Great Lakes Aviation today formally shifts from the Nasdaq National stock market to the Nasdaq Small-Cap market, but continues to avoid delisting from the Nasdaq completely. The United Express carrier continues efforts to raise $2.5 million in a private placement to meet the Nasdaq's requirement for tangible assets in excess of $4 million by a Sept. 10 deadline (DAILY, Aug. 21). The placement is expected to be completed shortly. A delisting, on the other hand, would impose Penny Stock Rules on the company, making the trading of its stock more difficult.
The Association of European Airlines predicts 1998 will be a "black year" for flight delays in Europe. According to AEA figures, more than one-fifth of its members' flight departures on intra-European routes were delayed by more than 15 minutes for the first half of 1998, with the trend hitting a peak in June when 29.1% of the flights were affected. It was the worst monthly figure in nine years and the second-worst on record.
Fine Air Services, banned from Peru after a gun-running incident more than three and a half years ago that Fine, U.S. and even one Peruvian inquiry said was not actionable, told DOT that the "indefinite ban" on its flights contradicts U.S. policy. Fine made its comments in an objection to Aero Continente's application for a foreign air carrier permit and exemptions to fly to the U.S.
American and United detailed to DOT their plans to use the 129 additional Chicago-London winter-season roundtrip combination frequencies available under Annex 2 of the U.S.-U.K. agreement. American requested 64 additional frequencies - half the number available - which it wants to combine with its minimum entitlement of 390 Chicago-London frequencies to operate three daily nonstops for the entire winter period, Nov. 1, 1998-March 31, 1999. The carrier holds London Heathrow slots to provide the three daily nonstops.
Icelandair will end service to Luxembourg Jan. 9 and increase service to Paris and Frankfurt, improving connections through its Keflavik hub, as part of European route restructuring. The airline said it regretted closing Luxembourg, which it has served since 1955 and was its only continental Europe destination until 1989. A gradual passenger and cargo decline made the change necessary, said Gunnar Eklund, general manager-the Americas.
Conflicts rooted in AirTran's history as ValuJet and a battle over a shop clause requiring non-union flight attendants to pay union dues are among issues facing AirTran and its flight attendants, represented by the Association of Flight Attendants (AFA), when they return to the bargaining table Sept. 2-4. The parties will meet under the auspices of the National Mediation Board to try to resolve contract issues before the Sept. 5 flight attendant deadline.
UPS's venture into passenger charter operations has been a success, according to Paul Martins, director of Air Charter Service, and the flights will continue into next year as the carrier assesses whether to expand beyond the five aircraft now in use. As a privately held company, UPS chooses not to release revenue figures, but Martins told The DAILY he is "very pleased" with the returns the passenger service is generating. The cargo carrier operated its first charter passenger flight in February 1997.
Taiwan's Aerospace Industrial Development Corp. (AIDC), which hopes to become privatized by yearend, has invited strategic investors to purchase its shares. An AIDC spokesman said the organization hopes to release at least 50% of its 905.59 million outstanding shares for sale to qualified domestic and foreign companies in the aviation, shipping, electronics, metal and financial industries. A screening team is expected to meet during the first half of 1999 to select qualified investors.
American and Grupo Taca are expanding their Central American code share to include routes from San Francisco, Houston and Washington, D.C. This builds on Taca-flown routes already part of the agreement from Dallas/Fort Worth and Los Angeles. The routes added are San Francisco-San Salvador; Houston-Roatan, Honduras; Houston-San Salvador, and Washington Dulles-San Salvador. Eight more routes to Central America will join the lineup this fall.
Northwest, gearing up for a possible weekend strike, is devoting a large portion of its www.nwa.com web site to strike updates.Included is a warning to employees whose contracts have no strike clause: if they do not report to work they will be placed on sympathy strike status and face possible termination. Northwest is ramping up security to ensure that employees can make it to their jobs.
Asean Travel Association, trying to boost Asia/Pacific tourism, is launching an air pass program similar to Europe's EurAir. In November, several airlines will offer travel between countries at US$90 per one-way flight. Routes include Jakarta-Manila, Bangkok-Manila and Jakarta-Singapore.
