China Airlines' board of directors has appointed Sandy Liu acting president of the airline. The 29-year veteran and former VP-commercial was named several months after the former leader resigned. Separately, CAL said it has introduced electronic ticketing, becoming the third airline in Asia and the first in Taiwan to implement the service. A CAL spokesman said e-ticketing for domestic flights between Taipei and Kaohsiung began Nov. 4. The system will be expanded to include CAL's foreign routes within six months.
Defense Secretary William Cohen is trying to slow the pilot exodus from military to commercial aviation. In recent congressional testimony he said he plans to focus on post-entry-level pay increases and retirement benefits, which were cut back in 1986. Cohen said retirement benefits are second only to pay in trying to retain mid-career pilots and other skilled personnel in limited supply.
Duff&Phelps Credit Rating Co. has lowered LanChile's credit rating to BBB from BBB+ because of increased competition in the carrier's principal markets, which diminished revenues and yields during the first half of the year. Enrique Cueto, chief executive, said, "We are pleased to be among the few airlines in the world who have an investment grade and believe it is a reflection of LanChile's financial strength." LanChile received an investment grade rating in 1997 shortly before going public on the New York Stock Exchange.
DOT dismissed applications filed by Western Pacific asking DOT for exemption to transfer its dormant certificate to Blue Line as part of WestPac's bankruptcy liquidation procedures (DAILY, April 30). The department said it told WestPac several times that it needed to file information on Blue Line's fitness to gain the exemption. WestPac did not do so, and Blue Line told DOT it no longer is interested in purchasing WestPac's certificate.
TWA applied at DOT for a certificate and exemption to operate scheduled combination service between the U.S. and Canada. It seeks a certificate for the flexibility permitted designated U.S. carriers under the U.S.-Canada air transport agreement to "institute new service in U.S.-Canada markets without the need to first obtain specific operating authority" for a particular city-pair. It requested an exemption for at least two years for service between any point in the U.S. and any point in Canada. (Dockets OST-98-4707, 4708)
World Airways posted a net loss of $1.5 million in the third quarter and an operating profit of $800,000. The loss is an improvement from the $3.7 million deficit in the same 1997 quarter. The airline is trying to improve its sales, cost structure and financial results. "World has been concentrating on developing its strategic direction to better meet our profitability goals and provide adequate flexibility to adjust to our international markets," said Chairman Russell Ray. Revenue fell to $67.5 million from $79.9 million as the carrier flew 11% fewer block hours.
Shuttle America, a new commuter airline based at Bradley Airport, Windsor Locks, Conn., received its FAA operating certificate Friday. The operations specifications enable the carrier to offer scheduled passenger service from Windsor Locks to Buffalo, N.Y., and Wilmington, Del. The carrier, which initially will operate two Dash 8s, is the first new entrant certified by FAA's Certification, Standardization and Evaluation Team, a national team that assists local FAA Flight Standards Offices, such as Windsor Locks, in processing new air carrier certificates.
Madrid Barajas and Paris Charles de Gaulle (Roissy) airports each inaugurated a third runway last week. In Madrid, the 4.4-kilometer runway will increase the airport's capacity to 90 flight movements an hour, up from 75. The Spanish runwaycost 30 billion pesetas (US$180 million). Roissy's new 2.7-kilometer runway is meant to be used for landings only. The airport is engaged in a 1.5 billion French franc ($255 million) investment project to extend the two existing runways and to build two new shorter ones.
ATR said it has placed 23 second-hand ATR regional aircraft with nine airlines, bringing to 35 the number of second-hand ATRs it has placed since the start of the year. ATR said it expects to conclude transactions for 50 units this year.
McDonnell Douglas DC-10 Aircraft Operating Costs Second Quarter 1998 Dollars Per Block Hour DC-10-10 American United Average Crew Cost $1,131 $1,131 $1,066 Fuel&Oil 1,149 1,175 1,165 Rentals 0 13 8
The Allied Pilots Association (APA) is asking DOT and the Justice Department to block the Northwest-Continental alliance, terming it a "virtual merger" and "the first step toward a large-scale consolidation of the airline industry." APA, which represents pilots at American, has insisted that American give it a vote on entering domestic code-share agreements, and American's marketing alliance with US Airways is not expected to include code sharing because APA likely would not approve it. DOJ filed suit in U.S.
Denver-based Frontier is launching service to Atlanta, Dallas/Fort Worth and Las Vegas, effective Dec. 17, operating two daily nonstops to Atlanta and three to DFW and Las Vegas. VP-Marketing Jeff Potter said the carrier targeted the three points "in order to continue our successful strategy of serving top business destinations from our Denver hub." Sample one-way fares are $89 Denver-DFW, $193 Las Vegas-Chicago Midway and $159 Atlanta-Seattle.
American is offering low fares for travel between the U.S. mainland and Hurricane Mitch-ravaged Honduras or Nicaragua. Fares are about 50% lower than the regular midweek excursion tariff and require no advance purchase. Travel must take place Tuesday through Friday, and tickets must be purchased by Nov. 18. Travel must begin by Nov. 30 with a three-day minimum and 60-day maximum stay. Sample roundtrip fares to Managua or Tegucigalpa are $299 from Miami, $399 from New York, $349 from New Orleans and $399 from Los Angeles.
Atlanta-based Atlantic Southeast Airlines reported 13.3% more traffic on 7.2% more capacity for October 1998 over October last year, which pushed the load factor up 3.1 percentage points to 56.9%. ASA flew 94.7 million revenue passenger miles on 166.5 million available seat miles. Passengers flown grew 6.5% to 365,420. Year-to-date RPMs rose 12.5% on 1.6% more ASMs, boosting the load factor 5.4 points. Passenger enplanements gained 6.2%.
AirTran Holdings Inc. said its airline subsidiaries posted a 32% increase in traffic on 14.9% more capacity last month, compared with October last year, which boosted the load factor 7.4 percentage points. AirTran flew 253.1 million revenue passenger miles on 446.5 million available seat miles, creating a 56.7% load factor. Enplanements jumped 49.9% to 474,765. Year-to-date, AirTran flew 36.3% more RPMs and 29.7% more ASMs than in the same period last year, boosting the load factor 2.9 points. Enplanements grew 17.6%.
DOT granted TWA an initial two-year exemption to provide scheduled combination service from New York to Nassau and Freeport, Bahamas. The carrier plans to begin daily MD-80 nonstops from New York Kennedy to Nassau on Feb. 11, 1999, and to Freeport on May 1, 1999. (Docket OST-98-4646)
FAA - In Federal Register dated Nov. 2...Issued an airworthiness directive on Fokker F28-100 aircraft requiring inspection of the nose landing gear main fitting. - In FR dated Nov. 4...Superseded an AD on Cessna 180/185 series aircraft concerning Airglas wheel skis.
