Intertechnique, Paris-based manufacturer of aircraft and fuel system components, and DRS Inc., an FAA repair station based in Milwaukee, are forming a joint venture company in the U.S. called IDC Aerospace. IDC also will be located in Milwaukee and will focus on providing repair, overhaul, manufacturing and parts distribution services for aircraft.
Delta and Continental-Micronesia amended their U.S.-Japan service applications in proposals that would boost operations from Hawaii well in advance of Hawaiian Airlines' Jan 1, 2000, startup, the earliest possible date under Hawaiian's designation as the fifth U.S. flag to Japan. American asked to increase its San Jose, Calif.-Tokyo frequencies from six a week to seven. The amendments would add to services awarded in DOT's tentative decision on rights starting in 1998 (DAILY, March 17, 18), and yesterday was the deadline for replies to the order.
Air New Zealand, Thai Airways and Varig agreed yesterday to link their frequent flyer programs as of March 29, enabling passengers to earn and redeem mileage in any of the three plans. The move brings Air New Zealand, a code-share partner of United, Air Canada and SAS, closer to membership in the Star Alliance.
Continental and Brazil's VASP will code share on flights between the U.S. and Brazil pending government approval. The agreement would kick in this summer, covering Continental's service between Newark and Sao Paulo and Rio de Janeiro, as well as VASP's flights between Sao Paulo and Miami and Los Angeles. VASP would access another 20 cities beyond Newark in the U.S. and Canada, while Continental would feed passengers to 14 Brazilian cities in VASP's network.
American Eagle's initial Chicago O'Hare schedule for the Embraer RJ145 indicates a strategy aimed at chief competitor United rather than the most efficient use of the airplane. The carrier May 15 will launch ERJ145 service from O'Hare to Cleveland, Cincinnati and Milwaukee with an average stage length of 216 miles. The new service replaces ATR s, the last turboprops on the Cleveland and Cincinnati routes, where the only competition is large jets. Initially, only one daily jet trip is planned for the 67-mile Milwaukee segment against Air Wisconsin BAe 146s.
Savannah, Ga., and Hilton Head, S.C., want DOT to award them eight weekly slots to Chicago O'Hare but regional jet operator Atlantic Coast Airlines told the department it should invite carriers to compete for the service instead.
As Facilities and Equipment and Research, Engineering and Development funding for aviation security increases in the aftermath of TWA Flight 800, it will take "another three to five years...to get the equipment out there that is needed," Tony Fainberg, FAA director of civil aviation security policy and planning, said yesterday at an Air Traffic Control Association conference in Arlington, Va.
House aviation leaders wrote yesterday to Speaker Newt Gingrich (R-Ga.) protesting the House Appropriations Committee's vote to rescind Airport Improvement Program spending this year.
Canadian Airlines posted a 3.4% decline in February traffic on 3.1% more capacity, which resulted in a load factor of 63.4%, down 4.2 percentage points. Domestic traffic dropped 9%, in line with the airline's 8.4% domestic capacity reduction. International and charter traffic fell 0.6% on 8.8% more capacity, which forced the load factor down 6.0 points to 63.6%. "We are satisfied with February's results, particularly given that February was affected by a weather event beyond our control," said Doug Carty, chief financial officer.
Air Transport Association Senior VP Edward Merlis warned yesterday against using Tuesday's House Appropriations Committee Airport Improvement Program fiscal 1998 spending rescission to justify raising the $3 limit on passenger facility charges. He said the suggestion of some airport advocates to remove primary commercial airports from AIP is "untenable, unreasonable and unpardonable." Both actions would exert upward pressure on PFC levels as airports seek funding denied elsewhere.
United Worldwide Cargo said it is adding 130% more capacity on nonstop flights between Chicago and Tokyo as a result of the U.S.-Japan aviation agreement. The increase in service, from six to 14 weekly departures, begins April 5 with 747-400 aircraft. United said this will increase total nonstop cargo capacity from 120 to more than 280 available tons a week. United's DC-10-30 freighters will operate to Tokyo six nights a week.
