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.
China Airlines said it will accept delivery of its eighth 737-800 aircraft this month. The delivery will enable CAL to complete the replacement of 737-400 aircraft with the -800 series on all flights between Kaohsiung and Southeast Asia, Taipei and Okinawa, and international airports at Taoyuan and Kaohsiung. CAL recently announced that it will carry out a simplification plan designed to reduce the number of aircraft types in its fleet from seven to four by 2003.
United and Delta told DOT that capping travel agent commissions on international tickets booked in the U.S. was a response to competition and an effort to control distribution costs in an uncertain economy, and United States Travel Agent Registry's (USTAR's) complaint against them should be dismissed. American also filed its response to USTAR (DAILY, Dec. 18). In their filings, Delta and United echoed American's claim that USTAR is not in competition with the airlines and therefore cannot claim that the airlines' commission caps represent unfair competition.
American told DOT yesterday it "objects to any reliance" in the Love Field service interpretation proceeding on the July 1992 analysis of the impact of changes to the Wright Amendment, calling the 1992 Love Field study "seriously flawed." DOT continues to reference the study, American noted, while the department "has given notice in this proceeding that it intends to consider only questions of law." Further, American has been unable to review DOT's records on the study.
Toronto City Council last week voted to block a motion to extend the ban on jet-aircraft operations at Toronto City Centre Airport, formerly Toronto Island Airport (DAILY, Dec. 18), but that vote did not affect the existing three-party agreement between the city, the Toronto Harbor Commission and the federal government banning jet operations at City Centre through 2033. The council also voted in favor of building a C$16 million bridge to the airport, replacing a ferry.
Five oneworld alliance members are giving employees a joint travel program that allows for better price discounts and four tickets for parents or other companions next year. The employee plan begins Jan. 11 for travel starting Jan. 14 and includes what member American terms "better than ID90 rates" offered to most employees when traveling on other carriers. The oneworld employee travel program is based on nonstop flight distance. Current members are American, British Airways, Cathay Pacific, Canadian Airlines and Qantas.
Sabre will raise its basic booking and full-availability fees in specific billing regions as of Feb. 1. Sabre Travel Information Network VP-Airline Sales and Marketing Scott Alvis told carriers last week in a letter the higher fees are intended to meet increased expenses and "general inflationary pressures," including salaries to recruit and retain staff. Basic booking fees in North America will rise from $1.77 to $1.82. Full-availability fees will climb from $2.83 to $2.92.
America West and EVA Airways yesterday signed a code-share agreement covering passengers from Taipei through Los Angeles and San Francisco to America West's hubs in Las Vegas and Phoenix. EVA operates 14 weekly Los Angeles-Taipei flights, three from LAX to Kaohsiung and 10 from San Francisco to Taipei.
Hokkaido International Airlines or Air Do, the second low-fare startup carrier in Japan, inaugurated three daily Tokyo-Sapporo, Hokaido Island, flights Sunday with a single 767-300ER. The average passenger load factor on the six flights on the first day of service was 65%. The first carrier, Skymark Airlines, started service in October, also with a 767-300, recording an average 83.5% load factor for October and November.
Virgin Express (Ireland) has opened its new headquarters in Shannon, where it expects to employ 100. Since Virgin Express opened the Shannon-London route two months ago, it became the most successful route launch since the airline began with more than 9,000 seats sold before the first flight.
