Carriers meeting DOT's deadline yesterday for replies to comments on the American-British Airways alliances included American, which offered not to implement the deal fully until slots are available for 14 new daily U.S.- Heathrow flights by competitors, and TWA, which said even the transfer of 336 weekly slots urged by the Justice Department would be inadequate.
New Mesa Chief Executive Jonathan Ornstein agreed to a reduced base salary of $200,000 and more stock options so the company could structure a pay package attractive enough to lure a top-level chief financial officer, a Mesa securities filing revealed. The CFO, just named, is Blaine Jones.
KLM said it intends to sell 100% ownership of U.K. tour operator Unijet Group plc for #110 million (US$184 million) as part of its plan to divest non-core holdings. KLM took indirect ownership of Unijet last year when it purchased the remaining 55% of what is now Air UK from British Air Transport Holdings. In the sale, KLM will receive #37 million ($62 million) in cash and take a book profit of #29 million ($48 million).
Ansett Australia introduced a dual-class cabin for international flights last week, settling on the name "Spaceship BusinessFirst" for business class and its 54-inch seat pitch. The move is part of Chairman Rod Eddington's effort to improve the carrier's service image this summer. Spaceship class offers individual video systems, new menus with inflight meals derived from top chefs and a wine connoisseur inflight video that details the differences among the selection of eight wines and champagne.
Summary of U.S. National Carriers Systemwide Traffic December 1997 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change American Trans Air 433 19.22 1,513 654,890 8.49
Emirates Group, which includes Emirates Airlines and airport handling company Dnata, posted its best financial year ever - earning $101 million, up 91% - for the 12 months that ended March 31. Group revenue rose 23.7% to $1.2 billion. The airline division reported a $71.3 million net profit, up 135%. Because of the results, the company declared that the government of Dubai would receive a "dividend" of $10.9 million. Emirates carried 3.7 million passengers during the year, up 23%, and its overall load factor rose to 70%.
Northwest and its Air Line Pilots Association unit will resume contract negotiations next Monday under the auspices of the National Mediation Board. Northwest ALPA told NMB last week it felt negotiations had reached an impasse. Management wants annual arbitration of salary increases annually, which the union opposes.
All Nippon Airways pilots decided Sunday not to undertake limited strikes against the carrier, pulling back after notifying the company last week that they intended to do so as early as tomorrow (DAILY, June 22). The airline had made plans to cancel six international flights on Wednesday and four on Thursday. The pilots left the door open to future action, however. "They didn't say why they won't strike and didn't say what their future plans would be," said ANA spokesman Tom Fredo.
Airlines carried 439 million passengers internationally last year, up 15% for a fifth straight year of double-digit growth, according to the International Civil Aviation Organization. Since 1993, airlines have transported 37.6% more international passengers, and the increase has been 80.7% in the last decade. International seat capacity has nearly doubled since 1988.
The principal lawsuit on easing Wright Amendment restrictions on commercial airline service at Dallas Love Field will remain in Fort Worth's Tarrant County, at least for the time being, Texas District Judge Bob McCoy of Fort Worth ruled Friday. McCoy denied motions by the City of Dallas, Legend and Continental that the cases be tried in Dallas County, where Love Field is located.
BAA plc has reduced by nearly half its estimate of how much it can increase capacity at Heathrow Airport in the near future, and it has re-emphasized uncertainty about whether it can make new slots available at times appropriate for transatlantic service, the Justice Department told DOT last week. Filing in the American-British Airways request for immunity from U.S. antitrust laws, Justice said BAA's reassessment makes it more likely that U.S. and U.K.
Swissair will try to cut fuel costs 3% by reducing the operating weight of its aircraft - modifying catering equipment and reducing inflight sales stock, for example - and improving operating procedures. The carrier estimates savings of 14 million Swiss francs (US$9.3 million) per year.
Frustrated by what it sees as lack of progress in negotiations and concerned over a mini-revolt among pilots, TWA's Air Line Pilots Association unit has set a Friday deadline for management to complete contract talks. The pilots, in negotiations since May 1997, claim that although TWA and the union have been meeting more frequently in the past several weeks, the pace of progress has slowed.
