Hong Kong Town Planning Board, resisting pressure to turn the former Kai Tak Airport into a tourist attraction (DAILY, Sept. 1), published draft plans to redevelop the choice central-city site into a "city within a city," including housing, transport infrastructure and park space, a rarity in the city. Planners expect housing for 320,000 people by 2016. The first occupants would arrive in 2003.
Lufthansa will add Caracas, Detroit and Philadelphia to its 1999 summer season, flying daily nonstops from Frankfurt. The two U.S. cities currently are served only by transfers via Chicago or Washington by Lufthansa's Star Alliance partner United. Lufthansa also will add a daily nonstop from Frankfurt to its three-times weekly service to Houston via Dallas.
Despite the downturn in Asia and a decline in leisure travel throughout the Pacific region, 70% of non-U.S. international carriers believe there is no overcapacity situation worldwide, though fewer airlines see the need to add flights, said a Salomon Smith Barney study. The report revealed that overcapacity is present on a regional basis in Asia and 35% of respondents have deferred aircraft deliveries. Of the 21 airlines surveyed, 38% were Asian carriers. Respondents believe the Asian crisis will last another two to three years.
Atlantic Coast and its flight attendants, represented by the Association of Flight Attendants, will return to negotiations today in hopes of reaching a tentative agreement. Talks are expected to continue through Friday. The union voted last Friday to strike if there was no agreement, but the parties have not asked for release from mediation. "They're really hoping for an agreement. There are only a few issues open," said AFA spokesman Jeff Zack. AFA National staff negotiator Beth Deprospero said flight attendants want equal per diems with pilots.
The Northwest pilots strike has not hurt the ability of U.S. companies to do business, according to a survey by the National Business Travel Association, but it may turn some corporate clients away from the carrier in the future. NBTA's survey of corporate travel managers last week found that more than 63% had been affected by the strike but 77% rebooked travel on other carriers in anticipation of the walkout. Twenty-two percent rebooked on low-fare carriers.
FAA In Federal Register dated Aug. 31...Proposed an air-worthiness directive on certain Pratt&Whitney JT9D engines to require inspection of the rear skirt of the diffuser case...Proposed an AD to require revisions of the manuals on Pratt&Whitney PW2000 engines concerning the time limits section. -- In FR dated Sept. 2...Issued an AD on certain Boeing 757 aircraft to require inspection for damage of certain electrical wire bundles...Proposed to supersede an AD on Pratt&Whitney JT9D engines concerning the turbine exhaust case.
Continental European carriers should be allowed to compete with the American-British Airways alliance on routes between the U.K. and the U.S., European Union Transport Commissioner Neil Kinnock said last week in London. The U.S. DOT has referred to a possible loss of competition on certain routes, even if an open-skies agreement is signed between the U.S. and the U.K., Kinnock said.
FAA sources blame Administrator Jane Garvey for weak leadership of the agency's flight standards and aircraft certification divisions, which came under harsh criticism from the National Transportation Safety Board over the Comair crash. Critics argue that Garvey has been administrator for more than a year, the flight standards job has been vacant a year and a half, and regulation and certification has had a lame-duck leader for months.
UPS's five 727-100s doing double duty as passenger charters undergo extra wear and tear, Air Charter Service Director Paul Martins concedes, so the airline takes one of them out of cargo service every week for inspection and upkeep. The policy results in extra revenue if UPS receives an ad hoc request for a passenger flight in the middle of the week.
British Midland advised DOT that the slots to be transferred from American-British Airways following antitrust immunity approval should be divided equally between the U.S. and U.K. governments, which could allocate them as they like. British Midland Chairman Michael Bishop, in testimony submitted for the DOT immunity hearing, said the fact that more U.S. than U.K. carriers are seeking new entry under open skies does not alter the principle of equal division between nations.
First Aviation Services appointed Philip Botana VP-First Aviation and executive VP and chief operating officer of subsidiary Aircraft Parts International, and named Jerry Schlesinger chief executive of API.
Atlantic Southeast said it has ordered 12 70-passenger Canadair CRJ-700s and will exercise options for 15 50-passenger CRJ-200s with a total value of about $575 million. Deliveries of the smaller aircraft will occur between February 2000 and June 2001. The 70-passenger aircraft will be delivered beginning in the fourth quarter 2001 through the first quarter 2003. President John Beiser cited the speed and range of the 50-passenger CRJ and the operating efficiencies of the 70-seater as the determining factors in the orders.
United has become the first airline to install new high-efficiency HEPA air filters in all of its aircraft with air recirculation systems. The seven-month project will be featured as a product enhancement in new international advertisements.
The 10 largest U.S. carriers posted an on-time record of 78.9% in July, a marked improvement from the June rate of 70.4% and higher than July 1997's 77.5%, according to DOT's Air Travel Consumer Report. Southwest had the highest rate, 83.9%, followed by Delta, 81.9%, and US Airways, 81.0%. United was eighth, 73.9%, Alaska ninth, 72.3%, and America West 10th, 64.9%. Northwest, 10th in June with 58.7%, moved up to seventh, 74.5%.
DOT Orally approved an emergency HeavyLift Volga-Dnepr one-way cabotage cargo charter flight between Wilmington, Ohio, and Seattle using an An-124-100 carrying GE90 engines and related parts for installation on Boeing 777 aircraft Aug. 31-Sept.
Midway Airlines said it exercised an option to acquire seven more Canadair Regional Jets valued at $148 million, and it plans to return five Fokker 100s to lessors and retire one A320. The CRJ-200ERs will join six CRJs and seven others on order. All 20 will be in service by the end of 1999, when its fleet will comprise the CRJs and eight F100s. Mark Coleman, senior VP-marketing, said the CRJs have enabled Midway to attain "higher profit margins than were possible with Midway's Airbus and Fokker aircraft."
Dallas-based new entrant Legend Airlines has no plans to start Love Field-London Heathrow service anytime soon, but that didn't stop it from entering DOT's American-British Airways proceeding. Legend, an American foe entangled in legal and regulatory disputes over Love Field service, told DOT that antitrust immunity would enable a carrier with a history of domestic anticompetitive practices to increase its dominance.
Roberts Roach/Cap Gemini's "Scorecard" study shows that U.S. domestic yields have been declining consistently since 1929. The report on unit-cost structures for 10 major airlines and five nationals shows costs have been flat for 20 years. Declining yields have been offset by rising load factors.
