Delta, Continental, Tower, TWA, US Airways and United filed a joint motion yesterday urging DOT to "take immediate action to dismiss" the American-British Airways immunized alliance application and cautioning against any action that would allow the two carriers to implement a phased alliance in advance of full U.S.-U.K. open skies.
Cincinnati-based Comair, which flies as a Delta Connection carrier, reported 18.5% more traffic and 15.6% more capacity in October 1998 than in the same month last year, which caused the load factor to rise 2.5 percentage points to 64.1%. Comair flew a record 195.5 million revenue passenger miles and 304.7 million available seat miles. Passenger enplanements jumped 15.4% to 568,462. Year-to-date, the carrier reported a 16.1% gain in RPMs on 8.9% more ASMs, which raised the load factor 6.6 points. Passenger enplanements increased 15.9%.
DOT Office of Inspector General (OIG) told FAA it is conducting an analysis of assumptions used to project aviation trust fund receipts, and it plans to begin an audit Dec. 7 to determine whether FAA has effective oversight over manufacturers' quality assurance systems for threaded fasteners.
Summary of U.S. Major Carriers Domestic Traffic April 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change Alaska 971 7.56 829 804,684 9.85
ProAir announced yesterday the beginning of service from Detroit City Airport to Atlanta and Seattle pending government approval. Service to Las Vegas "has been postponed indefinitely" because of the new service, the carrier said. ProAir also announced the acquisition of a fourth 737-300. The aircraft will go into service with eight first-class and 118 coach seats. Chairman Kevin Stamper named Jim Walsh, formerly with Reno Air, VP-customer service and Eric Steinwinder, from Northwest, VP-marketing and communications.
American parent AMR Corp. closed the deal to acquire 10% of Interinvest, the Argentinian holding firm that owns 85% of Aerolineas Argentinas and 90% of Austral. AMR now owns 8.5% of Aerolineas and 9% of regional Austral.
Midwest Express posted a 12.2% gain in traffic and a 13.2% increase in capacity for October 1998, compared with October last year, which depressed the load factor 0.6 percentage points to 65.1%. The carrier flew 146.1 million revenue passenger miles on 224.4 million available seat miles. Passengers boarded grew 10.4% to 169,259. Midwest Express connection carrier Skyway Airlines reported a 6.6% gain in RPMs to 7 million on 2.5% fewer ASMs to 14 million, which lifted the load factor 4.2 points to 49.8%. Passengers boarded rose 10.6% to 32,385.
The White House has laid the foundation for waiving economic sanctions against India and Pakistan, a move that would permit the Export-Import Bank to reinstate its guarantee of financing for six remaining 737-800 aircraft, part of a 10-aircraft order of new 737s by Jet Airways of India. The actual waiving of sanctions has not taken place, White House sources said yesterday. The White House, in a statement issued Saturday, said President Clinton decided to ease sanctions in response to "positive steps both countries have taken" to address U.S.
Paradise Island has terminated its participation with the Airlines Reporting Corporation. The carrier in August was acquired by Gulfstream International Airlines. ARC processing of Paradise transactions will cease on Nov. 22.
American Aircarriers Support, Fort Mill, S.C., a supplier of commercial aircraft engines and spare parts, announced acquisition of the assets of Condor Flight Spares, which is in the landing gear business. Karl Brown, chairman of American Aircarriers, said that "as we continue to grow our spare parts and engine business, we are aggressively seeking strategic acquisitions." The landing gear spare parts and maintenance business is "highly profitable and estimated to be approximately $1 billion a year," he said.
Boeing Commercial plans to keep its production lines running during the Thanksgiving and Christmas-New Year's holidays, when employees traditionally are given time off. The company said it is committed to producing 550 aircraft this year and is "working hard to meet aircraft delivery commitments in the fourth quarter." It said 7,700 employees will work during the Thanksgiving weekend at Everett, Auburn, Renton and Wichita, and some 4,700 will work through the 11 days between Christmas Eve and New Years weekend.
Frontier Airlines' flight attendants have rejected representation by the Association of Flight Attendants (AFA). Of 184 possible votes, AFA received 62. It needed at least 93 to call for a representational election.
