Northwest and its flight attendants will return to the bargaining table today to try to resolve some of their outstanding contract issues before the National Mediation Board steps in. The two sides have been talking for 26 months and the flight attendants, represented by the Teamsters, have asked the NMB to mediate. Billie Davenport, president of Teamsters Local 2000, said 14 of 32 sections of the contract have been agreed to tentatively and the parties are very close to agreement on insurance benefits, vacations and international flying.
CityBird will offer air freight service in France early next year, a product of a new agreement by which France's Air Promotion Group will promote CityBird's cargo service in the French market, according to CityBird Managing Director Victor Hasson. The Belgian low-cost carrier, which has a marketing partnership with Sabena, also plans to exploit Sabena's unused traffic rights in France, left over from Sabena's former partnership with Air France. The alliance ended in August 1997, when Swissair became Sabena's new equity partner.
Air Wisconsin reported a 76.5% gain in traffic on 49.3% more capacity for September 1998 from the same month last year, which pushed the load factor up 11.6 percentage points to 75.6%. The carrier flew 88.4 million revenue passenger miles and 116.9 million available seat miles. Boardings leapt 81.4% to 279,963. For nine months, RPMs grew 35.3% and ASMs 29.6%, boosting the load factor 2.8 points. Boardings were up 37.7%
U.S. Major Carriers Domestic Share of Service Second Quarter 1998 Total Revenue Departures Alaska 39,748 America West 50,436 American 166,285 Continental 100,386 Delta 230,762 Northwest 129,539 Southwest 200,977 TWA 68,696
Delta last week launched the first television advertising campaign for its Delta Express service to Florida. The multi-million-dollar campaign will continue to use the airline's "Top Of The World" tag and feature actress Christine Lahti as its voiceover. Supporting the TV campaign will be newspaper and radio ads.
London City Airport handled its one-millionth passenger this year on Sept. 29, six weeks earlier than last year, when the milestone was reached in mid-November. The airport processed 117,718 passengers last month, 10% more than in the same month last year.
Delta experienced a surge in domestic traffic during September, while total revenue passenger miles rose 11.7% on 3% more capacity, raising the load factor 5.7 percentage points to 73.9%. Domestic traffic, boosted by the absence of Northwest, jumped 10.3% on 0.3% less capacity, forcing load factor up 6.8 points to 71.3%. International traffic increased 15.9% on 15.4% more capacity, resulting in an 82% load factor, up 0.4 points. Systemwide traffic so far this year grew 4% on 2.2% more capacity.
A new pay system that took effect Oct. 1 could add $1 billion over five years to FAA's payroll costs for air traffic controllers and supervisors, according to the DOT Office of Inspector General. "FAA faces significant risks in meeting these work force cost increases while, at the same time and within the projected revenue base, funding other critical agency requirements such as modernization of the National Airspace System and the Airport Improvement Plan," the OIG said.
Amadeus and Korean Air have signed a memorandum of understanding to create a joint venture company to operate the Topas computer reservations system. Amadeus will own 32% of the new company and Korean Air 68%. The financial details of the deal were not disclosed but it is expected to be finalized by yearend. Topas users throughout Korea will be able to connect to the Amadeus global distribution system and have access to make bookings with travel service providers worldwide, including more than 480 airlines, 48,000 hotel properties and 60 car rental companies.
Japan Airlines launched service to Las Vegas on Friday, offering twice-weekly nonstops on Tuesdays and Fridays using Boeing 747-300 aircraft. The carrier will add a third weekly flight in November.
Continental regional carrier Continental Express began twice-daily nonstop service between Houston George Bush Intercontinental Airport and Greenville-Spartanburg.
United's United Rising campaign, about to enter its second phase with new print and TV ads in 25 countries, applies to the carrier's on-time performance but not baggage handling or complaints, in which United is Descending. The carrier ranked seventh overall in on-time from September 1997 through August 1998 but improved slightly month to month. But mishandled baggage reports per 100,000 passengers worsened from 6.98 in August 1997 to 7.59 in August 1998, and complaints more than doubled during that period, from 56 to 131.
