarize travel patterns and itemize costs; - simplified record-keeping, payment and cost accounting data; - customized billing statements to detail and track air fare expenses; - flexibility to choose how and when to receive monthly billing statements as well as the number of statements to be received;
European Union competition authorities have approved the first of a two-step operation creating a joint venture to manage Eurostar Ltd., the company that offers high-speed train services between England and continental Europe. The services compete directly with European airlines for medium-distance travel between London and destinations across the English Channel. The European Commission has authorized the creation of of the Inter-Capital and Regional Rail (ICRR) joint venture to manage the Eurostar company.
FAA said it plans a $233,000 fine against Northwest for allegedly installing brakes improperly on two A320s that were subsequently used in revenue service. FAA said earlier this month it planned to fine the carrier $375,000 for alleged improper installation of a cable on a DC-9 wing assembly and then operating the aircraft. In the latest incident, FAA said maintenance personnel discovered a brake had been installed without the required modifications.
A new industry, propelled by public concern and government action, has arisen from the bombing Dec. 21, 1988, of Pan Am 103 over Lockerbie, Scotland. Several companies that did not exist then are turning out explosive detection machines now in a worldwide effort to thwart terrorists' attempts to place explosive devices into a suitcase and check the bag onto an airliner.
United will target two goals for on-time departures in 1999 - 55% for flights pushing back from the gate precisely on time and 71% for departures within five minutes. Last Thursday, United's "on-time zero" rate was 49%.
FAA should revise ATC procedures so that pilots of aircraft departing Class B terminal areas under VFR conditions can continue to receive radar advisories until they leave airspace in which other aircraft might be approaching, National Transportation Safety Board recommended in a report on the April 1997 near-collision of an inbound America West 737 and an outbound Ameriflight Beech 99 near Las Vegas McCarran Airport.
Korean Air yesterday finalized its $120 million, 10-year outsourcing agreement. IBM will invest with the airline to create a new IT infrastructure for the airline, Korean Air said. IBM has created a subsidiary, IBM Global Services Korea, for the venture and others in Korea.
House aviation subcommittee Chairman John Duncan Jr. (R-Tenn.) sees no reason to "drag out for many months" a Senate trial of President Clinton on impeachment charges, but scenarios being considered in the Senate range in length from days to almost half a year. Apart from his feelings about Clinton, Duncan has a legislative stake in the outcome. FAA is operating under a six-month authorization that expires March 31.
Airlines in the Asia/Pacific region will have a lengthy recovery period that will last well into 2000, according to Sydney-based consulting firm Centre for Asia Pacific Aviation. Yields for the region's airlines have plummeted nearly 10% from 1997, current ticket prices are low and debt levels are high enough to warrant worry. The return to the boom of the early 1990s will be slow, according to Peter Harbison, CAPA managing director. "The original shock was sharp and painful, but the bleeding will continue well beyond 1999," he said.
Singapore Airlines yesterday moved one step closer to a formal mega-alliance relationship as its signed a comprehensive strategic code-share pact with Air Canada. SIA already has a tripartite alliance with future Star Alliance members Ansett Australia and Air New Zealand and code-share links to Lufthansa and SAS. The memorandum of understanding between SIA and Air Canada covers North America and Southeast Asia, and the two intend to finalize the partnership in March.
U.S. domestic yield for major airlines was down 1.7% last month, the third straight monthly decline year over year.But yield so far in 1998 is 0.9% ahead of the 12-month figure for 1997, according to Merrill Lynch data, indicating that the recent declines only offset improved domestic pricing earlier this year.
SatoTravel has been reawarded the Navy Western Regional contract, which has an estimated annual air volume of $97 million. The contract is for official travel services for Navy travelers in 14 states in the western U.S. and Guam, Singapore and Japan. The contract will begin on or around March 1 and is for a base period of six months with nine six-month option periods.
China Southern Airlines and the Industrial and Commercial Bank of China (ICBC) have unveiled the first co-branded credit card to be offered by Chinese airlines. The "Peony" cards will come under the Visa brand and carry an annual fee. Card recipients are automatically enrolled in China Southern's Sky Pearl Club frequent flyer program and receive preferential prices on tickets. Regular card holders receive a 3% discount and Gold Card members 5%.
In the next six months, Germany will lead the European Union in an attempt to persuade international air transport bodies to impose a tax on kerosene. The German Socialist-green government will hold the revolving presidency of the European Union from January until June 1999.
Garuda President Robby Djohan has been replaced by Abdul Gani, the former president of Bank Duta in Jakarta. Djohan has been appointed president of the Mandiri Bank, a new state bank. During his short stint with Garuda, Djohan undertook several reforms, including route restructuring, fleet rationalization, returning 26 leased aircraft, staff reduction and removing corrupt officials.
Moody's Investors Service downgraded Boeing Co.'s senior debt rating yesterday, saying the company faces reduced potential for profit and cash flow in the intermediate term and is moving to a new, less conservative financial strategy. Completing a review for possible downgrades it began Sept. 15, the ratings agency said:
American told DOT yesterday it opposes Lufthansa's request for a slot exemption at Chicago O'Hare for a second daily Chicago-Frankfurt roundtrip the German carrier wants to offer during the 1999 summer season. American said Lufthansa's application "should be denied unless the Government of Germany ensures that the slots American has requested, and at the times American has requested," are made available to American at Frankfurt for 1999 summer season service from New York and Dallas/Fort Worth.
Delta yesterday named John Selvaggio, former VP of US Airways' Express Division, senior VP-airport customer service. Selvaggio formerly held positions at American and Midway.
Predicting lower economic growth in 1999, SAS is adjusting its capacity downward to expand by only 6% next year. The modification means that several routes will be terminated. As of March, for instance, the airline will no longer fly to Hong Kong, Rotterdam, Venice or Arkhangelsk. SAS said its profit margin on the routes is too low to justify their continuation. The capacity freed from closing the routes will be used to strengthen services between Copenhagen, Oslo and Stockholm and to Amsterdam and Helsinki.
Business Travel Coalition President Kevin Mitchell pushed for increased freedom of market entry and level-playing-field assurances for new entrants last week in a speech to the Parliamentary Group of the Swiss Aeronautical Economy in Bern.
British Airways has opened its Concorde Room at New York Kennedy for Concorde travelers. The room is outfitted with furniture and art designed by top 20th century designers. Concorde fares are $5,456 and $9,165 roundtrip, plus tax.
