Global alliances may help airlines discipline capacity increases and protect pricing next year, which will be "particularly important, given the outlook for a global economic slowdown in 1999 and, possibly, 2000," according to Salomon Smith Barney's Andrew Light. In the long term, antitrust-immune alliances are expected to be the single biggest driver of earnings growth.
A study from the Midwest Aviation Coalition found that Chicago O'Hare is not garnering a large enough share of international travel and an increase would bring tremendous economic benefits to the region. MAC, started by the Chicagoland Chamber of Commerce, supports O'Hare and Midway airports. The independent study, conducted by Booz-Allen&Hamilton, said O'Hare's international traffic could grow fivefold in 15-20 years and the number of international cities served could double.
American International Group is considering purchasing up to an 8% stake in China Airlines, according to a report in Taipei Economic News. AIG could team up with the China Development Corp. in executing the US$100 million acquisition. AIG holds a 20% stake in Taiwan domestic carrier Far Eastern Air Transport, which it obtained four years ago through another venture with CDC. AIG and CDC officials in Taipei were not available for comment.
Executives of nine airlines from six African nations are visiting six companies in Wichita this week in an orientation visit sponsored by the U.S. Trade and Development Agency. The carriers - Air Botswana, Air Inter Gabon and ASECNA of Gabon, Air Link and Ghana Airways of Ghana, Air Namibia, Ethiopian Airlines and Gosh Air of Ethiopia, and Southern Cross Aviation of Zimbabwe - are visiting Cessna, Raytheon and four other companies and will attend a meeting of the World Trade Council of Wichita.
Emery Worldwide named Richard Zablocki managing director-international services, Don Cox managing director-Emery Global Logistics and Stephen Cortell senior director-Emery customs brokers.
A number of House Appropriations subcommittee chairmanships will change hands in the likely event that the committee chairman, Bob Livingston (R-La.), becomes House Speaker and C.W. (Bill) Young, national security subcommittee chairman, takes over the committee. It looks like Frank Wolf (R-Va.) will remain as head of the transportation subcommittee, however. "I believe he's going to stay put," a Wolf spokeswoman said.
AMR Services is providing ramp and passenger services at Fort Lauderdale to support American Eagle's launch of service to the Bahamas. The carrier began offering four daily flights yesterday, using 64-seat Super ATR aircraft, and will increase the frequency to six per day Dec. 10.
American Eagle said Friday it will exercise eight of the 25 options it holds on the 50-seat Embraer EMB-145 regional jet. The move accelerates its plan to attain the maximum number of RJs permitted under American's pilot contract. Following the 42 firm -145s it ordered previously, the additional order boosts Eagle's commitment to 50 aircraft. The carrier has received 16 RJs so far and is taking delivery at a rate of two per month. The first of 75 ERJ-135 37-seat regional jets will begin arriving in July 1999.
World Airways will provide a DC-10-30 freighter for Grupo TACA and operate it between Miami and Central America four to six times per week. "Our agreement with Grupo TACA exemplifies World Airways' growing presence in the cargo market," said Russell Ray, chairman.
Boeing opened an office in Athens, headed by Ed Parazynski as managing director representing its defense, commercial and space business activities in Greece. Greek military forces operate several Boeing aircraft and its airlines operate Boeing equipment.
Nordam Group Manufacturing Div., Tulsa, Okla., said it expects to offer in 2001 an Advanced Single Pivot thrust reverser that eliminates the Strang fairings of conventional reversers. The ASP design can be used with engines from 2,000 pounds thrust to more than 10,000 pounds. The company expects to complete model testing next month, endurance testing in June 2000 and certification in March 2001.
Air France has set itself an ambitious target - to be among the top five preferred airlines in Asia/Pacific by 2000, with Singapore as its test station. As part of the Top Five Project (TFP), first-class and Club 2000 passengers will enjoy free limousine transfers from home or office to the airport. Other perks include free mineral water and sweets for passengers waiting at boarding gates. The check-in counter will advise passengers of the captain's name and the titles of the inflight movies.
DOT invited U.S. carriers Friday to apply for the seven weekly frequencies made available under the new U.S.-Italy agreement (DAILY, Nov. 13), and Delta promptly put in its bid. The carrier said it "played a key role" in urging U.S. negotiators to include the new, unconditional frequencies in the agreement, so that it would be able to launch Atlanta-Rome service quickly. It said it serves every major European country except Italy nonstop from Atlanta, and all current U.S. flag nonstops to Italy are operated from five northern gateways by six carriers, including Delta.
United on Friday became the latest airline to lower its growth rate for 1999, forecasting a 2.5-3% expansion, compared with the previous plan of 3.5%. Most of the pull-back will occur on international routes, such as Washington Dulles-San Salvador, which United recently announced will end Jan. 16. United Chairman Gerald Greenwald said the airline is balancing cost cutting and revenue generation so that it will be in the best possible position if the U.S. has an economic slowdown.
Vienna Airport has the shortest minimum connect time among Europe's major hubs - 25 minutes, much quicker than second-place Munich, 35, and Zurich, 40. Paris, London, Copenhagen and Frankfurt need 45 minutes and Amsterdam 50. Prague trails at 55 minutes.
New Regional Aircraft Orders And Options August 1998 Firm Orders Options Carrier No. Type No. Type Engines Cityflyer 2 Avro RJ-100 - - LF507-1F Express Orders-Last 12 Months-Options Carrier Delivery Dates No. Type No. Type
US Airways has launched MetroJet service between Hartford and Orlando and expanded service between Baltimore Washington International and Fort Lauderdale, Miami, Orlando and Tampa. MetroJet offers one daily Hartford- Orlando flight and will add two more in December. On Jan. 6, the carrier will increase its Hartford-Fort Lauderdale flights from two per day to four. It has expanded service out of BWI, adding two flights to Fort Lauderdale and Tampa and one to Miami and Orlando.
Shuttle America, an airline started by former Continental executives, operated its first flight at Bradley Airport, near Hartford, Conn., yesterday. The carrier began operations with three new Dash 8-300s fitted with 50 all-leather seats. It plans to have three more in the air by January. Shuttle's first flight was Hartford-Buffalo and cost $39 one way with 14-day advance purchase. Next Friday, it will start service to Wilmington, Del., and on Dec. 18 it will add Norfolk, Va.
KLM's cargo division won an award from The Netherlands Quality Institute for high managerial standards. The annual award, presented yesterday, for the first time went to a company for the high quality of its global organization.
