DOT approved one-year renewals of authority for American and China Airlines to operate their code-share agreement on CAL's Los Angeles/San Francisco- Taipei service and American's Los Angeles/San Francisco-Dallas/Fort Worth/New York Kennedy/Chicago and Los Angeles-Washington Dulles flights. The department also renewed for one year the authorities for American and LOT to continue their code share on LOT nonstops between Warsaw and New York or Chicago and American's New York-Miami and Chicago-Los Angeles service.
Senate Commerce aviation subcommittee Chairman Slade Gorton (R-Wash.) is pushing airport and airline advocates to work together on funding initiatives because he expects future Airport Improvement Program spending to remain level (DAILY, Feb. 13). "The good news is that you're not going to get more taxes," he told witnesses at last week's AIP hearing. "The bad news is that you're not going to get more money."
Wexford Management has signed a definitive agreement to acquire US Airways Express Chautauqua Airlines from Guarantee Reassurance Corp., Jacksonville, Fla. The Indianapolis carrier has been on the block for several years. The deal, the value of which has not been revealed, is expected to close in about four weeks, said Ed Wegel, executive VP for Wexford Aviation, a wholly owned subsidiary of the management firm.
Aerospace Industries Association elected Robert Wulf, VP-engineering and technology of Northrop Grumman, chairman of AIA's Technical Operations Council for 1998.
David Smith, former president of American Eurocopter Corp., currently is a consultant to the company. Smith was indicted a year ago - and acquitted in May - on conspiracy charges in connection with a 1993 AEC helicopter sale to Israel. The company, which pled guilty to fraud and other charges and agreed to pay nearly $25 million in fines and penalties, backed Smith in his defense.
Sanders named Rance Walleston director-business development for the Sanders Surveillance Systems Division; Eugene Dempsey director-sourcing and John Windyka director-business development for the Microwave Electronics Division.
The Air Carrier Association of America (ACAA) said it is skeptical of the impartiality of the organizers of the Airline Competition Committee, especially Tim Hannegan of The Wexler Group, which represents American. The carrier has been accused of anticompetitive behavior.
Several persons who attended a Federal Radionavigation Plan (FRP) meeting last week in Washington believe DOT lost an opportunity to dispel confusion among users and in industry about what they termed "unrealistic" termination and implementation dates for a number of systems, particularly now that FAA has expressed doubts about whether the Global Positioning System can be the sole means of navigation.
Southwest Research Institute named Janice Olvera director-Avionics and Support Systems Department in the Aerospace Electronics and Training Systems Division.
KLM requested authority to place Northwest's code on flights between Amsterdam and Bergen, Norway, under a code share. KLM, which owns a 30% stake in Norwegian carrier Braathens, will begin operating daily service June 1 (DAILY, Feb. 10). It asked DOT to expedite the request so that Northwest may begin offering the Bergen service.
DOT revoked TriStar Airlines' operating certificate under dormancy provisions, stating that it has not conducted service since about Jan. 24, 1997, when it ceased all operations. (Docket OST-95-293)
Northwest is offering reduced fares in all five of the Minnesota communities that take part in the carrier's experimental Fly Local program, launched in April 1997. Fly Local was a six-month test program to stimulate traffic at local airports by lowering fares in the communities of Bemidji, Brainerd, Hibbing, Grand Rapids and St. Cloud. Northwest extended the fares for 10 months to give residents the maximum opportunity to use them. Bemidji, Brainerd and St. Cloud generated an average traffic gain of 81% year-over-year from local markets to the Twin Cities.
Northrop Grumman Commercial Aircraft Division named Gary Brown to the additional posiiton of site manager of the Milledgeville, Ga., composites facility; Bill McKenna VP, IPT leader and site manager of the Aircraft Door Center, Perry, Ga., and Mark Tucker VP-IPT leader and site manager of the CAD facility, Hawthorne, Calif.
TWA reported a net loss of $110.8 million during 1997, including a loss of $31.2 million in the fourth quarter. The airline posted large fourth quarter gains, however, showing an operating profit of $0.5 million, an improvement of $232.9 million over the year-ago fourth quarter loss of $232.4 million. TWA finished the year with $237.8 million in cash, up from $181.6 million a year ago. It was the second time in nine years that the airline posted an operating profit in the fourth quarter.
Mergers are very much on the minds of Air Line Pilots Association units at some of the major airlines in the wake of the Northwest-Continental code share alliance. The United unit's Master Executive Council Scenarios Committee has been analyzing industry consolidations that might arise from the deal. The Delta unit's MEC has authorized a committee to study the financial, legal and analytical aspects of a consolidation.
Orally approved an initial one-year exemption for LAPA to conduct foreign charter combination service between Argentina and the U.S...Orally approved a one-year exemption renewal for Aeromexico to conduct scheduled combination service between Cozumel, Mexico, and Miami...Approved a two- year authority renewal for Fine Air to conduct scheduled and non-scheduled cargo service for Turks Air under a wet-lease arrangement...Approved six cargo charter roundtrips by Atlas Air between points in the U.S. and points in Brazil Feb.
Summary of U.S. National Carriers Systemwide Traffic August 1997 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change American Trans Air 499 (6.95) 2,032 1,013,206 (2.87)
