DOT Deputy Assistant Secretary Mark Gerchick told attendees of an International Air Service Seminar in Washington sponsored by the Airports Council International that moving forward with China could be the most intriguing aviation development in the Asia/Pacific region.
Aerolitoral Airlines of Mexico placed an order for six used Saab 340B aircraft for operation on expansion routes. The carrier is wholly owned by Cintra, the holding company for Aeromexico and Mexicana. The first two 340Bs configured for 33 seats, are now in delivery.
Aeronautica Venezolana, operating under the name Aerovenca, applied at DOT for one-year exemption authority to conduct non-scheduled and charter foreign all-cargo operations between points in Venezuela and Miami. The Venezuelan charter carrier, which flies between Venezuela and points in South America, wants to operate "approximately two weekly non-scheduled roundtrip all-cargo flights" and charter flights using DC-8 or 747 aircraft wet-leased from a U.S. or foreign Category 1 carrier, beginning Jan. 15. (Docket OST-97-3195)
American airlines and Aspen Mountain Air/Lone Star have expanded their code-sharing agreement to include service between Dallas/Fort Worth Airport and Del Rio, Texas, and Chihuahua, Mexico. The code-share service offers two flights daily except Saturday between DFW and Chihuahua, and two daily flights Monday through Thursday and one Sunday and Friday between DFW and Rio. All services are operated with the Dornier 328 turboprop.
Aeromexico traffic for October increased 15.2% on 4.3% more capacity. The number of passengers carried rose 11.8% to 648,000. Year-to-date traffic has grown 13.3% on 3.5% more capacity.
In an order allowing suspension of service at Worcester, Mass., by Continental Express, DOT said the department is precluded from providing subsidy support to Worcester because of its location 50 miles from large- hub Boston Logan and 65 miles from medium-hub Bradley International in Hartford, Conn. Continental Express told DOT it will terminate its Worcester-Newark service Sept. 4, but subsequently amended its suspension date to Jan. 7, 1998.
American Eagle's four carriers achieved a load factor of 59.5% in November, 2.6 percentage points higher than November 1996, as traffic rose 2.4% to 205.2 million revenue passenger miles, while capacity declined 2% to 345.1 million available seat miles. Nov. 1997 Nov. 1996 11 Mths 1997 11 Mths 1996 RPMs 205,184,000 200,405,000 2,337,742,000 2,376,006,000 SMs 345,070,000 352,023,000 3,854,507,000 4,065,246,000
Eight regional airline stocks averaged a gain of only 31 cents per share during November. Market value of the issues declined $59.9 million to $3.2 billion, however. United Express Atlantic Coast, which during the month gained approval to operate its new fleet of Canadair Jets in the United livery, led all gainers as its stock jumped $2.25 per share, or 10.6%, to close at $23.38. It was followed by Delta Connection Atlantic Southeast, up $1.75, or 6.3%, to $29.63 per share.
Honeywell Space and Aviation Control Counsel John Leshinski said the company was "quite surprised" to learn the European Commission will provide 140 million French francs (US$23.6 million) in subsidies to Airbus to finance new flight control systems by two Honeywell competitors - Sextant Avionique of France and Smiths Industries of the U.K. In announcing the subsidy, an EC spokesman said, "The project will enable Airbus, temporarily outpaced by the new navigation system of Boeing's 747s and 777s, to reduce its dependency toward U.S.
Finnair Chairman Antti Potila said yesterday in Helsinki that he will retire at the end of 1998. "I just want to take advantage of an offer to retire at the age of 60," said Potila, who has chaired the carrier's board since 1986. He said he is the longest-standing chief executive among major European airline heads.
Continental, which lost out to American in the Aerolineas Argentinas equity competition, has reached an agreement with CINTRA, the Mexican holding company that controls Aeromexico, Mexicana and AeroPeru, to take a 30% stake in the Peruvian airline, according to DAILY affiliate Aviation-Latin America&Caribbean, which quoted local Peruvian sources. The arrangement still is subject to a number of regulatory approvals.
Business Travel Contractors Corp. (BTCC) this week criticized a statement by United Chairman and Chief Executive Gerald Greenwald that small carriers are spreading negative perceptions about the state of the airline industry, and that there is no need for new regulations in commercial aviation (DAILY, Nov. 19). Greenwald made his comments to the Economic Strategy Institute last month in Washington. He accused some carriers of nurturing the perception that the big carriers are price gouging, keeping out competition, and not serving small markets.
