United told the European Commission that its proposed conditions for the United-Lufthansa-SAS alliance are based inappropriately on those for American-British Airways, even though there are significant differences between the two. A number of the proposals, such as frequent flyer and computer reservations system remedies, should be addressed industry-wide if at all, the carrier said. United made its statements in comments filed in Brussels to the EC in advance of the commission's final ruling on modifications to the two alliances.
British Airways yesterday launched its service from London Gatwick to Denver. Chairman Bob Ayling was on board the first daily flight to Denver, BA's 22nd U.S. gateway. The airline operates 777s on the route.
Northwest, with its $3 billion cash cushion, could survive a 250-day strike if it had to, according to BT Alex Brown analyst Susan Donofrio.Management estimates the direct cost to the airline each strike day is $12 million.
Raytheon Co. said this week the International Brotherhood of Electrical Workers has ratified a new, two-year labor agreement. The pact covers 3,800 workers in Raytheon facilities in nine cities. Among the new contract's provisions are a 5% wage increase the first year of the contract and 4% the second, plus an increase in the amount employees pay for health benefits.
Boeing, which experienced its first annual loss in 50 years last year despite record sales, has fired Ron Woodard as president of its Commercial Airplane Group, Chairman Phil Condit said yesterday. Boeing has "experienced unsatisfactory financial performance with our commercial operations," Condit said. "Our expectations are that commercial airplane operations produce significant, double-digit operating margins. We concluded there must be significant changes in the composition of the management team at this time."
Korean Air took delivery yesterday of its first A330-200, adding it to an existing fleet of four larger A330-300s and becoming the first airline in Asia to operate the longer-range aircraft. Korean Air has placed orders for 10 A330-300s and three -200s, all due for delivery by 2002. This schedule takes into account the deferral of delivery of two -300s from 1999 to 2002. KAL ordered the -200s in a three-class layout, with six passengers in first class, 18 in business class and 234 in economy. Its -300s seat 296 in three classes.
Summary of U.S. Major Carriers Domestic Revenues and Expenses Traffic First Quarter 1998 (In Dollars) Total Operating % Passenger Freight Revenues Change Revenues Revenues Alaska 320,135,000 11.13 275,779,000 13,206,000 America West 460,795,670 1.86 429,275,618 6,492,372
FAA is running data in its cost-accounting system that will enable it to issue a proposed rule early next year to charge overflight fees based on the cost of providing air traffic management service, Carl Schellenberg, assistant administrator for financial services, said yesterday. Schellenberg also said the agency had made substantial progress in other areas of cost accounting required by the FAA Reauthorization Act of 1996.
DOT must go beyond guaranteeing London Heathrow slots for new competitors at the start of an American-British Airways alliance and adopt a method for providing additional slots as markets grow, US Airways said in testimony submitted for DOT's American-BA antitrust immunity hearing. Chief Executive Stephen Wolf told DOT that his airline is uniquely positioned to play a key role in providing competition under open skies, and that new entrants must have an "automatic and absolute right" to consolidate their London service at Heathrow.
Tower Air told DOT its plans to operate scheduled service from New York to London Heathrow will be possible only if it has "effective access" through a firm U.K. commitment to provide enough commercially viable slots free of charge. Tower Chief Executive Morris Nachtomi made the statement in testimony attached to Tower's petition to intervene in DOT's hearing procedure for the American-British Airways antitrust immunity application.
Taiwan's Civil Aeronautics Administration (CAA) announced that, because of TransAsia Airways' inability to persuade most of the 67 ATR pilots who resigned Aug. 24 to return to work, the CAA will revoke the carrier's authority to operate 78 of its 122 daily scheduled flights. In the week since the pilots resigned, TransAsia was forced to cancel 70-90 flights each day. A CAA spokesman said the flights taken from TransAsia will be allotted to three other domestic carriers for an initial two-month term.
United told the European Commission and U.K.'s Office of Fair Trading (OFT) that it supports OFT's conditions on the American-British Airways alliance, while opposing more extensive limits on alliances suggested by the EC. The EC's conditions limiting the number of flights and imposing other broad regulator limits would reverse aviation liberalization, United VP Cyril Murphy said. British embassy and EC officials in Washington yesterday could not confirm a published report that EC Competition Commissioner Karel Van Miert believes the U.K.
