Transaero Airlines has retained CIBC World Markets as its financial adviser. CIBC will provide assessments of fleet acquisitions, working capital, and pre-delivery and long-term financing of aircraft. The carrier will acquire more than $1 billion worth of new aircraft by 2002, including 10 new Boeing 737-700s and four new 767-300ERs. Transaero carried 1.6 million passengers last year.
American told DOT that if it grants Continental's request to renew its extrabilateral code share with Virgin Atlantic for U.S.-U.K. services (DAILY, Aug. 7), the authority "should be limited to 179 days, and any further renewal should be denied unless an open-skies agreement has been reached between the U.S. and the U.K." Continental's exemption, granted for one year when American objected to a longer period in the absence of open skies, expires Oct. 3 (DAILY, Oct. 9, 1997). U.S.-U.K. bilateral talks are scheduled to resume in London Oct. 5.
Northwest, which obtained an extra $1 billion line of credit May 12, this month borrowed all amounts available to the company.The $2.08 billion, plus $960 million in cash, gives the airline a war chest of $3.04 billion in available liquidity to use in the event of a pilots strike.
Aeroflot-Russian International Airlines this week ordered the Unisys Customer Loyalty System (CLS) as part of its plan to launch an international frequent flyer program on par with its competitors'. Aeroflot signed a contract valued at $1.1 million for the system, which was first purchased by Ansett Australia 18 months ago. CLS is "a customer database with a full-featured loyalty system attached," said Steve Arsenault, Unisys program director.
Continental has opened two airport lounges, at Houston Bush and Washington Reagan. The club in Houston's Terminal C, the airline's third at the airport, offers shower facilities and a performing arts theme bar. The Washington club, in the airport's older section, has a 1940s style Presidents Club. The new lounges include copiers, fax machines, private workstations, dataports for computers and conference rooms. Continental will open four more Presidents Club lounges this summer, in Dallas, Cleveland, Terminal B in Houston and its first in Mexico City.
Fairchild Dornier is expected to double its number of employees - to 3,600 - within the next two years to match growing orders for its new 728Jet aircraft family, a top executive of the regional aircraft manufacturer said last week in Oberpfaffenhofen. So far, Fairchild Dornier has won 300 firm orders and options. Lufthansa CityLine and Crossair will be the launch customers with a combined order for 120 aircraft. The first delivery is scheduled in mid-2001. Fairchild Dornier plans to ramp up production to five aircraft per month after that date.
Norway's Braathens ASA said this week it will purchase Swedish regional airline Malmo Aviation for an undisclosed sum. The move also helps Braathens partners. The airline is 30% owned by KLM and has alliances with Northwest and Alitalia. The action strengthens Braathens' standing in Sweden, where it operates through subsidiary Braathens Sweden. More details on the sale are expected next month.
At the end of the second quarter, the strength of the U.S. economy surpassed all other factors in contributing to the financial health of U.S. airlines. Boosts from lower jet fuel costs aside, record profits flowed from all sectors. The lone exception was Northwest, which suffered from labor woes and an Asian operation less healthy than Pacific competitor United's. In July, after the quarter ended, domestic traffic was up 2.5% while capacity rose 1.7%, according to BT Alex Brown. United expects the buoyant U.S.
Aviation Industries Corp., which holds an equity position in Kiwi International Air Lines, said yesterday it has completed the acquisition of Magnolia Tours and Transportation, which provides airport transfers to and from Mississippi Gulf Coast casinos and hotels, shuttle services, local area tours and other transportation services.
National Transportation Safety Board said a US Airways 737-300 received minor damage and three flight attendants and seven passengers suffered minor injuries Aug. 7, when the aircraft encountered turbulence and was diverted to Pittsburgh Airport on a flight from Philadelphia to Las Vegas.
All parties filing on United's complaint against proposed European Commission alliance remedies faulted the EC's actions and supported United's intentions but differed with United's choice of targets. SAS and Lufthansa backed partner United's efforts to fight the conditions but said it was a mistake to target the governments of Germany and Scandinavian countries. Opinions differed on whether the proposals, which include frequency cutbacks, slot reallocation and joint marketing limits, should be construed as violating individual bilateral agreements.
