DOT issued Tradewinds Airlines a companion certificate to the carrier's interstate charter certificate (DAILY, Dec. 9), authorizing foreign charter service. As stated in its fitness order, Tradewinds must notify DOT if it wants to operate more than five aircraft. (Docket OST-97-2795)
TWA has completed a $100 million private placement of asset-backed notes, the latest in a series of liquidity moves that led Standard&Poor's to revise its outlook on the carrier Dec. 23 from negative to stable. TWA said it will use proceeds from the newly placed 9.80% Airline Receivable Asset Backed Notes due 2001 to repay its remaining debt to Karabu Corp., an affiliate of former owner Carl Icahn, and for general corporate purposes.
Airlines Reporting Corp. reported a 12% increase to $5.422 billion in total travel agent sales processed in November 1997 from November 1996. Total sales for the year to date were up 11% to $65.417 billion. Domestic commissions fell 10% to $238.5 million, while international commissions rose 7% to $210.7 million. ARC also reported an 8% increase in domestic fares to $3.477 billion and a 17% increase in international fares to $1.524 billion.
UPS has agreed to settle 400 pay grievances filed last month by its pilots union. The grievances stemmed from scheduling changes that followed the Teamsters strike last August. The Independent Pilots Association sees the company's willingness to settle as a positive sign for contract negotiations, which resume Jan. 12 in Washington.
U.S. District Court Judge Miriam Cedarbaum dismissed claims by US Airways charging the proposed American-British Airways alliance violates antitrust law, and other claims that BA violated fiduciary obligations toward the former USAir. But US Airways still is permitted to pursue breach-of- contract claims against BA in connection with the former BA-USAir alliance.
- Orally approved a one-year authority renewal for Air Jamaica to conduct scheduled foreign combination service between Kingston/Montego Bay and Fort Lauderdale...Orally approved a two-year authority renewal for Sky Service F.B.O. Inc./Service Aerien F.B.O. Inc. to conduct charter foreign combination service between points in the U.S.
BAX Global said it has signed an agreement to acquire Distribution Services Ltd. and an affiliate company for $76 million. DSL, an ocean freight forwarding and logistics warehousing company serving routes between the Asia Pacific and North American regions, has facilities in Los Angeles, Hong Kong and China. BAX said it plans to maintain the DSL organization and operate it as a separate entity.
Abacus computer reservations system is introducing a corporate booking facility. The facility will include the Corporate Booker, enabling the user to view flight availability and make bookings on-line; the Corporate Authorizer, providing for supervisor approval of employee bookings before ticketing, and Database Administrator, which sets up travel profiles, including eligibility and corporate preferences within the company.
Atlantic Coast Airlines modified its application filed last month for 36 slot exemptions at Chicago O'Hare to add Springfield, Mo.. ACA, a United Express commuter, wants six slots for three daily roundtrips flying 50- passenger Canadair Regional Jets on the route. The carrier already has five of the Canadair jets and will be adding to the fleet at least through 1999. ACA said further market analysis shows Springfield could support the link to O'Hare.
National Transportation Safety Board Chairman Jim Hall said he expects a report in six months on an accident Dec. 28 in which a United 747 hit turbulence on a flight from Tokyo Narita Airport to Honolulu. One passenger died and dozens were injured when the aircraft lost altitude.
A less-than-5% increase in aircraft movements per day in 1998 will put London Gatwick Airport essentially at full capacity during its principal hours of operation, joining London Heathrow and putting a further squeeze on attempts to increase air traffic in the U.K., according to a National Air Traffic Services executive. Keith Williams, NATS director of safety and organizations, said the level of operations at Heathrow was similar this year to that of 1996, which "indicates that we are operating pretty well at full capacity."
United's Thanksgiving holiday turkey dish drew requests for seconds from passengers in economy class on many flights. The carrier is offering the Sheila Lukins holiday meals during the Christmas travel period as well.
NovAtel said this week it has received an order from Hughes Information Systems for seven more Global Positioning System receivers. The devices will be used in Phase 1 of the FAA development and field implementation of satellite-based navigation services. The program is considered one of the first steps toward an international global navigation system. The order follows previous deliveries to the Wide Area Augmentation System program.
America West's latest arguments for slot exemptions at Chicago O'Hare are based on "unsound economic analyses and irrelevant comparisons," United told DOT. America West's application does not meet exceptional- circumstances guidelines, according to United, not even under new DOT criteria stressing economically viable jet service to underserved points. America West wants exemptions for Columbus-New York LaGuardia and Phoenix- O'Hare, and United focused on the latter.
DOT has reaffirmed an earlier ruling in the Los Angeles Airport Rates Proceeding and said landing fees charged by the City of Los Angeles, its Department of Airports and its Board of Airport Commissioners were unreasonable and unlawful. An appeals court had directed DOT to re- examine the City's arguments. DOT said the parties must now refund with interest the fees paid from Aug. 23, 1994.
EVA Airways will launch dedicated cargo service between Taipei and Chicago on Jan. 8. The carrier will offer three weekly flights using MD-11 freighters. EVA took delivery of its fourth MD-11F on Nov. 19 and the fifth on Dec. 22. It will add two more in 1998. The carrier has nine weekly dedicated cargo flights between Taipei and the U.S., and the Chicago route will serve shippers' needs in Columbus, Detroit, Minneapolis, Dallas, Atlanta and Miami.
International Council of Aircraft Owners and Pilots Association yesterday added its voice to the growing clamor for FAA to continue operating the land-based Loran-C navigation system as a backup to the satellite-based Global Positioning System. IAOPA President Phil Boyer said that while GPS will become the primary navigation system, "Loran is still needed as a secondary, backup system." DOT plans to decommission the U.S. Loran-C system in 2000. Congress, pressured by Loran users, has ordered DOT to review that decision.
Western Pacific Airlines has received a $1.5 million injection from Smith Management Co. (SMC) as an advance against the investment firm's commitment of $20 million debtor-in-possession financing. The recapitalization was approved Dec. 3 by a bankruptcy court. The $20 million commitment is in addition to the initial $10 million funding from SMC on Dec. 4. Westpac said SMC agreed that certain conditions in the initial term sheet have been satisfied, and, therefore, Westpac can postpone filing a plan of reorganization, which was due Dec. 20.
Boeing confirmed yesterday that Lufthansa has ordered five 747-400s valued at $825 million. The airline's board approved the purchase earlier this month. Lufthansa exercised options in October on two 747-400s and has ordered 60.
The Sabre Group is tackling the issue of passive booking segments with a new product - Customer Service Status Code (CSSC) - that eliminates the need to create certain files of passive segments. CSSC will not be billable to the airlines and will eliminate approximately 12 million formerly billable bookings from their 1998 invoices, adding up to about 4% of their bills. Travel agents can use the CSSC (YK) to print itineraries and invoices and perform other reporting functions for a trip without creating an additional segment fee to an airline.
