Hawaiian Airlines spent $63.4 million last year to lease and maintain 10 DC-10s. The aircraft are leased from and maintained by American, which has the option next year to cancel the agreement on 180 days' notice. Hawaiian, which began code sharing with American last month, buys all of its fuel through Northwest.
U.S. major airlines are expected to begin this week reporting improved first quarter earnings due to a continued robust domestic economy and fuel prices as much as 30% lower than a year ago. The two carriers reporting earnings this week, American and Continental, will turn in significantly higher operating profits, analysts said, but the real story of the first quarter may be the better-than-expected results of smaller major airlines. America West and Alaska Airlines will be "bigger surprises this year," said Sam Buttrick, PaineWebber analyst.
DOT granted United and Lufthansa blanket authority of indefinite duration for the carriers' code-share arrangement, which "would include economic authority held by the carriers and that which the carriers may hold by subsequent action of the Department." This action enables the carriers to expand their code-share operations, giving them flexibility to add third- country beyond points without seeking prior DOT approval. The carriers must notify DOT 30 days before beginning code-share service to a new market.
U.S. Major Carriers Systemwide Share of Service Fourth Quarter 1997 Total Revenue Departures Alaska 39,672 America West 52,223 American 198,613 Continental 112,176 Delta 243,356 Northwest 145,341 Southwest 199,385 TWA 70,861
Without baggage sizing boxes or customer service personnel at all boarding areas in North America to make sure passengers do not carry on excess bags, United's crackdown on the number and size of carry-on bags is unenforceable, according to United flight attendants. "It's a concern," said Bobbie Pilkington, spokeswoman for the Association of Flight Attendants at United. She said the carrier is promising to enforce a policy that has always been in place, but management has not said how it will handle passengers who refuse to comply.
LanChile complained to DOT of the "tag-team" filings by American-LanChile opponents whose only purpose, the carrier said, is to delay action on its application for antitrust immunity with American. United, Delta and Continental are trying to buy time to implement code-share and other agreements with VARIG, Aeroperu, Aeromexico and VASP, LanChile said. "Enough is enough," the carrier said. March 24 filings by the Regional Business Partnership in Newark and Aeromexico, "surely at the behest of interested U.S.
America West traffic for March decreased 8.6% on 1.1% more capacity, forcing the load factor down 7.3 percentage points to 68.5%. Although traffic has fallen 8.7% during the first quarter, the airline said its revenue and yield performance have made up the difference. "While our load factors are lower year-over-year, our restructured revenue strategy continues to produce sharply improved yields," said Chairman William Franke. America West carried 440,000 fewer passengers in the first quarter than a year earlier.
American Trans Air and Pleasant Holidays last week observed their fifth year of partnership by adding service from San Diego to Hawaii starting May 16. The agreement gives San Diego its only scheduled nonstop flights to Hawaii, the airline said. American Trans Air and Pleasant also are enhancing onboard services and amenities on all flights from Los Angeles, San Francisco and San Diego with new interior decor, Hawaiian theme uniforms and exterior paint linking their logos.
DOT issued an order tentatively finding WestJet Express fit to provide interstate charter combination service and proposed issuing the startup carrier certificate authority. WestJet, not related to Canadian carrier WestJet Airlines, plans to provide charter passenger service primarily in the western U.S., beginning operations with a single leased 89-seat DC-9- 21. It plans to add as many as three aircraft to its fleet if demand warrants.
Douglas unit of Boeing faces a delay in the rollout of its 100-seat 717, probably the only aircraft in the former Douglas lineup that has a chance of remaining in production. The rollout was scheduled next month with first flight in June. Douglas officials are not commenting on the nature of the delay. ILFC chief Steve Hazy told USA Today his board is becoming skeptical about Boeing's recovery, "and so about the 717."
A U.S. Bankruptcy Court judge has ruled that Sun Jet International Airlines must have a plan to emerge from bankruptcy by May 4 or lose its government operating certificate. Sun Jet filed for bankruptcy protection last June and has $8 million in unsecured debt.
Legend Airlines signed a Dallas Love Field lease last week to construct an executive terminal with six gates. Legend is scheduled to begin service in the fourth quarter of this year.
Air France asked DOT to grant expeditiously its application for an exemption to operate service between Atlanta and Paris. The exemption requested, and quick action on it, is provided for in the U.S.-France aviation agreement initialed April 8. The carrier wants to begin service this summer.
The Transport Workers Union announced opposition to DOT's proposed guidelines on predatory practices, saying it fears that they would undermine the ability of unionized carriers to react quickly to nonunion competition. The Air Line Pilots Association reacted similarly (DAILY, April 8).
Singapore Airlines has launched a promotion to build traffic through its hub by offering one night's accommodation for as little as US$1. The airline's Singapore Stopover Splendor is aimed at long-haul travelers from all markets, enticing them to travel via Singapore. The deal runs through Sept. 30. The airline created a travel package in conjunction with hotels, car rental firms, tourist sites and retail outlets. It is offering a hotel room for $1 per person the first night and $30 per additional night.
Delta is reopening its Dusty Dens, Fantastic Flyer Radio and Fantastic Flyer Funtastic Feast programs in time for summer travel. The Dusty's Dens play areas will open at major airports across the country May 22 and run through Sept. 8. The service is offered during peak travel periods to same-day ticketed passengers with young children and unaccompanied minors awaiting departures. The Dens are staffed with trained leaders who offer refreshments, games and activities that help children to pass the time playing games, reading and watching movies.
United received two top Inflight Food Service Association awards for its Sheila Lukins promotion and its $1 Million Challenge with LSG/Sky Chefs. The carrier teamed up last April with Lukins, culinary expert and co-author of the Silver Palate cookbook, offering meals designed by Lukins to its domestic economy class customers. United also received an award of merit for its Revive the Aloha Spirit promotion, in which it partnered with master chef Sam Choy to provide original Hawaiian cuisine for customers flying to and from Hawaii.
American is offering its employees incentives to help it find flight attendants fluent in Spanish, German, Japanese, Swedish, French, Italian, Portuguese and Dutch as well as English.
Mexican charter operators may notify DOT beginning May 1, not May 8 as reported by The DAILY on April 6, that they want to conduct single third- and fourth-freedom operations, rather than seek prior approval. (Docket OST-98-3702)
Delta and Continental are moving quickly to file for their Air France code shares, and each wants to be first so it can begin marketing the service. Under last week's U.S.-France agreement, code-share petitions will be decided within 45 days of the filing.
-In FR dated April 3...Proposed an airworthiness directive on British Aerospace 146 aircraft to require inspection for corrosion of the retraction jack of the main landing gear...Proposed an AD on certain Boeing 747 aircraft requiring inspection for corrosion of the lower spar fitting body.
