DOT - Orally approved five one-way emergency cabotage cargo charter flights operated by Antonov Design Bureau using an An-124 carrying up to three outsized GE90 engines and related equipment on each flight on a Wilmington, Ohio-Seattle/Boeing Field routing April 10-May 10...Approved, subject to FAA-approved routings, a Mitsubishi Heavy Industries charter using a Volga Dnepr JSE An-124-100 carrying an aircraft fuselage and wing section on a Kansai-Anchorage-Toronto routing April 13-15...Approved, subject to FAA- approved routings, a Curtis Air Services charter using an A
"Onerous decisions" by FAA and JAA require Boeing to devote up to 4,000 hours for changes to each of 60 already-built next-generation 737, according to Paul Nisbet of Merrill Lynch. About 16 aircraft remain and should be finished by May. Boeing then will double production and "things should start smoothing out" for the company, Nisbet says.
General Accounting Office criticism of weaknesses in FAA inspection and enforcement activities did not sit well with National Air Transportation Association President James Coyne. He said the GAO recommendations "foster an adversarial relationship" between FAA and industry and may result in "more paperwork and government bureaucracy" without improving safety.
Southwest is extending to Dec. 31 its double flight credits offer to Rapid Rewards frequent flyer customers who book through the Internet. The offer is open to customers who log on at southwest.com for the airline's Tuesday weekly Internet specials. Kevin Krone, director of marketing automation, said the Internet program has been a tremendous success, but "the technology is still relatively new and many people have yet to try it out." He said he hopes the double credit offer will prove an added incentive for Southwest's frequent flyers to use the Internet.
Airline pilot hiring was the best ever in March as 1,505 new jobs opened up, according to Air, Inc., which projects 4,000 new jobs at the majors and more than 4,800 at the nationals in 1998. In March, major carriers hired 386 pilots, nationals 552 and jet operators 225. Pilots on furlough declined to 397 from 423 in February. US Airways is the only major carrier with furloughed pilots; there are 281.
Kiwi International Air Lines will begin nonstops May 6 between Newark and Aguadilla, Puerto Rico, the only nonstop service between the mainland U.S. and Puerto Rico's second-largest airport. Kiwi has been negotiating with the Puerto Rico Department of Economic Development and Commerce on an assistance package to help market the new service. President and Chief Executive Jerry Murphy said the carrier aims to become the airline of choice for the Puerto Rican community.
Travel revenue from the Internet will rise more than 50% this year, according to a study quoted in an Alaska Airlines newspaper. Sales will reach $3 billion next year, pass $6 billion in 2001 and approach $9 billion in 2002.
Virgin Express traffic, continuing to keep pace with the airline's expansion, rose 59.1% in March on 50.4% more capacity. The load factor increased 3.9 percentage points to 71.4%. The airline flew 196,237 passengers, up 52.7%. "We continue to see strong bookings and expect the positive trend to continue through the rest of the busy summer travel period," said Chief Executive Jim Swigart. The airline also announced that it will begin three daily Brussels-London Stansted nonstops starting May 17 as part of its ongoing cooperative marketing agreement with Sabena.
United is preparing to market its voice-activated computer technology to other carriers. The carrier announced implementation of the system last fall when it partnered with Applied Language Technologies. The system, used internally to arrange travel by United employees, makes it possible for the employees to book flights from any phone in the world without speaking to an agent. The automated system mimics the type of interaction a caller would have with an agent and completes the transaction by listing the employee for the specified flight.
Canadian Airlines has filed a preliminary prospectus with the Alberta Securities Commission to offer US$175 million in debt in the U.S. The senior secured note offering will be managed by Lazard Freres&Co. and co- managed by BT Alex Brown.
Northwest, in contract negotiations with its Air Line Pilots Association unit, is asking the pilots for a new C pay scale that would result in a 10% cut in hourly pay for 40% of pilots who regularly fly narrowbody jets. The concession would apply to pilots not already on the current B scale, affecting captains, first officers and second officers who fly 757, A320, 727, MD-80 and DC-9 aircraft.
Pro Air has entered an agreement with Hamilton, Miller, Hudson&Fayne (HMHF Fun Vacations) Travel Corp. to offer complete travel packages between Detroit and New York/Newark Airport. Packages will include flight, car rental, hotel and theater tickets. A package with roundtrip air fare and two nights in a hotel averages $302. Pro Air is a new carrier that provides service with 737-400s from its Detroit City Airport hub to Newark, Baltimore, Indianapolis, Fort Myers and Orlando.
Eastman Kodak Commercial and Government Systems named new sales and support managers for Aerial Systems - Jack Shevlin, northeastern U.S.; Richard Randall, Europe, Middle East&African regions; Daniel Brake, Latin American region, and John Connelly Asia Pacific, China and Japan regions.
American is not pleased that it will have to move from Paris Orly to Charles de Gaulle Airport because of the new U.S-France bilateral. The airline told employees it is "very disappointed" the U.S. government "acquiesced" to France's demands. The forced move "reduces consumer choice and is clearly inconsistent with the open-skies principles that the U.S. espouses."
DOT reselected Warbelow's Air Ventures Inc. to provide subsidized Essential Air Service at Central and Circle, Alaska, for two more years. The carrier will provide the communities with five roundtrips weekly to Fairbanks with an eight-seat Piper Navajo aircraft for an annual subsidy of $31,839. In April 1996, when Warbelow's was last selected for the service, the annual subsidy was $20,374 for the same number of trips using Cessna aircraft.
Air France will offer a $299 roundtrip midweek fare to celebrate the launch of Paris-Atlanta service, which begins June 19. The weekend fare is $25 higher. The introductory fare is available for sale today. Air France is offering a two-for-one business fare of $6,176 through Aug. 30.
Northwest is using the strength of the U.S. dollar in Asia as a marketing tool. In a mailing to frequent flyers this month, the carrier touted bargains for U.S. tourists who pay in Asian currencies. The dollar buys 115% more in Korea, 86% more in Thailand, 56% more in the Philippines and 21% more in Japan than it did a year and a half ago.
Standard&Poor's placed its long-term ratings of Boeing and Boeing units on CreditWatch with negative implications. The action was based on Boeing's continued production difficulties and their adverse impact on profitability, it said. S&P affirmed its A-1-plus short-term corporate credit rating on Boeing and its A-1-plus commercial paper rating on Boeing Capital Corp. These ratings are not on CreditWatch.
