FAA said yesterday it is reopening the comment period and will hold two public meetings on four proposed rules to reduce payload limits for 727 cargo conversions. The public meetings will be held in Seattle on Feb. 18- 19 and on April 1-3. Those unable to attend the meetings can submit comments, which FAA said will receive the same consideration. The comment periods on the proposed rules will remain open until April 24, or three weeks after the close of the second meeting.
DOT IG Kenneth Mead suggests FAA consider three issues before approving $1.6 billion in PFCs for a light rail system at New York Kennedy. If FAA cannot wait for legislative guidance, the Port Authority of New York and New Jersey should be directed to address the extent to which the project is likely to add airport passengers, whether the authority will have resources to fund important airside projects and whether cost sharing or the use of surface transportation funds is appropriate, he told FAA.
Senate Commerce Committee Chairman John McCain (R-Ariz.), commenting on the Clinton administration's proposed fiscal 1999 budget, said he was disappointed that it fails to direct "the necessary and available resources to aviation security and safety improvements. As of last year, air travelers have paid approximately $2 billion in increased taxes dedicated to support the nation's aviation system. They rightfully expect the government to use these funds to finance needed improvements.
The European Commission is threatening to reopen a state-aid inquiry into Alitalia and block the payment of 750 billion lire (about US$419 million) unless the Italian airline carrier modifies its pricing practices in domestic markets. "Alitalia has until Friday to tell us how they intend to comply," the spokeswoman of European Union Transport Commissioner Neil Kinnock said yesterday in Brussels. The commission has found the airline guilty of acting as a price leader on several routes in Italy, including Rome-Venice and Rome-Catane.
National Transportation Safety Board called on FAA yesterday to require inspection of aileron cables on older 747s. Although Boeing has issued bulletins concerning frayed cables, the safety board said FAA should require 747 operators to conduct the inspections. The board cited numerous instances of frayed cables it said could affect flight safety. In one instance, the left outboard aileron on an Ansett 747-300 deflected to the full-down position while taxiing for takeoff.
Rep. Louise Slaughter (D-N.Y.) is introducing a bill intended to improve service and reduce fares to underserved communities. Slaugther said the bill, the Airline Competition and Lower Fares Act, would be only "one of the many ways I plan to respond to the deluge of consumer and business complaints from my district about sky-high air fares." Slaughter's upstate New York district has not enjoyed the benefits of deregulation, according to Slaughter, nor have many other communities across the U.S. The bill, co-sponsored by Rep.
It is "uncertain" whether governments worldwide will be able to come up with regulations that prevent international airline alliances from stifling competition while enabling them to operate efficiently, a Washington attorney said Sunday at the IATA Legal Symposium in Bangkok, Thailand, but measures based on U.S. antitrust law would help. Joanne Young of Baker&Hostetler said regulatory authorities could protect small, unaligned carriers by:
Mesa Air Group's board said yesterday it has named Paul Madden chairman, succeeding Larry Risley, who resigned Tuesday. Madden, a counsel member of Phoenix law firm Gallagher and Kennedy, was corporate and SEC counsel to Mesa from 1988 to June 1997, when he joined Mesa's board. James Swigart, chief financial officer of Virgin Express and a principal of Barlow Management, was named vice chairman.
Emirates has become the sole contender to purchase a 40% stake in Air Lanka, the Sri Lanka government said. The Emirates proposal was the only one submitted that met all the government's criteria. Other bidders were Texas Pacific Group/Continental Airlines, China Southern Airlines, Thai Airways International, TAESA of Mexico, Malaysian Airline System and Air Asia, also based in Malaysia. The attempt to find a suitor for Air Lanka began in 1995 and has included input from Chase Manhattan and New York- based SH&E.
McDonnell Douglas DC-9-30 and MD-80 Systemwide Aircraft Utilization Per Day Third Quarter 1997 DC-9-30 Continental Northwest TWA Number of Aircraft Operated 30 111 34 Total Fleet Operations Departures 161 548 175 Block Hours 261 910 282
Citing ticketing distribution advances, British Airways will close 17 city ticket offices in the U.S. "Advancements and efficiencies such as the Internet, ticket by mail and electronic ticketing are changing the airline business," said Dale Moss, executive VP sales and marketing USA. The airline expects city office ticket revenue to remain flat. "This, combined with escalating operating costs and necessary office refurbishments have made it obvious that a profitable operation is unlikely," he said.