Federal Express yesterday posted quarterly revenues of $3.99 billion, up 13%, on the strength of the company's domestic operations. Operating income rose 38%. The company had $79.7 million in after-tax merger expenses after acquiring Caliber Systems Inc., whose results were included with FedEx's for the first time. FedEx posted a net profit of $97.4 million for the third quarter ended Feb. 28, excluding merger expenses, up from $61 million. Without the merger expenses, the FedEx domestic operation showed revenue of $118.9 million, a 52% rise.
Top 50* U.S. Airports Average Yield (Cents) By Stage Length Groups Year Ended Third Quarter 1997 Under 250 250-500 500-1000 Airport Code Miles Miles Miles Albuquerque ABQ 34.62 18.68 12.84 Atlanta ATL 68.05 30.02 20.99 Austin AUS 38.31 19.38 15.36 Nashville BNA 65.81 23.43 17.57
Bankrupt Sun Jet International has received two reorganization proposals that would enable the charter carrier to resume operations as early as June 1. Aviation Industries wants to inject $8.5 million in debtor-in- possession financing under a proposal that will be reviewed at a hearing April 9. Sun Jet said that under Aviation Industries' plan, the current Sun Jet management would remain in place, "which is key to receiving expedited regulatory approval for the DOT and FAA." In a separate proposal, Sun Jet's founder and largest creditor, P.
Vanguard Airlines on Tuesday introduced $29 companion fares available for purchase through tomorrow. When customers purchase a seat at certain fares, they can buy a companion fare for $29 each way. The fare is good for travel April 1 through May 15. Seats are limited, and blackout dates and other restrictions apply. Companion fares require roundtrip purchase.
The new pilots contract at Sun Country provides extensive scope and successorship protections if the company changes hands. The 30-month first contract, signed yesterday, ensures that only Sun Country pilots will fly the airlines routes and provides job protection if the company is sold, said spokesman Paul Omodt. The contract also phases in pay improvements - as of yesterday, 727 and DC-10 pilots receive a 2% pay increase, and effective Sept. 1, 1999, 727 pilots will receive 2% more and DC-10 pilots 3%.
DOT issued decisions on joint requests for new U.S.-Mexico code-share service by American/Aero California, Delta/Aeromexico and United/Mexicana. American gained service in four U.S.-Mexico markets and may display Aero California's code to six Mexican points from Dallas/Fort Worth, two from Chicago and on a New York-Dallas/Fort Worth-Los Cabos routing. Aero California got authority to serve four Mexico-U.S.
Hispano-Suiza, the sub-components subsidiary of French engine maker Snecma, generated sales of 976 million French francs (US$166 million) last year, up 11% from 1996. Consolidated sales rose 20% to FF2.1 billion ($357 million).
FAA came under fire this week for permitting certification of the 777-300 and stretched versions of the A330/A340 without full-scale emergency evacuation testing. In a notice issued last week, it said, "There are currently sufficient full-scale evacuation data available to support" its position.
The U.S. Supreme Court heard oral arguments Monday in ALPA v. Miller, a case that will decide whether non-union employees must exhaust internal arbitration procedures before going to court with grievances about how their union fees are spent. Fees paid to unions by non-union employees can be used only for collective bargaining. Under Communications Workers v. Becker, workers have the right to reclaim all dues not used for collective bargaining purposes, according to the National Right to Work Legal Defense Foundation, which is representing 150 non-union Delta pilots.
Triumph Group said it has signed five-year contracts with UPS and Lufthansa Technik for repair and overhaul services. The UPS contract covers 727, 757 and 767 aircraft auxiliary power units and line replacement units. The Lufthansa contract covers APUs and LRUs on 737s.
SH&E will lead an advisory team to aid in the privatization of Air Madagascar. The New York consulting firm will be aided locally by FTHM. SH&E was selected from eight finalists. The World Bank expects fast-track conversion to private ownership, SH&E said.
Increased competition from other carriers has caused Northwest to stop its daily Chicago-Tokyo nonstop, beginning June 1. Northwest, which has served the route for more than 20 years, will transfer part of its Chicago flight attendant and ground staff to other locations. United and American, with hubs in Chicago, will add service to Tokyo during the next few months, and Japan Airlines serves Chicago-Tokyo daily with a 747-400. Northwest's Chicago 747 service accounted for about 10% of its capacity to Tokyo.