Swissair intends to increase its return on capital by increasing productivity and franchising its services, both in Europe and globally. Philippe Bruggisser, president of SAirGroup, said Swissair, partner Sabena and subsidiary Crossair will implement a new round of productivity measures, seeking improvements beyond steps they put in place during the past two years. The group attained an 11.7% return on capital in 1997 and is targeting 12% by the end of this year.
Summary of U.S. National Carriers Systemwide Traffic February 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change AirTran Airlines 216 12.50 540 116,405 35.91
Kitty Hawk said this week it has agreed to acquire Southern Air Transport for a combination of cash and stock and indemnities against certain lease obligations. Southern currently operates five leased 747-200 freighters. Kitty Hawk said it expects to operate Southern as a separate subsidiary.
Air Canada and its Air Canada Pilots Association (ACPA), released Tuesday by Canada's Labor Ministry from conciliation talks (DAILY, Aug. 26), will meet today in Toronto with an independent mediator in an attempt to ward off a pilot strike before midnight Sept. 1, when the union will be free to strike.
American Trans Air has ordered two Boeing 757s for delivery in the fall of 1999. ATA currently operates eight 757s, and delivery of a ninth is scheduled in December. The company agreed recently to buy five L-1011-500s to support growth in its charter service. The aircraft will join the fleet over the next 15 months.
FAA this week proposed regulations and procedures for protesting contract disputes under its Acquisition Management System. The agency said the proposed regulations will allow protesters and contractors a "uniform, economical means of pursuing protests and contract disputes." The proposed rules are in the Aug. 25 Federal Register. Comment deadline is Oct. 26.
Northwest and Continental asked DOT to award them the 14 weekly U.S.-Japan code-share frequencies abandoned by TWA and Delta following termination of their tentative agreement. Northwest and Continental already have 14 weekly code-share frequencies awarded by the department earlier this year (DAILY, March 18). The carriers told DOT this week that if it grants their request, they will start operating the additional code shares as soon as possible.
British Airways suspended its three weekly nonstop London-Osaka flights yesterday, effective at the end of October. The decision was "a last resort," said John Wood, director Asia/Pacific, after a decline in passenger demand and a fall in the value of the Japanese yen. BA reiterated its commitment to serve Japan via Tokyo.
Reno Air said yesterday it now expects record profits from the current quarter and for the year, as the carrier made plans to buy back two million shares of outstanding common stock and sell a surplus aircraft. The statement was the airline's most positive comment in more than a year, after operational and cost issues led to a $12.3 million loss in 1997.
DOT's announcement Tuesday that it would become involved in the complex series of lawsuits over commercial flight restrictions at Dallas Love Field generated mixed reactions yesterday. "The DOT simply wants to substitute its judgment for the court down here," said Dee Kelly, attorney for Fort Worth in the ongoing litigation that started last fall when Congress extended the limits of the so-called Wright amendment to include three more states. In the past, DOT has stated that propriety rights are judicial issues for courts to decide, Kelly said.
FAA's Wide Area Augmentation System program is relaying augmented Global Positioning System signals through its Inmarsat communications satellite relay three months ahead of schedule. The signal carries less data than is planned for operations but supports testing of communications and user equipment.
An advertising campaign by Northwest management "strains the limits of credibility by creating false impressions without actually telling outright lies," according to the carrier's Air Line Pilots Association unit. Pilots are disenchanted because the union asked management to stop running the ads, which the union considers "counterproductive and not good for morale," said Northwest ALPA spokesman Paul Omodt. He said Northwest has run "a string of ads attacking the pilot group.
House Transportation aviation subcommittee will hold a hearing next month on travel agent issues, including claims of unfair competitive practices engaged in by major airlines and H.R.3704, the Consumer Access to Travel Information Act. Sept. 10, Room 2167 Rayburn, 10 a.m.
Summary of U.S. Major Carriers Domestic Traffic March 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change Alaska 998 3.78 839 837,713 5.00
