China Eastern asked DOT for an exemption to operate between Beijing and Shanghai and Dallas/Fort Worth, New York Kennedy and Washington Dulles. The Chinese carrier would use the authority to code share on American flights between Los Angeles and Chicago, Dallas/Fort Worth, New York and Washington, and between San Francisco and Chicago. It already has authority to provide service between Beijing and Shanghai and Los Angeles, San Francisco and Chicago.
U.S. Major Carriers Traffic February 1998 (000) February February % 1998 1997 Change Alaska Revenue Passenger Miles 762,000 727,000 4.8 Available Seat Miles 1,174,000 1,114,000 5.4 Load Factor (%) 64.9 65.3 America West
Atlantic Coast Airlines, operating as United Express, yesterday launched regional jet service between Indianapolis and Washington Dulles Airport. Service is aboard a 50-passenger Canadair Regional Jet. United Express is offering a $79 introductory one-way fare for travel until April 30. Tickets must be purchased by March 31.
US Airways outsourced its information technology contract to The Sabre Group with a stipulation that there would be no layoffs of its IT personnel, Ninan Chacko, Sabre senior VP-global services, told The DAILY. More than 90% of US Airways' IT personnel accepted jobs with Sabre in Winston-Salem, N.C., Washington, D.C., or Pittsburgh, he said, and all were offered "terms or conditions that were the same or better" than what they had at US Airways.
Cathay Pacific's net profits fell 55.5% last year to HK$1.69 billion ($217 million) as a downturn in tourism pummeled the airline. Traffic started out well in 1997, before the U.K. handed over control of Hong Kong to China, but it began to fall by midyear and dropped further during the Asian economic crisis, month-long forest fires and haze that disrupted air travel in the region, and a bird-flu outbreak in Hong Kong that scared away tourists. "The depth of the trough is greater than expected," said Chairman Peter Sutch.
Alitalia is "negotiating with Malaysian Airlines and Cathay Pacific," Chairman Fausto Cereti said yesterday in Rome. "They are not the only ones," he said. "In total we are speaking with four or five companies." In January, Managing Director Domenico Cempella said Alitalia was planning to select an Asian partner by April. The Italian airline's alliance with KLM will be operational in April.
United, Continental and Delta cited the Justice Department's American-TACA analysis in their opposition to American-LanChile antitrust immunity, approval of which is Chile's precondition for signing the open-skies agreement it initialed with the U.S. late last year. Justice said American-TACA, a code-share agreement that did not include antitrust immunity, was a "horizontal" alliance that duplicated service and provided few if any public benefits that could not be achieved in other ways. The three opponents told DOT the same principles apply to American-LanChile.
DOT issued a show-cause order yesterday granting approvals for 106 new weekly flights to Japan from 13 U.S. cities, tentatively approved TWA and Hawaiian as new flag carriers in the market, and granted final approval for 21 weekly Northwest-Continental beyond-Japan code shares, which like the TWA and Hawaiian designation bids faced no competition. All 64 frequencies proposed by American, Continental and Delta for launch this year were tentatively approved. TWA and Hawaiian both received tentative approval for the seven weekly frequencies they sought.
World Airways has named Daniel Altobello and Ronald Fogleman to its board. Altobello is chairman of Onex Food Services, the world's largest airline catering company. Fogleman is former chief of staff of the U.S. Air Force.
UPS's Independent Pilots Association will announce the results of its contract vote today in Washington. If ratified by the membership, the contract will end more than two years of negotiations and raise pilot pay 27% over seven years, including 21% retroactive to Dec. 30, 1995. It also will offer an improved benefit pension plan based on a pilot's average earnings and years of service, and lower the number of scheduled duty hours.
America West is marketing discount fares for spring travel starting at $34 each way, or $119 each way for cross-country travel. The sale, which runs through March 20, is good for travel April 14-Sept. 30. No blackout dates apply. Fares are good in all markets, plus Vancouver and nonstop service between Phoenix and Anchorage, and to seven Mexico destinations, including Ixtapa/Zihuatanejo. A minimum Saturday night stay, advance purchase and other restrictions apply.
