The 10 largest U.S. carriers posted an on-time record of 78.9% in September, higher than the August rate of 77% but lower than September 1997's 85%, according to DOT's Air Travel Consumer Report, isssued yesterday.
Hub airports increase a region's high-tech employment by more than 12,000 jobs on average, compared with regions of similar population without hubs, according to a George Mason University study on the economic value of airports. Hub cities Pittsburgh and Cincinnati, for example, had more high-tech activity than Nashville and Milwaukee. Authors Kenneth Button and Roger Stough examined data for the 321 metropolitan statistical areas - basically metropolitan regions - which include 56 hub airports as defined by FAA criteria.
Bell Helicopter Textron promoted John Murphey to president and P.D. Shabay executive VP and chief operating officer. Murphey previously was executive VP and Shabay executive VP-operations. Terry Stinson, who has been president and chief executive, is now chairman and CEO.
Ladeco applied at DOT for an exemption to engage in scheduled foreign cargo service between Chile and New York and Los Angeles via intermediate points, and to co-terminalize New York and Los Angeles with its current Miami authority. It linked the request to its planned merger with Fast Air, like itself a subsidiary of LanChile, which plans to effect the merger Nov. 17. Ladeco said it will own Fast Air's assets and aircraft. Fast Air will "cease to exist as a separate corporate entity," and it "will no longer use the authority granted to it" by DOT.
Grupo Taca carriers will unveil this month the company's first business-class sections, which will be called Clase Ejecutiva (Executive Class). New business-class seats are being installed in the carriers' Boeing 767s, 737-200s and Airbus A320s. The 737s will have eight Contour Mark-2 business-class seats with 38-inch pitch and a 54-inch width. The pitch is 38 inches for the 16 business seats on 767s, with 48-inch widths. The A320s will feature 12 AI-2000 seats with a 38-inch pitch and a 57-inch width.
The conference report on fiscal 1999 FAA appropriations dropped the House's $100 million funding for explosives detection systems, but the money will be available anyway. Congressional sources said yesterday the funds were included in the diplomatic security supplemental enacted at the same time as the FAA appropriations as part of the omnibus appropriations act.
Emirates and KLM are improving their five-year relationship by forming closer cargo ties that will give Emirates' customers access to KLM's broad cargo network and market expertise. At a meeting in Dubai on Monday, officials from both airlines agreed to strengthen the partnership. An Atlas Air Boeing 747 jointly leased by KLM and Emirates now will be leased solely by Emirates, an alteration that leaves the relationship "totally unaffected," said Jacques Ancher, executive VP-KLM Cargo.
Cincinnati-based Comair, a Delta Connection carrier, is offering jet service on all seven of its daily Toledo-Cincinnati flights and giving passengers double Delta frequent flyer miles on the route through Dec. 1. The 50-seat Canadair Regional Jet service upgrades Comair's former turboprop flights to Toledo, which Comair has served for 14 years.
Delta says it is "extremely disappointed and bewildered" that DOT has rewarded Kenya Airways with expanded Africa code-share service with Northwest - whose alliance partner KLM owns 26% of Kenya Airways - even though the Kenyan government continues to refuse to allow Delta to serve Kenya under code share with alliance partner Sabena.
Some U.S. and Asian carriers are showing "increased interest" in extended-range twin-engine operations (ETOPS) in the North Pacific market, Boeing says.To "enhance operational flexibility," the aviation industry seeks a "15% operational extension" of the 180-minute ETOPS limit from FAA and the Joint Aviation Authorities, according to the company.
Iberia's new agreement with its pilots on wages and working conditions, the product of 20 months of tough negotiations and numerous work-to-rule strikes, opens the way for the carrier to buy long-haul aircraft from Airbus and go ahead with the partial privatization planned at the end of this year. The three-year pact, nailed down last week in Madrid, grants the company's 1,200 pilots a salary raise equal to the increase of Spain's consumer price index for the years 1997, 1998, 1999 and 2000.
Frontier yesterday turned in record September quarter net profits of $9.9 million and defied its rocky history by posting a solid 17.4% net margin. Profits compared with a net loss of $2 million in the year-earlier period. Operating revenue jumped 51.3% to $56.9 million, while expenses grew just 18% to $47.1 million. Frontier experienced a surge in the critical measures of profitability. Revenue per available seat mile rose 22% to 9.33 cents from 7.66 cents, as cost per ASM declined to 7.73 cents from 8.12 cents.
US Airways will expand MetroJet service on Jan. 6 with two daily nonstop flights each between Fort Lauderdale and Hartford and between Washington Dulles Airport and Fort Lauderdale. MetroJet in September launched Hartford-Tampa service and later this year will add flights from Dulles to Tampa and Orlando. One-way advance purchase fares start at $75 for Hartford-Fort Lauderdale and $85 for Dulles-Fort Lauderdale, or $159 one-way walkup for Hartford-Fort Lauderdale and for Dulles-Fort Lauderdale.
