American's growth next year will emanate from its hubs, according to BT Alex Brown analyst Susan Donofrio.One-third of the carrier's 1999 capacity increase will be at Dallas/Fort Worth, 16% each at Chicago and New York, and 10% each at Los Angeles and Boston. Scaled-back growth plans now call for American's international operation to grow four times faster than the domestic system - 10% versus 2.5%.
US Airways yesterday let go Chief Financial Officer Terry Hall in favor of former United VP-treasurer Thomas Mutryn. The new CFO, Mutryn, is well thought of on Wall Street, a fact US Airways Group Chief Executive Stephen Wolf cited as a factor for his hiring. Mutryn held several positions at United, including VP-revenue management and director-financial analysis from 1989 to 1995. His tenure overlapped with that of Wolf, who headed United from December 1987 to July 1994. Hall was part of Wolf's financial team at United as well.
Qantas and Air New Zealand this week began offering fares as much as 50% off from the U.S. to Australia and New Zealand during the peak summer period Down Under. ANZ's "Summer Downunder" fares begin at $699 roundtrip from Los Angeles and San Francisco to Auckland and $749 to Sydney. The fares are 50% off and include the option of stopping in Fiji for another $50. Fares are valid from Jan. 25 through March 31. Qantas also is offering $749 Los Angeles-Sydney fares. The carrier matches ANZ's $699 fare to Auckland, as well as a $649 Los Angeles-Nadi, Fiji, fare.
UAL Services and representatives of United's revenue management department have conducted the first of several training programs for China's Institute of Civil Aviation (CAIC) in Tianjin. The latest United foray into China involves revenue management training. "The training is one of a number of initiatives we have moved forward in China with the support and direction of the Pacific South division," said Gene House, managing director-UAL Services, in an internal communique.
TWA asked DOT for a two-year exemption to operate scheduled combination service between New Orleans and Mexico City. The carrier plans to begin the flights Jan. 31, 1999, with MD-83 aircraft, providing the only nonstop service on the route. The New Orleans-Mexico City service will originate and terminate at New York Kennedy, linking with TWA's international service. TWA also applied for a two-year exemption to institute service - the only nonstops - between St. Louis and Mexico City.
National Air Transportation Association board has decided against hard-line regulatory warfare by charter providers against fractional aircraft ownership providers. Instead, after months of debate, NATA plans to work with FAA on easing some operating restrictions on charter operators, and with an industry task force developing fractional ownership (FO) guidelines.
Aviation Management Services (AvMan) of Miami was designated marketing agent in Central and South America for the Air Response Family Assistance Program. It said the program was specifically designed to afford foreign-flag airlines that operates to and from the U.S. an economical means to ensure their full compliance with the new federal regulation governing response in event of an accident. The Air Response Program includes a fully equipped and staffed crisis center, AvMan said.
U.S. Trade Representative Charlene Barshefsky said yesterday the U.S. and European Union agreed to implement the Transatlantic Economic Partnership initiative, which she said has the potential to stimulate tens of billions of dollars in transatlantic trade.
US Airways yesterday introduced its first new Airbus A319 into service at Philadelphia, Charlotte, Raleigh/Durham and Tampa. New cities will see A319s and A320s as they enter the carrier's system. More than 20 are scheduled to join the fleet next year, the carrier said.
Travelocity's new look, to debut this month, offers a more user-friendly homepage, streamlined flight booking path, increased customization features, more amenity searches and more airline schedule choices, including the nine best fares for a particular destination, according to Terry Jones, spokesman for The Sabre Group. He noted that the site incorporates suggestions from some of its 4 million members. "Our research has shown that our customers are most interested in simplicity and speed when booking travel online," he said.
AirLiance Materials, a joint company formed by United, Air Canada and Lufthansa Technik, plans to move to a permanent headquarters and main warehouse facility on airport property by mid-1999. The Des Plaines, Ill.- based company pools the inventories of its partners and buys and sells materials for partners and other airline customers and maintenance organizations. David Sisson, president, said that since the partners fly almost every modern passenger jet, the company can quickly provide parts for an unusually wide range of aircraft.
Federal Express denied yesterday that as many as 1,000 of its 3,500 pilots could receive furlough warnings by tomorrow. Fedex Pilots Association (FPA) VP Byron Cobb said FedEx has not notified pilots officially of furloughs, but "the word has come down" from company managers that furloughs are on the way unless the union agrees to the company's latest contract proposal. "Nothing is in writing," said Cobb.
Martinair Cargo is increasing its Latin American program to 12 cargo gateways in nine countries. Both routes and capacity in the region will increase by 80% by the end of the first quarter of 1999, the company said. The program will be based out of Miami and Atlanta, chosen for their modern perishable goods centers.
