An Airbus Industrie official, declaring the consortium cannot afford to lose a "crucial segment" of the future global market for large aircraft, said it aims to freeze the design on its A3XX family of 480- to 650- seat aircraft by yearend and offer the aircraft to customers in 1999. "We cannot ignore a category of the business which will top a quarter of total demand for aircraft in the next 20 years," John Leahy, senior VP-commercial affairs, said at the International Aerospace Exhibition '98 this week in Berlin.
Delta is adding reservations centers in Montgomery, Ala., and Augusta, Ga. The Montgomery center will open in the fall and the Augusta center in spring 1999.
Datamatics, a Mumbai-based software company, has helped British Airways go online from India by establishing a state-of-the-art facility to develop software dedicated to the carrier's requirements, BA officials said yesterday. Initially, Datamatics will execute three major software projects related to fuel management, cargo and personnel systems for BA at the new facility, which can accommodate up to 60 programmers, they said. By yearend, the facility is expected to expand to take in more than 100 programmers. Currently, the facility provides linkage with BA's U.K.
General Accounting Office told Congress this week that FAA is "ineffective in all critical areas" of a computer security review it conducted of the agency. The areas include physical security of facilities, operational systems information security, future systems modernization security and management structure and policy implementation, GAO said. "Failure to adequately protect air traffic control computer systems could cause nationwide disruption of air traffic or even loss of life due to collisions," it said.
AirTran is offering a Memorial Day weekend fare sale for all nonstop flights to and from Atlanta. Fares are $49 one way for travel beginning after 12 p.m. May 23, and before 12 p.m. May 25. Nonstop service is available between Atlanta and 29 cities, including Hartford, Chicago and Houston.
AMR Corp. stockholders approved a two-for-one stock split for shareholders of record as of May 26. The stock of the American Airlines parent has more than doubled in the last three years, making it the highest-priced airline stock in the U.S. AMR shares rose $1.50 yesterday to $147.38.
Lauda Air has signed a five-year contract with Lufthansa Technik AG (LTAG), the maintenance subsidiary of Lufthansa, to supply and service components for its four Boeing 777s. The contract, signed this week in Berlin, also calls for broadening the range of services LTAG will provide the Austrian carrier. LTAG will oversee the maintenance and overhaul of approximately 75% of the fleet's 500 avionic, pneumatic, hydraulic and mechanical components, in addition to their rescue and safety systems.
DOT approved the American-TACA alliance with conditions that include a ban on code sharing beyond Mexico City; separate pricing, inventory and yield management on routes from Miami to the principal Central American markets, and quarterly origin-and-destination reports from the individual carriers that make up Grupo TACA. The pact is for code share and marketing and does not include antitrust immunity. DOT said recent expansion of competing U.S.
Guy Gardner, FAA associate administrator for regulation and certification, will leave the agency in September. Gardner was named to the post in 1996 by then-Administrator David Hinson, to succeed Anthony Broderick. Gardner, who was an astronaut for 11 years, had joined FAA in 1965 as director of the Technical Center.
FAA issued an emergency airworthiness directive on CFM International CFM56- 3 series engines. The AD requires the removal of one engine on twin-engine aircraft and replacement with a serviceable engine or replacement of parts, if both engines are equipped with a specific accessory gearbox starter gearshaft or transfer gearbox input bevel gear. The AD also requires the removal of all necessary engines on four-engine aircraft and daily checks of the magnetic chip detector on the engines.
Salomon Smith Barney has hired airline analyst Brian Harris, formerly of Lehman Brothers, to succeed longtime airline financial guru Julius Maldutis, who has retired.
Bavaria International Aircraft Leasing Co. and Air Berlin yesterday announced orders for next-generation 737s which, along with a Delta order for a 737-800 earlier this month, brought Boeing 737 sales past the 4,000 mark. Bavaria ordered two 737-700s for delivery in the third quarter of 2001. The company now has six 737-700s on order. Bavaria last month became the first European customer for the 717-200 with an order for five. Air Berlin, inclusive tour charter operator, converted options into firm orders for two 737-800s. Air Berlin also took options on two more.
The six core Star Alliance airlines have joined forces on several marketing and sales initiatives, including the new Star Alliance Travel Center on the World Wide Web, at http://www.star-alliance.com. Last month, Star Alliance members signed the first sales contract that included all six carriers currently in the alliance. The contract is with Paris-based Carlson Wagonlit Travel, the second-largest travel group in France. United's Paris office is completing a similar agreement with France's largest agency, American Express-Havas Voyages.
Rakesh Gangwal, part of the core team brought in to turn US Airways around, yesterday was named chief executive of the airline. Stephen Wolf will remain chairman and chief executive of US Airways Group. Gangwal, 44, has been president and chief operating officer since he joined the airline in February 1996. In addition, Don Carty yesterday officially took the helm at American Airlines. Robert Crandall retired after 25 years with the company. Carty now is chairman, CEO and president of AMR Corp. and chairman, CEO and president of American.
Delta and Aeropostale this week received approval to begin a code-share and blocked-space agreement between the U.S. and Venezuela. Aeropostale will begin code sharing July 1 on Delta's Atlanta-Caracas service, launched April 2. Aeropostale operates nine DC-9s to 16 cities in and around Venezuela.
European Competition Commissioner Karel Van Miert said yesterday his proposed remedies for the American-British Airways alliance are complete, but U.K. authorities asked him for a delay to avoid singling out that partnership for concessions. Work is not yet done on United-Lufthansa-SAS, and it appears the EC will issue its recommendations on both alliances simultaneously.
U.S.-China talks ended on a positive note yesterday in Beijing, according to a State Department source, although Chinese officials say they will need another two or three rounds before they can sign a new aviation agreement. China will contact the U.S. when it is ready to propose a date for the next round.
DOT's plan to focus on airports' use of passenger facility charges "indicates that people really don't understand airport financing," the president of the Airports Council International-North America said yesterday. On Tuesday, DOT Secretary Rodney Slater announced creation of a task force to study the competitive implications of the interaction between airports and airlines, including airports' use of PFCs and long-term gates (DAILY, May 20).
Northwest has redesigned the vacation package section of its web site to accommodate the leisure traveler. Visitors to Northwest WorldVacations will find a package with detailed hotel descriptions, prices, destination maps and a page on frequently asked questions.
Vanguard expects to generate "positive cash flow from operations" during the second and third quarters, according to a securities filing. The four- year-old carrier has yet to post a quarterly profit. Management plans to raise additional cash, after a private stock sale March 20 brought in $4.5 million. On May 12, Vanguard stopped flying Kansas City-New York Kennedy and will temporarily halt Pittsburgh-JFK June 1.
BMW Rolls-Royce BR715 engine has successfully completed a 150-hour endurance test run on its testbed in Dahlewitz, the company's development center near Berlin. It will be disassembled and prepared for official inspection by U.S. and European aviation authorities. The engine was selected by Boeing as the sole power for its 100-seat twinjet 717-200, formerly marketed as the MD-95.
Olympic Airways has received its first commercial loan at market rates - $13 million from two Greek banks - to pay its employees. The airline is pleading for additional cash to stay afloat, one banking source said. "If Greece wants to be part of the EC, they may have to let Olympic fail," he said.
Memphis-based Interactive Entertainment Limited has received approval from launch customer Singapore Airlines to finish ground trials of its Sky Games inflight gaming system. Inflight tests will be next.