TradeWinds Airlines has accepted the third Lockheed L-1011 aircraft leased from Northfield, Ill.-based Interlease Aviation Group. The plane arrived at TradeWinds' headquarters in Greensboro, N.C., after a ferry flight from Cambridge, England, where it underwent heavy maintenance at Marshall Aerospace. The three aircraft are named the Susan Sabina, Allison Anne and Charlotte Rose for daughters of Interlease President Philip Coleman, who helped Tradewinds enter the passenger charter market ahead of schedule.
Nav Canada has submitted to the minister of transport a revised proposal on air navigation user fees that will involve new charges on small aircraft but reduce costs for larger airspace users by as much as 20%. John Crichton, president, said yesterday the company is proposing to defer imposition of the new fees from Nov. 1 until March 1, 1999. The new fee schedule is an "important milestone" in Nav Canada's evolution as a "private-sector, non-share capital company operating independent of government funding," he said.
United's flight attendants will vote on an agreement between the airline and the Association of Flight Attendants (AFA) that would cope with a surplus of 300 flight attendants based in Honolulu. The extra staff became an issue after the cancellation of Honolulu-Osaka service and other cutbacks related to lower Asia/Pacific traffic.
U.S. National and Regional Carriers Traffic July, 7 Months 1998 (000) July July % 1998 1997 Change Air Wisconsin Revenue Passenger Miles (000) 93,784 59,722 57.0 Available Seat Miles (000) 124,200 83,237 49.2 Load Factor (%) 75.5 71.7
FAA has granted type certification to the next-generation 737-600, Boeing said yesterday. SAS launched the program in 1995 with an order for 41 aircraft. Deliveries are scheduled to begin next month pending similar approval from the Joint Aviation Authorities of Europe. All the next-
Two days into the negotiations between Northwest management and pilots yesterday, neither side reported progress or was willing to describe the talks. The negotiations resumed Monday to conclude a pilot contract and avert an Aug. 29 strike deadline. The talks, in the presence of the National Mediation Board, are being held at an undisclosed location. Both sides are keeping the location secret, fearing that reporters could distract negotiators.
Delta will give passengers who purchase qualifying tickets on its Internet site discounts of 50% off future roundtrip coach-class tickets. The sale, through Sept. 1, applies to tickets in the initial purchase that cost at least $229. The future discount does not use a certificate. Instead, Delta adds a customer locator code to the online information screen, and the passenger uses the code later to claim the discount. The promotion is intended to boost near-term bookings and drive traffic through Delta's website, www.delta-air.com site.
American, telling employees that Aug. 16 was one of the top 10 traffic days in the history of the company, brought out another issue as well.The data implied, but did not reveal, that American flew 0.3% fewer available seat miles last Sunday than on Aug. 16, 1992, signaling six full years in a zero-growth mode for the airline.
Pilot union leaders at Delta regard the proposed Delta-United code-share alliance as finished now that the airline's board has denied full voting rights to the ALPA seat on the board (DAILY, Aug. 18). Delta's Air Line Pilots Association unit told Delta Chief Executive Leo Mullin on several occasions that the voting right was a minimum requirement for the alliance to proceed, ALPA Delta Master Executive Council Ccommunications Committee Chairman Andy Dean told The DAILY yesterday, "but the board just couldn't choke down" the idea of having a voting labor member.
Continental has introduced Freedom Flight Club, a program for seniors 62 and older that saves 15-20% off everyday fares. The program, which includes "virtually unlimited travel" on any day, requires an annual membership fee of $75 for domestic and $125 for international travel.
Northwest Airlink carrier Mesaba Airlines said yesterday it will shut down all service temporarily if Northwest pilots go out on strike, as threatened, Aug. 29. Mesaba, the seventh largest U.S. regional, carries 15,000 passengers each day, 79% of whom transfer to or from Northwest in Detroit and Minneapolis.
PROS Strategic Solutions said yesterday it has started operating its revenue optimization software at Frontier Airlines and is providing consulting services "that will enhance the airline's ability to capture incremental revenue from its existing sales opportunities." The company said the PROS IV Passenger Revenue Optimization System is designed to operate in Frontier's revenue-management environment to "achieve the most profitable mix of fare-class allocations and minimize losses from discounted, spoiled or returned seats."