Lufthansa Cargo this month will expand the time-definite services it launched last April. The number of time-definite export stations increased by 60 on Nov. 1, the day the carrier launched its new "td.SameDay" service. Customers can send urgent small consignments of up to 32 kilograms within hours to 40 destinations in Europe. Next year, all stations in Lufthansa's global network will offer time-definite services.
British Airways signed a purchase agreement for 59 single-aisle aircraft, Airbus Industrie announced yesterday. The carrier said last August it would break its tradition of ordering U.S.-made aircraft and buy as many as 188 aircraft from the Airbus consortium of European companies. The current order is for 39 A319s and 20 A320s. BA also switched from a longtime engine supplier, General Electric, and selected International Aero Engines' V2500 to power the new orders. GE and Snecma make the competing CFM56 engine.
American's growth next year will emanate from its hubs, according to BT Alex Brown analyst Susan Donofrio.One-third of the carrier's 1999 capacity increase will be at Dallas/Fort Worth, 16% each at Chicago and New York, and 10% each at Los Angeles and Boston. Scaled-back growth plans now call for American's international operation to grow four times faster than the domestic system - 10% versus 2.5%.
US Airways yesterday let go Chief Financial Officer Terry Hall in favor of former United VP-treasurer Thomas Mutryn. The new CFO, Mutryn, is well thought of on Wall Street, a fact US Airways Group Chief Executive Stephen Wolf cited as a factor for his hiring. Mutryn held several positions at United, including VP-revenue management and director-financial analysis from 1989 to 1995. His tenure overlapped with that of Wolf, who headed United from December 1987 to July 1994. Hall was part of Wolf's financial team at United as well.
Qantas and Air New Zealand this week began offering fares as much as 50% off from the U.S. to Australia and New Zealand during the peak summer period Down Under. ANZ's "Summer Downunder" fares begin at $699 roundtrip from Los Angeles and San Francisco to Auckland and $749 to Sydney. The fares are 50% off and include the option of stopping in Fiji for another $50. Fares are valid from Jan. 25 through March 31. Qantas also is offering $749 Los Angeles-Sydney fares. The carrier matches ANZ's $699 fare to Auckland, as well as a $649 Los Angeles-Nadi, Fiji, fare.
UAL Services and representatives of United's revenue management department have conducted the first of several training programs for China's Institute of Civil Aviation (CAIC) in Tianjin. The latest United foray into China involves revenue management training. "The training is one of a number of initiatives we have moved forward in China with the support and direction of the Pacific South division," said Gene House, managing director-UAL Services, in an internal communique.
TWA asked DOT for a two-year exemption to operate scheduled combination service between New Orleans and Mexico City. The carrier plans to begin the flights Jan. 31, 1999, with MD-83 aircraft, providing the only nonstop service on the route. The New Orleans-Mexico City service will originate and terminate at New York Kennedy, linking with TWA's international service. TWA also applied for a two-year exemption to institute service - the only nonstops - between St. Louis and Mexico City.
National Air Transportation Association board has decided against hard-line regulatory warfare by charter providers against fractional aircraft ownership providers. Instead, after months of debate, NATA plans to work with FAA on easing some operating restrictions on charter operators, and with an industry task force developing fractional ownership (FO) guidelines.
Aviation Management Services (AvMan) of Miami was designated marketing agent in Central and South America for the Air Response Family Assistance Program. It said the program was specifically designed to afford foreign-flag airlines that operates to and from the U.S. an economical means to ensure their full compliance with the new federal regulation governing response in event of an accident. The Air Response Program includes a fully equipped and staffed crisis center, AvMan said.
U.S. Trade Representative Charlene Barshefsky said yesterday the U.S. and European Union agreed to implement the Transatlantic Economic Partnership initiative, which she said has the potential to stimulate tens of billions of dollars in transatlantic trade.
US Airways yesterday introduced its first new Airbus A319 into service at Philadelphia, Charlotte, Raleigh/Durham and Tampa. New cities will see A319s and A320s as they enter the carrier's system. More than 20 are scheduled to join the fleet next year, the carrier said.