Salomon Smith Barney analyst Julius Maldutis has initiated coverage of Amtran Inc., parent of American Trans Air, saying the carrier is "finally ready to show positive earnings momentum in 1998 and 1999." American Trans Air should reach "major" carrier status in 1999, when revenues are expected to top $1 billion.
American and the CBS television network have entered a long-term programming and marketing partnership making CBS the exclusive network supplier of American's inflight entertainment on domestic and international flights. CBS will produce an ongoing one-hour video magazine program for American customers combining its most popular programs, news and sports. The partners will launch a major cross-promotion incorporating their shared destinations, including Los Angeles, Chicago and Nashville.
Travel agents are increasingly charging their customers service fees, according to the American Society of Travel Agents. An ASTA survey found that 70.9% of its member travel agencies are charging service fees. ASTA contends the fees are offset by consumer savings on the best available fare information that agents provide. Agents began charging fees last year when airlines reduced commissions from 10% to 8%.
For the second time in about one year, a major Chinese airline has launched service in a Hong Kong market that has the effect of competing with Cathay Pacific. China Southern has started a Guangzhou-Hong Kong-Kuala Lumpur flight, following last year's launch of Hong Kong-London service by Air China. Most traffic on the China Southern service is expected to be on the Hong Kong-Kuala Lumpur segment.
The Civil Aviation Bureau of Japan's Transport Ministry has lengthened its ETOPS (Extended-range Twin-engine Operations) rule to 180 minutes from 120. The extension may accelerate overseas introduction of the Boeing 777 by Japanese carriers. The nation's major three carriers - Japan Airlines, All Nippon Airways and Japan Air System - have begun operating the 777 and say they are pleased with its efficient operational capability. For the first time, the carriers will cooperate on engine maintenance, including common parts custody.
Chicago Mayor Richard Daley announced that FedEx plans to develop a truck distribution facility at the north end of O'Hare Airport, creating more than 1,300 jobs.
Hawaiian Airlines reported a 2.4% increase in traffic and a 0.5% rise capacity systemwide for February from the same month last year, which pushed up the load factor 1.3 percentage points. It posted 297.6 million revenue passenger miles and 437.2 million available seat miles, producing a 68.1% load factor. Passenger enplanements declined 3.9% to 391,078. Year- to-date RPMs dropped 0.4% and ASMs rose 2.3%, causing the load factor to decrease 1.8 points. Passenger enplanements dropped 3.4%.
No additional hushkitted Chapter 2 aircraft will be allowed in the European Union, starting in April 1999, if EU member states adopt legislation proposed Friday in Brussels by Transport Commissioner Neil Kinnock. Even though hushkitted aircraft comply with ICAO Chapter 3 standards, "they produce much more noise than genuine Chapter 3 aircraft," the European Commission said. The EC fears Europe could be flooded with hushkitted aircraft in 2000 because the U.S. is getting the jump on international deadlines to phase out Chapter 2 aircraft.
Atlantic Excellence Alliance - Delta, Swissair, Sabena and Austrian - now offers more than 5,600 daily flights to 82 countries. This is equal to four departures every minute of every day, year-round.
AAR Corp. said net income for its third quarter, which ended Feb. 28, increased 56.8% to a record $9.3 million, while sales rose by 35.3% to $208.5 million. For the first nine months, net income was up by 57.1% to a record $25 million, while sales rose by 31.4% to a record $559.6 million. During the quarter, AAR received contacts from two French airlines, AOM and Fairlines, to provide component support for MD-80 aircraft.
Airbus said last week that Sabena signed a contract for 34 A320s and two more A330-200s and Swissair ordered nine long-range A340-600s. Both announcements affirmed earlier commitments. Swissair made its decision in December (DAILY, Dec. 22, 1997). Sabena's Airbus selection, revealed last fall (DAILY, Nov. 19, 1997), capped a battle between Airbus and Boeing to replace the carrier's 737 fleet. Sabena has selected CFM International powerplants for the A320s.
The pilots of Spanish carriers Iberia and Aviaco are threatening their airlines with strikes which would affect traffic every Monday and Friday between March 27 and July 31, the Spanish pilots union, Sindicato Espanol de Pilotos de Lineas Aereas (SEPLA), said last week in Madrid. SEPLA's strike warning is meant as a protest against Iberia's plans to operate 11 aircraft from private airline Air Europa under a wet-lease agreement.
