Air Transport Association (ATA) is responsible for increasing government scrutiny into airline competition practices and is risking the benefits of deregulation through its continuing opposition to DOT's competition policy, Kevin Mitchell, president of Business Travel Coalition, charged Monday.
Northwest Chief Executive John Dasburg was elected to alliance partner KLM's Supervisory Board. The move came as a result of the 10-year agreement signed last year. KLM President Leo van Wijk is a member of the Northwest board.
Inland Aviation Services told DOT that an engine teardown observed by an FAA maintenance inspector "resulted in the finding that the No. 2 main bearing failed, leading to a broken crankshaft," which the inspector said "could not have been detected in routine and required operator maintenance." Inland earlier reported to DOT on an en route engine failure it experienced June 19 with a Cessna 172 (DAILY, July 23). The inspector's report is being submitted to the National Transportation Safety Board, which has kept the investigation open.
DOT yesterday opened a proceeding on airline service from Dallas Love Field, saying a ruling should eliminate much litigation. Love Field operations by larger aircraft had been limited by the Wright Amendment to contiguous states, but those restrictions were eased slightly by the Shelby Amendment, allowing service by aircraft with 56 seats or more to Kansas, Mississippi and Alabama.
Norfolk, Neb., airport authority signed last week's letter urging DOT to prevent unfair competition by major airlines (DAILY, Aug. 21). The authority's base was misidentified as Norfolk, Va., due to a clerical error by the group distributing the list.
American pressed its case for "equal treatment," telling DOT whatever conditions the European Commission tries to impose on American-British Airways should be applied equally to United-Lufthansa-SAS. Its statements were made as a reply to comments on United's attack on the EC's proposed alliance conditions, lodged as an International Air Transportation Fair Competitive Practices Act complaint. American has made the point before but took issue with Delta's criticism of the EC's conditions as a "one-size-fits-all" approach.
Summary of U.S. Major Carriers International Traffic February 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change Alaska 72 (0.86) 1,130 81,093 0.96
United told DOT it should deny the application by Russia Airlines for an exemption to operate scheduled combination service between Moscow and New York (DAILY, Aug. 13) and defer action until the U.S. and the Russian Federation "satisfactorily resolve pending bilateral issues." At the heart of United's opposition is the Russian government's refusal to renew the carrier's "bilateral right to offer code-share services between the U.S.
As the deadline for a strike at Northwest nears, Kansas City, Mo.-based Vanguard Airlines already has sold out its lowest fares on nonstops from Minneapolis/St. Paul to Kansas City and Chicago Midway, the two nonstop routes on which it competes with Northwest. Vanguard is the only carrier besides Northwest to offer nonstop service in those markets. VP-Marketing and Planning Russell Winter said Vanguard may add a sixth daily segment on its Minneapolis-Chicago service if the Northwest strike begins.
Allied Pilots Association is offering space on American's jumpseats to Northwest pilots who go out on strike, according to a letter from APA President Richard LaVoy to Northwest Air Line Pilots Association Master Executive Council Chairman Steve Zoller. LaVoy also is encouraging APA rank and file to join Northwest ALPA's picket line - wearing their American uniforms and APA pins - to show solidarity if Northwest pilots strike.
Air Canada Pilots Association set a strike deadline of midnight, Sept. 1, after Canada's Federal Minister of Labour released the union and Air Canada from conciliation talks. Both sides requested the action.
Delta applied at DOT for an exemption to provide scheduled combination service between any points in the U.S. and any points in Japan under arrangements with its third-country code-share partners. The carrier asked for route integration authority to combine the requested exemption with its existing certificates and exemptions. It wants the exemption for an indefinite period, or at least two years. Delta said it will use the exemption for code-share service to points in Japan for which it does not hold underlying authority.
