An official of Taiwan's Civil Aeronautics Administration said the CAA and its parent, the Ministry of Transportation and Communications, will sue China Airlines (CAL) in an effort to collect NT$1.1 billion (US$32.4 million) owed by the airline in interest payments, according to published reports in Taiwan. The case stems from a 1987 agreement under which CAA purchased seven long-haul commercial airplanes and leased them to CAL for a 19.5-year period at an initial interest rate of 3%, to be adjusted every three years.
Swissair says the agreement between the European Commission and Italian authorities on traffic distribution rules for Milan's airport system is discriminatory because its advantages apply only to European Union carriers. The agreement between the EC and Italy states that airlines will be allowed to keep part of their operations at Milan Linate, while 66% of their flights will move to Milan Malpensa.
United told DOT it opposes a request by Continental and Alitalia for indefinite renewal of U.S.-Italy code-share rights because Continental's authority to offer the service exceeds the rights available under the U.S.-Italy air agreement. Recommending temporary renewal of no more than six months, United said the partners could continue to operate the service while DOT reviews their application in light of a new U.S.-Italy accord.
Rockwell Collins is seeking to do for inflight entertainment systems what Boeing has done in the aircraft market with long-term exclusive purchase agreements: supply the industry with a top-notch product in such a way that it adjusts to changing technological and market needs while the airline grows.
DOT granted Iberia an exemption from slot restrictions at Chicago O'Hare and two temporary winter slots, permitting the Spanish carrier to continue through April 3, 1999, its daily nonstop Chicago-Madrid service. The flights, which Iberia operated during the summer with slots it obtained from DOT after being turned down by FAA, are the only nonstops between Chicago and the Iberian Peninsula. The City of Chicago told DOT that "service between Madrid and points west of the U.S. eastern seaboard is very limited." (Docket OST-98-4429)
The DOT and NASA Offices of Inspector General have identified five areas in which FAA and NASA "can take action to enhance their effectiveness" in improving aviation safety and increasing airspace and airport capacity. In a joint report, issued Oct. 8, the OIGs recommended that the agencies re-evaluate their advisory committee structures. Currently, six subcommittees and an ad-hoc committee report to FAA's advisory committee while eight subcommittees, a task force and a steering committee report to NASA's advisory committee.
Cincinnati-based Comair reported a 23.5% increase in traffic on 11.8% more capacity for September 1998 from September last year, which sent the load factor up 10.5 percentage points to 66.3%. Comair flew 186.6 million revenue passenger miles and 281.4 million available seat miles. Passenger enplanements jumped 21.8% to 551,185. Year-to-date, the carrier saw a 15.8% rise in RPMs on 8.1% more ASMs compared with the first nine months last year, which caused the load factor to climb 7.1 points. Passenger enplanements grew 16%.
United Chairman Gerald Greenwald said yesterday the company has started the search for his successor, but he did not rule out staying beyond his planned retirement deadline of next summer to ensure an orderly, non-disruptive management evolution. Bemoaning the union-forced resignation of airline President John Edwardson, whom Greenwald described as "probably one of the top 25 CEO candidates in the country," he insisted that United's future is not cloudy. "Some might think that employee ownership is a bad thing," Greenwald said.
BTI Americas expects to announce a merger today with World Travel Partners in Atlanta.The combined entity would be the third largest travel management company in the nation, after American Express and Carlson Wagonlit.
United has named Stuart Oran senior VP-international, replacing Chris Bowers, who now heads United's North American operations. Oran will oversee the airline's international operations, sales and marketing, reporting to President Jim Goodwin. Previously, Oran was executive VP-corporate affairs.
Senate leadership yesterday was readying a proposal to reauthorize FAA for just six months, an idea pushed by Commerce Committee Chairman John McCain (R-Ariz.) to give him an early opportunity to revisit issues including slot exemptions at high-density airports and exemptions to the perimeter rule at Washington Reagan Airport. In exchange, Congress would get a "clean" FAA reauthorization - and renewed authority to spend Airport Improvement Program funds - putting aside divisions over slots and other competition issues that have blocked its passage thus far.
Raytheon Travel Air, a fractional ownership company and wholly owned unit of Raytheon Aircraft, has ordered 22 Raytheon-built Premier I entry-level jets valued at $90 million. The airplanes will have six seats, an aft lavatory and a refreshment cabinet, said Gary Hart, president.
