Malaysia Airlines said it will put no caps on international travel agent commissions. The carrier will offer 8% commissions on normal published fares, 25% on published fares with no upgrades and 15% on promotional excursion fares.
Emirates is adding a fourth weekly flight from Dubai to Malta, beginning Jan. 2. The airline will operate the service with A310-300 configured for 173 passengers in a three-class layout. The carrier also has received permission to add two flights to London Heathrow from Dubai. The two one-time Heathrow flights will use 777s equipped with 49 business and 304 economy seats. The first will be flown Dec. 19 and the second Jan. 9. Emirates serves Heathrow twice daily from Dubai.
Tower Air reported a 6.2% decline in traffic on 5.2% less capacity for November 1998, compared with the same month last year, which pushed the load factor down 0.8 percentage points to 70.4%. Tower flew 257 million revenue passenger miles and 365 million available seat miles. Passengers flown fell 1.8% to 107,000, while total block hours grew 5.1% to 3,224. Year-to-date RPMs were up 14.5% on 16.8% more ASMs from the first 11 months last year, depressing the load factor 1.5 points. Passenger boardings increased 22.3% and block hours 5%.
Washington State Employment Security Commissioner Carver Gayton said yesterday the agency has been meeting with Boeing, union leaders and other work force organizations for several months to prepare for tens of thousands of layoffs. Boeing said last week job reductions could be as high as 48,000 over two years, although some are expected to occur through attrition (DAILY, Dec. 2). Gayton said helping these workers get unemployment insurance benefits "is the first step, but job placement and training will also be needed.
Northwest received a two-year initial exemption for scheduled combination service between points in the U.S. and Lome, Togo, via Amsterdam. The carrier plans to operate the service under code share with KLM. (Docket OST-98-4739)
Federal Express and the Fedex Pilots Association (FPA) held face-to-face talks yesterday to discuss work rules and scheduling.FPA leadership remains "cautiously optimistic" that the two sides will reach a tentative deal the rank and file can ratify. On Monday, FedEx's stock price jumped 11 3/4 points to 79 in the first 20 minutes of trading and stayed high the rest of the day. FPA said this is a good sign for the company and its employees.
United said tougher enforcement of its long-standing carry-on bag policy, which includes sending baggage through sizer templates, is producing the desired results, according to an early assessment. The carrier said it is using the policy to improve on-time performance, make boarding easier and reduce the risk of passenger injury from heavy bags that fall out of overhead bins. Carry-on templates installed at Chicago O'Hare have reduced delays caused by cabin-checked baggage by 72%, compared with the same period last year.
FAA yesterday dismissed with prejudice a complaint by Legend Airlines that the Dallas/Fort Worth Airport Board, the City of Fort Worth, and American have been improperly controlling air service out of Love Field through anti-competitive actions. Legend filed with FAA Nov. 18 asking the agency to withhold federal aviation funds because of discrimination. FAA said the complaint falls under DOT's jurisdiction.
TWA Chairman and Chief Executive Gerald Gitner yesterday asked President Clinton to support legislation to repeal the federal statute that allows DOT to grant antitrust immunity to alliances between U.S. and foreign carriers. TWA has largely been left out of the alliance game, and in a letter to Clinton, Gitner said the airline has struggled to return to profitability, but "at present, we find our ability to succeed hampered by the competitive environment created by the U.S. government's policy of granting antitrust immunity to alliances between U.S.
Virgin Express, the Brussels-based subsidiary of Virgin Express Holdings, reported a 30.9% increase in traffic on 17.5% more capacity for November 1998, compared with the same month last year, pushing the load factor up 7.2 percentage points. Virgin flew 97.4 million revenue passenger miles and 139.4 million available seat miles, creating a 69.9% load factor. Passengers flown grew 23.8% to 211,923 and charter block hours jumped 42.7% to 1,015.
LTU International will ban smoking from all Germany-U.S. flights, starting Jan. 1. The airline, which banned smoking on domestic flights in 1995. continues to offer smoking on its service from Germany to the Caribbean, Mexico, Africa, Asia and elsewhere in Europe.
