American's Allied Pilots Association (APA) says it will not approve a code share between American and Alaska subsidiary Horizon Air because Horizon operates what the pilot contract scope clause defines as large aircraft. The contract permits American to code share with commuter carriers, but Horizon's F-28s are certificated for more than 70 seats, and there are concerns that their maximum gross takeoff weight is higher than the contract allows without an APA exception.
Prospective European Commission restrictions on alliances would reduce pilot jobs and hurt competition, the Association of Star Alliance Pilots (ASAP) told the EC. The restrictions would eliminate about 50 flights per week on eight routes between Copenhagen and Frankfurt and U.S. destinations, and ASAP - representing 23,000 pilots from nine airlines - said this would cost 313 pilot jobs. ASAP commented that European competition is based on alliances, mainly the Alliance for Excellence, oneworld, Wings and Star.
American Eagle will launch jet service Feb. 28 between Long Island McArthur Airport and Chicago O'Hare, augmenting two current turboprop roundtrips with two new roundrips using 50-passenger ERJ-145s. Eagle said the new schedule will accommodate business travelers better and increase connection opportunities at Chicago. The carrier will launch three-per-day nonstop roundtrip regional jet service March 8 between Memphis and O'Hare.
The uncertainties of a 90-day limit on renewal of Air-India's Washington Dulles-Delhi exemption, as proposed by TWA, might make Air-India's code-share relationship with United "untenable," the Indian carrier told DOT. TWA's request - limit the duration of Air-India's exemption while TWA pursues approval by India of third-country code share service with Royal Jordanian (DAILY, Dec. 10) - is "an unwarranted overreaction," Air-India said.
The government of India this week dissolved the boards of both state-owned carriers, Air-India and Indian Airlines, after weeks of disagreement on how to structure the nation's airlines in the future. Acting without the government's approval, the two carriers proposed Dec. 7 to merge and set up a common balance sheet. Earlier, India's Ministry of Civil Aviation called for privatization of each airline separately in an attempt to improve the financial and competitive prospects of both.
Alitalia and KLM already have an alliance web site, just two weeks after the Nov. 27 pact, which they are calling "One Ticket To The World." The airlines say on their www.oneticket.com site they are blending "Dutch pragmatism with Italian warmth."
Fedex Pilots Association negotiators are asking the rank and file to tone down their rhetoric.FPA spokesman Rick Roberts said negative talk is making it tough to convince management the union is interested in an agreement. Roberts told pilots in a recorded message negotiators were "rounding third base and headed toward home plate" a few days ago, "but we've had a foul tip...based on some media comments." Union President Frank Fato asked all candidates for FPA office not to talk to the media until negotiations are complete.
Hawaiian Airlines reported a 17.3% increase in traffic on 9.6% more capacity in November, boosting the load factor 4.9 percentage points to 75%. Hawaiian flew 345.5 million revenue passenger miles and 460.5 million available seat miles. Passenger volume increased 4.7% to 431,028. Year-to-date, Hawaiian flew 3.7% more RPMs and 4.5% more ASMs, depressing the load factor 0.6 points. Passengers flown increased 0.5%.
The Sabre Group has signed a 15-year agreement with Pakistan International Airlines (PIA) to take over all the airline's information technology functions. The outsource deal follows a three-year pact the two companies signed in March. Sabre's outsourcing and consulting teams will provide Year 2000 assessment and recommend and implement core airline operations systems from Sabre's applications portfolio. Sabre will migrate and install new applications for PIA throughout the 15-year agreement.
United has a goal to set a record for fully distributed earnings per share in 1999 and limit unit cost growth to 2% in 2000, the company said yesterday. In order to produce another record earnings-per-share year in 1999, United said it needs to maintain its focus on cost control and keep next year's unit cost increase at or below 1%. United's 1999 earnings-per-share target is $11, well above analysts' current estimates.
Midway Airlines flew 17.7% more traffic on 16.7% more capacity in November, nudging the load factor up 0.5 percentage points to 66.7%. Revenue passenger miles totaled 87.3 million and available seat miles 130.8 million. Passenger volume increased 22.9% to 176,800. Traffic grew 15% and capacity 11.3% during the first 11 months, boosting the load factor 2.1 points.