The 10 largest U.S. carriers posted worse on-time arrivals and mishandled baggage rates for December, compared with November, according to DOT's Air Travel Consumer Report. Yearend 1997 figures show improvements in both categories, compared with 1996. Consumer complaints in December for all carriers increased over 40% from the prior month, with those against majors up 35%. The on-time arrival rate of 73.5% for December extends the downward trend begun in September. US Airways was first, at 76.6%, followed by American, 75.1%.
United's January traffic increased 1.3% on 3.1% more capacity, pushing the load factor down 1.3 percentage points to 65.7%. The domestic market continued to show growth, as traffic increased 1.9% on 1.1% more capacity, resulting in a 64.1% load factor. Pacific traffic fell 9.9% on 1% less capacity, which caused the load factor to fall 6.8 points to 68.3%. The traffic declines in the Pacific came as United adjusted its service to the region, and the results of those changes will be reflected during the next few months.
FAA has little time to resolve Year 2000 computer date-logic problems and must take a stronger, more active role than it has in other programs, Joel Willemssen, General Accounting Office director of civil agencies information systems, said yesterday at a joint House subcommittee hearing on the issue. FAA Administrator Jane Garvey conceded problems identified by GAO and by the DOT Inspector General's Office but expressed confidence in FAA's ability to implement solutions in time.
Japan Airlines will launch twice-weekly service from Nagoya to London April 3. Flights will operate from Nagoya on Tuesdays and Fridays using MD-11 aircraft with 65 seats in business class and 168 in economy. The addition increases JAL's Japan-U.K. frequencies to 18 per week. The airline will add one weekly flight on the Tokyo-London route in April, bringing weekly frequencies in the market to 10. At the same time, Osaka- London will grow from five to six flights per week.
Western Pacific Airlines announced officially yesterday that it will cease operations, and attorneys for the airline have asked a bankruptcy court judge for permission to shut it down. The attorneysdid not give a timetable but said they wanted time to reaccommodate Westpac's passengers. President and Chief Executive Robert Peiser said he believed Westpac's "turnaround was imminent, as evidenced by our advance bookings.
British Airways posted a 3.6% increase in January traffic on 8.8% more capacity, which forced the load factor down 3.3 percentage points to 64.2%. Premium traffic fell 1.5% but economy totals rose 4.5%, the highest growth rate since September. Cargo traffic was up 7.8%.
The Senate yesterday passed the bill (S.1575) to rename Washington National Airport in honor of President Ronald Reagan. The companion House bill (H.R.2625) was reported favorably and awaits floor action. Supporters are trying to send the legislation to President Clinton in time for Reagan's birthday Friday.
Iberia yesterday announced an order for 76 single-aisle aircraft from Airbus Industrie, one of the largest orders ever placed by a European carrier. Iberia placed 50 firm orders and 26 options on up to nine A319s, 36 A320s and 31 A321s. The list price for A319s is about $43 million, for A320s about $47 million and for A321s about $57 million. Iberia President Xabier de Irala said the decision to go with Airbus was part of a fleet standardization program.
DOT Secretary Rodney Slater said recent department initiatives to examine competitive practices do not amount to reregulation, and that an "old-style government" would have simply taken enforcement action rather than trying to work with industry, as DOT had done.
US Airways said yesterday it will buy back up to $500 million in common stock, redeem all outstanding preferred stock and retire $379.2 million in debt. The company has nearly $2 billion in cash. US Airways will redeem $358 million in preferred stock held by affiliates of Warren Buffet's Berkshire Hathaway. The moves will leave the company with more than $1 billion in cash.
Northwest is the latest carrier to cut prices to the Asia/Pacific region, making it cheaper to fly to Beijing than across the U.S. Travel packages from Los Angeles, including air fare and four nights in a hotel, are available to Bangkok for as little as $579 roundtrip.
Airborne Express reported record yearend net earnings of $120.1 million, up from $27.2 million the previous year. Fourth quarter net earnings were $30.8 million, up from $10.7 million. Revenues for 1997 grew 17% to $3.9 billion from $2.5 billion. Fourth quarter revenues rose to $755.5 million from $652 million. Yearend shipments for 1997 were up 17% to 302.7 million, including domestic shipments up by the same percentage to 297 million. International shipments gained 13% to 5 million.
Former DOT Secretary Samuel Skinner was named yesterday to the board of directors of Midwest Express. Skinner, 59, is president of Commonwealth Edison.