Singapore Airlines posted a net profit of S$400 million (US$247 million) for the six months ended Sept. 30. Operating profit of S$246 million (US$152 million) was down 44.2% and net profit fell 26.5%. The DAILY Oct. 26 reported an incorrect percentage change for the net profit.
Cathay Pacific moved one step closer to having a major role in running Philippine Airlines (PAL) yesterday as the Interim Rehabilitation Receiver of PAL accepted the Hong Kong-based carrier's conditional investment offer. Cathay reportedly plans to invest US$100 million in PAL, and PAL's major shareholder, Lucio Tan, would invest a smaller amount to rehabilitate the fledgling flag carrier.
Hawaiian Airlines has entered an agreement with Renaissance Cruises to operate exclusive air service between Los Angeles and Tahiti, beginning August 1999. The deal is worth approximately $70 million, and Hawaiian will acquire widebody DC-10-30 aircraft that will bear the Hawaiian Airlines and Renaissance Cruises logos. The aircraft will be configured for 84 business-class and 172 upgraded coach-class seats.
Sen. Harry Reid (D-Nev.), a member of the Senate Appropriations transportation subcommittee and a narrow winner last Tuesday in an election subject to a recount, said he will run for Senate Minority Whip. Congressional sources said Reid may not face opposition to taking over the No. 2 Senate Democratic leadership position. He would succeed Sen. Wendell Ford (D-Ky.), who did not run for re-election. Senate Democrats will decide their leadership posts the first week in December.
Ladeco received an initial one-year exemption to operate scheduled foreign cargo service between points in Chile and co-terminal points New York and Los Angeles, via intermediate points, and to co-terminalize New York and Los Angeles with its co-terminal point Miami. Ladeco and Fast Air, both Chilean carriers and subsidiaries of LanChile, are set to merge Nov. 17 (DAILY, Nov. 4). DOT also approved Ladeco's request to register the trade name Fast Air, under which it will operate Fast Air's current all-cargo services. (Docket OST-98-4682)
Vivid Technologies said revenue for its 1998 fiscal year, which ended Sept. 30, was $38.7 million, a record and an increase of 22% over 1996-97. Net income - $6.6 million, up from $5.9 million - also set a record. For the fourth quarter, revenue was $1.7 million, up from $1.1 million, but net income declined to $1.2 million from $2 million. David Ellenbogen, chief executive, said the company's explosives detection systems have been selected by 19 countries for 36 airports.
City of Dallas has asked Texas District Judge Bob McCoy of Fort Worth to clarify how his Oct. 16 ruling prohibiting airlines from providing service from Dallas Love Field beyond the five states in the original Wright Amendment affects Southwest and Continental Express airlines. Specifically, the city wants to know if Southwest can provide connecting service from Love to Kansas, Mississippi and Alabama, the states added in the so-called Shelby Amendment, and whether Continental Express can sell connecting service from Houston.
Boeing is distributing to nearly 700 of its commercial airplane customers a new training aid to teach pilots how to react to a variety of aircraft control situations. The aid, developed by an industry-wide team and funded jointly with Airbus Industrie, includes an illustrated manual and two videotapes intended to help reduce the number of accidents caused by loss of control of large, swept-wing aircraft. Between 1988 and 1997, there were 31 in-flight-loss-of-control accidents involving commercial airplanes that resulted in more than 1,900 fatalities, Boeing said.
Milan Malpensa Airport, plagued by problems bordering on chaos since its opening two weeks ago, absorbed its share of a nationwide four-hour strike by Italian airport workers yesterday and faces another work stoppage today. The labor disruptions follow a bizarre facilities problem at the end of last week - the surface of the P1 landing runway went soft and asphalt slabs were found stuck to the wheels of some 20 aircraft. The state prosecutor for the city of Busto Arsizio, whose jurisdiction includes the airport, has launched an inquiry into the incident.
Philippine Airlines will resume service to Taipei and Singapore on Nov. 18. Jun Ordillano, general manager of PAL's Taipei office, said the carrier will also resume flying its 747-400s on trans-Pacific routes on Dec. 1.
FAA, agreeing with the National Air Traffic Controllers Association (NATCA), has turned off a new computer program that has been plagued with glitches at the Dallas/Fort Worth Tracon so the problems can be resolved off line. Similar problems were reported with new equipment at New York, Denver and Southern California, but reportedly only the DFW program will be turned off for the troubleshooting efforts. NATCA complained that sometimes airplanes did not show up on the computer program, which went on line Sept. 19, or the system painted aircraft that did not exist.
Flight Dynamics said a recent order from Southwest pushed its head-up guidance system sales over the 1,000 mark. Since initial orders by Alaska in 1987, 14 airlines have ordered the systems.
