Northwest and its International Association of Machinists unit recessed contract talks yesterday. Negotiations were conducted under the auspices of the National Mediation Board. Both parties have agreed to continue adhering to an NMB-directed media blackout regarding negotiations. IAM represents 27,000 Northwest employees.
DOT requested that Air 4000 provide the department with "an update on the state of its efforts to commence passenger operations including its efforts to obtain financing, aircraft, and FAA authority" within 15 days, and warned the startup carrier that it has not begun "actual flying operations" by Aug. 26, its "rapidly approaching" deadline to start services, DOT intends to "take the necessary steps to revoke its certificate without further notice."
Northwest has $416.5 million in yen put options outstanding that will help the carrier hedge approximately 90% of its remaining 1998 yen-denominated cash inflows. The 90% level is significant, since the yen has weakened against the dollar more than 10% in the past year, from 124 yen per dollar on March 31, 1997, to as little as 138 last week.
American selected Raisbeck Commercial Air Group to supply Stage 3 increased gross weight kits for 52 of its 78 727-200s under a contract valued by Raisbeck at $58 million. Deliveries will begin in September. American needed a higher takeoff gross weight as well as better payload/range capabilities as it searched for Stage 3 noise compliance. The modifications allow American to use Boeing's original maximum gross takeoff weight of 178,000 pounds and maximum landing gross weight of 154,500 pounds.
Northwest is extending its summer fare sale through June 5. Off-peak fares range from $69 to $199 each way, based on roundtrip purchase. Sample fares are Indianapolis-Nashville $69; Atlanta-Jackson $99, and Grand Rapids-Phoenix $179.
DOT renewed for two years Fine Air Services' exemption to provide scheduled cargo service between Miami and the co-terminal points Quito and Guayaquil, Ecuador, and it granted for an indefinite time the allocation of two weekly U.S.-Ecuador all-cargo frequencies to Fine. Fine may integrate the authority with its existing Caribbean, Central American and South American authority. (Docket OST-96-1039)
Kansas City-based Vanguard Airlines on Friday denounced United's plans to add capacity and lower fares in the Des Moines-Chicago market several months before Vanguard planned to enter the market. Vanguard had publicly expressed interest in entering this market in the fall subject to delivery of another aircraft. The market has some of the highest fares per mile in the country.
Flight attendants at United are angry over "unacceptable" layover hotel accommodations in Los Angeles and San Francisco, and are particularly upset over the assault of a flight attendant outside the Kawada Hotel last week in Los Angeles. The flight attendants, represented by the Association of Flight Attendants, have compiled hundreds of complaints about the Executive Inn in San Francisco and the Kawada and urged cabin crew to send them to Ed Tolle, United's manager-corporate travel.
- In Federal Register dated May 22...Issued an airworthiness directive on certain McDonnell Douglas DC-9 and DC-9-80, MD-88 and C-9 aircraft to require inspections of the latching level pin of the speed brake...Issued an AD on certain Raytheon Hawker 800XP and Hawker 800 aircraft to require removal of the sealant from and installation of new gaskets on the firewall mounting flanges and mounting points of the fire extinguisher assemblies...Proposed an AD on certain Socata TB9 and TB10 aircraft to require inspections of the wing front attachments on the wing and fuselage
Canadian Transport Minister David Collenette announced international all- cargo charter policy changes Friday aimed at making Canada a stronger player in the market. The changes will enable several shippers or charterers to charter space on all-cargo aircraft, and freight forwarders, who resell cargo space to other shippers, will be able to act as charterers. Earlier policy reserved multiple-shipper and freight-forwarder cargo for scheduled international air services.
Thanks to attention from Congress, Airlines Reporting Corp. has been getting help from federal and local law enforcers in cracking down on ticket and other types of fraud. On May 25, Gibson Sembuli of New York, owner of Gibbs Travel, which also does business as Travel Plus, was arrested by the New York City Police Department Special Frauds Division. Sembuli was charged with multiple violations relating to defrauding the airlines of more than $896,000 through a scheme involving unlawful manipulation of airline tickets.
Travel suppliers concerned about computer reservations systems distribution costs will have a chance to put their money where their angst is on June 30, when Genesis Travel Distribution System, Inc., the not-for-profit CRS, will spin off from United States Travel Agent Registry (USTAR), President Bruce Bishins told The DAILY. At a meeting in Miami last December, he addressed questions about the Genesis platform and technology and listened to suppliers' input.
Association of Professional Flight Attendants is polling its constituents at American, seeking guidance in its upcoming contract negotiations. The union hired The Mellman Group to conduct a random-sample telephone survey and a mail survey of its entire membership. The APFA contract becomes amendable Nov. 1 and talks are scheduled to begin during the first week of September.
Only six of 270 foreign carriers required to file family assistance plans with DOT by June 15 have done so (DAILY, May 26), and a senior official said the department will not extend the deadline. The six are Aerovias Colombias Limitada (ARCA), Air 2000, Bahamasair, KLM, Martinair and Mexicargo.
Orally approved a one-year initial exemption for Chileinter Airlines to conduct charter passenger and cargo service between the U.S. and Chile, and other charter operations...Approved a two-year exemption renewal for American to provide scheduled foreign combination service between Dallas/Fort Worth and Caracas, Venezuela, and dismissed the indefinite duration portion of the carrier's request...Approved a one-year exemption renewal for Northeast Cargo to engage in charter foreign cargo service between the U.S.
Transport Canada-sponsored government/industry task force on the safety of air taxi operations has recommended some 71 actions by Transport Canada, the Transportation Safety Board of Canada, the air taxi industry and Nav Canada. The task force was established in January 1996 following a Transport Canada review of 1990-95 accident data indicating that the vast majority of commercial aircraft accidents involved air taxis, and that the number of fatal accidents was not decreasing.