EVA Airways subsidiary Uni Airways has acquired four new MD-90 aircraft, for delivery in the next three months. The MD-90s were acquired through Boeing's Aircraft Trading division, which markets new and used Boeing-owned aircraft. A Uni official said the new aircraft will replace five BAe 146s in service on domestic routes. He also said Uni plans to purchase an unspecified number of de Havilland Dash 8-400s to replace the -300s it now operates.
DOT yesterday granted Air Tahiti Nui an initial two-year exemption to operate scheduled combination service between Papeete, Tahiti, and Los Angeles. The new carrier, owned and controlled by French nationals and licensed by France, has a foreign permit application pending at DOT. It plans to operate service on the route three times weekly, beginning Nov. 20. (Docket OST-98-4331)
When Korean Air and All Nippon Airways decided to serve traditional meals, they both faced a simple but daunting task: how does an airline serve steamed rice on board with a dry environment? For Korean Air, the trial and error period lasted more than a year, as it sought to perfect its Pibimbap Korea-style dishes.
The International Transport Workers' Federation (ITF) is asking for international measures to deal with dangerous passenger behavior. ITF told the Legal Commission of the International Civil Aviation Organization (ICAO) this month of one incident in which a passenger punched a cabin crew member while the aircraft was in descent, and the landing had to be aborted. Crew also have been kicked, throttled, hit by a bottle and stabbed.
Continental Express and mainline pilots will conduct informational picketing today at Cleveland Hopkins Airport to protest the pace of contract negotiations between the company and Express pilots. Pilots will conduct informational picketing at Newark Airport tomorrow and Houston Bush Intercontinental on Thursday. Contract negotiations are scheduled to continue Oct. 21-23.
Inflight entertainment companies Entertainment Limited (IEL) and The Network Connection Inc. (TNCi) have formed a strategic alliance to develop entertainment systems for the cruise industry. IEL is a leader in inflight games available on more than 50 aircraft operated by Cathay Pacific, Egyptair, Malaysia Airlines, Virgin Atlantic, Lauda Air and Saudi Arabian Airlines.
American, as part of its $11.5 million initiative to serve Latin America travelers, will publish a quarterly inflight magazine in Spanish and Portuguese for its Latin markets, starting in the first quarter of 1999. Called Nexos, the magazine will feature articles on the people, places and interests of the Latin community. It will be published by American Airlines Publishing, which also produces American Way magazine for American and Spirit for Southwest Airlines.
US Airways will equip its A330-300 aircraft with Pratt&Whitney's PW4168 engine, in production, or the in-development PW4173, the carrier said. The deal, which is subject to approval of the US Airways board, also provides for long-term maintenance. The airline has seven A330-300s on firm order for delivery in December 1999 through 2000 and seven on order, subject to reconfirmation for delivery in 2000-01. It also holds 16 options.
Canadian and American are offering $237 roundtrip fares between Vancouver and San Francisco, San Diego, San Jose and Los Angeles until Feb. 11. Tickets must be purchased by Oct. 20 and other restrictions apply.
Air France posted a 7.4% increase in September traffic on 5.6% more capacity, lifting the load factor 1.3 percentage points to 80.5%. Cargo traffic dropped 6.3%. For the April-September period, the first half of its fiscal year, Air France logged a 5.1% traffic gain on a 4.3% capacity increase, resulting in a 76.5% load factor, up 0.5 points. The airline also announced that Jean-Louis Pinson was named VP and general manager of the U.S. He has been with Air France since 1974.
Continental and its mechanics, represented by the Teamsters, have reached a tentative four-year agreement that will improve wages and work rules. Ratification will take place over several weeks.
Air Transport Association Cargo Traffic July 1998 Revenue Ton Miles (000) July July % 1998 1997 Change Domestic Freight 784,859 772,869 1.6 Mail 133,189 145,814 (8.7) Total 918,048 918,683 (0.1) International
America West introduced the Airbus A319 aircraft yesterday at Phoenix Sky Harbor Airport. The A319 is the first new model to enter its fleet in seven years, and Chairman William Franke called its delivery "an important milestone in America West's very successful relationship with Airbus Industrie." America West last introduced a new plane to its fleet in 1991, when it took delivery of an A320. The carrier will receive two more A319s before the end of 1998 and aims to have 22 in service by the end of 2001. It has 34 firm orders and 52 options for A319s and A320s.