United is introducing a free Internet-based travel planner that enables users to book travel online with more than 500 airlines, 45 car rental companies and 30,000 hotels worldwide. With the United Connection program, travlers can check airline schedules, shop for low fares, purchase tickets, select seats, and research and reserve hotel rooms and rental cars. Available at http://www.ual.com, it also offers frequent flyer incentives of 500 bonus miles - and a maximum of 1,000 per trip - for every one-way ticket booked on United through the web by June 30.
Airbus A330-200 yesterday made its first flight with Pratt&Whitney PW4168 engines. The aircraft also is being tested with General Electric CF6-80E1 and Rolls-Royce Trent 700 engines. Certifications are planned next March, June and December, respectively.
Continental, Continental Express and EVA Airways applied at DOT for combination-service code sharing on points linking Taiwan, the U.S. and Panama. The carriers asked for swift approval, so they can prepare to start the code share on March 29, 1998.
South African Airways is launching a North American promotional campaign that seeks to create a more comforting image for its new livery. Touting the carrier as "Africa's Warmest Welcome," SAA is drawing attention to its nonstop service from New York and Miami and its frequent flyer links with American.
All 166 certificated U.S. carriers required to submit family assistance disaster plans to the government have done so, complying with the Aviation Disaster Family Assistance Act of 1996. But as noted in a letter sent to them by DOT General Counsel Nancy McFadden, who worked with the task force, DOT's acceptance of the plans does not constitute approval.
Western Pacific is prepared to continue with conservative growth by increasing its frequencies and adding one or two destinations later, President and Chief Executive Robert Peiser told The DAILY yesterday. On Wednesday, Westpac received approval from the U.S. Bankruptcy Court for the District of Colorado in Denver for debtor-in-possession and reorganization financing.
Horizon Air flew 70 million revenue passenger miles last month, up 7.2% from the same 1996 month's 65 million. Capacity climbed 3.6% to 120 million available seat miles from 115 million. The load factor was 58.5% - up two percentage points higher than the prior November's. The number of passengers totaled 287,900, up 2.1%.
Association of European Airlines Traffic October, 10 Months 1997 October 1997 Passenger Data % RPKs Change ASKs Region (Mil) 97/96 (Mil) EUROPE 10,233.8 11.0 15,391.3 NORTH AFRICA/MIDDLE EAST 1,628.5 9.3 2,491.5 LONGHAUL
Sun Pacific International received reissued certificates under a DOT order removing the condition that limited its operations to one aircraft. The carrier holds interstate and foreign charter certificates. DOT imposed the restriction because of the limited service proposed initially by the carrier and DOT's concerns that the carrier's "financial resources might not be adequate" if it acquired and operated more aircraft. The order requires Sun Pacific to inform DOT if it plans to operate more than eight aircraft.
Vanguard Airlines said it has extended the expiration date of a rights offering from 4 p.m. today to the same time Dec. 10. For holders of record as of Oct. 10, the Kansas City-based niche carrier is distributing without cost two non-transferable rights to purchase shares of the company's stock at 50 cents a share for each share of common stock held on the record date. Vanguard has distributed about 30.5 million rights to purchase shares of common stock. The carrier serves Atlanta, Chicago Midway, Dallas/Fort Worth, Denver and Kansas City.
Lawrence Nagin, executive VP-corporate affairs and general counsel for US Airways, yesterday asked the Airports Council International-North America to support open-skies relationships that are truly competitive and ensure equitable access to key international airports in a way that will foster competition. Speaking to ACI's International Air Service Seminar in Washington, Nagin praised airport leadership for supporting US Airways and helping the carrier build and improve its hub facilities. He also made a pitch for a more equitable competitive environment.
CityBird, Belgium's low-cost, long-haul carrier, racked up a substantial operating loss for its third quarter. The airline said heavy startup costs and advertising charges were the main causes for the deficit. CityBird S.A., based in Brussels, suffered an operating loss of 467 million Belgian francs (US$13 million) for the three months that ended Sept. 30. Its final results, after interest charges and extraordinary income, totaled BEF 419 million ($12 million). CityBird was incorporated Aug. 7, 1996, but did not begin operations until March this year.
