The prototype of a key tool being tested for use in FAA's future Free Flight regime is causing too much potential for "distraction" at the Indianapolis Center, which is experiencing a high rate of errors, and its use should be terminated, according to a National Air Traffic Controller Association official. The User Request Evaluation Tool (URET), developed by Mitre, is undergoing testing at the Memphis and Indianapolis centers.
International Lease Finance Corp. said it sold $125 million of three-year, 5.875%, senior, unsecured, non-callable notes maturing July 1, 2001. The notes are underwritten by Lehman Brothers; proceeds will be used to buy aircraft.
The Chicago Airport System, citing stronger-than-anticipated revenues, will lower landing fees and terminal rents at Chicago O'Hare and Midway airports for the second half of 1998, saving O'Hare's two largest carriers almost $1.7 million a year. United will pay $977,838 less and American $718,280. Landing fees at O'Hare are being reduced from $2.085 per thousand pounds of landed weight to $2.071. Among the factors in the decrease are a busy summer travel season and airlines' use of larger aircraft, the city said.
Japan Airlines and Swissair agreed yesterday to code share on routes between their home countries, starting Oct. 25 (DAILY, July 7). The airlines will cooperate on Zurich-Tokyo, with Swissair's five frequencies and JAL's two, and on Osaka-Zurich, operated by Swissair six times a week. JAL noted that Japan-Switzerland traffic has been growing more rapidly than Japan-Europe rates. In addition, JAL eventually plans to enlarge its presence in Eastern and Central Europe via its Swissair code share through Zurich.
US Airways' Air Line Pilots Association unit is gearing up to take legal action against the company for the myriad scheduling problems faced by pilots in June. US Airways ALPA has set up a hotline for reports of scheduling problems.
China Airlines said it will buy 15 new 737-800s in a deal estimated to be worth more than $625 million. Delivery of the first two aircraft is scheduled in September, followed by six more by yearend and the remainder before July 2000. A CAL official said the new aircraft will be used on Kaohsiung-Southeast Asia routes and for Taipei-Kaohsiung flights.
Continental's dispatchers, represented by the Transport Workers Union of America, ratified a new five-year contract yesterday. The pact will bring the wages of the carrier's 100 dispatchers up to industry standard. The previous contract would have been amendable in April 1999. TWU and management reached a tentative agreement in June after four days of negotiations.
APCO Associates was chosen by the Aviation Safety Alliance to design and execute a $1 million program to educate the media, decision-makers and the public about critical aviation safety issues, the Washington, D.C.-based firm said. APCO said it will carry out the two-year program under the direction of the alliance's Communications Committee. Neal Cohen, managing director of APCO, said the company won out over 22 other firms for the account. Membership in the alliance includes high-level airline officials and former government and political figures.
Senate Commerce Committee marks up a number of bills tomorrow, including FAA reauthorization, and the draft being considered includes a $1 passenger facility charge (PFC) increase, up to 100 new slots for Chicago O'Hare, up to 24 new daily slots for Washington Reagan and limited exemptions from the perimeter rule at Reagan that bars flights beyond 1,250 miles. It would direct DOT Secretary Rodney Slater to review marketing practices and whether they impair service to smaller communities.
Delta's traffic rose 4% systemwide in June on 2.4% more capacity, lifting the load factor to 79% from 77.8%. The carrier cut domestic capacity 1.6% to feed its international expansion, but domestic traffic improved nonetheless, rising 1.1%, which resulted in a 78% load factor, up 2.1 points. International traffic grew 13.6% as Delta expanded overseas by 17.2%. The international load factor was 82.2%, down 2.6 points. In the first half, domestic capacity fell 0.2% and traffic grew 1.2%. The airline carried 52.2 million passengers.
Despite the high hopes surrounding the new Hong Kong International and the expectation that the airport will be easier to use than Kai Tak, the Chek Lap Kok operation is attracting its share of criticism. Local news reports have raised doubts about many of the pilings supporting the facility, a Hong Kong television news investigation reported allegations that security systems are inadequate, and a dispute has arisen over cosmetic flaws in some of the laminated glass enclosing the terminal.
Terry Hallcom resigned yesterday as president, executive VP-operations and boardmember of Tower Air. Tower Chief Executive and Chairman Morris Nachtomi said he did not know the reason behind Hallcom's resignation.
