Northwest has named author and historian Doris Kearns Goodwin, Harvard professor Dennis Hightower and KLM President and Chief Executive Leon Van Wijk to its board. Goodwin is the Pulitzer prize-winning author of four books on history and politics, and Hightower is professor of management at Harvard Graduate School of Business Administration. Wijk has headed KLM since August.
Preparations for testing the computer-human interface (CHI) between the Standard Terminal Automation Replacement System (STARS) and air traffic controllers get under way this week at the FAA Technical Center. The actual CHI testing will involve Boston airspace scenarios. Michael Hoeffler, manager-Raytheon Transportation Systems, told The DAILY he does not expect test results to delay the program significantly.
UPS' Independent Pilots Association will meet with management and an arbitrator Dec. 19 to discuss back pay for 400 pilots who filed grievances because of rescheduling following the Teamsters strike in August. IPA President Bob Miller said the pilots have filed grievances with the company for changes in flight and operating schedules that left them without pay. "Many pilots as late as October were having pay taken away." Back pay amounts to "tens of thousands of dollars," Miller said.
Finnair's pre-tax profits for the April-September period improved strongly, compared with the same months in 1996. The carrier predicts weaker results for the subsequent six months, however. Finnair said solid demand growth in all sectors and only a modest rise in operating costs produced a pre-tax profit of 575.2 million Finnish markka (US$109 million), up from FIM 233.5 million ($44.1 million) in 1996. The higher results include a FIM 141 million ($26.6 million) gain from the sale of flight equipment.
The Association of Flight Attendants said yesterday a recent FAA draft advisory circular (AC) on carry-on baggage does not address safety concerns but leaves carry-on limits as a competitive issue. AFA at its conference last month and American in a letter to FAA Administrator Jane Garvey called on the agency to develop an across-the-board rule that will take the carry- on debate out of the competitive forum.
The Sabre Group has signed a seven-year agreement with London Underground (LU) to upgrade and maintain its train and crew scheduling services. LU Business Manager Ron French said his company currently has some computer assistance for its timetables, but it needs updating, and there is no computerized duty or crew scheduling. He said Sabre won the contract because it offered the best price. Sabre will computerize LU's crew and train timetable for its 480 trains, 267 stations and 1,250 daily train staff. The system is expected to be in place by mid-1999.
Air Transport Association Cargo Traffic September 1997 Revenue Ton-Miles (000) September September % 1997 1996 Change Domestic Freight 760,841 705,185 7.9 Mail 147,005 138,856 5.9 Total 907,846 844,041 7.6 International
Parties filing on behalf of four midwestern cities asked DOT to reconsider its order denying AirTran's bid for slot exemptions to fly from those points to New York LaGuardia. The filing was submitted on behalf of the "people and businesses" of Bloomington-Normal, Ill.; Toledo, Ohio; Moline, Ill., and Akron-Canton, Ohio, and was written by Air Carrier Association of America Executive Director Edward Faberman.
SAS purchased 29% of Norwegian regional carrier Wideroe and took an option on a further 34.2% of the capital, under a 325 million Norwegian crown (US$46 million) agreement, SAS announced last week in Copenhagen. The option is expected to be confirmed by Dec. 28, 1998. The accord will give SAS control of about 48% of the Norwegian domestic market. The rest is in the hands of Norwegian carrier Braathens SAFE, an ally of KLM and Northwest.
Emirates Airlines has developed an eco-tourism resort on a 3,000-acre site outside Dubai. The Al Maha Resort, to open in late 1998, is the first of its kind in the United Arab Emirates and includes samples of the country's ecology, flora and fauna.
United called on FAA to approve its petition to have 16 slots returned to it at Chicago O'Hare, now that it appears American is the only party to oppose the filing. The slots in question are withheld annually from domestic operations and turned over to the international pool for allocation to foreign carriers. American said United in effect was seeking slot exemptions, and said United met none of DOT's new guidelines for receiving such slots.
American's November traffic rose 3.4% on a 1.6% capacity increase, which raised the load factor 1.2 percentage points to 67%. The airline reduced capacity in the Atlantic division by 7.7%, putting the aircraft to use in Latin America, where capacity increased 10.2% year-over-year. On a percentage basis, Latin American traffic grew the most at 8.3%, followed by the Pacific division's 6.5%. On a pure seat-mile basis, domestic traffic rose the most, up 211 million seat miles or 3.8%.
