American will enter more than a dozen new markets in the late spring and increase summer frequencies on three dozen additional routes. New service includes Newark-London Heathrow on March 2, Dallas-Manchester April 5 and Boston-London Gatwick June 15. In Latin America, American will launch Miami-Cozumel on April 1 and Dallas-Panama City and Chicago- Monterrey on May 1. Service from Miami to Grenada and St. Lucia begins April 13. Domestically, on April 13 the carrier starts Boston-San Diego, New York LaGuardia-Tampa and LaGuardia-Orlando.
Western Pacific has an internal timeline to emerge from bankruptcy in mid- to late March. The airline and creditors are negotiating the final few points of a deal, and some of TWA's bankruptcy elements are expected to emerge as solutions. Westpac executives, including Chief Executive Bob Peiser, have worked for TWA.
Weighing requests from customer airlines, most recently Sabena, Airbus is "actively considering" purchase contracts denominated in Euros. Airbus says this would help Europe-based carriers that generate a major part of their revenue there. Benefits include predictability and freedom from exchange risk. Euro contracting also would be a "valuable alternative" to other customers who currently must buy aircraft priced in dollars. (See related story, Page 131)
The reorganization of Raytheon Co., announced Friday, leaves the air traffic control business free of the layoffs and massive changes that will penetrate the defense side of the business. Raytheon said Friday that the reorganization into Raytheon Systems Co. of multiply merged firms Raytheon, Hughes Aircraft Co., Texas Instruments and E-Systems will result in the elimination of about 8,700 jobs during the next two years. "Employment will be reduced by about 10%," said William Swanson, chairman and chief executive of Raytheon Systems Co.
TWA told DOT it will not use its authority to provide nonstop service in the St. Louis-Mexico City market. It suspended the service for the summer and will not restore it this winter.
A consortium including New York-based Ogden Corp., Corporacion America Sudamerica S.A. and Milan, Italy, airport operator Societa Esercizi Aeroportuali submitted the winning bid last week on a 30-year concession to operate 33 airports in Argentina. The bid, reportedly US$171 million, beat out bids submitted by a team of Italian company Impregilo, German Ferrostaal, Paris airports operator Aeroports de Paris and Argentine company Cartellone, and a consortium of Argentine company Sideco, The Exxel Group and Frankfurt Airport operator Flughafen Frankfurt Main AG.
Kiwi International Air Lines received a $2.2 million loan from Kennedy Funding, a direct private lending firm. The Hackensack, N.J.-based investment house made the loan to aid in Kiwi's recovery efforts.
Washington Consulting Group (WCG), protesting FAA's selection of Lockheed Martin Corp. (LMC) for its NISC II (National Airspace System Implementation Support Contract) told FAA's Office of Dispute Resolution that "the same OCI [organizational conflict of interest] concerns about LMC that were initially recognized by the FAA have returned with a vengeance." WCG said that through its purchase of Loral Corp., Lockheed Martin "is in the enviable - albeit improper - position to evaluate and provide advisory services concerning its own performance."
Aer Lingus is "in the middle of due diligence" in the sale of its TEAM Aer Lingus overhaul and maintenance subsidiary, and the Irish company is optimistic that it will complete the deal soon, Group Chief Executive Gary McGann said last week. Describing Aer Lingus's attempt to form a strategic airline alliance (DAILY, Jan.
Dassault Electronique and Sextant Avionique are creating a 50/50 joint venture to sell avionics equip-ment to airlines. Dassault specializes in SATCOM systems, Mode S transponders, surveillance equipment and recorders, while Sextant focuses on multimode receivers, flight management systems, radio-altimeters, VHF radios, instruments and on-board printers. Sales and product support services will be handled by Sextant's international network.
DOT dismissed Icelandair's request for initial exemption to provide scheduled Luxembourg-Minneapolis/St. Paul service, stating that such authority is not provided in the U.S.-Iceland open-skies pact and is "not within the scope of authority we were prepared to grant the carrier." Icelandair, which operates Luxembourg-originating flights directly to the U.S.
City of Austin, Texas, is free to deposit proceeds from sale or reuse of the existing Robert Mueller Airport into its general fund following an agreement with FAA and the city's signatory airlines. The city is providing the land for the new Austin-Bergstrom Airport essentially free to airport users, except for ongoing maintenance and operating costs. For the small number of Robert Mueller land parcels purchased with federal money, the city will deposit a percentage of sale proceeds into the local airport fund.
Tension is growing between nearby residents and London City Airport, which aims to double annual aircraft movements to 73,000 to accommodate business travel demand. Such an increase would more than double current passenger traffic to 3 million by 2005. The planning committee of the Docklands Development Corporation in East London, where the airport is located, has approved the plan tentatively and the U.K. transport ministry is reviewing it. London City already is the fastest-growing of London's four airports.
U.S.-Japan partisans continued their campaigns last week in step with U.S.- Japan talks. Pro-agreement civic officials lobbied government offices while Northwest gained another advocate - The New York Times, which published a "Cave-In To Japan" editorial. Northwest ran more of its Oliphant cartoons in prominent newspapers. Chicago Aviation Commissioner Mary Rose Loney told The DAILY that "contrary to Northwest's cartoon campaign, there is nothing funny about denying U.S. cities like Chicago access to lucrative air routes to Asia."
DOT wants more information from American and LanChile on their application for antitrust immunity, a precondition, according to the Chilean government, for open-skies approval. In response to the department's inquiries, American sent it a Bates index - a standard document numbering system - and provided more legible copies of several materials, including a transcription of data in the documents.
House Transportation Committee will hold a markup tomorrow on H.R. 2625, a bill to redesignate Washington National Airport as Ronald Reagan Washington National Airport. The panel will meet at 2 p.m. in Room 2167, Rayburn Building.
American named Thomas Horton VP-Europe, succeeding Hans Mirka, who will retire next month; Jeffery Jackson VP-controller; Jeffrey Campbell VP and treasurer; David Campbell VP-maintenance at Alliance Airport, and William Green VP-finance and planning for the Maintenance&Engineering Department, a new position.
FAA said experts interested in being on a Fuel Tank Harmonization Working Group must request participation by Feb. 2. All requests will be reviewed by the chair of the Aviation Rulemaking Advisory Committee (ARAC). The working group is being set up to help reduce or eliminate the hazards associated with explosive vapors in the fuel tanks of jet transports following the crash of TWA 800.
U.S. and Mexican negotiators held talks Friday in Mexico City on adding code-share provisions to the bilateral. Current code sharing is extrabilateral. The U.S. detailed its code-share proposal but did not expect immediate agreement.
