Leisure International Airways selected Pratt&Whitney PW4000 engines to power two new Airbus A330-200s, to be delivered in 2000. The aircraft will replace Boeing 767s on transatlantic and Caribbean charter routes.
DOT Secretary Rodney Slater, British Airways Chief Executive Bob Ayling and Delta CEO Leo Mullin will be the featured speakers at the 1998 Air&Space Law Forum Update Conference, planned for Jan. 30 at the Sheraton City Centre Hotel in Washington.
Polish carrier LOT asked DOT for exemption authority to engage in foreign combination service between Warsaw and Boston, Baltimore/Washington, Denver, San Francisco, Cleveland, Dallas/Fort Worth, Seattle, Phoenix and Syracuse. The U.S.-Poland bilateral allows Poland to add a total of eight U.S. points for code-share-only service; the government of Poland will notify the U.S. separately that it wishes to select Boston as a permanent point to be served on an unrestricted basis, consistent with terms of the bilateral.
FAA said it will combine four air traffic facilities in the Washington, D.C., area into a single new center with the aim of increasing safety and efficiency for aircraft serving Dulles, National, Baltimore/Washington and Andrews Air Force Base.
Continental's December and full-year traffic rose more quickly than its capacity addition, a fact that led to a record December load factor of 67.8%, up 0.4 percentage points. Traffic gained 12.7% last month on 12% more capacity. For 1997, traffic swelled 14.3% on 9.8% more capacity, with the load factor rising 2.8 points to 70.3%. Cargo revenue ton miles were up 38.6% in December and 21% for the year.
United posted a 3.5% rise in December traffic on 3% more capacity, which pushed the load factor up 0.3 percentage points to 69.3%. Domestic traffic gains helped the carrier, as North American traffic increased 4.1% on 1% more capacity. Cargo volume gained 27.1% on 6.9% more capacity. For 1997, traffic grew 4.1% on 3.9% more capacity, keeping the load factor flat at 71.8%. North American traffic - which made up 61.8% of United's total - was up 3.5% on 2.5% more capacity. Pacific traffic - 22.7% of the total - fell 0.1% on 2.7% more capacity.
Several U.S. carriers object to an American-Air Liberte code-sharing request, citing the lack of a bilateral agreement and ownership and control issues. Opponents include United, Delta, US Airways and Continental. Air Liberte is 70% owned by British Airways, and Continental told DOT the bid is American's "latest piecemeal attempt" to build a "pre-emptive empire" with BA. BA also acquired control of French carrier TAT and combined some of its operations with Air Liberte's.
FAA gave Amerijet the go-ahead to resume "limited operations" after the cargo carrier voluntarily ceased operations following an agency inspection that brought to light "serious deficiencies" in handling operations (DAILY, Jan. 5). FAA and Amerijet signed an amended consent order under which the carrier is authorized to resume operating four aircraft from Miami to international destinations it normally serves, using only its own personnel for aircraft loading and operation, implementing new or revised procedures approved by FAA.
Northwest's Air Line Pilots Association unit will take a giant step this week toward deciding the fate of a Northwest-Continental alliance. The pilots' Master Executive Council will hear reports from advisers and its negotiating committee tomorrow and Friday and expects to develop and discuss options. Northwest and Continental say they are not pursuing the deal actively, but Continental has hinted it could go forward if Northwest's pilots go along. The pilots have withheld support so far, pending further study.
Airbus Industrie reported yesterday that it received 460 firm orders valued at $29.6 billion in 1997. The European consortium also received 211 commitments during the year, and it valued the orders and commitments at a record $44.2 billion from 55 customers. Airbus said that its previous record for firm orders was 421 in 1989, and that the 1997 firm orders include US Airways aircraft not included in 1996 orders. Boeing said it is still working on yearend data, but through November it had 524 firm orders valued at $38 billion.
