British Airways will paint the word "Go" on the side of the 737s it puts in new low-fare service between London Stansted and points in Europe beginning this spring. Barbara Cassani, chief executive of Go, said the name is meant to appeal to a new breed of modern traveler that wants reliable service with low fares and the ability to book directly. Like competitor EasyJet, based at Luton Airport, Go will feature telephone bookings that bypass travel agents.
Negotiations between U.S. MOU carriers and FedEx for unused Tokyo Narita slots appear to be pointless unless there is a loophole in recent comments made by Hiromichi Toya, Japan's deputy minister for international affairs. Toya, acclaiming the new U.S.-Japan bilateral framework agreement initialed Friday (DAILY, Feb. 2), told reporters at a Friday evening news conference in Washington that slots could be shifted between U.S. carriers but money could not change hands.
The Netherlands government began random safety inspections of foreign carriers at Schiphol Airport Friday as part of the Joint Aviation Authorities (JAA) plan to step up safety standards for aircraft landing throughout Europe. The new phase followed an eight-month trial in which more than 50 aircraft were boarded at Schiphol. On 30 minutes' notice, inspectors check a carrier's books, license, flight plans, cabin safety equipment, fuselage condition and English proficiency of crew members. Aircraft with even minor discrepancies will be inspected more often.
TWA and Royal Jordanian jointly requested amendment of their statements of authorization to conduct reciprocal code-share service, plus two-year approval of current and proposed operations. The carriers want to "expand their alliance" to provide service to additional U.S. points and beyond Amman. Royal Jordanian, which displays TWA's code on U.S.-Jordan flights, would add authority to display TWA's code on flights between Amman and Aqaba, Jordan; Bahrain; Doha, Qatar; Karachi, Pakistan, and Delhi and Calcutta, India.
Export-Import Bank said it approved long-term guarantees to support the $134 million export by Boeing of three aircraft to two Chinese regional airlines. Yunnan Airlines will receive two 737-300s with CFMI engines valued at $60 million, and Shanghai Airlines will get one 767-300 and a Pratt&Whitney spare engine for $74 million. Both transactions involve asset-based financing, using the aircraft as collateral. The airlines will own the aircraft at the end of a 12-year lease period.
Southwest announced a $99 fare sale on all scheduled service in the U.S., including coast-to-coast markets, and the carrier intends to open a crew base April 1 for 200 pilots at Baltimore/Washington International Airport. The fare sale, which offers $198 roundtrips in Los Angeles-Providence, Oakland-BWI and other markets, covers travel between Feb. 6 and Aug. 4. Tickets, available until Feb. 10, must be purchased at least seven days before departure and within one day of making reservations. They are non- refundable but may be applied to future Southwest purchases.
KLM and its regional airline partners - Air UK, KLM Cityhopper and Air Excel - are moving toward a single identity with new livery that links them to the colors and logo of KLM. Their office facilities also will reflect the change in order to boost brand recognition and evoke the regional operators' longstanding association with KLM.
American's contention that incompatible computer language prevents it from participating in the Amadeus computer reservations system at the highest level of functionality is a "play on words" that is not only untrue but violates Europe's CRS Code of Conduct and U.S. DOT rules governing CRS business dealings, a top Amadeus official said Friday.
Star Alliance market share at Frankfurt has grown 6.5 percentage points in the past year, according to British Airways Chief Executive Bob Ayling. He is citing the market share data in a call for increased alliance competition in Europe, which he said would come after approval of the American/BA alliance.
Aviall reported fourth quarter net earnings of $6.3 million before a gain from discontinued operations that brought results to $9 million. In the same quarter last year, net profit was $3.2 million from operations. For the year, net earnings totaled $26.4 million, compared with a loss of $2.9 million the previous year. Net sales in the fourth quarter were $98 million, up 9.4%.
Kiwi International Airlines is offering flights from Newark to Atlanta for $69 each way, with double Kiwi Klub frequent flyer awards. Tickets must be purchased at least seven days before travel or by Feb. 11, and travel must be completed by March 18.
AirTran Holdings, parent company of AirTran Airlines and AirTran Airways, said it will add daily nonstop flights March 1 from Atlanta to three cities as part of its post-merger route system integration. AirTran will initiate one daily flight to Bloomington, Ill., three to Dayton, Ohio, and two to Knoxville, Tenn. It will price every seat on every flight in its system at the lowest 14-day advance purchase fare through March 31. AirTran also will add daily nonstops Feb. 16 from Atlanta to Fort Myers, New Orleans and West Palm Beach.
