The three proposed domestic airline alliances are "different in kind, not merely degree," Rep. James Oberstar (D-Minn.) wrote DOT Secretary Rodney Slater last week. Oberstar, ranking member of the House Transportation Committee, is one of several members of Congress who sent letters to DOT and Justice Department officials about implications of the alliances.
U.S. and China will meet in Beijing the week of May 18 for liberalization talks, although the exact date remains to be fixed. U.S.-Peru open skies talks will take place May 7-9 in Lima.
DOT revoked Caljet Airlines' certificate because the carrier has not begun operations since DOT found the startup fit to provide scheduled domestic service. Caljet has not responded to a DOT letter reminding it of the requirement to start service within one year of its fitness determination. Hollis Harris, retired chairman of Air Canada, is Caljet's chairman, chief executive and largest shareholder. (Docket OST-96-1868)
Asserting its authority to protect aviation competition, DOT is asking United-Delta and American-US Airways for detailed information on their alliance plans and prospects for future expansion, and for any internal documents referring to implications for competition. DOT Assistant Secretary Charles Hunnicutt and General Counsel Nancy McFadden sent largely identical letters April 29 and 30 to the chief executives of the four airlines.
American's April traffic rose 3.3% on 0.5% more capacity, pushing the load factor up 2.0 percentage points to 71.4%. Domestic traffic rose 2.5% on 1.5% less capacity, while international traffic gained 5.1% on 5.3% more capacity. Much of American's capacity shift occurred in Latin America, where traffic increased 11.6% on 13% more capacity, forcing the load factor down 0.8 points to 62.8%. The airline's Atlantic division shrank further, with capacity down 3.9% in April and 5.3% year-to-date, but the division continued to experience rising load factors.
Boeing said Bavaria International Aircraft Leasing Co. has ordered five 717 aircraft, the renamed MD-95 model on which flight tests are scheduled to start this summer. These are the first orders for the 100-seat airplane since ValuJet, now AirTran, ordered 50 plus 50 options in October 1995. The Munich-based company will lease the airplanes when they are delivered in late 1999 and 2000.
Sens. John McCain and Slade Gorton yesterday released a General Accounting Office report critical of the Clinton administration's progress in implementing aviation security recommendations made by the White House Commission On Aviation Security and Congress. McCain (R-Ariz.), Commerce Committee chairman, and Gorton (R-Wash.), aviation subcommittee chairman, said the report cites lack of coordination and oversight among the nine federal agencies responsible for implementing the 31 recommendations and may keep issues among the agencies from being resolved.
Canadian Airlines has developed Canadian Plus Incentives, a program that enables businesses to buy travel points and award them as incentives to valued customers and top-performing employees. For $3,000, businesses can buy 100,000 points, which can be awarded through customized vouchers from the airline, or through custom PC software that lets the businesses transfer points directly to the recipient's Canadian Plus account. Recipients can redeem the points for flights, hotel accommodations, car rental, or products and services.
Delta, Alaska, Horizon and Canadian Airlines are offering electronic ticketing to travel agents using the Apollo computer reservations system. Agents can generate e-tickets for itineraries requiring up to 16 flight coupons on Delta, which added the e-ticket function to Worldspan and Sabre earlier this year and will make it available on Amadeus early in June. E- ticketing on Alaska and Horizon is available through Alaska's Instant Travel product. Canadian began offering its "virtual" e-ticketing product recently through Apollo and Sabre to North American agents.
Onno van den Brink has been appointed KLM's VP for Belgium, The Netherlands and Luxembourg. He will replace Peter van Vliet Aug. 1, when the latter plans to retire.
The International Association of Machinists at TWA asked the National Mediation Board last week to release it from arbitration into a 30-day cooling-off period. IAM said it expects a decision from NMB this week. Release from arbitration could mean a strike during the summer season. IAM represents flight attendants, mechanics and related personnel, ramp workers, reservations clerks and clerical workers.
Final decision on the American-TACA code-share proposal will come "very soon," DOT Assistant Secretary Charles Hunnicutt told the House aviation subcommittee last week. DOT tentatively approved the deal last December and has completed review of comments, but "it must go through the interagency process" before issuing a final order. DOT declined comment last week on Grupo TACA chief Federico Bloch's attack on U.S. credibility and the unresolved TACA case (DAILY, April 29).
