FAA yesterday withdrew a controversial proposal to upgrade the safety of Part 25 commuter category aircraft. Many comments it received from industry questioned the accuracy of FAA information concerning the safety benefits that would result from the proposed changes. For example, several parties questioned the use of a 15-year life expectancy for seats covered with fire-blocking material when commercial experience indicated an average life expectancy of four years.
DOT released a show cause order finding Planet Airways, Fort Lauderdale, Fla., fit to provide charter interstate and foreign combination service. Planet plans to operate charter programs for charter operators and casinos in Atlantic City and individual charters between U.S. points and other "gambling locations," including the Bahamas, Gulfport and Las Vegas. The carrier plans to launch operations with a single 128-seat 727-100 aircraft, adding a second aircraft during its second year if conditions warrant. (Dockets OST-97-2940, 2941)
Singapore Airlines will begin non-revenue test flights in August with passengers and cargo on A340-300 Beijing-New York service, flying in Russian airspace. The carrier will launch scheduled passenger flights between the two cities next year if this year's tests are successful, an SIA official told The DAILY yesterday in Singapore. Using Russian airspace will reduce flying time between China/Hong Kong and the U.S. significantly, reduce operating costs and maximize crew utilization, the official said.
Continental and VASP begin code-share service today between Newark and both Sao Paulo and Rio de Janeiro, using newly painted DC-10s bearing the logos of both airlines. In the initial phase of the program, the two carriers will operate on Newark-Brazil routes, offer reciprocal mileage in frequent flyer programs and share airport lounges. Later, VASP will add 20 destinations in the U.S. and Canada served by Continental, while Continental will add its code to VASP's flights to Miami and Los Angeles and beyond gateways to 14 cities in Brazil.
The Belgian senate has approved the government's draft bill to create a single entity responsible for the management of Brussels Airport International. A new, smaller public aviation authority will be formed to handle air traffic control tasks. The senate's approval clears the way for a legislative proposal calling for the creation of the Brussels International Airport Company (BIAC) by the end of the summer.
SAirGroup's hotel management subsidiary, Swissotel, has taken over management of Washington's Watergate Hotel. The facility will be renamed "Swisshotel Washington-The Watergate" to brand it with properties that Swissotel manages in Atlanta, Boston, Chicago and New York. The company plans to spend $10 million to refurbish the Watergate.
U.K. low-fare carrier Debonair Airways, celebrating its second anniversary last week, said it has carried more than one million passengers to date. Looking ahead to the second half of 1998, the carrier will focus on optimizing its European schedules and enhancing its inflight product with the introduction of light meals in the next few weeks. Debonair also plans to increase frequent flyer benefits for its business travelers, who now make up more than 50% of its passengers.
Summary of U.S. Major Carriers Domestic Revenues and Expenses Fourth Quarter 1997 (In Dollars) Total Operating % Passenger Freight Revenues Change Revenues Revenues Alaska 328,630,000 20.98 279,806,000 15,358,000 America West 463,696,176 7.20 428,857,493 6,919,966
Ryanair has ordered Nordam hushkits for its Boeing 737-200 fleet. The order, announced last week, concerns the purchase of 21 hushkits worth more than $20 million. Upgrading of the jets will begin immediately and is expected to reach Chapter III compliance "well ahead" of the European Union's 2002 regulatory deadline, the carrier said. The average age of Ryanair's 737s is 16.9 years.
Passenger traffic at EuroAirport, the airport serving Basel, Mulhouse and Freiburg, jumped 14% in May compared with a year ago, while freight volume soared 26%. The monthly results continue a strong trend of growth at the airport since the beginning of the year. For the five months ending in May, EuroAirport posted 13% growth in passenger traffic and a 17% gain in freight volume.
United's pilots and Machinist union employees will receive 5% pay increases, effective tomorrow, as part of the airline's Employee Stock Ownership Plan, the company said yesterday. The raises are part of a second mid-term wage boost for eligible U.S.-based employee groups. Salaried employees hired before Feb. 1, 1994, also will receive a 5% pay increase, and those hired on or after that date will receive increases of at least 5% based on salary ladders established by the company last year.
