DOT, in identical letters, advised Northwest and Continental of recent statutory requirements concerning their proposed alliance. The department warned of provisions in the Omnibus Appropriations Act, which apply to agreements entered on or after Jan. 1, 1998, but not yet in effect when the bill was enacted, requiring joint-venture agreements to be filed with DOT at least 30 days before they may take effect. The act applies to code sharing, frequent flyer programs, blocked-space agreements and certain long-term wet-leases.
Chang Yu-hern, the new director general of Taiwan's Civil Aeronautics Administration (CAA), says his first priority will be to improve safety. Chang intends to increase CAA monitoring of airlines, improve air traffic control operations at airports and upgrade the ability of airports to deal with emergencies.
United's cap on travel agent commissions for international tickets booked from the U.S. is a discriminatory and unfair practice, the United States Travel Agent Registry (USTAR) said in a complaint with DOT. USTAR's Canadian counterpart, Canadian Standard Travel Agent Registry, filed with United, the International Air Transport Association and the criminal matters branch of Industry Canada, claiming that United violated Canada's Competition Act and IATA rules governing travel agent commission rates.
Singapore Airlines posted a 7.6% increase in September passenger traffic on 7.8% more capacity, which reduced the load factor slightly to 73.7%. SIA carried 1,035,000 passengers, up 2.6% from the year-earlier period. The airline's departures and arrivals were 85.4% and 81.7% on time, respectively.
International Lease Finance Corp. signed a memorandum to acquire as many as 30 100- to 120-seat A318s after a "detailed evaluation of competing aircraft, primarily the Boeing 717," Airbus Industrie said yesterday. ILFC President Steve Udvar-Hazy said the choice "reflects the market's preference for efficient, new-technology aircraft that are members of an integrated family of common products, giving airlines lower operating costs as well as fleet planning and scheduling flexibility."
Gulfstream Aerospace has ordered 200 more BR710 engines for its Gulfstream V ultra-long-range business jet, BMW Rolls-Royce said yesterday. The engines are to be delivered from early 2000 through 2002. The order increases the number of BR710s to be delivered to more than 650. Gulfstream has received 116 orders for its long-range twinjet, which entered service in April 1997.
Interest is growing in Congress and the military and at civil airports in a transponder landing system (TLS) developed by Advanced Navigation&Positioning Corp., Hood River, Ore. Dan Fisher, Washington representative, said Honduran officials expressed interest in the TLS following the ravages of Hurricane Mitch. The system went into operation for FedEx in September at Subic Bay, the Philippines, and Congress has appropriated $3 million to install TLS at several airports, Fisher said.
DOT granted Reeve Aleutian Airways an initial two-year exemption to operate scheduled service between Anchorage and Petropavlovsk-Kamchatsky and Yuzhno-Sakhalinsk, Russian Federation. The carrier plans to begin the service Nov. 20. The department allocated two U.S.-Russia frequencies to Reeve Aleutian for an indefinite period. Alaska supported Reeve's application. United and Delta told DOT they plan to use all U.S.-Russia frequencies they hold. DOT noted that it had 5.5 frequencies available for allocation, including two frequencies returned by Alaska.
In a letter to shareholders, the Lufthansa Group said its pre-tax profits for the first three quarters of 1998 jumped 64% to 1.6 billion Deutschmarks (US$960 million), and full-year profits are expected to improve. Operating earnings remained strong into October, and the airline anticipates a profit for the fourth quarter and a pre-tax full-year profit in the neighborhood of DM2 billion ($1.2 billion). Revenue for the nine-month period rose 4.9% to DM16.4 billion ($9.8 billion) and revenue from passenger and freight increased 3.9% to DM 14.2 billion ($8.5 billion).
Canadian Airlines reported a 9.5% boost in systemwide traffic on 11.6% more capacity for October 1998, compared with the same month last year, which depressed the load factor 1.4 percentage points to 72.5%. Canadian reported 1.6 billion revenue passenger miles and 2.2 billion available seat miles. Domestic RPMs rose 3% to 516 million and ASMs climbed 3.4% to 663 million, causing the load factor to drop 0.4 points to 77.8%. International RPMs grew 12.6% to 955 million and ASMs rose 15.7% to 1.3 billion, depressing the load factor 1.9 points to 70.6%.
The government of Indonesia wants Garuda Indonesia to merge with sister airline Merpati Nusantara, and it is uncertain whether the carriers will maintain their current identities or unite under one name. Both airlines have been briefed and given the green light to start planning. Merpati President Budiarto Subroto said, "I understand that our cooperation will only be more intense.
