Average one-way fares charged in 1997 by U.S. airlines in domestic markets of varying stage length are compared in newly developed tables on Pages 221-223.
DOT Inspector General Kenneth Mead told FAA Administrator Jane Garvey this week she should "promptly" announce corrective actions she plans on the free familiarization (Fam) trips air traffic controllers and other personnel take on airlines to "correct a serious, continuing and widespread lapse of ethics." FAA said it intends to "respond to the IG as expeditiously as possible. We plan to work closely with the IG and our employees to construct a program for the future that meets our training requirements as well as all tests of the ethics laws."
KLM Royal Dutch Airlines reported a net profit increase of 12% to 212 million guilders (US$106 million) during the quarter that ended June 30. The results were supported by a one-time gain, lower costs and improved yields, but were held down by conditions in Asia. Net profit did not include subsidiary Martinair, which would have boosted operating profit 15% to NLG 285 million ($142.5 million). Overall operating income rose 5.2% to NLG 262 million ($131 million), the low end of analysts' expectations.
Average One-Way Fare By Stage Length, Grouped By Hub* Size to All U.S. Domestic Destinations, In Dollars, Year End 1997 Stage Length (Miles) 0 to 250 to 500 to 1,000 to Large Hubs 249 499 999 1,499 Atlanta $141 $122 $146 $168 Baltimore $139 $104 $111 $166 Boston $109 $138 $189 $147
Korean Air is changing its Washington, D.C., schedule to accommodate business passengers better, the carrier said yesterday. On Sept. 5 Korean will add a Saturday-evening departure to Seoul that arrives on Monday morning, and a return flight from Seoul on Saturday arriving at Washington Dulles Airport the same day. These flights replace Korean's current Sunday service. The Monday, Wednesday and Friday schedule remains the same, for a total of four weekly departures between the two capitals.
Asiana Airlines asked DOT to amend its foreign air carrier permit, authorizing it to provide scheduled service from points behind Korea via Korea and intermediate points to points in the U.S. and beyond, and to operate charters, all as provided for under the 1998 U.S.-South Korea open- skies accord. The carrier commented that the South Korean government "routinely grants" fifth-freedom traffic rights to U.S. carriers. Asiana last week resolved an enforcement action with DOT regarding unauthorized cabotage.
Alaska Airlines announced yesterday a carry-on baggage policy that limits passengers to two carry-ons that together fit into a volume 10 inches high, 17 inches wide and 24 inches long, a total of 51 linear inches. The policy applies to all carry-on items, including backpacks, laptop computers, purses and briefcases. Exceptions include outer garments such as winter coats, and government-approved child safety seats for children traveling as ticketed passengers.
DOT seeks carriers interested in serving South Africa under a third-country code share. Applications are due Aug. 10 for a designation that becomes available Nov. 1.
In choosing a "hybrid" hearing before DOT Assistant Secretary Charles Hunnicutt to examine antitrust immunity for the American-British Airways alliance, DOT rejected arguments that only an oral evidentiary hearing could be relied on to judge factual issues. The department also said American-BA foes misread DOT's regulatory requirements, which in their view requires the evidentiary hearing in cases like American-BA (DAILY, Aug. 3).
The House yesterday passed by voice vote its one-year reauthorization for FAA, H.R.4057, including as recommended by the Transportation Committee $5.6 billion for FAA operations and $2.131 billion for facilities and equipment. The main change is the addition of H.R.4268, the National Parks Air Tour Management Act, regulating park overflights but excluding Grand Canyon National Park and national parks in Alaska from its provisions.
Connecting services provide about one-third of airline revenues, according to recent research carried out for OAG Worldwide, whose airline marketing director, Lynne Fraser, said published information on connections aimed at the business traveler produce major savings for the user. "Even using the most conservative figures, the value to the global air transport industry is at least $3.1 billion in the case of connections listings, and $5.6 billion in the case of direct flight listings," she said.
FAA has awarded Raytheon a $100 million contract for ATCBI-6 Air Traffic Control Beacon Interrogators to replace ATCBI Model 4 and 5 equipment, mainly at en route sites that provide secondary surveillance information. The new systems, designed to be more reliable, will be manufactured by Cossor Electronics Ltd., a U.K. subsidiary of Raytheon. FAA said it expects the first two test systems to be delivered in mid-1999. The first field systems will be delivered in 2001.
Machinist union membership votes on the Northwest contract agreement will be tallied today, the International Association of Machinists said yesterday. The count was scheduled yesterday in Minneapolis but was postponed because of high voter turnout. There are five IAM contracts at Northwest. Industry sources said the flight kitchen employees appear to have accepted their contract, but exit polls indicate machinists rejected theirs.
A hold placed on funding of the Wide Area Augmentation System (WAAS) by the House and Senate Appropriations committees could kill the program, according to industry groups who have communicated their fears to key senators and representatives. Language in funding bills conditions support of the program on the resolution of several issues, including the question of WAAS's ability to provide sole-means navigation.
Delta will begin code-share service Sept. 1 from Atlanta to Monterrey, Mexico, on AeroMexico's daily flights. The service will provide a new option for Monterrey business and leisure travelers and freight forwarders, Delta said. Introductory fares begin at US$272 roundtrip, and tickets must be purchased by Aug. 25 for travel Sept. 1-Oct. 31.
AirTran will offer daily nonstops between Atlanta and Quad City/Moline Airport Sept. 9 with one-way fares starting at $79. Four-times-weekly Miami-Atlanta nonstops will start Sept. 16 for $69 each way.
Fairchild Aerospace and General Electric said GE's CF34-8D turbofan will power its new 728JET. The aircraft will enter service sequentially, with the 728JET seating up to 78, the 528JET seating up to 63 and the 928JET seating up 98.
Business Travel Coalition plans an airline competition conference Oct. 20 in Chicago that will examine industry competition levels, market intervention strategies, group purchasing and other issues. The meeting is for corporate, community and airport executives who face problems in these areas.
Abacus has launched FareX to almost 100 international airline executives and travel professionals. FareX, which stands for Fares EXchange, is the industry's first fare product that enables users to manage, distribute and update negotiated fare information online.
Air Mobility Command has awarded $567 million in airlift contracts for fiscal 1999. Nine individual carriers and three airline teams garnered contracts to move passengers and cargo in support of Defense Department activities.
Robert Willig served in the Justice Department as deputy assistant attorney general for economics during 1989-91; Janusz Ordover held the same post during 1991-1992. The terms were in error in the July 24 DAILY.
BTR plc, British conglomerate, will sell its aerospace units for $839 million cash to Doughty Hanson&Co. The transaction, expected to be completed by Sept. 30, includes Standard Aero, which repairs and overhauls engines; Dunlop Aviation, which manufactures and services wheel and brake systems; Aero Engine Equipment, which manufactures components for large turbofans, and Dunlop Precision Rubber, which manufactures seals, moldings and extrusions. Doughty Hanson, a private equity fund group, is renaming the acquisition Dunlop Standard Aerospace.
The 10 largest U.S. carriers posted an on-time arrival rate of 70.4% in June, down from the May rate of 77.5% and June 1997's 76.1%, according to DOT's Air Travel Consumer Report. Southwest had the highest rate, 81.4%, followed by Delta, 75.4%, and American, 75.0%. TWA was eighth, 64.9%, United ninth, 64.6%, and Northwest 10th, 58.7%.