China Eastern Airlines has set up downtown Shanghai check-in that, for the first time in China, allows passengers to get a boarding card and check luggage outside an airport. The service is available for flights after 12 p.m. each day on four trunk routes within China.
EVA Air of Taiwan will continue to press the Vietnamese civil aviation authorities for at least three flights a week on the Kaoshiung-Hanoi-Ho Chi Minh City route. Last year, EVA was cleared for two weekly flights, a number the airline said is unreasonable. Mandy Yu, a spokesperson for EVA, said, "We want at least three services a week for a start, otherwise we are unlikely to start the service.
Aer Lingus will make Los Angeles its fifth U.S. gateway, launching service in June 1999, the carrier said yesterday. The airline will offer nonstop flights to Dublin, continuing to Shannon and connecting to points throughout Europe. It will use new Airbus A330-200 aircraft on the route, configured for two classes of service. Premium Class seats will recline fully, offer 52 inches of legroom, and have individual videos and computer ports. The airline also will offer complimentary limousine service for Premium-Class passengers.
As the countdown continues toward a strike deadline of 11:59 p.m. tonight, Air Canada and its Air Canada Pilots Association are not close to an agreement. ACPA Master Executive Council Jean-Marc Belanger said yesterday that "we still have some big-ticket items that have not been resolved yet."
Europe's Joint Aviation Authorities (JAA) have completed validation of Boeing's MD Explorer, making it the first helicopter to be validated under the JAA's Part 27 Category A, Boeing said. The JAA recommended that its 27 member nations issue amended type certificates for the twin-engine, eight-place helicopter. Category A-rated helicopters are capable of continuing flight safely during a landing or takeoff on a single engine.
AirTran is reintroducing its "Grade A" fare sale for travel from Sept. 11- Nov. 18. A seven-day advance purchase is required and tickets must be purchased by Sept. 10. No blackout dates apply. Sample one-way fares include Atlanta-Boston, $89; Washington, D.C.-Jacksonville, $79 and Knoxville-Savannah, $59.
China Airlines posted an after-tax loss of NT$1.56 billion (US$45 million) for the first six months of 1998. The loss is the first reported by CAL in 12 years, and a spokesman cited the ongoing Asian financial crisis and reduced ticket prices among factors that caused it. CAL slashed fares in an attempt to regain customers following the crash in February of an Airbus aircraft at Taiwan's Chiang Kai-shek International Airport.
Emirates and South African Airways will increase their code share between Dubai and Johannesburg. After mid-September, SAA no longer will operate its own direct service between the two cities but will use Emirates' aircraft instead. The move is one of several SAA is taking to rationalize its route structure for improved profits, and the first of new Chief Executive Coleman Andrews. The carriers plan to add code share destinations beyond both hubs, pending government approval.
Northwest yesterday announced plans to suspend service on five Asia/Pacific routes this winter, while adding two routes from Osaka during the same period. The move, Northwest's most extensive Pacific restructuring, makes it the latest airline to withdraw capacity from economically distressed Japan. But Northwest, like other carriers, is leaving Tokyo Narita service untouched. Many airlines have feared losing their valuable Narita takeoff and landing slots. Northwest will stop Nagoya-Guam and Nagoya-Honolulu on Nov. 1 and suspend Minneapolis-Osaka service from Nov.
Summary of U.S. National Carriers Systemwide Traffic First Quarter 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change AirTran Airlines 677 14.96 586 396,805 43.75
With no sign of a pilot contract resolution, layoffs of Northwest employees could start as early as today, sources told The DAILY yesterday. The National Mediation Board will not resume negotiations until it sees movement from one of the sides, an NMB spokesman said yesterday, and neither side has moved thus far. Northwest yesterday canceled all 1,700 Wednesday flights and will maintain a "rolling schedule" of cancellations with two-day notices.
Boeing said last week it will invest $34 million in spare parts to stock a customer services center near Amsterdam Schiphol Airport that is scheduled to open late next year. The company said the new facility will serve airlines throughout Europe, replacing a center in Brussels that was destroyed by fire last year. The center, to be equipped with advanced materials handling equipment, will be linked electronically to Boeing's spares inventory control system and global distribution network.
LanChile is celebrating its 40th anniversary with a companion ticket deal allowing U.S. travelers to visit South America for $40. The sale, valid for travel Oct. 1-Dec. 10, requires the purchase of one roundtrip ticket at regular prices. The companion fare is valid from New York, Miami or Los Angeles.