United and Lufthansa will have a 57% U.S.-Germany market share with their summer schedule, exactly the share of American and British Airways between the U.S. and the U.K., notes American's David Schwarte, managing director international affairs.
Pan Am yesterday emerged from Chapter 11 bankruptcy after a judge in Miami approved its reorganization plan. All outstanding shares of common stock were canceled, and the airline is now owned by Guilford Transportation Industries. All voting classes of creditors overwhelmingly approved the plan. Pan Am has 125 employees and three 727s.
American last week revealed the fruits of more than $400 million worth of cabin interiors spending, including new seats in all classes of service. Among the most noticeable features of American's new image-building redesign are revamped economy seats on many aircraft, at a time when some carriers are ignoring coach upgrades in favor of business-traveler enhancements. American will replace 55% of seats - 53,000 total - in first class, business and economy.
KLM welcomed the millionth member of its Flying Dutchman frequent flyer program last week. The program, launched in 1992, was the first of its kind in continental Europe. Only 25% of members are registered from The Netherlands.
InVision Technologies said yesterday it received an order from the Belgian Airport&Airways Authority for four CTX 5500 DS explosives detection systems. InVision valued the order at $4 million. The units are to be delivered between September and the yearend for installation at Brussels Airport International.
Although small in dollar totals, National Air Traffic Controllers Association members contributed an "astounding average" of $31.48 per member to political campaigns between 1995 and 1996 election cycles, NATCA said. This compares with the Teamsters' average of $1.86, United Transport Union's $9.60, Air Line Pilots Association's $17.96 and the average flight attendant's $4.76.
A lack of communication between TWA senior management and its negotiating committee is holding up contract talks with its Air Line Pilots Association unit, the union alleged yesterday. TWA ALPA Master Executive Council Chairman Joe Chronic said the union does not plan to seek federal mediation because it would slow the process down further. "We want to be sure we can't do it before we bring the feds in," Chronic said. The pilots have scheduled informational picketing at New York on Wednesday, Los Angeles on Thursday and San Francisco on Friday.
One of the two bases for last week's annulment of the 1994 Air France bailout (DAILY, June 26) turned on whether fleet modernization, a normal operating expense for an airline, also can be considered a restructuring measure eligible for subsidy. The European Commission, which approved 20 billion French francs (US$3.3 billion at current exchange rates) in government aid for the endangered carrier, argued that the purchase of 17 aircraft for FF11.5 billion ($1.9 billion) was integral to the restructuring and a legitimate restructuring cost.
New Aircraft Orders And Options March 1998 Firm Orders Options Carrier # Type # Type Engines Aeromexico1 1 767-300ER - PW4062 Air Lanka 6 A330-200 - Trent 700 Air Madagascar2 1 767-300ER - CF6-80C2 Air Malta3 2 737-300 - CFM563C1
Delta is offering special one-way fares starting at $37 for passengers flying Friday evening, July 3, and Saturday, July 4, for travel within the 48 contiguous states, Alaska and Canada. Fares are good for travel from 8 p.m. on Friday until 3 a.m. on July 5 on most Delta and Delta Connection flights. Other restrictions apply. Sample one-way fares include $37 Atlanta-Charleston; $52 Cincinnati-New Orleans and $97 Atlanta-Salt Lake City.
AlliedSignal said yesterday that FAA has granted its XK516 radio the "first type certification for a commercial production high-frequency airborne communication system capable of handling both voice and data messages." The certification was performed on a Lufthansa MD-11.
FAA has notified industry that it has placed its controversial "ticket program" on hold until it can consider industry's concerns more fully, the Aircraft Owners and Pilots Association said yesterday. AOPA President Phil Boyer said his group is opposed to the program "in any form," however.
DOT Secretary Rodney Slater will travel to Africa July 7-15 to hold meetings in Dakar, Senegal, and Harare, Zimbabwe, on continuing the Safe Skies for Africa initiative and pursuing other aviation issues. Visits to Angola, Cameroon, Cape Verde and Ethiopia will stress airport safety and security.
Petroleum and jet fuel price decreases during the second quarter have helped reduce airline expenses in June and will have a greater positive effect in the third quarter, which begins tomorrow. Several analysts have revised upward second quarter earnings estimates due to lower fuel bills, usually an airline's second-largest expenditure after personnel.
