Air France and Austrian Airlines have signed a commercial cooperation agreement, the French airline said yesterday in Paris. Starting Oct. 25, the airlines will operate operate seven daily code-share frequencies between their respective hubs, Paris Charles de Gaulle and Vienna. In addition, a prorate pact will provide Air France access to Austrian's Eastern European network. In return, Austrian will have access to Air France's domestic routes.
Pittston BAX Group reported net income of $1 million in the second quarter, compared with a year-earlier loss of $1.9 million. Revenue increased 8% to $432.9 million from $399.6 million. For the first six months, the company had a net loss of $2 million, compared with net income of $3.2 million last year. Revenue rose 8% to $835.3 million from $771 million.
PROS Strategic Solutions announced its newest origin-destination revenue management system, saying it uses the "most advanced algorithms and development technology available...to optimize revenue in real time across an airline's route structure." PROS President Sam Coats said airlines using the new system "can expect substantial incremental revenue gains over current leg-and-segment-based yield management solutions." The new system uses scalable distributed computing technologies to solve large-scale optimization problems, the company said.
American Trans Air said it plans to buy five L-1011-500s plus spares and engines from Royal Jordanian. ATA has taken delivery of the first aircraft, which will go into operation in December; the other four will follow in the next 15 months.
China Airlines and Swire Pacific have entered into a $7.25 million joint venture to provide laundry service to CAL and outside clients. CAL holds a 55% stake in the venture with Swire controlling 45%. Pacific Laundry Services Ltd. is scheduled to become operational in April 1999, with an initial capacity of 15 tons per day, with expansion to 30 tons per day anticipated. In addition to performing laundry service for CAL and Cathay Pacific, the service will target outside customers, such as hotels, restaurants and clubs.
Boeing apparently miffed Chinese officials when it announced it will stop producing MD-90s next year. The Chinese have canceled plans to build 20 of the aircraft in China under the Trunkliner project, developed as an attempt by the former McDonnell Douglas to gain a foothold in the vast Chinese market. Boeing officials declined to return telephone calls yesterday.
Philippine Airlines, nearly two months after halting flights to Taipei and Kaohsiung in response to a pilots' strike, has resumed limited service to Taiwan. Since Aug. 1, PAL has conducted one daily roundtrip flight on the Manila-Taipei route with Airbus A320 aircraft.
Malaysia Airlines will move its West Malaysia domestic flights back to Sultan Abdul Aziz Shah Airport soon. Involved are the lucrative routes to Penang, Johor Baru, Kuantan, Alor Setar, Kota Baru, Kuala Terengganu and Langkawi Island, which had been operating from the new Kuala Lumpur airport, 50 miles from the city (DAILY, July 10). Transport Minister Ling Liong Sik said the government has reviewed a study conducted by MAS after one month of operations from Kuala Lumpur International Airport.
Rockwell Collins Air Transport Systems and the FAA Technical Center have completed successful flight trials of the Traffic Alert and Collision Avoidance System Change 7.0 software, and certification is expected this year. The company said the updated software proved capable of tracking multiple intruders at long ranges in high Mode S traffic. The software enhances the ability of TCAS to filter Resolution Advisories, incorporates more stringent criteria for removing Traffic Advisories and improves surveillance capabilities in high-density traffic areas.
American reported a 1.4% rise in systemwide traffic and a 1.1% increase in capacity for July 1998 over July last year, which boosted the load factor 0.2 percentage points. The biggest changes were in Pacific service - RPMs rose 22.6% on 40.2% more capacity, which depressed the load factor 9.8 points. International revenue passenger miles climbed 6.3% on 9.5% more capacity, which pushed the load factor down 2.2 points. July 98 July 97 7 Mths 98 7 Mths 97
Delta will issue boarding passes on the day of travel only for domestic flights, beginning Sept. 1. Gate agents will hand out boarding passes up to six hours before a flight. Delta began issuing boarding passes on day of travel only for international flights earlier this year.