Southwest traffic for June increased 16.4% on 6.5% more capacity, which caused the load factor to jump 6.2 percentage points. Second quarter figures were nearly identical to June's, with load factor up 6.3 points to 70.2%. The average flight was 609 miles in June, up from 567 miles a year earlier. In the first half, traffic grew 11.6% on 6.9% more capacity, and the load factor rose to 65.8% from 63%. Southwest carried 25.6 million passengers. June 98 June 97 6 Mths 98 6 Mths 97
U.S. Court of Appeals for the Second Circuit rejected a petition by the City of New York challenging DOT's authority to grant additional slot exemptions at New York LaGuardia Airport. DOT's action last October granted exceptional-circumstances exemptions for new service by Frontier, ValuJet and AirTran Airways beyond the level set under the high-density rule.
U-Land Airlines has agreed to purchase a 30% stake in Air Philippines for an undisclosed price. A U-Land spokesman said the Taiwan domestic carrier will provide financing for three new MD-82s to be purchased by Air Philippines. U-Land currently operates six MD-82s, while Air Philippines operates 12 737-200s and four YS-11s on domestic routes and international charters.
DOT today is expected to notify about 50 foreign carriers that they are risking sanctions by not filing family assistance plans in accordance with new law. About 250 foreign carriers operating to the U.S. were required to file the plans, which outline response in event of an accident, though that number includes some airlines that have folded. In letters to the carriers, DOT notes it can levy a $1,100 fine for each violation, though it is open to interpretation what constitutes a violation and thus the maximum possible fine.
Northwest and its Air Line Pilots Association unit will resume contract talks today and tomorrow in Washington under the auspices of the National Mediation Board. The union and management will meet with NMB members Maggie Jacobsen and Jack Kane, an NMB spokesman said. Northwest ALPA told NMB in a letter that its members believe the talks are at an impasse. The last round of talks, June 29-July 1 in Denver, produced no appreciable progress, the union said. NMB has asked both sides not to discuss the talks with the media.
TWA's June traffic rose 0.4% on 4.7% less capacity, which forced the load factor up 4 percentage points to 78.4%. The load factor is TWA's highest for June since 1978. Domestic traffic increased 6.5% on flat year-over-year capacity, which vaulted load factor 4.7 points higher to 76.8%. It was TWA's best June since 1989. International traffic fell 18.6% on 21.8%, pushing the load factor ahead 3.4 points to 85.9%. June 98 June 97 6 Mths 98 6 Mths 97
United's traffic rose 3.6% on 2.1% more capacity, which pushed the load factor up 1.1 percentage points to 76.5%. The carrier also said it will post better-than-expected second quarter profits. Wall Street expects it to report earnings of $3.03 per share, which United will exceed. Operating expenses will be lower than expected. United will issue financial results June 22. Domestic traffic continued to perform strongly, up 5.3% on 3.8% more capacity, raising the load factor 1.1 points to 76.8%.
Virgin Atlantic has contracted with Phoenix-based MedAire for its MedLink emergency telemedicine service. The satellite link enables Virgin's flight crews to contact one of 16 doctors 24 hours a day during any flight. The airline, which already has installed defibrillators on all aircraft, also is considering other doctor-patient links, such as remote monitoring devices that would send live transmissions of a passenger's oxygen level, heart beat and blood pressure.
The Federal Trade Commission is seeking public comment on a proposed consent agreement affecting a deal between Sky Chefs and Ogden Food Services to operate at Las Vegas McCarran Airport. Ogden initially planned to sell all the voting common stock of Ogden Aviation Food Services to Sky Chefs, but in light of antitrust concerns, Ogden sold the majority of Ogden Food Services to Sky Chefs and the remainder to Dobbs International Services.
ASERCA, a DC-9 carrier based in Valencia, Venezuela, will finalize its letter of intent today to purchase a 70% stake in Air Aruba. In an announcement slated for this morning, ASERCA will take over day-to-day management of Air Aruba, a carrier with three MD-80s based on the tiny island of Aruba, off the Venezuelan coast. "ASERCA will immediately take financial and operational responsibility for Air Aruba," Ignacio Martinez-
Flush with the success of its multi-million dollar preferred-carrier pact with Chrysler and General Motors, Pro Air will hold a forum on July 23 to talk to other corporations interested in forging similar corporate travel agreements. Pro Air agreed to become the preferred carrier for GM and Chrysler to four cities out of Detroit City Airport - Indianapolis, Baltimore, Newark and Philadelphia. Pro Air will fly up to 40 GM and Chrysler passengers daily for a flat monthly fee.
Air Transport Association Cargo Traffic, April 1998, Revenue Ton Miles (000) April 1998 Revenue Ton Miles (000) April April % 1998 1997 Change Domestic Freight 784,303 752,226 4.3 Mail 157,981 155,710 1.5 Total 942,284 907,936 3.8 International
