Recent proposed domestic airline alliances represent "nothing less than a major transformation of the industry," and both DOT and the Justice Department have the "tools and the willingness to investigate whether such transactions would lead to a significant loss of competition" and to bar such harm, according to Patrick Murphy, DOT Deputy Assistant Secretary. Murphy made the remarks in testimony prepared for a Senate Appropriations transportation subcommittee hearing on competition issues yesterday.
National Air Transportation Association is polling members on fractional ownership. The association said the growing success of fractional ownership programs has generated interest by managers of aviation businesses, and its survey will determine how best to respond to FAA proposals for regulating such operations. FAA is evaluating whether its current fractional ownership regulations are appropriate and may regulate these operations under Part 135 instead.
American Society of Travel Agents will hold a travel fraud conference Friday in Washington. Federal and state officials, travel professionals and suppliers will participate. It will focus on schemes and tactics ASTA says cost the public more than $12 billion per year, and how the industry can stop them.
The salaries of Air France's pilots are substantially higher than those of their counterparts at rival airlines British Airways and Lufthansa, announced the state-owned French airline yesterday, quoting a "final" report by the U.S. Air Line Pilots Association (ALPA). A previous version of the report, unveiled last month, found that BA pilots were paid more than Air France pilots, allegedly because of calculation mistakes that were immediately attacked by the company's management.
DOT granted a second six-month exemption for Florida West International Airways to continue providing, following termination of its U.S.-Colombia certificate authority, scheduled U.S.-Colombia all-cargo service through Nov. 26 or until FedEx inaugurates service on the route. Under terms of the transfer of FWIA's Colombia certificate authority, FWIA's authority expired last Nov. 28 and FedEx's became effective. The joint applicants requested the six-month extensions to "avoid interruption" of U.S.
US Airways denied abuse of court and DOT procedures in its dealings concerning British Airways, and reaffirmed its support of delaying procedural dates in the American-BA antitrust immunity proceedings until the department decides whether new documents are relevant. The documents are from US Airways' breach-of-contract suit against BA, the latter claiming US Airways engaged in ex parte communication with DOT in bringing the items to the department's attention and that the documents are immaterial (DAILY, May 4).
Delta asked DOT to renew its 4.5 weekly U.S.-Russia combination frequencies for an indefinite period, provided that it continues to hold the necessary underlying authority. The carrier uses the frequencies to operate service to Moscow and St. Petersburg. (Docket OST-96-1672)
American, Continental and US Airways received two-year renewals for scheduled foreign combination service to Mexico. American may provide Los Angeles-Guadalajara service. Continental may serve San Jose del Cabo and Mazatlan from Houston. US Airways may operate service to Cancun from Charlotte and Philadelphia. US Airways did not seek to renew its authority to serve the Baltimore-Cancun market. (Dockets OST-95-244, 96-1300, 96- 1368, 97-2128)
The faulty guidewheel that caused a major snafu at Denver International Airport's underground shuttle train last week and left thousands of passengers stranded has never been a source of problems, said DIA spokesman Chuck Cannon. The part is being scrutinized by train contractor ADtranz in Pittsburgh, and airport officials do not yet know why it failed. "They had never seen this particular part fail before," Cannon noted.
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.