Swissair parent SAirGroup posted a 20% rise in pre-tax profits for the first six months of 1998. Earnings before interest and taxes reached 302 million Swiss francs (US$201 million), while net profit increased 16.5% to CHF127 million ($85 million). Cash flow from operations rose 23% to CHF639 million ($429 million). The results were not broken down by division. The company cited "still buoyant" economies in Europe and the U.S. as reasons for the improved earnings despite several divisions experiencing a hit from the Asian economic crisis.
Civilian pilots' job outlook remains strong, according to Atlanta-based AIR, Inc. Late in 1996, more than 70% of pilots hired by major carriers were civilians, as were 61% of pilots hired between June 1, 1997, and June 1, 1998. "Civilians used to be 25% of a much smaller market. Today they're 61% of a huge market. Their actual chances of getting the job are way up," said AIR, Inc. President Kit Darby.
If DOT awards U.S.-South Africa code-share authority to Continental for service with Air France this year and to Delta with Swissair next year, it "will introduce two U.S. hub networks onto U.S.-South Africa routes, which should be its primary objective," Continental told DOT. Both carriers have applied for U.S.-South Africa third-country code-share authority with Air France (DAILY, Aug. 19). Delta could serve seven of the eight U.S.
KLM will receive word today whether a Dutch judge will allow the carrier's pilots to honor a potential Northwest pilots strike.There are no agreements between the two pilot groups. KLM's transatlantic flights would be affected.
The Global Pilot Alliance (GPA) is seeking ways to incorporate legally enforceable language into member unions' contracts protecting pilot jobs in the age of global alliances. Pilots from Atlantic Excellence Alliance carriers Delta, Austrian, Sabena and Swissair, and from code-share partner Finnair, met in Brussels during the weekend and voted in TAP Air Portugal as a member.
Polar Air Cargo said it has added Lima, Peru, to its 747 freighter network. Initial schedules provide two weekly flights between Miami and Lima, the carrier's seventh city in South America.
Qantas has contracted with Telstra to build a new Australian telecommunications network for the airline. The six-year project is designed to give Qantas one of the most advanced telephone, computer, Internet and intranet networks. The new network is expected to lead to improved service at reservations centers and during airport check-in.
Tunisair has taken delivery of the first of three on-order A319 aircraft, becoming the first operator of the type among African and Arab countries, Airbus said yesterday. Tunisair currently operates eight A320s and one A300, and it has four more A320s on order. Delivery of the second A319 is scheduled next month. Airbus said Tunisair's A320 utilization averages nearly eight hours per day, with an average dispatch reliability of more than 99% during the last 12 months.
Sandy Gardiner, British Airways' senior VP-communications, the Americas, will become a part-time consultant to the airline for public relations, communications and reputation management. He has been with BA for 18 years.
BT Alex Brown forecasts that the six regionals it follows - AMR Eagle, Atlantic Coast, Atlantic Southeast, Comair, Mesaba and SkyWest - will increase seat capacity 15.6% this year and 10% in 1999. The six carriers have 118 aircraft on order for delivery in 1998 and 1999.
US Airways and American have entered the second phase of their marketing agreement by allowing their frequent flyers to combine miles for award travel to any point served by either carrier. American AAdvantage members and US Airways Dividend Miles members who belong to both programs can combine miles from both accounts to claim award travel on either carrier or a combination of both.
Grupo Taca is discovering it can expand profitably without adding to the capacity glut between the U.S. and Central America. The collection of regional carriers with a new livery is finding gold in regional routes to the Caribbean, South America and within its own geographic area, while it watches other airlines start to assess route changes. United pulled out of Chicago-Guatemala City, and several sources tell The DAILY Delta is struggling with regular U.S.-Central America load factors of 25%.
Hawaiian Airlines reported 3.1% more traffic and 4.2% more capacity in July 1998 than in the same month last year, depressing the load factor 0.9 percentage points to 82%. The carrier flew 403 million revenue passenger miles and 491.7 million available seat miles. Year-to-date RPMs grew 0.1% and ASMs 1.7% from the first seven months last year, lowering the load factor 1.3 points to 76.1%.