A bankruptcy court gave Mahalo Air the chance to survive as a passenger carrier yesterday when it vacated its order to send the beleaguered carrier into Chapter 7 bankruptcy liquidation. The court set a Jan. 26 date for an in-court auction, confirmation of sale, or proposed reorganization plan. Three bidders have come forward - air cargo company English Worldwide Aviation, which has offered $150,000, Vista International, Inc., and Roberts Hawaii, owned by Mahalo's principal investor Robert Iwamoto.
New Richmond, Va.-based charter carrier SkyTrek is looking to expand what already is a profitable niche business six months after startup. The 727 carrier has received a steady diet of contracts from casino operators in Nevada and the Bahamas and expects imminent growth in that part of its business. The carrier is led by Bob Iverson, who helped start Newark-based Kiwi International Air Lines in 1992. Iverson is doing for SkyTrek what he was unable to do at Kiwi.
All Nippon Airways is awarding double frequent flyer miles in the ANA Mileage Club to members of Delta's SkyMiles and US Airways' Dividend Miles programs on nonstop flights between the U.S. and Japan. The bonus, only for first- and business-class passengers, is available until Feb. 28.
Eurowings of Germany and BASE Airlines of The Netherlands have signed a code-share agreement for flights from London Gatwick to Germany. The accord will enable the carriers to offer passengers a choice of three weekday departures. BASE Airlines currently serves the Gatwick- Munster/Osnabruck route Monday through Friday, with Eurowings operating the code-share flights on the weekend. Under the pact, passengers can choose from weekday flights departing at 8:20 a.m., 1:05 p.m. and 6:20 p.m. Saturday services depart at 2 p.m. and Sunday flights at 5:45 p.m..
UPS Independent Pilots Association President Bob Miller will meet with FAA Administrator Jane Garvey in Washington today to voice IPA's support for requiring traffic alert and collision avoidance systems, emergency egress and fire-suppression equipment on cargo aircraft. IPA also wants Air Force bases that have been converted for commercial use to be required to have the same fire/rescue equipment as passenger airports.
Companies, responding to a recent 30% rise in business fares, are reducing corporate air travel, turning to budget carriers for corporate travel and negotiating more frequently with major carriers for reduced fares, according to a survey by the National Business Travel Association. More than 70% of corporate travel managers reported fare increases have had an impact on their travel programs and 30% have reduced the level of corporate air travel, the survey found.
Airline stocks moved higher yesterday, as the combination of improved domestic growth and potentially lower international oil prices boosted most major carriers. Goldman Sachs analysts Glenn Engel raised estimates across the board and spotlighted improved prospects for TWA, America West and Midwest Express. "Demand ran stronger in October, and the airlines with the most domestic exposure will fare better," he said.
DOT granted Florida West (FWIA) an exemption to continue providing scheduled all-cargo service between the U.S. and Colombia for six months following termination of the carrier's U.S.-Colombia certificate authority or until FedEx begins operations, whichever is sooner. Nov. 28 was the effective date for the route transfer approved by DOT, when FWIA's authority was set to expire and FedEx's was to become effective.
The U.S. airline industry's current positive revenue environment probably will continue throughout 1998 and load factors this year are expected to remain over 70% for the first time in 20 years, according to Standard&Poor's credit analyst Phil Baggaley. Although there has been pressure on passenger yields, earnings should reach or slightly exceed this year's level.
Numerous filings on slot exemptions for service at Chicago O'Hare Airport show that majors and regionals alike are maneuvering for the limited entry that remains to be awarded under new DOT policy. United filed against American and American Eagle operator Simmons, and American opposed Trans States' bid to refile for slots with a new regional jet plan and asked that an earlier eight-slot award to Trans States be vacated, opening the way for a new American application.
America West will expand nonstop service between Anchorage and Phoenix and add a third daily flight between Phoenix and Vancouver, beginning May 13. The new Phoenix-Anchorage flight will provide the only nonstop service in that market.