The proposed British Airways-American alliance has been given "special treatment" from regulatory authorities, causing delays that make little sense and are not in the interest of consumers, BA Chief Executive Bob Ayling said last week at an American Bar Association conference. "There is no justification for the different treatment and for different and disproportionate remedies for the AA/BA alliance as compared with other alliances," Ayling said.
Aviation Industry Stock Performance January 1998 Closed Closed Monthly Change Majors Symbol 1/30/98 12/31/97 ($) (%) Alaska Air Group ALK 48.563 38.750 9.813 25.3 America West (Class B) AWA 21.813 18.625 3.188 17.1 AMR AMR 126.500 128.500 (2.000) (1.6)
President Clinton's fiscal 1999 FAA budget request - part of what the administration describes as the first balanced budget in 30 years - includes increases nearly across the board and a total of $9.751 billion, up 7% from $9.111 billion enacted for fiscal 1998. Airport Improvement Program grants are proposed at $1.7 billion, equal to last year's funding, but even this is an increase of sorts, since the administration's Office of Management and Budget suggested a reduction to $550 million (DAILY, Feb. 2).
Mexicana applied at DOT for authority to display United's designator code on flights between Zacatecas, Mexico, and Denver. United's application requesting underlying authority is pending under Docket OST-97-3237. Mexicana, which holds underlying authority to provide scheduled combination service on the route, operates one weekly flight using 727-200 aircraft configured for 156 passengers.
A national survey of U.S. frequent flyers conducted by LSG-Sky Chefs shows that 76% feel food service is important on flights of three hours or more, and 31% rank food service as the most important reason for choosing a foreign airline. The survey found that 56% of the most frequent flyers, primarily affluent college-educated males 35-54 years of age, would make an effort to fly an airline whose food service was rated superior, 46% would pay more for excellent airline cuisine and 27% would pay more for customized meals.
FAA failed to meet a Jan. 31 deadline for submitting a report to Congress on the Wide Area Augmentation System, halting funds for the program at least temporarily. FAA told prime contractor Raytheon Co. last week that it could continue work on the program at its own risk or ask the government for permission to terminate it. Asked whether it will continue to fund WAAS, Raytheon said yesterday the situation still is under review.
All Nippon Airways and Lufthansa are expected to sign a code-share agreement between Tokyo and Frankfurt, sources in Japan tell The DAILY. The agreement initially would cover Tokyo-Frankfurt service starting this summer. Lufthansa denied that an agreement had been signed. Under the terms of a potential agreement, the two carriers would offer eight weekly nonstops on the route. ANA would increase its three weekly 747 flights to four, while four of Lufthansa's eight weekly 747s would be operated with ANA's code.
Atlas Air applied at DOT to renew for two years its authority allowing it to conduct a long-term wet-lease for LanChile. Atlas wants to continue to provide 747 all-cargo service, with crew and maintenance, for the Chilean carrier, which holds authority to conduct U.S.-Chile cargo charters, as well as "respond to the increasing demand for cargo capacity" in the market.
Spirit Airlines applied for exemption to engage in scheduled foreign combination service between any point in the U.S. and any point in Canada. The carrier holds a certificate authorizing it to engage in interstate and overseas scheduled combination service. Spirit told DOT that although its service pattern is not final, it plans to use DC-9 aircraft to provide low- cost service to U.S. communities that have no nonstop or low-cost U.S.- Canada service, and so "stimulate additional leisure travel." (Docket OST- 98-3043)
Iberia said it will announce "the largest aircraft order in the history of European civil aviation" today in Madrid. The Spanish airline refused to unveil the details of the order but said it will involve "more than 50 aircraft." According to Spanish newspaper reports, Iberia will place an order for 70 aircraft, including 40 medium-range narrowbodies of the Boeing 737 or Airbus A320 family.
The U.K. is to grant a #123 million (US$200 million) loan to British Aerospace for the development of the wings of Airbus's new A340-500/600 aircraft, Margaret Beckett, British minister of industry, said yesterday in London in response to a parliamentary question. The current U.S.-European Union agreement on state aid to the aircraft industry allows EU governments to grant loans representing as much as one-third of the cost of developing new aircraft.
Frontier has bid for some of the assets of beleaguered competitor Western Pacific, according to a source close to the talks. Westpac remains in Chapter 11 bankruptcy, and Frontier wants to acquire Westpac's operating certificate and a limited number of jet leases. It also would assume portions of Westpac's air traffic liability by honoring unused Westpac tickets on Frontier flights.
Lou Davis, veteran aviation journalist and industry public relations official, died Jan. 31. Memorial services will be held Feb. 18 at the Fort Myers chapel, Arlington, Va.
