China Southern Airlines is offering a 25% travel agent commission on its Los Angeles-Guangzhou service, as well as beyond flights in Asia. The 25% level will be offered through March 31. China Southern cited a $1,349 economy roundtrip to Guangzhou, with a $337 commission, and a $3,418 business-class roundtrip, with an $855 commission. U.S. carriers recently capped international commissions at $100.
British Airways passenger traffic for November rose 10.3%, but capacity grew more quickly, up 11.5%. The higher capacity expansion over traffic growth lowered the overall load factor 3.5 percentage points to 64.1%. BA, the only major carrier to break out premium and leisure traffic, said premium traffic fell 2.9% after a similar 2.4% decline in October. Leisure traffic rose 13.1%. But unlike some airlines, BA's international traffic, up 10.7%, outpaced the 8.3% growth in regional/U.K. traffic.
Association of Asia Pacific Airlines (AAPA) agreed to push airports, air traffic control and others involved in aviation infrastructure to solve outstanding Year 2000 issues and to put in place contingency plans now to guard against non-compliance. The AAPA resolution came after airlines expressed concern that airline Y2K preparedness will be moot if each country's Y2K infrastructure changes are not accomplished.
The Star Alliance airlines yesterday announced a new management structure comprising a six-member ruling council that will oversee all alliance actions, starting with the implementation of a five-year business plan approved at an alliance meeting in Rio de Janeiro in October. The new management structure, announced last Friday in Chicago, will drive the further development of the partnership via its day-to-day business. The alliance expects the new leadership framework will bring Star to the next level of its evolution.
Air Transport Association Cargo Traffic September 1998 Revenue Ton Miles (000) September September % 1998 1997 Change Domestic Freight 785,634 760,967 3.2 Mail 126,840 146,765 (13.6) Total 912,474 907,732 0.5 International
LanChile posted an 18% traffic rise in October and an 18.9% capacity increase, which lowered the load factor 0.4 percentage points to 61.4%. LanChile carried 259,000 passengers in October and 2.5 million in the first 10 months of 1998.
The U.K. Civil Aviation Authority (CAA) has thwarted an attempt by Heathrow Airport Ltd. (HAL) to limit the number of suppliers of ground-handling services at London Heathrow. Last month, at a public hearing to consider the application by HAL, which manages ramp-, baggage- and freight/mail handling, the CAA decided there was not a sufficiently strong case to restrict the access of service suppliers. The decision was made within the framework of Regulations 1997, which are intended to implement in the U.K. the European Commission Groundhandling Directive of 1996.
Augsburg Airways, a Lufthansa partner airline, has pledged to continue offering low fares on its German domestic routes through March 1999 in response to passenger demand. During the first month of selling special fares of DM135 (US$81) roundtrip on flights from Augsburg to Berlin, Hamburg, Cologne/Bonn and Dusseldorf, the airline carried 1,000 passengers who had not previously flown with Augsburg, said Claus Fischer, VP-sales and marketing.
Union-Transport, an air and ocean freight forwarder, said it has acquired Nord Express, Brussels. Nord is primarily a forwarder that focuses on inbound fashion freight from the U.S. and Asia into Europe.
The Detroit Investment Fund has invested $3 million in ProAir as part of its program to support the growth of companies located in Detroit or willing to relocate there, the carrier said. The three-year-old, $52 million private equity fund believes ProAir "has proven to be a viable asset to the community" since it was founded July 4, 1997, according to the fund's president, Peter Weipert.
US Airways traffic for November increased 4.7% on 4.4% more capacity, resulting in a record load factor for the month, 69.2%, up 0.2 percentage points from November 1997. Domestic traffic rose 3% on 1.5% more capacity, while international traffic grew 22.1% on 33.4% more capacity. Despite the large capacity gain, the airline's international sector comprised only 11.5% of total capacity in November. The airline boarded 4.7 million passengers last month, up 3.2%, and 53.5 million for the year, down 0.9%.
Slowdown signaled by Boeing production cutbacks "differs markedly from the aerospace recession of the early 1990s," AlliedSignal says. The earlier downturn was "manifested by simultaneous declines in the commercial air transport, business and general aviation and military markets." Also, the third-party market was relatively undeveloped then and preceded "widespread moves by airlines to outsource their aftermarket parts and services functions." (See story to follow.)
The City of Fort Worth's latest motion to dismiss DOT's Dallas Love Field proceeding is the 20th attempt by American and its allies to "delay and disrupt federal law and airline competition," Legend Airlines charged in a response.
National Business Aviation Association named Dolores Johnson, manager of Signature Flight Support in Santa Barbara, Calif., recipient of an award for her significant contribution to NBAA's REACHBAC - Regional Effort to Advise, Communicate with and Help the Business Aviation Community.
Northwest is not involved in the tumultuous negotiations to invest in Philippine Airlines. "There are no ongoing discussions and none planned," said Northwest spokesman Doug Killian. But the carrier has served the Philippines for 51 years and views the country as vital to its Pacific operation. Last week, it added capacity to the market via new Nagoya-Manila flights.
ProAir named Eric Steinwinder VP-marketing and communications, Jim Walsh VP-customer service and Andrew Sherry manager-advertising and public relations.
Continental traffic for November rose 9% on 6.8% more capacity, boosting the load factor 1.4 percentage points to a record 69.7%. It was the second straight month of record load factors. Domestic traffic gained 8% on 7.5% more capacity, resulting in a 69.7% load factor, up 0.3 points. International traffic grew 10.9% on 5.4% more capacity, forcing the load factor up 3.5 points to 69.7%. Nov 98 Nov 97 11 Mths 98 11 Mths 1997 RPMs 4,229,892,000 3,882,054,000 49,471,874,000 43,835,248,000
DOT instituted a show-cause proceeding last week to allocate the seven U.S.-Italy frequencies available April 1 under the new U.S.-Italy agreement, consolidating proposals from American (daily Chicago-Rome roundtrips), Delta (Orlando-Atlanta-Rome, daily), US Airways (Philadelphia-Milan, daily) and Tower (New York Kennedy-Rome, twice weekly, seasonal).
