Continental traffic for September jumped 19.1% on 10.9% more capacity, which raised the load factor 5.0 percentage points to 72.7%, its highest ever for September. Traffic and load factor improved on both domestic and international networks. Domestic traffic, buoyed by Northwest's shutdown, increased 15.9% on 8.6% more capacity, pushing the load factor up 4.5 points to 71.7%. International traffic rose 25.4% on 15.5% more capacity, and the load factor grew 5.9 points to 74.7%. Continental's capacity is up 11.5% so far this year.
The 10 largest U.S. carriers posted an on-time record of 77.0% in August, lower than July's 78.9% and August 1997's 78.6%, according to DOT's Air Travel Consumer Report. TWA had the highest rate, 83.5%, followed by Delta, 82.7%, and Southwest, 82.6%. Alaska was eighth, 74.0%, and America West ninth, 65.5%. Northwest, whose pilots went on strike Aug. 29, was 10th, 63.9%. The carriers' reported August mishandled-baggage rate, 5.28 per 1,000 passengers, was higher than the 5.09 posted in both July 1998 and August 1997. Delta's rate was lowest, 4.08.
FAA is concerned that the European Union is getting ready to act unilaterally to limit the operation of hushkitted aircraft. In a Sept. 14 letter obtained by The DAILY, David Traynham, FAA assistant administrator for policy, planning and international aviation, told Michel Ayral, European Commission director for air transport, that a proposed EU regulation "would serve only to diminish the effectiveness of the ICAO process under a mistaken belief that U.S. carriers will transfer their Stage 3 hushkitted airplanes to EU registers after Dec. 31, 1999."
FAA has released to airlines a guidebook to help them use advanced crew resource management (CRM) training, the agency said Friday. The training stresses better coordination among cockpit crew, cabin crew and air traffic controllers to improve handling of routine as well as emergency situations, said Herman Rediess, director of the Office of Aviation Research. "Statistics show that approximately 65% of all fatal air carrier accidents list human error as a probable cause," he said.
Boeing awarded IBM an information technology contract valued at more than $2 billion over five years. The deal builds on a 10-year agreement with McDonnell Douglas signed in 1993, in which IBM Global Services provided computing and network support in St. Louis and southern California. The new contract, incorporating Boeing's August 1997 merger with McDonnell Douglas and the December 1996 acquisition of the aerospace and defense divisions of Rockwell International, restructures and expands the original agreement.
U.S. domestic airline revenue per available seat mile for August rose 4.1% year-over-year, less than the anticipated 6.5%, according to Salomon Smith Barney analyst Brian Harris. Domestic yields increased 3.2% and stage-length-adjusted RASM grew 4.5%. "We had expected August results to be stronger than July results," Harris wrote. "We are mildly concerned with the shortfall in August." He offered three explanations: the lateness of the Labor Day holiday (Sept.
U.S. Major Carriers Systemwide Share of Service Second Quarter 1998 Total Revenue Departures Alaska 41,696 America West 51,701 American 198,394 Continental 114,885 Delta 242,005 Northwest 137,922 Southwest 200,977 TWA 70,659 United 198,680
National Association Of State Aviation Officials (NASAO) presented Rep. James Oberstar (D-Minn.) with its national award of excellence and elected Demetrius Glass, Pennsylvania Bureau of Aviation, to the NASAO Center for Aviation Research and Education board of directors.
Southwest and America West are going head to head in a sale offering $99 one-way fares from America West's Phoenix hub and from Columbus, Ohio. Southwest announced its sale first and America West matched in competing markets, America West spokeswoman Patty Nowack said. "We have some blackout dates they don't have," she noted. The carriers are offering $99-or-less one-way fares based on a roundtrip purchase until Oct. 15 for travel through April 2, 1999. Purchase is required seven days prior to departure and within one day of making the reservation.
American and American Eagle are offering low-cost fares between the U.S. mainland and areas in Puerto Rico, the Dominican Republic, Haiti and other islands hard-hit by Hurricane Georges. Fares start at $79 one way and are designed to be very flexible, allowing travelers to come and go as needed to help family and friends living in the islands. American Eagle is offering $49 and $59 one-way fares to 13 Caribbean islands from its San Juan hub. Relief fares require no advance purchase. Travel must be completed by Oct. 31.
Delta named Edward Bastian VP and controller; Joe Kolshak director-investor relations; Scott Kerr, Nobushige Kai and Shinkichi Ihata station managers, and Naoko Nonomura customer service supervisor.
Frontier's 202 flight attendants will decide this month whether they want to be represented by the Association of Flight Attendants. Ballots will go out Oct. 8 and the National Mediation Board will count votes Nov. 6, said organizing committee member Dona Konecny.
Airline alliances have been more successful than originally anticipated and have been effective at redirecting traffic to benefit member airlines, according to a report from Merrill Lynch. Revenue arising from alliance linkages comes at a very high margin, since it is incremental and not expensive to generate. Among the mega-alliances, the new American-British Airways-Cathay oneworld alliance scored highest in the Merrill Lynch Alliance Index, which rated the relative strengths of the groupings based on operating, financial and regulatory data.
Lufthansa placed its planned order for 10 A340-300 aircraft, to be powered by CFM56 engines valued at $350 million. The carrier took options on seven more A340-300s. Lufthansa Cargo selected the General Electric CF6-80C2 engine to power six MD-11s. The GE order was valued at $150 million.
American asked DOT for authority to display Asiana's code on American flights beyond Asiana's U.S. gateways - between Los Angeles and Dallas/Fort Worth, Chicago, Washington and Newark; San Francisco and Dallas/Fort Worth and Chicago; Seattle and Dallas/Fort Worth and Chicago, and New York and Boston and Washington - beginning Nov. 4. DOT previously approved code sharing on Asiana's transpacific flights.
Continental confirmed Friday that it, Northwest, KLM, Air France and Alitalia are exploring an international partnership that may be called "Wings." Other names are being considered and airline groupings are not yet set, a Continental spokeswoman said. The five carriers have held preliminary discussions but nothing has been finalized. "Right now, our focus is on getting the Continental-Northwest alliance approved," said Continental's Karla Villalon. The two U.S. carriers formed an alliance in January, but the U.S. Justice Department has yet to approve it.
Michigan's Unemployment Agency ruled that non-striking Northwest workers, such as flight attendants, baggage handlers, ticket agents and mechanics, will receive state unemployment benefits. Striking pilots do not qualify for the benefits, said Acting UA Director Jack Wheatley.