FAA - In Federal Register dated Sept. 25...Superseded an airworthiness directive on Airbus A320 aircraft concerning automatic landings...Issued an AD on certain Airbus A320 aircraft requiring inspection for cracking in the rear spar of the wing...Issued an AD on Airbus A320 aircraft with bulk cargo doors requiring inspection for fatigue cracking...Issued an AD on Shorts SD3-60 aircraft requiring inspection of the fuselage wing strut pick-up.
India's state-owned domestic carrier Indian Airlines and its subsidiary, Alliance Air, raised their basic passenger fares last week by 11.2% across the board on all routes except those involving the northeastern states. The federal inland air travel tax went up proportionately but the passenger service fee did not change. The fare hike is IA's 10th since 1990 and its first since Oct. 15, 1997, when fares rose 14% on short-haul routes and 10.5% on long-haul routes.
Lufthansa U.S. subsidiary LAGS (USA) Inc. gave notice Friday that it will exercise its option to increase its interest in Hudson General LLC from 26% to 49% in a $29.6 million deal due to close Nov. 2. Hudson General provides airport services throughout the U.S. and Canada.
U.S. major airlines will post net income of $2.4 billion for the quarter that ended Sept. 30, up 17%, according to BT Alex Brown analyst Susan Donofrio. The firm forecasts fourth quarter profits of $1.2 billion, up 18%. Atlantic Coast is projected to turn in a third quarter profit 95% higher than last year's.
National tax officials from the 15 European Union nations clarified last week how value added and excise taxes will be applied to transactions after June 30, 1999, when duty-free sales for air and ferry travel within the European Union are abolished. Starting July 1, sales on ships and aircraft traveling within the EU will be subject to excise duty at the rate applied in the country where the goods are loaded - from bonded warehouses, for instance. VAT rates will be those used in the member state of departure.
Varig reports a 200% increase in interline traffic with United since it began its alliance a year ago. On the cost side, Varig has saved money in areas such as maintenance - United's extensive North American network has enabled Varig to keep more spare parts in Brazil.
As expected following the Northwest strike, American traffic increased 4.6% in September on 1.3% more capacity, which raised the load factor 2.2 percentage points to 69.2%. As in prior months, American grew internationally and shrank domestically. Domestic traffic rose 4.8% on 1.3% less capacity, which boosted the load factor 4.0 points to 68.2%. In the first nine months of 1998, American has reduced its domestic system 1.5%. International traffic in August rose 4.1% but capacity grew faster, at 7.5%, which lowered the load factors in all international divisions.
The staff of Philippine Airlines voted Friday to accept a management plan to restart the airline on Wednesday. The carrier shut down Sept. 23. With 61% of the 5,300-member PAL Employees Association (PALEA) voting for the plan, the union will forego strikes and the use of collective bargaining for 10 years. In exchange, PALEA will receive four board seats - including one relinquished by the Philippine government - and 60,000 shares of stock for each employee upon retirement.
DOT - Approved, subject to FAA-approved routings, a Laker Airways charter using a HeavyLift Volga-Dnepr Il-76 for a one-way flight carrying a DC-10 CF6 engine on a Puerto Plata, Dominican Republic-Miami routing Sept. 30-Oct. 1...Approved winter-season non-scheduled Signature Vacations charters to be operated by Royal Aviation d/b/a Royal and/or Conifairusing an A310 carrying 264 passengers Oct. 31-Dec. 12 and a 757 carrying 228 passengers Dec.
Some Asian nations are delaying acquisition of automated explosive detection systems, according to David Ellenbogen, chairman of Vivid Technologies, which manufacturers such equipment. Ellenbogen said the delays impacted Vivid's financial results for the September quarter.
