Delta received quick approval of its application for a two-year initial exemption to provide scheduled foreign combination service between points in the U.S. and Harare, Zimbabwe, via Zurich. DOT also granted the carrier's request to integrate the authority with its existing exemption and certificate authority. DOT did not comment on the portion of Delta's application requesting an indefinite-duration exemption, in effect dismissing that request. Delta plans to operate the service under code share with Swissair.
Midwest Express Holdings reported record first quarter revenue, earnings, operating income and passenger volume for Midwest Express and Astral Aviation/Skyway Airlines. Timothy Hoeksema, chairman and chief executive, attributed the results to lower fuel prices, strong passenger volume and low fares. Midwest reported a 10.6% revenue increase over the 1997 quarter, to $88.4 million, and an operating income of $9.4 million, up 45.3%. Fully diluted earnings per share rose 45.5% to 64 cents.
The Port Authority of New York and New Jersey last week authorized a contract to build the New York Kennedy Airport light-rail system (LRS), but the project still faces litigation from the airlines and resistance from the City of New York, from which rights-of-way over city land are needed. The port authority authorized a $930 million LRS design and construction contract with the team of Skanska USA, Bombardier Transit Corp. and Perini Corp., plus a $105 million contract with the group to operate and maintain the line for five years.
Alliances among cargo carriers are growing rapidly and should remain separate from passenger carrier alliances, cargo industry experts said last week during a panel on cargo consolidations and alliances at the Seventh Annual International Aviation Symposium in Phoenix. Panelists Hidenori Aritake, manager of international affairs for Nippon Cargo Airlines, said many cargo carriers already have alliances in the form of blocked-space arrangements.
General Aviation Manufacturing Association named Walter Desrosier manager-maintenance and engineering and announced that the National Research Council of the Transportation Research Board has appointed Kristine Estes, GAMA manager-technical affairs and operations, chairman of the business aviation subcommittee under the Light Commercial and General Aviation Committee.
Niche carriers can only survive in the U.S. if they can obtain gates at major market hubs to generate high frequencies and traffic, former Western Pacific Airlines President and Chief Executive Robert Peiser told an airline panel at the Seventh International Aviation Symposium last week in Phoenix. Peiser's group discussed how niche players without an alliance fit into the industry.
Southwest Airlines passengers using First USA Rapid Rewards Visa cards to make a call on AT&T inflight phones will receive three free minutes on the first domestic call during the promotion period, which ends June 15.
- In Federal Register dated April 10...Issued an airworthiness directive on Aerospatiale ATR 42-500 aircraft requiring inspection for certain stinger clips...Issued an AD on Bombardier CL-215 aircraft requiring inspection for cracking on certain wing-to-fuselage frame angles. - In FR dated April 13...Issued an AD on Boeing 747 aircraft requiring inspection of certain areas of the wing strut...Proposed an AD on de Havilland Dash 3 aircraft to require modification of the electrical system.
Neil Kinnock, European Commissioner for Transport, will meet with the leaders of 20 of Europe's largest airports to discuss regulatory oversight of their sector. The meeting is set for tomorrow in Brussels at the headquarters of Airports Council International-Europe, ACI's European branch. The main focus of discussion will be the European Union's directive to inject more price transparency into the charges and fees levied by airports on users.
Reno airport officials said United replaced a Stage 2 727 with a Stage 3 757 a month after the airport recognized America West, American, Alaska, Reno Air, Southwest and TWA for operating all-Stage 3 aircraft there.
American is offering college students fare discounts for travel home for the summer. Students register at American's web site to receive the offers via e-mail. The promotion will continue through May 5 for outbound travel between April 30 and June 25 and return travel between Aug. 13 and Sept. 17. Fares are non-refundable and require a 14-day advance purchase, and a student ID is required at boarding. Discounts are as much as 45% off 21-day advance purchase fares. Prices vary from $119 to $259, depending on distance.
RTCA Free Flight Phase 1 Steering Committee, meeting with industry members last week, took control of managing the risk assessment of sole- means Global Positioning System navigation. The action took guidance of the assessment strictly out of the hands of FAA. The Air Transport Association and the Aircraft Owners and Pilots Association jointly recommend FAA conduct such a study. During the meeting, ATA VP Jack Ryan mentioned that ATA and AOPA were about to go public with the joint recommendation for the risk assessment.
Continental and Delta filed separate Air France code-share applications with DOT last week. The carriers want the authority for an indefinite duration and ask for approval no later than April 30. In separate action, DOT acted on a request by Air France for expedited consideration of its application for authority agreed to under the new bilateral.
TWA's gate utilization, ranked the industry's best in a Lehman Brothers study, improved last year. One transaction boosted cash flow as well - the airline sold three gates at Newark Airport for $10 million.
Nav Canada, conducting its second annual general meeting since it acquired the civil air navigation service from the Canadian government, reported revenue of $243 million for the quarter ended Feb. 28, the second of its fiscal year. The revenue comprised about $185 million of transition period payments and air transportation tax proceeds from the government, and user charges of $58 million. Operating expenses for the quarter totaled $168 million.
DuganAir, Bellevue, Wash., received an FAA supplemental type certificate for its Quiet Wing System for all gross weights of the Boeing 727. The company said that "in addition to meeting Stage 3 requirements without hushkitting or re-engining, Quiet Wing System provides operators of 727s up to 210,000 maximum gross weight, greater range, less weight, greater payloads and fuel savings." John Dugan, president, said conversion cost of the 727-200 is $1.3-$2 million, depending on MGW. This compares with $1.8-$3 million per hushkitted engine.
Approved a request by Spanair to commingle Spain-Dominican Republic traffic with Spain-U.S. traffic on 26 flights May 5-Oct. 27...Approved a date change, now April 18-30, for six roundtrip cargo charter flights by Atlas Air between points in the U.S. and points in Brazil...Approved eight roundtrip cargo charter flights by World Airways between points in the U.S. and points in Brazil April 15-30... Approved eight roundtrip cargo charter flights by Fine Air Services between points in the U.S.
LanChile and its flight attendant union signed a new contract to succeed the current two-year pact, which expires in September. The new contract runs for four years, providing more flexibility in negotiating future agreements while reducing the frequency of negotiations, the carrier said. All LanChile labor contracts have been negotiated through the end of 2001 except for that of mechanics, which is set to be renegotiated in September 1999.
