Saab Aircraft is pulling out of the regional aircraft manufacturing business to pursue subcontracting for other parties in the field and to focus resources on its military aviation and aerospace sectors, Saab's board announced yesterday. Following its Oct. 23 decision to analyze the company's prospects in the regional airliner business, Saab will discontinue production of the Saab 340 and Saab 2000 regional aircraft by mid-1999.
Kiwi Airlines will offer travel agents 20% commission on all K and Y class tickets in any market until Feb. 28. It also is discounting all fares between New York and Boston. Weekend fares will cost $112 roundtrip, or $58 one way for a seven-day advance purchase and $78 one way for bookings made less than seven days before departure.
Slot availability at Tokyo Narita Airport remains a monumental obstacle in U.S.-Japan negotiations, which resumed in Tokyo yesterday, and its importance is highlighted by questions about FedEx's operation at Narita.
Vanguard is marketing a three-part "Road Warrior" program geared toward frequent business travelers. The program offers (1) fully refundable executive fares, express check-in and guaranteed seat availability, plus waiver of penalty fees; (2) extra savings to companies buying 10 or more seats on any one route, and (3) customized fares for companies with special needs.
Airlines will install enhanced ground proximity warning systems voluntarily on a majority of commercial aircraft in the U.S. in a program to reduce controlled flight into terrain, one of the biggest causes of fatal aviation accidents, airline and top government safety officials said yesterday. The program will start six months to a year "sooner than if the government had acted alone" in requiring the equipment, as recommended by the National Civil Aviation Review Commission (NCARC), DOT Secretary Rodney Slater told a news conference in Washington.
US Airways is offering electronic ticketing services on Worldspan's computer reservations system, making its e-tickets available through all CRS systems.
United Chairman Gerald Greenwald forecast yesterday that after a record 1997, profits during 1998 will be even better. In closed-door remarks before the Society of Airline Analysts, Greenwald said fourth quarter profits will meet or exceed the First Call estimate of $1.58 per share fully distributed. In the fourth quarter of 1996, United earned a record $142 million before extraordinary items. Although UAL's net earnings for 1996 were $1.03 billion on revenues of $16.4 billion, net margin was just 6.3%.
Executives from nine airlines will attend a special meeting tomorrow in Glade Springs, W.Va., hosted by West Virginia's Sen. Jay Rockefeller and Gov. Cecil Underwood. The meeting is aimed at improving air service to the state, where daily flights this year have dropped to 86 from 167 in 1970 . American Chief Executive Robert Crandall and Northwest Chief Executive John Dasburg will meet with Rockefeller. Executives from United, US Airways, TWA, Delta, America West, Continental and AirTran also will attend.
UPS's pilots union is trying to settle pay grievances on behalf of 400 pilots through informal talks with management rather than going to arbitration Friday.The Independent Pilots Association claims rescheduling that followed last summer's Teamsters strike reduced some pilots' hours and pay.IPA's negotiating committee also is meeting this week to prepare for the resumption of contract talks Jan. 12.
The Equal Employment Opportunity Commission has reached an agreement with Midwest Express to settle and dismiss a lawsuit claiming the carrier did not hire and promote blacks in certain positions. EEOC filed suit May 30 in U.S. District Court in Milwaukee alleging that Midwest Express failed or refused to hire blacks for aircraft groomer and airframe and powerplant technician positions, and to promote blacks into first-line supervisory and management positions.
The Netherlands will set aside about 300 million guilders (US$149.2 million) to finance the involvement of Dutch companies and research institutes in the Airbus A3XX superjumbo transport project from 1997 through 2003, the Dutch Ministry of Transport said yesterday.
American's recent Internet promotion with ITN offering awards for half- price tickets on flights during the first half of November increased its sales 71%.
Horizon Air and its 275 flight attendants, represented by the Association of Flight Attendants, reached tentative agreement yesterday on a five-year contract. Details were withheld pending membership ratification. Horizon and AFA have been in negotiations for 18 months and in mediation since February.
British Airways is the first airline to purchase a global aircraft tracking system capable of pinpointing the location of each of BA's 300 aircraft, whether in flight or on the ground. The #150,000 system, developed by U.K. companies Smith System Engineering and Racal Survey, uses satellite data to show the real-time location of the 130 aircraft BA has in the air at any given moment. The system will help the airline make decisions faster when identifying routes affected by bad weather or closed airspace, BA said.
Alaska Airlines is conducting a stock offering of 3 million shares that should net $105 million for general corporate purposes. The offering was managed by Merrill Lynch and Morgan Stanley Dean Witter.
Lufthansa Cargo is launching an effort in conjunction with freight forwarders that aims to provide better customer service. The "Business Partnership Program" foresees more than a dozen areas of cooperation, including quality management, capacity and planning, product development, export/import process, information technology, marketing and training.
Mexicana has leased one Boeing 757-200 from ILFC for eight years. With two other 757 commitments, the airline will take delivery of two new aircraft in August and one in November 1998.
Atlanta-based AirTran Airlines is offering service to New York nonstop between Atlanta and New York LaGuardia at $99 to $200 one way. Travelers from New York now have one-stop connecting service between LaGuardia and Knoxville twice daily, with fares starting at $89 one way. One-way fares from Atlanta to LaGuardia represent savings of as much as 68% off other carriers' published unrestricted walkup fares. Business-class fares cost $225.
Equality between the U.S. and Japan on issues involving third and fourth freedoms can be achieved, according to Chikara Sugimoto, VP-international affairs for Japan Airlines. But code sharing, beyond rights and slots remain the difficult questions in this week's bilateral talks, Sugimoto told The DAILY yesterday in Tokyo, and he suggested that U.S. carriers should expect to confront the same limitations other carriers face with when flying through Japan.
U.S. Carriers Interest Expense, Third Quarter 1997 % Of Total Interest Operating Expenses Major Carriers Alaska $ 5,638,000 1.59 America West 5,769,731 1.35 American 31,167,000 0.86 Continental 29,290,000 1.98 Delta 42,329,000 1.33
Sichuan Airlines has awarded an additional contract to International Aero Engines for V2500 engines to power two A320s and two A321s. The order, worth $66 million, is the 11th this year for IAE.
Associated Global Systems promoted Scott Richter to director-service quality and named Monica Barber marketing services specialist, both new positions.
The Airlines Reporting Corp. (ARC) board approved last week a one-year trial allowing individual travel agencies to share rent, utilities, computer reservations systems and equipment while continuing to operate separately, enabling agents to reduce expenses. The board will receive applications from prospective participants through the first quarter of 1998, said ARC VP and General Counsel Kathleen Argiropoulos. ARC does not know how many agencies are interested in the proposal, which came from the Association of Retail Travel Agents.
Bidders for bankrupt Mahalo Air are being asked to provide airline ownership credentials by submitting background and financial information, an attempt to ensure that whoever buys Mahalo's assets can get operating authority. Mahalo attorney Jerrold Guben said competition for the airline is heating up.
TWA board member William Winpisinger died Thursday, TWA Chairman and Chief Executive Gerald Gitner announced. Winpisinger, the international president of the International Association of Machinists and Aerospace Workers for many years, sat on the TWA board since January 1994.