Secretary of State Madeleine Albright, speaking last week at Portland Airport to note Delta's expanded service from Portland to Japan - enabled by the U.S.-Japan bilateral - called aviation a barometer of the global economy. "We are urging governments around the world to maintain their commitment to open markets. Protectionism is not the answer for others or for us," she said. "Just as U.S. manufacturers can't sell if our overseas customers can no longer buy, you cannot prosper if your foreign passengers can no longer fly."
DOT granted Kenya Airways and Northwest an amended exemption for their reciprocal code-share arrangement, adding authority for Kenya Airways to display Northwest's code on flights between Nairobi, Kenya, and Seychelles, Seychelles Islands; Zanzibar and Dar Es Salaam, Tanzania; Harare, Zimbabwe; Lukasa, Zambia; Kigali, Rwanda, and Entebbe, Uganda. Kenya, Tanzania and Zimbabwe are among eight nations participating in the Safe Skies for Africa Initiative announced by DOT Secretary Rodney Slater, who highlighted Northwest's expanded service throughout the continent.
Air France has increased capacity 10% in its winter schedule, which began last week. In addition, its code-share agreements with Delta and Continental allow Air France to offer through fares to 37 U.S. cities. On the Miami-Paris route, the carrier now offers 10 weekly flights with its partners, versus seven previously. The airline has added frequencies to London, Geneva, Frankfurt and Madrid in Europe; Shanghai, Seoul, Jakarta and Beijing in Asia; and Buenos Aires, Santiago, Rio de Janeiro and Mexico City in Latin America.
DOT General Counsel Nancy McFadden said she is disappointed that the Air Transport Association (ATA) is turning the debate on proposed competition guidelines into a political issue (DAILY, Oct. 26). Speaking Monday at the 1998 Corporate Travel West conference in Santa Clara, Calif. , McFadden referred to ATA President Carol Hallett's memo to airline chief executives which said ATA plans to "inject" DOT's proposed guidelines into the presidential debate in hopes of changing the political dynamic and making it difficult or impossible for DOT to act on them (DAILY, Oct.
International environmental groups will mount a campaign across Europe Nov. 6-7 pushing for "green pricing" in air transport. Organized by Friends of the Earth and coordinated by its Dutch chapter, the campaign - "The Right Price for Air Travel" - will bring together parties from 20 European countries plus Australia, Canada and the U.S. The groups aim to pressure policymakers to curb the environmental impact of air travel with new taxes that would discourage or retard growth in carbon dioxide emissions, noise levels and aircraft movements at Europe's airports.
British Airways will spend #150 million (US$250 million) in the next three years on a complete makeover of its World Traveller product. Unveiling the new international economy service yesterday in London, Marketing Director Martin George said BA will offer seats with adjustable headrests, footrests and more knee room; personal video screens with at least 12 channels, including a children-family channel; and food service improvements including a new menu, double-decker trays, "help-yourself" snack bars and "Feed Kids First" meal service.
A National Transportation Safety Board team led by member John Goglia yesterday began investigating an AirTran landing accident Sunday evening in Atlanta. Flight 867, a 737 with 100 passengers and five crew, had taken off from Atlanta and was en route to Dallas when a light indicated a hydraulic problem. The captain returned to Atlanta, touched down and landed without incident, "but there was hydraulic failure in the ground steering and the aircraft veered off the runway to the left and came to rest on an embankment," an AirTran spokeswoman said.
The goal of DOT's Safe Skies for Africa Initiative "at minimum" is for the countries to achieve Category 1 status under FAA's international aviation security program, enabling national flag carriers to fly to the U.S., DOT Secretary Slater said last week in announcing program participants.
A strike by FedEx pilots would change the company, and customers who leave would not come back, FedEx President and Chief Executive Ted Weise warned pilots in an internal memorandum. FedEx and its Fedex Pilots Association (FPA) are embroiled in a contract dispute, and pilots could walk off the job in early December. The company and the union have been fielding calls from shippers, catalog vendors and catalog trade publications concerned holiday shipments. Weise warned that customers want assurances and the company is running out of time to provide them.
Korean Air will sell six Boeing 747s and two MD-11s by the end of this year as it takes possession of seven new aircraft. The airline's average airplane will be less than seven years old, making its fleet one of the youngest in the world, and the changes come at a time when some Asian carriers are deferring or canceling new aircraft deliveries. Korean Air will sell three 747-200s, one 747SP, two 747-300s and two MD-11s from its 111-aircraft fleet in the next two months. At the same time, it will acquire three 777s, two 747-400s, one 747-400 freighter and one A330.