General Aviation Manufacturers Association praised House passage of legislation making FAA the only federal authority responsible for the quality of aviation fasteners. FAA would have shared responsibility with the National Institute of Standards and Technology under regulations to implement the Fastener Quality Act. GAMA President Ed Bolen testified last month before the House Science Committee that the general aviation industry will be threatened seriously and probably will halt production lines if the fastener act is not changed.
Supporters of DOT's competition policy lost another advocate for small-city service last week as Rep. Zach Wamp (R-Tenn.) wrote Secretary Rodney Slater in opposition to the proposal. Wamp co-hosted the first National Air Service Roundtable in Chattanooga with Sen. Bill Frist (R-Tenn.), another small-community advocate who opposes the proposal (DAILY, June 16).
Summary of U.S. Major Carriers International Traffic December 1997 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change Alaska 68 0.09 1,146 78,371 2.58
Midway Airlines has increased service from Raleigh-Durham, adding a sixth daily flight to Boston and launching three-times-daily Canadair Regional Jet nonstops to Columbus, Ohio. Amenities include leather seats, gourmet coffee, hot towels and mints. The carrier has received five of 13 RJs on order and holds options on 17 additional RJs.
Boeing will consider Mitsubishi, Kawasaki and Fuji Heavy Industries as principal candidates to produce the wing of the 717 transport if planned production in Korea falls through because of economic recession in that country, Boeing Commercial Airplane Group President Ron Woodard said Friday in Tokyo. Work in Korea has been delayed, and Woodard said Boeing will talk with the three Japanese companies about taking it over and producing the wing at low cost. The 717 would be the third Boeing transport, after the 767 and the 777, with Japanese industrial participation.
Proposals in Europe to restrict flight training might alter the ability of U.S. flight schools to train European students, National Air Transportation Association President James Coyne told the Joint Aviation Authorities (JAA). Currently, flight schools, especially in Florida, have a large percentage of Europeans as students, he said. Standards imposed on U.S. schools by FAA "meet or exceed many of the requirements of Europe, although there may be technical differences in training curriculum," he said.
Japan's Ministry of Transport will allow its carriers to overfly North Korea, reflecting recent tests and an agreement between both countries.Flights to Beijing from Tokyo and Osaka will be shortened by as much as one hour because of the overflight rights, which start this fall at the soonest. Flight time to Europe from Fukuoka also will be shortened.
Proposed Falcon supersonic business jet could fly eight passengers 4,000 miles nonstop at a cruise speed of 1.8 Mach, Dassault Aviation Chairman Serge Dassault told Falcon operators. He said the aircraft would be able to operate on typical corporate aircraft runways and could comply with noise limits.
FAA refused yesterday to confirm or deny reports that it plans to impose a large civil penalty on America West. The carrier, which operates a fleet of 63 737s, 26 A320s and 14 757s, referred questions to FAA.
As Philippine Airlines nears collapse, private carrier Air Philippines is asking for government approval to expand its domestic network, adding flights out of Manila's Aquino International Airport. An Air Philippines official who was willing to be identified only as Santos called for the government to open the domestic market to private carriers rather than continuing to protect PAL. "PAL's situation today is because it had been too complacent as it had government backing in the past," he said.
Several countries are being considered for addition to the Visa Waiver Pilot Program, according to a State Department spokesman. The spokesman declined to identify the countries, but media reports indicate that Greece, Portugal, Singapore and Uruguay are among them. An inter-agency committee is conducting evaluations and will make a recommendation to Attorney General Janet Reno.
KLM reached agreement with seven labor unions on a new collective labor pact that covers a 26-month period beginning July 1. The contract, agreed to on Saturday, expires Sept. 1, 2000. Unions will receive three bonuses in addition to a permanent three-stage pay raise totaling 6.5%. The first raise, 3%, will take effect Aug. 1. A 2.5% increase will follow on July 1, 1999, and a third increase of 1% will be paid April 1, 2000.