Poland has formally requested to join Eurocontrol, the European Organization for Air Safety and Navigation in Brussels. Yves Lambert, Eurocontrol's director general, said Poland's size and strategic location in Europe mean that its membership will be a big step toward achieving his organization's goal of mirroring the membership of the European Civil Aviation Conference. A vast majority of ECAC's members now belong to Eurocontrol.
Flight attendants at American are angry over a new policy in which flight attendants who miss seven consecutive days must submit a doctor's note or receive two "chargeable occurrences," the equivalent of calling in sick twice. Employees face termination after nine chargeable occurrences. Union President Denise Hedges wrote members acknowledging that sick time has "spiraled upward" since 1996, but she noted that the union had no input into the policy. The union considers it "punitive" and "draconian".
Alitalia will not reverse its plans to set up a hub at Milan Malpensa Airport, Chief Executive Domenico Cempella said yesterday at a shareholders' meeting in Rome. The state-owned carrier intends to transfer 10% of its operations from Rome Fiumicino Airport to Malpensa, where it expects to receive 51% of its connecting traffic, starting in 1999. The move has sparked heated debate in the Italian press, with Italian Minister of Foreign Affairs Lamberto Dini and several foreign ambassadors defending the leading role of the capital city.
Aviation Industry Stock Performance April 1998 Closed Closed Monthly Change Symbol 4/30/98 3/31/98 ($) (%) Majors Alaska Air Group ALK 56.188 54.188 2.000 3.7 America West (Class B) AWA 30.250 25.625 4.625 18.0 AMR AMR 152.500 143.188 9.312 6.5
Europe's regional airlines saw substantial gains last year, according to the European Regions Airline Association (ERA). Passenger traffic for ERA's 72 member airlines grew 13% in 1997 and nearly 50% of member airlines experienced 20% growth. Aircraft movements increased by 9.9%. Though ERA's average passenger load factor of 57.5% was one percentage point higher than in 1996, the percentage remains low compared with load factors for the bulk of Europe's air transport sector served by major airlines.
Reno Air has upgraded to the Direct Connect Sell connectivity level in the Sabre computer reservations system. Travel agents selling seats on Reno will receive fast confirmation of booking transactions. The process mirrors selling directly from the airline's internal reservations system. Agents will be able to secure clients' seating with a real-time seat map. Reno intends to confirm or deny booking requests instantly, improve control over its inventory at the time of sale, manage yield better and minimize oversales.
Alitalia Managing Director Domenico Cempella starts his privatization road show today in Milan and intends to appear in London and New York. Cempella told shareholders yesterday the airline made a profit in the January-April period for the first time. (See story to follow.)
Southwest said Gary Barron will relinquish his position as executive VP- chief operations officer Dec. 31 but remain an executive VP at least through Dec. 31, 2000, focusing on labor relations. James Wimberly, VP- ground operations, will transition under Barron and replace him on Jan. 1, 1999. David Ridley will become VP-ground operations May 1. On the same date, Joyce Rogge will become VP-marketing and Donna Conover VP-inflight service and provisioning, replacing William Miller, who is retiring as head of inflight.
Pro Air will introduce nonstop 737-400 passenger service between Philadelphia and Detroit on May 28. The carrier will offer two daily roundtrips on weekdays and one on Saturdays and Sundays. One-way unrestricted coach fare will be $89 and first class will cost $139. Pro Air will operate flights between Philadelphia and Indianapolis via Detroit for $109 coach and $159 first class. It added a second daily nonstop to Indianapolis from Detroit on May 1.
Planet Airways has purchased its first aircraft, a 727-100 from S-C Aviation Services, and plans to launch charter operations in the U.S. and to foreign points after it receives FAA and DOT approvals. Peter Garrambone, president of the Orlando carrier, said it also plans to enter agreements with charter companies for ad hoc charters to the Caribbean and Latin America.
Senate Appropriations transportation subcommittee holds a hearing today at 9 a.m. in Room 192 Dirksen on aviation competition, focusing on ticketing practices and antitrust enforcement. Senate Commerce aviation subcommittee scheduled a hearing Thursday in Room 253 Russell on S. 1089, a bill to terminate certain amendments to FAA's foreign repair station rules.
America West capped travel agent commissions last week at $50 per roundtrip and $25 one way on tickets issued in the U.S. and Canada. It is paying online vendors that sell America West travel a 5% commission for a maximum $10 payment. The American Society of Travel Agents, whose computer reservations system cost-reduction task force to reduce passive bookings has worked with America West, said it was disappointed with the commission cap.