Mercury Air Cargo secured a contract with Grupo TACA, the four-airline Central American alliance, to provide cargo handling at Miami Airport. Last year, Grupo TACA moved 70,000 tons of cargo in and out of the airport.
South African Airways parent Transnet Ltd. asked DOT to renew for two years the carrier's exemption to offer scheduled service between two points in South Africa, Johannesburg and Cape Town, and 12 beyond-gateway points in the U.S. - Tampa, Baltimore, Pittsburgh, Raleigh/Durham, New Orleans, Cleveland, San Diego, Columbus, Jacksonville, San Juan, Buffalo and Seattle - under a code-share arrangement with American. SAA also asked DOT to substitute Denver for Columbus. Its U.S. gateways are New York, Miami and Los Angeles. (Dockets OST-97-3099, 3210)
All Nippon Airways may transfer a portion of its international services from Osaka Kansai Airport to a subsidiary carrier. Because of low passenger load factors on the Kansai-originating flights, ANA is searching for ways to decrease operational costs. A current ANA study calls for transferring the service to World Air Network Corp., a dormant subsidiary, or forming a new subsidiary. Of ANA's 182 weekly international flights, 84, or 64%, originate from Kansai. The low load factor trend is continuing, particularly on routes between Kansai and Europe.
Lufthansa asked DOT for a Chicago O'Hare Airport slot exemption that would enable it to offer a second daily roundtrip between O'Hare and Frankfurt during the 1999 summer season. The carrier, which hopes to operate A340 service between March 28 and Oct. 30, said FAA told it approval of its requested 7:35 p.m. arrival slot is unlikely because of the number of requests for additional summer slots. The departure slot, at 10:15 p.m., falls outside the period in which O'Hare operations are restricted.
American said its preparations for daily Dallas/Fort Worth-Osaka nonstops are almost completed, and service is scheduled to begin Dec. 20. Osaka will be the airline's fifth route to Japan and its 23rd international destination from DFW. The carrier will fly 238-seat MD-11s.
DOT issued an order, following a review requested by TWA, affirming staff action on its grant of authority for Korean Air to transport U.S. mail under code share with Northwest on San Francisco-Seoul-San Francisco, Chicago-Seoul-Chicago and Los Angeles-Seoul flights. TWA told DOT it does not serve the U.S.-Korea market, but it "has concerns over the precedent set" by DOT's action - that allowing a "foreign carrier to move mail that would otherwise move on U.S. carriers...puts U.S. carriers at risk of losing a substantial portion of U.S.
International aviation liberalization strengthens the argument for establishing procedures for the European Commission to oversee airline competition on routes between European Union nations and other countries, an EC official said at a recent conference on aviation law in Vienna. The EC proposed such authority for itself unsuccessfully in 1981 and in 1989 and is trying again this year.
General Aviation Manufacturers Association elected David Caplan, chairman of Pratt&Whitney Canada, as association chairman. Charles Suma, president of The New Piper Aircraft, was elected vice chairman.
United will expand its Lufthansa code share in the Middle East and Africa, starting Jan. 16, adding its code to Lufthansa-flown service from Frankfurt to Sanaa, Yemen, via Cairo three times weekly. United recently added its code to flights to Addis Ababa, Ethiopia; Amman, Jordan; Harare, Zimbabwe, and Cairo.
Federal Express and its Fedex Pilots Association (FPA) hope to have a tentative deal in place soon, according to a source, especially since the current FPA leadership is up for re-election.Nominations close Dec. 14 and elections open Dec. 29. Ballots will be counted Feb. 1. FPA President Frank Fado is not expected to run again, but VP Byron Cobb may run for president.
Transaero, Russia's first independent scheduled passenger airline, will begin nonstop service Dec. 18 from Moscow to London Gatwick, using 737-700 aircraft. The carrier, which is targeting the business and leisure market, plans to add more frequencies next year. The airline, a member of IATA and the BSP (U.K.), will operate from Moscow Sheremetyevo-1 Airport, where it connects with more than 30 flights in Russia and the CIS. The current fleet comprises 11, mostly Boeing, aircraft.
