Approval by pilots of the alliance between United and Delta could take months to obtain, pilots at the two carriers said yesterday. While United and Delta announced their tentative global agreement, their pilots unions were continuing talks with management and setting up meetings to ask union members whether they support the alliance.
Guilford Transportation Industries, operator of the largest regional rail system in New England, proposed yesterday to buy Pan Am for $23.5 million. Under the agreement, Guilford would acquire Pan Am's two 727-200s, one 737- 200, spare parts, ground transportation, all route authorities, Pan Am's logo and trademark and its 30% interest in the Pan Am Air Bridge, which operates from Miami to nearby islands. Part of the $23.5 million - the amount is being negotiated - would be paid to Pan Am's largest secured creditor, NationsBank.
Comair Holdings sued Embraer, claiming the manufacturer was negligent in the design of the EMB-120 that crashed near Detroit on Jan. 1, 1997, killing 29 passengers and crew. The case, filed in U.S. District Court in Covington, Ky., listed seven cases of problems with the aircraft experienced by other airlines and that Embraer "had a duty" to warn Comair and other owners of the problems. Icing is thought to be the cause of the accident.
FAA Administrator Jane Garvey will discuss Airport Improvement Program funding and legislation to place air traffic control responsibilities in a performance-based organization on this week's Aviation News Today, to be broadcast Sunday on Washington's NewsChannel 8 at 12:30 a.m. and 1:30 p.m.
AirTran Holdings posted a first quarter net loss of $7.9 million, about half the $18.5 million loss a year ago. Operating revenues increased to $94.5 million from $36.9 million a year earlier. AirTran recorded an operating loss of $2.9 million and ended the quarter with $73 million in cash. The airline made progress in its goal to lower unit costs - cost per available seat mile fell to 7.9 cents from 10.2 cents in the first quarter of 1997.
Research into the physics of ice formation shows that getting it off wings may be as simple as passing a small electric voltage through the ice - a fact that could lead to dramatically more simple and lightweight in- flight de-icing equipment, affiliate Aero Safety&Maintenance reported.
Canadian Airlines has signed a letter of intent to transfer the business of subsidiary Canadian North to NorTerra, a company owned by two Arctic Inuit groups. Canadian Airlines spokeswoman France Poulin said the carriers expect to complete negotiations by the end of May in which NorTerra will acquire Canadian North as part of a strategic alliance and serve Northwest Canada. NorTerra/Canadian North would use Canadian Airlines' booking and reservation systems and passengers would receive Canadian frequent flyer points.
FAA Administrator Jane Garvey promoted the administration's FAA reauthorization proposal and other initiatives before the Senate Commerce aviation subcommittee yesterday, but subcommittee chairman Slade Gorton (R- Wash.) questioned progress on Year 2000 computer date logic compliance and committee chairman John McCain (R-Ariz.) chastised Garvey for leaving Congress out of the loop on a number of issues.
DOT's initial review of startup carrier Legend Airlines "revealed a number of areas where additional and/or clarifying information is needed," the department's Air Carrier Fitness Division told Legend President and Chief Executive T. Allan McArtor.
Great Lakes Aviation d/b/a United Express was selected by DOT to provide Essential Air Service for two years at Alamosa, Colo., and Laramie, Riverton/Lander, Rock Springs and Worland, Wyo.. The carrier will receive subsidy at an annual compensation rate of $950,262 for Alamosa, $363,993 for Rock Springs, and $989,234 for Laramie and Worland combined. DOT will rely on Great Lakes' subsidy-free plan to serve Riverton/Lander.
Atlantic Coast Airlines today will begin Canadair Regional Jet Service between Washington Dulles and Portland, Maine (four daily flights), and Charleston, S.C. (two daily flights).
Delta Connection affiliate Comair Holdings posted a net profit of $28.2 million, or 42 cents per share, for its fourth fiscal quarter ended March 31, compared with $19.4 million, or 29 cents per share, in the same quarter a year earlier. The carrier was helped by airline operating expenses that increased barely 1% to $121.7 milion from $120.3 million one year before. 4th Qtr Ended Fiscal Year Ended March 31 March 31
The TACA/TAM/LanChile joint purchase of $4 billion worth of Airbus aircraft was transacted "without a single piece of paper exchanged at any point" among the three carriers, said TACA Chief Executive Federico Bloch. "We knew if we gave it to the lawyers, it would have been killed," he said. The CEOs took the joint approach after talking only 10 minutes, and the purchasers now are accepting bids for common interiors and other equipment.
Western Pacific, undergoing bankruptcy liquidation procedures, asked DOT to transfer its certificate of public convenience and necessity to Blue Line Holding Corp., the assignee of Star Air Trading Corp. WestPac needs approval of the transfer if it is to sell the certificate for $350,000 to help settle bankruptcy claims. WestPac originally planned to create a subsidiary, transfer the certificate to it with a disclaimer from DOT over jurisdiction, and then sell the certificate to Star Air Trading.
Airborne Freight Corp. reported first quarter net earnings of $32.4 million, more than double net earnings of $14.4 million for the same period last year. Revenues rose 14.5% to $750.2 million from $655.5 million. Domestic revenues were up 18% to $622.5 million, but international revenues fell 6% to $87.7 million. Roy Liljebeck, chief financial officer, said the operating margin, 7.7%, was the "strongest first quarter performance ever experienced by Airborne." He said financial problems in Asia impacted international business.
Pilots at potential alliance partners American and British Airways met yesterday in Montreal to develop a cooperative agreement that would take effect if the alliance becomes a reality. Allied Pilots Association President Rich LaVoy said international code-sharing alliances "are a fact of life, and it is absolutely essential that the employees of these carriers find ways to work together to protect our mutual interests." The two pilot groups drafted a protocol that is being considered by all unions at American and BA.
Denver-based Frontier Airlines is introducing a series of vacation packages it hopes will generate as much as $6 million in revenue in the first year. Frontier, one of few low-fare carriers to sell vacation packages, is offering travel agents commissions starting at 10% to book the air- inclusive tours. Booking begins May 5 and travel June 15. Frontier is working with Adventure Vacations, Hunt Valley, Md., to produce 14 packages from Denver. It intends to expand eventually to all its destinations, said Marketing Director Jeff Potter.
Brussels-based CityBird and Sabena are launching a 55-city fare sale as part of an enhanced interline pact between the two carriers. CityBird is offering one-way fares as low as $339 to Paris and $375 to Prague from any of its North American gateways, which are Miami, Orlando, Los Angeles, San Francisco, Las Vegas, Mexico City and Puerto Vallarta. The interline fare sale is for travel beginning on CityBird and connecting to Sabena's short- and medium-haul travel within Europe. The program has no roundtrip purchase requirement or minimum/maximum stay.
Initial public comments filed with DOT on the department's proposed predatory competition policy are overwhelmingly positive, as consumers, business travelers and employees and officials of smaller airlines welcomed the department's action. DOT proposes to impose sanctions against major carriers defending hubs against new entrants if the majors take losses through price cutting and capacity expansion that appear rational only on the expectation that the niche carrier is driven from the market or folds.
