Following earlier links with Boeing and then-independent McDonnell Douglas, the International Transport Workers' Federation (ITF) has forged a direct relationship with Airbus in an attempt to put cabin crew and ground staff unions in contact with the manufacturer's senior engineers and policymakers. At a recent two-day meeting in Toulouse, an ITF team talked with Airbus specialists about human factors, accident investigation and a broad technical and engineering agenda.
British Airways sold out 60% of the coach capacity on its Denver-London Gatwick route during the weekend on the strength of its $198 introductory roundtrip fare. DOT approved the service last week (DAILY, July 23), and BA will launch it Sept. 1. The low-fare marketing effort proved to be a bigger success than the carrier anticipated. "It was the fastest and most successful fare sale we have ever had," said VP-Communications, North America John Lampl.
Boullioun Aviation Services placed orders yesterday for 30 next-generation 737s and took out options on 30 more, with a total value of up to $2.6 billion. The orders and options will triple the size of Boullioun's aircraft portfolio. Deliveries are to begin in 2001 and continue through 2006 to the aircraft leasing and finance company, which has been owned since 1994 by Sumitomo Trust and Banking Co. of Japan. Boullioun was formed in 1986 by E. H. "Tex" Boullioun, a former president of Boeing Commercial Airplanes.
FAA should advise industry and its own field staff about the safety of threaded aviation fasteners following last May's "inactivation" of military specification MIL-S-8879C, DOT Inspector General Kenneth Mead recommended to FAA Administrator Jane Garvey. Mead said the Office of Inspector General plans to audit FAA oversight of the quality assurance systems used by FAA-approved manufacturers.
Senate Commerce Committee is considering whether to expand the number and type of airports eligible for regional jet service slots as proposed in S. 2279, the National Air Transportation System Improvement Act of 1998. New York Senators Daniel Patrick Moynihan (D) and Alfonse D'Amato (R) this week wrote the bill's key sponsor, Commerce Committee Chairman John McCain (R- Ariz.), expressing concern over expensive, minimal service to upstate points, a cause championed by Rep. Louise Slaughter (D-N.Y.).
The European Commission yesterday authorized the Greek government to resume state aid payments to Olympic Airways, blocked since April 1996 because Greek authorities did not carry out the Olympic restructuring program linked to the bailout. As forecast (DAILY, July 23), the commission reduced the original capital injection - 54 billion drachmas (US$182 million), authorized in July 1994 - to 40.8 billion drachmas after finding that the Greek government had pumped in 13.2 billion drachmas illegally after the 1994 decision.
DOT issued a consent order yesterday assessing $19,000 in compromise civil penalties against Asiana for engaging in cabotage via the Internet. The Korean carrier, which holds permit authority for combination service between points in Korea and the U.S., listed Seattle and Guam as destinations on its web site, DOT said, "and a shipper, by selecting the two points, would receive a schedule of services between Guam and Seattle, via Seoul." The department said foreign carriers' web sites should be modified so that requests for service between U.S.
TWA denied yesterday a report appearing today in a German business magazine that the carrier plans to form alliances with 15 small European airlines. An industry source said TWA is expected to announce a frequent flyer agreement today with a small European carrier.
National Air Transportation Association is trying to reach a membership consensus so it can advise FAA as the agency deliberates the future regulatory status of fractional ownership of aircraft. James Coyne, president, said a survey shows fractional ownership affects a majority of NATA members. Some members reported increases in their businesses while others cited a negative impact, Coyne said. "The issue continues to be a lively item of discussion."
Canadian Airlines recorded an improved operating income of C$30.9 million (US$20.5 million) and net income of C$4 million (US$2.6 million), its highest second quarter net income since 1990. The carrier lost C$62.3 million (US$43.3 million) in its first quarter (DAILY, May 11).
Jim Coon, staff member for the House Transportation aviation subcommittee and a key aide to subcommittee Chairman John Duncan (R-Tenn.), will leave to join the Air Transport Association as legislative liaison, effective Aug. 10.
Continental's regional subsidiary Continental Express will begin twice- daily nonstop service between Houston George Bush Intercontinental Airport and Greenville-Spartanburg on Oct. 1, using 50-passenger ERJ-145s.
Japan Airlines has agreed to team with Global One to launch JAL Prestige Calling Service, a telephone calling program for its 3.5 million frequent flyers. Starting Saturday, JAL's Mileage Bank members will earn miles on calls worldwide at a rate of two miles per US$1 spent. Global One, a joint venture of Deutsche Telekom, France Telecom and Sprint, signed up 20 airline frequent flyer programs, more than any other telecommunications service.
