Air Transport Association reported that revenue passenger miles increased 3.4% in June, with international traffic up 4.7% and domestic traffic 3%. The systemwide load factor rose to 76.5% from 75.1%; the international load factor was 77.5% and the domestic load factor 76.2%.
Hawaiian Airlines reported a $6.1 million operating profit for the quarter ended June 30, a jump of more than 200% from the $2 million in the same period last year. The net profit totaled $2.9 million, up from $1.2 million. Operating revenues totaled $109 million, a 5% increase, and passenger revenues climbed 7.8% to $91.1 million. Operating expenses rose slightly to $102.9 million, offset by a drop in aircraft fuel prices to $17 million, compared with $19.2 million. Total revenue per available seat mile grew 3.4%.
Delta and United pilots have agreed to continue evaluating the proposed alliance between the two carriers and to share information, and have resolved that any alliance agreement between the carriers must provide enhanced job security, career advancement and value for both pilot groups. The two Air Line Pilots Association units, which met Sunday and yesterday at ALPA national headquarters in Reston, Va., also passed a resolution supporting Northwest pilots, who may go out on strike.
The European Commission's proposed slot and frequency controls for the United-Lufthansa-SAS and American-British Airways alliances seek to block the partners' dominance of hub and non-hub routes with detailed allocations that would give competitors about half the market share in a given city- pair (DAILY, Aug. 3). As indicated previously by EC Competition Commissioner Karel Van Miert (DAILY, July 9), the alliances would have to give up slots without compensation, either financially or through other means.
Approved a one-year exemption renewal for Aerochago to conduct scheduled cargo service between the Dominican Republic and Miami, New York and Puerto Rico, and cargo charters, only under wet-lease...Approved for two years an exemption renewal for American, which had requested indefinite-duration authority, to provide scheduled combination service between Miami and Paris...Approved a two-year exemption and authority renewal for Deutsche BA to display US Airways' code on flights between points in Germany carrying US Airways' traffic originating or terminating in the U.S...
Negotiators for Air Canada and its pilots' union, the Air Canada Pilots Association (ACPA), will hold formal contract talks Aug. 5-7 in Montreal (DAILY, July 24). Further meetings between the parties and conciliators from the Federal Mediation and Conciliation Services will take place in Hull, Quebec Aug. 10-14. ACPA represents about 2,100 Air Canada pilots who have been without a contract since April. Talks broke down June 26. Unresolved issues include wages and working conditions.
General Accounting Office, which developed a comprehensive database covering about 35% of the 547 airports in FAA's national airport system, says most runway pavement is in "generally good condition....However, in the next 10 years, many airports in GAO's database will face substantial work." In a report to Sen.
Advanced Aerodynamics&Structures appointed Michael Lai VP- engineering. American Jet International hired Mike Bryant as director-technical services. Associated Global Systems named Robert Antonucci district service manager at its New York Kennedy facility and said Regional Sales Manager Glenn Hammer will assume the additional responsibilities of district manager-Boston. Boeing Commercial Airplane Group named Richard Higgins VP-maintenance engineering and publishing.
Tells the story of the bomber pilot and test pilot for whom Edwards Air Force Base was named. Smithsonian Institution Press; $24.95. To order, call 800-782-4612.
Back Associates, New Haven, Conn., has acquired the aircraft appraisal and technical services business for the commercial and corporate aircraft markets from AvSolutions, Washington, D.C., which will continue in business with its current management and staff.
Aircraft Owners and Pilots Association is demanding that FAA scrap its proposed program under which FAA inspectors could, in AOPA's view, "act like a traffic cop and issue a ticket on the spot for an alleged regulatory infraction." Phil Boyer, AOPA president, wrote FAA Administrator Jane Garvey that FAA should "immediately terminate this program and concentrate on the real issues."