Industry pressure to permit extended-range twin-engine operations (ETOPS) from 180 minutes to 240 minutes yesterday prompted the Allied Pilots Association (APA) to request a meeting with FAA Administrator Jane Garvey to express the opposition of American's pilot group. APA said Boeing and "several U.S. carriers have expressed increasing interest in extending ETOPS from three hours to four hours."
TWA completed 100% of its 800 daily flights on Monday, the 21st time this year it has done so, matching its total for all of last year.It led U.S. carriers in August and September in on-time performance, and 87.8% of its flights arrived on time in October.
The U.S. and the U.K. should "begin to negotiate as equals," US Airways' Stephen Wolf told the International Aviation Club yesterday in Washington. He again urged the U.S. to terminate its Bermuda 2 agreement with the U.K., saying the Clinton administration should take a stand against "this regressive accord" in the same manner that it battles protectionist trade policies (DAILY, Oct. 23). Wolf said if the U.S. would renounce the highly restrictive bilateral it would "immediately empower our negotiators" to rework the 1977 agreement that favors U.K.
The Sabre Group and Aerolineas Argentinas have entered a 10-year, $120 million agreement to outsource the airline's information technology functions. The deal also calls for Sabre to provide specialized IT services to the airline's affiliate, Austral Lineas Aereas-Cielos Del Sur. Sabre will plan and manage all IT functions for Aerolineas, including maintenance and support of the Sabre computer reservations system and the airline's older systems.
Air New Zealand is acquiring seven ATR 72-500 aircraft for its fully owned domestic operator, Mount Cooke Airline. The new aircraft will replace seven ATR 72-210s by the end of this year.
Korean Air has redesigned its web site to provide more information about aircraft, travel and travel-related topics. The site, www.koreanair.com, features seating configurations for the airline's fleet, route information, the ability to sign up for the SkyPass frequent flyer program and links to other travel sites in Asia.
Cathay Pacific is offering business- and first-class passengers traveling roundtrip on its new daily San Francisco-Hong Kong nonstop flight an additional 25,000 miles on oneworld partner American's AAdvantage frequent flyer program. The promotion will begin with the launch of service, Dec. 1, and continue through March 31. One-way travelers will receive 10,000 bonus miles. Business-class passengers already earn 125% of miles flown, and the first-class bonus is 150%. Cathay's daily A340-300 flight will operate from American's Terminal E at SFO.
Negotiators for the Fedex Pilots Association (FPA) headed back to Memphis last night following discussions in Washington, D.C., with management and the National Mediation Board (NMB). No information was available on whether the two days of talks yielded any progress. Pilots are zeroing in on a strike if a Dec. 3 strike ballot count shows the majority of FPA's nearly 3,500 members favor one and the union and management cannot reach a tentative deal. Pilots have been trying to reach a first contract for five years.
Grupo TACA said yesterday it will begin a major tourism development effort to help rebuild Central American economies in the wake of Hurricane Mitch. TACA said tourism spots have not suffered as much as other areas. Tourism sites in Guatemala, El Salvador and Nicaragua were unaffected by the hurricane. TACA is launching a major advertising campaign to tell promoters that "Central American Tourism is back." Last week, the carrier dedicated its efforts to bringing relief supplies to areas in need (DAILY, Nov. 13).
Delta and American announced caps yesterday on travel agent commissions for international travel booked within the U.S., Puerto Rico and the U.S. Virgin Islands, matching United's initiative last week (DAILY, Nov. 13). The carriers will pay 8% commissions, capped at $100 for each roundtrip and $50 for each one-way flight. Tickets purchased in Canada for travel outside Canada or the U.S. will earn an 8% commission capped at C$140 per roundtrip or C$70 one way.
U.S. carriers, already benefiting from strong summer traffic and low fuel prices, received an extra boost in August and September from a strike by Northwest pilots. The result was more cash for the coffers of U.S. carriers, just as increased speculation of a U.S. economic recession threatened to make it a self-fulfilling prophecy. The third quarter of 1998 was a banner period for U.S. airlines, with the majority posting record earnings, even those not geographically able to take advantage of Northwest's miscues, such as Raleigh/Durham-based Midways Airlines.
Eva Airways subsidiary Uni Air has completed negotiations with the Myanmar government to buy Myanmar Airways International, and the deal will be signed at the end of the month in Yangon by Myanmar's Ministry of Transport. Officials of both parties declined to say how much the deal is worth. MAI serves Bangkok, Singapore, Phnom Penh, Hanoi, Ho Chi Minh City and Vientiane using two 757s, and twice-weekly flights to Kuala Lumpur and Hong Kong will start Dec. 2.
