"Open skies has now become the norm in the transatlantic and other aviation markets," DOT Deputy Assistant Secretary Patrick Murphy said at this week's Airports Council International's international air service seminar, and "we want competition to be the principal guiding force in our international aviation industry" into the next century.
TWA said yesterday it plans to order 50 A318 aircraft from Airbus and 50 717s from Boeing - 100-seat-class aircraft that Chairman Gerald Gitner insisted perform different roles. One reason for acquiring the 717s is that they will be available sooner than the A318s, he said. Chief Financial Officer Mike Palumbo declined to describe financing pending firm orders for 125 aircraft - including 25 other A320-family airplanes - but The DAILY learned that 12 of the A318s will come from International Lease Finance Corp.
DOT Secretary Rodney Slater met yesterday with Israeli Ambassador to the U.S. Zalman Shoval and El Al Chairman Joseph Ciechanover, who outlined a plan to allow third-country code-share service by U.S. carriers, according to a DOT official. Israel, which has denied such code sharing by Northwest/KLM and United/Lufthansa while pushing for bilateral code-share rights for El Al, will formalize with DOT its proposal for both bilateral and third-country code shares.
Alaska Air Group said yesterday that Alaska Airlines and subsidiary Horizon Air have signed a letter of intent to enter a marketing partnership with American Airlines/American Eagle. Alaska said it has no intention of dropping longtime partner Northwest, and has notified the airline of its intention to pursue an agreement on both fronts.
Frontier Airlines has named management staff for three new destinations scheduled to begin Dec. 17. Kelly Smith is city manager for Atlanta, Pamela Olson for Dallas/Fort Worth and Robert Knotts for Las Vegas.
United traffic for November grew 4.2%, faster than the 3.2% capacity growth, boosting the load factor 0.6 percentage points to 68.4%. Pacific traffic fell 8.1% on 13.8% less capacity, lifting the load factor 4.5 points to 72.4%. Domestic traffic rose 7.5% on 6.4% more capacity, resulting in a 69% load factor. Atlantic traffic was up 9.8% on 17.4% more capacity, forcing the load factor down 4.4 points to 64.1%. Latin American traffic increased 7.6% on 10.7% more capacity, lowering the load factor 1.7 points to 58.4%.
Mercury Air Group has promoted Joseph Czyzyk to president and chief executive. He was chief operating officer. Seymour Kahn, who was chairman and CEO, will continue as chairman.
United is contemplating cessation of its round-the-world service, sources say.The carrier may end its current London-Delhi-Hong Kong flights because it has other uses in mind for its London Heathrow slots, which could include additional frequencies to the U.S.
BMW Rolls-Royce testing of the BR700 core engine with a new combustion chamber "reveals a significant reduction of emissions at all thrust levels," the manufacturer reported. The tests, conducted at the altitude test facility of the University of Stuttgart, involve a staged combustion chamber developed recently to reduce exhaust emissions of future engines.
Clayton Jones will succeed John Cosgrove as president of Rockwell Collins when Cosgrove retires Jan. 1, Rockwell International said. Jones, 49, has been executive VP of Rockwell Collins since November 1996. He also was elected a corporate senior VP.
Delta yesterday reorganized its international management, forcing more decisions in the future to be made downstream in Europe, Asia and Latin America. The carrier will create geographic groups for each of the three regions and give them responsibilities previously handled in Atlanta. The downstream decisions will include sales, financial performance, marketing, human resources and corporate issues pertaining to local needs. "Stronger geographic teams will help Delta present a single face and voice in the market," said Fred Reid, chief marketing officer.
Finnair yesterday became the second European carrier in the oneworld alliance and the first addition since the alliance was started in September. With 58 aircraft, Finnair serves 21 cities in Finland and 39 elsewhere in Europe.
Airborne Freight Corp. said it has entered agreements to acquire 11 additional used 767-200s. The delivery schedule calls for two in 2000, four in 2001, three in 2002 and two in 2003.
Air cargo trade groups and the Los Angeles World Airports said the Los Angeles Air Cargo Expo will be held April 20 next year at Los Angeles Airport. Government agencies, vendors and others will take part in the expo, which will feature panel discussions. Sponsors include the Los Angeles Customs Brokers and Freight Forwarders Association, Los Angeles Cargo Service Managers and Los Angeles World Airports. For more information, call 818-951-2841 or visit www.laxpo.com.
United will begin installing beds in first class and in-seat video in the economy sections of its Boeing 747-400s in September 1999. Prior to 747 installation, the airline will test the beds on some 777s. United cited increased competition in the Pacific as the reason for the inflight enhancements, noting that most competing carriers in the Pacific have in-seat video in economy.
TWA wants DOT to review U.S.-India code-share service operated by Air-India and United in light of the "obstinate position" taken by India, which refuses to allow TWA to operate code-share service with Royal Jordanian Airlines. "The excuse of the government of India for denying TWA's request for code-share authority has been that code shares are not specifically provided for in the bilateral agreement between India and Jordan." Jordan will accept Indian code sharing.
Kitty Hawk said it has taken redelivery of a 747-200 freighter from the Boeing-Wichita modification center. The aircraft has entered service on a two-year contract with North Atlantic Airways, flying between Europe and South Africa.
Northwest traffic for November fell 3.4% on 1.2% less capacity, depressing the load factor 1.6 percentage points to 69.7%. International traffic was down 7.3% on 5.8% less capacity, resulting in a 75.2% load factor, down 1.1 points. Domestic traffic dropped 0.5% on 2% more capacity, reducing the load factor 1.7 points to 66.2%. Northwest carried 4.19 million passengers last month, 50,000 fewer than a year ago.
FAA yesterday ordered airlines to inspect and possibly replace electrical wiring above the forward passenger doors on MD-11s. Inspections must be done within 10 days and the results given to FAA in 10 more days. FAA said it learned from the investigation into the Swissair MD-11 crash off Nova Scotia in September that damaged electrical wires were found near the doors during scheduled heavy maintenance. FAA said there is no evidence that damaged door wires are related to the crash. The order affects 65 U.S.-registered aircraft of 174 in worldwide service.
Net fare partnerships like the one between Pro Air and General Motors and Chrysler represent the future of corporate air purchasing, predicted Business Travel Coalition President Kevin Mitchell. "Corporations should use their purchasing power to influence the industry-wide direction of these programs," but they should conduct a thorough analysis of the partnership before signing on.
General Electric said Continental placed an order for CF6-80C2 engines to power 10 Boeing 767-200ERs in an engine deal valued at $160 million. Aircraft delivery will begin in 2000.
Southwest yesterday announced long-anticipated plans to inaugurate daily service at McArthur Airport, Islip, New York, March 14. Chairman, President and Chief Executive Herb Kelleher said the airline will offer 12 daily departures to four cities - Baltimore/Washington, Chicago Midway, Nashville and Tampa. Initial service will include eight nonstops to BWI, two to Chicago, one to Nashville and one to Tampa.
