Taiwan's Civil Aeronautics Administration approved a request by China Airlines to raise ticket prices between Taiwan and Hong Kong 15%. The increase, to take effect in August, is the first in eight years on the heavily traveled Taipei-Hong Kong and Kaohsiung-Hong Kong routes. Analysts in Taipei say that because of heavy competition on the routes, the increases are likely to affect only business- and first-class fares. The CAA also approved a request by EVA Airways to boost children's fares to 75% of adult fares on routes between Taiwan and the U.S.
DOT, for a fourth time, extended for 30 days the period for taking action on US Airways' March 12 complaint against the U.K. alleging violations of the U.S.-U.K. bilateral. US Airways charged that the U.K. refused to provide it with commercially usable slots at London Gatwick for its Charlotte-Gatwick service. DOT said in its order extending the period through Aug. 9 that "intergovernmental and carrier efforts have resulted in continuing progress toward resolving the issue." (Docket OST-98-3615)
U.S. carriers outlined their planned U.S.-Japan and beyond winter season and yearround service, vying for 22 additional weekly U.S.-Tokyo Narita slots - enough for 11 roundtrips - of which two are available only for winter season operations. Hawaiian complained that DOT did not serve it with the notice. The carrier was tentatively awarded seven Maui-Tokyo frequencies but has not received authority from DOT. It said it will need slots for its planned Jan. 1, 2000, startup of daily roundtrips. All told, seven carriers seek 99 slots.
Canadian Airlines reported a systemwide 4.8% increase in traffic and a 5.7% rise in capacity for June 1998 from June last year, which depressed the load factor 0.7 percentage points. Canadian reported 1.6 billion revenue passenger miles and 2.1 billion available seat miles, creating a 74.1% load factor. Domestic RPMs dropped 3.3% to 503 million and ASMs 3.4% to 653 million, boosting the load factor 0.1 points to 77%.
Emery asked DOT to amend its certificate to allow it to serve 65 additional countries from the U.S., requesting that the amendment be granted "for an indefinite term, based on the absence of any limitations on U.S.-flag designations" for all-cargo services to the countries it wants to serve. Separately, Emery supported the applications of United Parcel Service and Federal Express for similarly amended certificates - each for 48 countries - provided its request is granted.
Senate Appropriations Committee marked up its transportation committee's appropriations bill for fiscal 1999, recommending total expenditures of $9.899 billion for FAA. The figure includes $5.581 billion for operations, $43 million in user fees, $2.044 billion for faculties and equipment, $174 million for research, engineering and development and $2.1 billion in Airport Improvement Program expenditures.
Iberia said last week it will begin nonstop service from Madrid to Chicago O'Hare Sept. 1 and offer rock-bottom fares to spur interest. The airline is launching service with "Si Europe" fares, starting at $259 roundtrip, and other sale fares from 16 U.S. cities as part of its code-share with American. The sale covers travel through Oct. 31. Chicago is Iberia's first new U.S. destination in several years. The carrier currently serves New York and Miami from Madrid.
Washington Airports Task Force said yesterday its analysis predicts that a bill by Senate Commerce Committee Chairman John McCain (R-Ariz.) will do more for America West and little to save consumers money. The bill, which would permit nonstop service between Washington Reagan Airport and markets outside its 1,250-mile perimeter, is set for markup today.
John Douglass was selected president and chief executive of the Aerospace Industries Association, succeeding Don Fuqua, who is retiring after more than 11 years as president. Fuqua will remain with AIA through November to provide a smooth transition. Douglass, who takes over Sept. 18, has been assistant secretary of the Navy for research, development and acquisition and, with the Senate Armed Services Committee, a foreign policy and science and technology adviser to then-Sen. Sam Nunn (D-Ga.).
A safe and secure aviation system in Africa is a "prerequisite for increased trade, investment and growth," DOT Secretary Rodney Slater told African transport leaders Friday in Harare, Zimbabwe, at the first of two regional meetings he is conducting in Africa.
A King County, Wash., Superior Court judge last week dismissed most of the state lawsuits filed by neighboring cities seeking to block construction of a third runway at Seattle-Tacoma Airport. Construction is continuing on the runway, scheduled to open in November 2004. The lawsuits were brought by the Airport Communities Coalition (ACC), a group of five nearby cities and the Highline School District. Washington Gov.