United selected International Aero Engines V2500s for an additional 22 A320 and A319 aircraft. With 130 A320s in its fleet, United is IAE's largest customer. IAE said it has sold more than 2,200 engines valued at $4.3 billion.
CFM International valued at $300 million the engines for 30 firm next- generation 737s ordered by Boullioun Aviation Services. Boullioun also placed 30 options.
British Airways franchisee CityFlyer has set up a Flight Connections Unit and Hub Management Center at London Gatwick Airport to monitor and manage the 250,000 BA transfer passengers flowing between the South and North Terminals. The new unit will track inbound and outbound transfer passengers. The center's 11-person team will meet passengers whose connections are tight or missed because of operational difficulties or weather delays. The unit will rebook passengers and arrange overnight hotel accommodation if necessary.
American and US Airways "seek to eliminate entirely" TWA's right to serve the St. Louis-Paris market by proposing that its base level U.S.-France frequencies be reduced to seven from 14 (DAILY, July 28), TWA charged. This would "weaken TWA by depriving it of a profitable transatlantic service," the carrier told DOT. TWA said it has served St.
Airport and Airway Trust Fund - Income Statement October 1, 1997 - June 30, 1998 RECEIPTS (Revenues) June 1998 Revenues: Excise Taxes (Transferred from General Fund): Liquid Fuel other than Gas 78,520,000.00 Transportation by Air, Seats, Berths, etc. 461,374,000.00 Use of International Travel Facilities 68,515,000.00 Transportation of Property and Cargo 18,618,000.00
One reason United is worried about the European Commission's recommendations on its alliance is the gulf between them and remedies proposed by U.S. regulators, United's Cyril Murphy said yesterday. In contrast, he said, authorities in the U.K., EC and U.S. are closer on "remedies" for American-British Airways. The EC stance on United- Lufthansa-SAS is all the more troubling because in that proposal, "we have not seen any evidence that the EU is listening to anyone on anything."
Frontier is offering a sale with fares starting at $89 one way based on roundtrip purchase. Tickets must be bought by Aug. 17 for travel Aug. 25- Dec. 16, and fares apply to off-peak travel Tuesday, Wednesday or Saturday. Sample one-way fares from Denver are $99 to Albuquerque, $169 to Baltimore and $139 to Los Angeles.
DOT's report, Competition In The U.S. Domestic Airline Industry, which supports its proposed competition policy, is available on its web site at http://dms.dot.gov/ost/aviation. The brief and accompanying examples of predatory behavior are viewable only under the Adobe Acrobat (.pdf) format.
LanChile, Chile's largest domestic and international passenger and cargo carrier, reported net income of US$17.8 million for the first six months of 1998, down from $24.1 million during the same period of 1997. The decrease was due mainly to a drop in operating income to $26.8 million from $29.5 million and a rise in non-operating losses to $6.6 million from $1.8 million. The non-operating cost increase reflected $3.8 million in losses by related companies and exchange rate fluctuations that cost the company $1.5 million.
Corporate Airlines, regional partner of Midway Airlines, has started service between Raleigh/Durham, N.C., and Columbia, S.C. Corporate offers three daily roundtrip flights marketed under the Midway name and code.
British Midland supported a U.K. House of Commons select committee's recommendations that the Civil Aviation Authority promote regional air services more vigorously and that airport capacity in southeastern England be increased, but the carrier said the committee's proposal to change the European slot regime could harm it and other European airlines. Issuing a report of its own, British Midland estimated benefits of domestic air services to the U.K.
Republican governors of states that would be financially hurt by a Northwest pilots strike and Democrats on Capitol Hill are split over whether President Clinton should intervene if the pilots walk out Aug. 29. On Monday, governors from seven states sent a letter to Clinton urging him "to do everything possible to bring both parties to the negotiating table to resolve the dispute." It was signed by the governors of Iowa, Michigan, Minnesota, North Dakota, South Dakota, Tennessee and Wisconsin.