Lufthansa and KG Allgemeine Leasing GmbH&Co. will form an aircraft leasing firm, Operating Aircraft Leasing GmbH&Co. KG, which will acquire aircraft from Lufthansa Group and remarket them on an operating lease basis. It will obtain fleet analysis, technical support, personnel training and other services from Lufthansa subsidiaries. It has closed a deal for the purchase and leaseback to Lufthansa of two 737-300 aircraft.
Japan Airlines and All Nippon Airways intend to increase yen-denominated first- and business-class international fares April 1. Fares purchased in Japan will increase 7% for Pacific travel and 5% for Europe. The increases were applied for but have yet to be approved by the Japanese government.
Raytheon received a letter of intent from Boeing Business Jets and Executive Jet to design, engineer and install VIP interiors on nine Boeing NetJets aircraft, with options for 16 more. The work will be done at Raytheon's Waco, Texas, facility. A mockup interior contains a "spacious lounge," a dining/conference room, a private office convertible to a bedroom, a full bedroom suite and three lavatories, two with showers.
If the House votes to impeach President Clinton and the Senate trial sidetracks the FAA reauthorization, the $1.95 billion Airport Improvement Program (AIP) would be most in jeopardy, congressional sources acknowledged. FAA has an appropriation for all of fiscal 1999, which ends Sept. 30, 1999, but its six-month authorization expires March 31. The appropriation sets an obligation limit of $1.95 billion for AIP, but the authorization provides only a six-month AIP contract authority. This is "the hook" that requires reauthorization, one source said.
Great Lakes Aviation flight attendants asked the National Mediation Board for a proffer of arbitration to resolve stalled contract negotiations. Flight attendants, represented by the Teamsters, have been in talks with the company for more than one year.
A new breed of Loran "loop" antenna is immune to interference from electrostatic discharge from aircraft, according to recent tests at Ohio University sponsored by FAA in an evaluation of Loran as an aid to the Global Positioning System/Wide Area Augmentation System in IFR navigation. The high-voltage tests under extreme p-static conditions showed little degradation of Loran reception or performance, according to Robert Lilley of Illgen Simulation Technologies, who said there is "no longer the need to be concerned over Loran use under instrument weather conditions.
Aer Lingus has brought back its free companion-fare ticket to Ireland from the U.S., starting at $488 to Dublin, Shannon and Belfast. The "2For Ireland" fare is good for travel from Jan. 11 through March 10.
U.S. National Carriers Traffic November, 11 Months 1998 November November % 1998 1997 Change Air Wisconsin Revenue Passenger Miles (000) 76,885 42,834 79.5 Available Seat Miles (000) 116,143 78,172 48.6 Load Factor (%) 66.2 54.8
Frontier said yesterday that despite efforts by an investor, it has no interest in pursuing a merger with Kansas City-based Vanguard. "After careful consideration, we believe that a combination with Vanguard Airlines is not the best road for Frontier," said Chief Executive Sam Addoms. "Such a combination lacks strategic merit for Frontier and is inconsistent with our commitment to developing strengths at Denver." Investor Bill Hambrecht and his company, W.R. Hambrecht&Co., advocated a merger.
British Midland has won its appeal to serve Moscow from London Heathrow as the second U.K. airline in the market, after British Airways. The license originally was awarded to Virgin Atlantic, but Deputy Prime Minister John Prescott instructed the Civil Aviation Authority to re-hear the application after British Midland appealed. British Midland intends to operate four services a week initially, increasing to seven a week by summer 2000.
Last week's decision by European Union heads of government to reconsider the June 30 deadline for abolishing duty-free sales is "good news for the citizens of Europe and particularly for the users of European airports," says Airports Council International-Europe. The Council of Europe's request for a European Commission analysis by March of potential economic repercussions (DAILY, Dec. 15) is a major tactical victory for airports, the travel industry and other proponents of duty-free who have sought such a study.
DOT's international aviation policies "should mirror its substantial efforts to support and sustain new entrants and smaller carriers as an essential competitive force in domestic markets," US Airways Chairman Stephen Wolf told DOT yesterday in exhibits submitted by the carrier in the U.S.-Italy route proceeding. US Airways, Delta, American and the cities of Chicago and Philadelphia filed in the competition for seven weekly U.S.-Italy frequencies prior to a future open-skies agreement between the two countries.