Northwest, facing a possible pilot strike, is making contingency plans.It will not accept reservations for unaccompanied minors traveling within the U.S. after Aug. 28 or internationally after Aug. 26, and it will begin immediately to convert to paper any electronic tickets booked for flights after those dates. It will extend the expiration date of frequent flyer miles if a strike develops on Aug. 29, the end of the 30-day cooling-off period.
Multilateral negotiating between the European Commission and the U.S. will bear fruit someday as the world moves toward regional relationships, United VP Cyril Murphy said last week. But Murphy opposes the conditions being imposed on alliances by the EC's Karel Van Miert. When United executives met with EC officials, they encountered old arguments about far-reaching government intervention curing market defects, he said. "We hadn't heard such talk since the 1950s."
DOT issued a show cause order restoring Cleveland as a gateway to the U.K., renewing Continental's authority to fly combination service in the Cleveland-Gatwick market and selecting American's San Jose-Gatwick proposal as a backup. (Dockets OST-96-1642, 98-4745)
FAA's new advisory circular on carry-on baggage (DAILY, July 23) does not protect flight attendants or passengers and will not reduce injuries caused by carry-ons, the Association of Flight Attendants (AFA) said. AFA International President Patricia Friend wrote FAA Administrator Jane Garvey that the circular "will do little to reduce the excess amount of baggage flowing into the cabin.
FAA Administrator Jane Garvey said Friday the agency has met its July 31 internal deadline for renovating 60% of the mission-critical systems requiring Year 2000 (Y2K) work, and "we have exceeded our goal by renovating 67% of those systems." The Office of Management and Budget deadline for completing renovation of all critical systems is Sept. 30. Garvey said that of FAA's 433 mission-critical systems, 159 need renovation and that, to date, 106 have been renovated, 224 required no work and 50 will be retired or replaced with compliant systems.
DOT's invitation to comment on its proposed competition policy illustrates the department's interest in working with the airline industry, according to Secretary Rodney Slater, who briefed reporters in Washington last week on a range of issues (DAILY, July 31). "We could have taken an enforcement action" against a predatory airline, Slater said. "We chose not to. We could have instituted the guidelines, but we chose to invite comment. We continue to work with ATA [Air Transport Association] and Congress" on competition issues.
DOT announced Friday the resumption of U.S.-U.K. talks, in London starting Oct. 5, and simultaneously issued a procedural schedule for consideration of antitrust immunity for the American-British Airways alliance, fulfilling DOT Secretary Rodney Slater's prediction of imminent action on these fronts (DAILY, July 31). The schedule would conclude with briefs on Nov. 18, after which DOT could rule, although it faces no statutory deadline to do so.
Although Hong Kong airport authorities still were asking sightseers to avoid Chek Lap Kok Airport during the weekend, passenger and cargo service continued to improve. Cargo throughput July 30 was 4,097 tons, 888 by Asia Airfreight Terminal and 3,209 at Hong Kong Air Cargo Terminals Ltd. Some cargo still was being handled through Macau and Huangtiang. About 95% of rail trips from central Hong Kong to the airport took 30 minutes or less.
FAA Administrator Jane Garvey says she hopes to have a replacement soon for Richard Efford, whom she had named to the new post of deputy administrator for financial services (DAILY, June 9). Efford, a senior staffer on the House Appropriations transportation subcommittee, withdrew abruptly from the post.
- In Federal Register dated July 24...Proposed an airworthiness directive on Boeing 747 aircraft to require inspecting the center fuel tank...Revised a proposed AD on Shorts 330 aircraft concerning inspections for corrosion of the left and right stub wings...Proposed to supersede an AD on Airbus A310, A300-600 and A320 aircraft concerning inspections for proper grill installation over the lavatory.
Cargolux appointed Ulrich Ogiermann senior VP-sales and marketing. Lufthansa named Gabriele Velte head of corporate communications. Midway named Gary Marsh VP-flight operations. TWA named Jim Jensen senior VP-maintenance and engineering.
DOT Research and Special Programs Administration named Frank Tupper director-Transportation Safety Institute at the Mike Monroney Aeronautical Center in Oklahoma City.