Lufthansa President Jurgen Weber yesterday became chairman of the Association of European Airlines, assuming the post from British Airways Chief Executive Bob Ayling. Weber told AEA he will concentrate on four priorities during his term in office: high levels of airport charges; the "extortionate" fees demanded by Russia for overflying Siberia, the application of European Union competition law to airlines, and "the unwillingness of national governments to honor their promises to deliver real improvements" to Europe's fragmented state of air traffic control
London City Airport last year experienced the highest annual passenger traffic in its 10-year history. About 1,165,000 passengers used the airport in 1997, 60% more than in 1996. London City doubled its passenger throughput during the last 18 months, with traffic expanding 31% to 103,930 passengers in December, compared with the same 1996 month.
U.S. Major Carriers Domestic Share of Service Third Quarter 1996 Total Revenue Departures Alaska 40,901 America West 52,479 American 173,108 Continental 101,957 Delta 235,083 Northwest 141,892 Southwest 201,231 TWA 71,379 United 191,088
U.S. Bankruptcy Court for the District of Colorado has set Jan. 23 as the deadline for claims against Western Pacific Airlines. Existing debtors not covered under past agreements must file claims on or before that date.
DOT issued a show-cause order granting American and the TACA Group code- share authority for two years but imposed limits on the degree to which the carriers can integrate their operations. The code-share request does not include antitrust immunity, but DOT said its reading of the record indicates the carriers' long-term plan envisions it. The department dismissed requests by other U.S. majors to block or delay the code share pending further investigation or a full-fledged oral evidentiary hearing.
U.S. airline stocks in the Standard&Poor's 500 outperformed the index as a whole by a wide margin during 1997. Airlines rose 68.2%, compared with S&P 500's 31% gain. In the fourth quarter, the spread was 23.9% for airlines and 2.4% for the S&P 500. (See charts on Pages 17-19.)
Airline partnerships will take a different turn in 1998, according to Cathay Pacific Airways Marketing Manager Mark Weinberg. "Just as in frequent flyer alliances, there will be a lot of travel-related activity partnering on the Internet," he said. Expect some unlikely allies, he said, such as an airline and a bookseller. "A known Internet buyer of anything is predisposed to buy airline tickets that way," he noted.
Delta's Air Line Pilots Association unit has voted to allow the union to assess 1% of members' gross pay for up to nine months to build a contingency fund for pilots who will fly Delta's new aircraft. Under the union's contract, new-aircraft pilots may park the airplanes if no pay-and- rules package is in place six months after the equipment goes into operation. Some aircraft are due for delivery in April, and the first airplane could be parked by February 1999, the union said.
American's December traffic dropped 0.8% on 0.2% less capacity, lowering the load factor 0.4 percentage points to 68%. Domestic traffic fell 1.3% on 0.4% less capacity. The largest change came on Atlantic routes, where traffic fell 5.9% on 7.9% less capacity, which boosted the load factor 1.4 points to 70.4%. For the year, traffic rose 2.3% on 0.7% more capacity, pushing the load factor up 1.1 points to 69.6%. Latin America traffic increased 7.2% in 1997 on 5.5% more capacity; Pacific rose 0.6% on 1.1% less capacity, and Atlantic fell 1.1% on 5.1% less capacity.
Southwest, applying a light touch to the bulky carry-on problem, has begun a "Don't Be A Bin Hog" campaign, using a cartoon of a sweaty blue pig overloaded with six carry-ons.
Olympic Airways has ordered eight 737-800s valued at $408 million, with delivery beginning in early 2000. The new aircraft will replace older 737s and 727s.
The European Commission is expected to launch tomorrow an inquiry into Air France's commercial pacts with Continental and Delta, a source close to the European Union's competition watchdog said yesterday in Brussels. The news is to be announced after the commission's weekly meeting. Air France notified the EC of its transatlantic alliances in the first half of 1997. The agreements will be reviewed like other accords currently under investigation, such as the proposed American-British Airways alliance, the source said.