Shareholders of Mesa Airlines rejected by 81.9% a bid to hire an investment banker to look at ways to enhance the value of Mesa by sale or merger. They re-elected the board to a one-year term, retaining Paul Madden as chairman, James Swigart as vice chairman, Jonathan Ornstein as president and chief executive and Daniel Altobello, Jack Braly, Herbert Denton, Ronald Fogleman, Larry Risley and Clark Stevens as members.
Boeing confirmed yesterday it has "canceled" a contract with Dimension Aviation to convert at least 12 DC-10s to "advanced technology MD-10 cargo jets" for FedEx. Dimension, based at the Phoenix-Goodyear Municipal Airport, Goodyear, Ariz., is a subsidiary of Sabreliner Corp. FedEx had contracted with the former McDonnell Douglas to convert up to 60 DC-10s. Conversion work is under way at two other facilities, in Alabama and Italy.
Smaller carriers backing DOT's proposed competition policy dismiss majors' effort to label it reregulation, saying practical experience provides ample evidence that they are using unfair methods to compete. The rules could be modified for speedier sanctions and to delineate behavior, but they are a prerequisite if consumers are to benefit from the free market, they told DOT last week.
Savannah/Hilton Head and Atlantic Coast Airlines (ACA) told DOT their bid for Chicago O'Hare slots should have precedence over those by Great Lakes Aviation and American Eagle. Savannah, Ga., and Hilton Head, S.C., asked DOT for eight slots last March and ACA later requested five for service on a route to be served with regional jets, and they seek to ensure the ensuing applications do not block them from the award if the slots are to come from the same pool.
Standard&Poor's assigned a triple-C-minus rating to Canadian Airlines' proposed US$125 million debt issue and lowered its outlook to stable from positive. The outlook revision "reflects expected delays in any significant financial improvement at Canadian Airlines," S&P said. It said Canadian's "weak financial position and low profitability" are "tempered somewhat by control of valuable international route rights and a strong alliance with, and operating support from, American."
Amsterdam Schiphol Airport will introduce landing fees Saturday that penalize noisy aircraft. The airport has divided all Chapter 3 aircraft into three categories. The least noisy aircraft, such as the 777 and MD- 11, will receive a 2.5% discount on the basic landing fee. Schiphol increased all airport fees 2.5% on June 1, so the quietest aircraft in effect will pay slightly less than the pre-June 1 rate. The second category of aircraft, such as the 747-400 and A300, will pay the basic June 1 fee.
U.S. major airlines have not been able to control their costs during the prosperous mid-1990s and are likely to suffer for it during the next economic slowdown, James Parker, managing director, Robinson-Humphrey Co., told the Aero Club of Washington yesterday. Parker, who specializes in regional and low-cost airlines, contrasted the majors' revenue-driven profits of recent years with results of the best-run regionals, whose low costs and stable, business-oriented traffic produce operating margins in the mid-20s.
Delta is suspending acceptance of live animals as checked baggage systemwide through Sept. 15 because of record high temperatures that can subject animals to stress, illness or death. Passengers affected by the embargo during a trip will be allowed to return home with animals as checked baggage if outside ambient temperatures are not forecast to exceed 85 degrees F in the originating or connecting city during travel. They will be allowed to rebook itineraries without penalty to reschedule travel for early-morning or evening flights.
Virgin Atlantic is introducing a new way - limo and boat - for Upper Class passengers to travel from Heathrow Airport to London. Passengers will be collected at the airport by a complimentary limousine service and taken to nearby Ferry Wharf in Brentford, where the new Virgin Limoboat will take them into the city on the Thames River. A recent U.K. government white paper boosts integrated transport systems and suggests that the Thames is London's least-used traffic route.
Denver-based Frontier Airlines reported a net profit of $433,709 for its first fiscal quarter, which ended June 30, and revenues of $42.8 million, up 24.1% from the same three months last year. The June quarter was the carrier's first period of profitability in two years.
Varig traffic increased 7% in June to 2.2 billion revenue passenger kilometers. First-half traffic was up 8.7% and passenger volume up 9.4% to 5.2 million. The international load factor in June was 65%, compared with 68% in May, while the domestic load factor was 60.9%, up from 56.3% in May.
U.S Major Carriers Productivity, In RPMs And ASMs Per Employee, First Quarter 1998 Revenue Available Passenger Seat Miles Miles Total (000) (000) Employees Alaska 2,459,066 3,798,403 8,237 America West 3,636,309 5,846,109 11,455 American 25,388,631 37,707,489 80,842