Southwest has added a second daily nonstop flight between Oakland, Calif., and Kansas City, with continuing service to Baltimore. Southwest is Oakland Airport's largest airline with 111 daily flights.
Strong traffic growth both within Europe and internationally is leading investment firm Salomon Smith Barney to raise its annual growth rate for the continent to 6.5% in 1998 from 5.5%. In its "European Airline Industry Update," the company said European passenger traffic has risen 8.1% so far this year. At the same time, airlines in the region are becoming more efficient with successful cost-reduction programs. The company expects European carrier earnings to grow steadily, rising 10% from 1999 to 2000.
Unions at Aeropuertos Espanoles y Navegacion Aerea, the state agency that runs Spanish airports, are threatening to strike July 31-Aug. 3. Airport workers claim Spanish authorities are rejecting their demands on pay and working conditions, whereas they accepted those of air traffic control personnel.
Midwest Express reported a 12.6% increase in traffic and an 8.8% rise in capacity for June 1998 over June last year, which pushed the load factor up 2.4 percentage points. Midwest reported 147.3 million revenue passenger miles and 203.7 million available seat miles, creating a 72.4% load factor. RPMs for Midwest Express Holdings subsidiary Skyway jumped 16.2% to 7.129 million and ASMs 6.3% to 13.9 million, boosting the load factor 4.4 points to 51.2%. Passenger enplanements were up 11.8% to 171,843 at Midwest and 17.3% to 32,606 at Skyway.
Pilots and flight engineers at Kiwi and Express One have voted for Teamsters representation. Of Kiwi's 100 cockpit crew employees, 86% voted for the union. Two-thirds of the 94 pilot and cockpit workers at Express voted for the union.
Worldspan has entered into a long-term technology provider agreement with U.S. Alliance, a consortium representing Northwest, United and Delta, to offer Worldspan at 11 military bases - nine U.S. Army and two Air Force facilities in South Korea - and Seoul-based Sharp Travel. Each base has two travel agencies. Terminals and ticket printers will be installed at the bases, giving their travel departments electronic connectivity to the global Worldspan mainframe system.
EurAir Pass has increased its reach, adding three airlines to the nine original members. The single-fare system for air travel across Europe now includes Icelandair, Estonian Airlines and AB Airlines. For $90 plus tax, any traveler in Europe can extend a trip via EurAir Pass to major cities from Ireland to Eastern Europe and Russia. The expanded pass is valid for 60 cities in 21 countries. Tallinn-based Estonian covers routes from Hamburg, Copenhagen and Helsinki through Tallinn to Moscow, Kiev and Minsk.
As part of the DOT task force on airport practices, DOT and FAA are seeking written comments by Sept. 1 on whether and to what extent various airport practices affect competition among airlines (DAILY, July 13).
The European Commission's policies regarding airline alliances and multilateral air transport talks are "an explosive cocktail" that is likely to spark off a row with the European governments, said Karl-Heinz Neumeister, secretary general of the Association of European Airlines last week in Brussels.
Cargo-handling problems at Hong Kong's new airport (DAILY, July 13) are spilling over to Taipei. For political reasons, virtually all air cargo between Taiwan and China is routed through Hong Kong, making Taiwan Hong Kong's leading air cargo partner, with two-way traffic approaching 20,000 tons per month. Freight companies say Hong Kong airport problems are delaying departure of shipments from Taiwan as much as 24 hours. Losses in Taiwan may be as great as US$300,000 a day, including the cost of perishables that go bad.
U.S. Carriers Commission Expense, First Quarter 1998 Major Carriers % Of Total Commission Operating Expenses Alaska $ 21,393,000 6.60 America West 31,616,141 7.42 American 282,554,000 7.90 Continental 117,753,000 7.60 Delta 228,690,000 7.38
An expansion of the code-share arrangements between British Midland and Lufthansa will start in September with the introduction of three daily code-share flights between Manchester and Dusseldorf. The additional services from Manchester are set to strengthen the position of the two carriers in the Northwest of England and expand their presence at Manchester Airport. It will increase to three the number of German cities served by British Midland under the code-share deal with Lufthansa. The other two are Cologne/Bonn and Dresden from London Heathrow.
