Partners KLM and Northwest will institute a smoke-free policy on all service worldwide starting in spring 1998. The lone exception will permit smoking on intercontinental flights to and from Japan. Currently, 97% of Northwest's flights and 85% of KLM's are smoke-free. The expanded policy will end smoking on all flights within Asia and on service between Japan and Hawaii, Guam and Saipan. KLM will ban smoking between Amsterdam and South and Central America, Africa, Middle East and Asia, except Japan. The policy is effective April 1 on Northwest and March 29 on KLM.
British Airways reduced London Heathrow Airport flight delays due to engineering by 37% in November through a new system of checking aircraft earlier. Pre-service checks are being rolled out at Gatwick and elsewhere. BA's next target for improving on-time departures is terminal maintenance.
AccessAir and Spirit Airlines rejected arguments made by the president of the Borough of Queens against their bids for slot exemptions at New York LaGuardia. Though the borough asked for permission to file about two months late, complaining it was not on the carriers' service list, AccessAir said it had fulfilled its obligations by filing in the public docket. Spirit said there was no excuse for the tardiness and DOT should reject the filing.
Garuda Indonesia has renewed its seasonal wet-lease agreement with World Airways, making 1998 the 25th year World will have flown Muslim pilgrims from Indonesia to Jeddah, Saudi Arabia, for the Haj. Garuda has contracted for six MD-11s in passenger configuration for the March-May period in 1998. World will supply aircraft, crews, maintenance and insurance. World began operating the pilgrimage flights in 1974 with Boeing 707s.
Finnair has signed a $250 million multi-currency revolving credit facility for a seven-year term. The credit deal, completed last week, was arranged by the three financial institutions of Dresdner Kleinwort Benson, Enskilda Debt Capital Markets and Merita Bank Ltd. Finnair said its original credit line of $200 million, was oversubscribed and subsequently raised to $250 million. It replaces a previous credit line of $200 million, launched in October 1995.
BFGoodrich and Rohr shareholders approved yesterday the $1.3 billion merger of the two companies. Rohr shareholders will receive 0.7 shares of BFGoodrich common stock for each Rohr share. BFGoodrich Chairman David Burner said the transaction "makes us a stronger competitor and allows us to expand our capabilities." Rohr trading on the New York Stock Exchange ended at the close of business yesterday.
U.S. National Carriers Financial Results Third Quarter 1997 Third Quarter 1997 Operating Operating Operating Revenues Expenses Profit/Loss (000) (000) (000) American Trans Air $ 201,490 $ 197,060 $ 4,429 Carnival 63,299 89,303 (26,004)
There would be no losers in a Northwest-Continental code share, airline industry analysts say. An alliance would strengthen the weak links in each carrier's route system as Continental provided Northwest with flow to Latin America and Northwest offered Continental a better link between Asia and North America.
DOT assessed CityBird a $10,000 civil penalty, with $5,000 suspended for one year, as part of a consent order regarding advertising violations by the Brussels-based carrier.
DOT assessed Hamilton, Miller, Hudson&Fayne Travel Corp. (HMHF) $20,000 for advertising in which the charter and tour operator was found to have put too much information in the fine print last April in ads in the Detroit Free Press promoting "Spring Sale" fares from Detroit and Flint, Mich.
InVision Technologies said yesterday its CTX 5000 explosives detection system was purchased for use at London Gatwick Airport by BAA Plc. The unit, the fifth ordered by BAA, was valued at $1.3 million, including a multi-year service agreement. The unit is scheduled for delivery next year.
Pan Am said it will pay travel agents an 8% commission and maintain its policy of no commission caps, effective yesterday, adding that the 8% level has become industry standard and it needs to lower its commission rate to stay competitive.
Lufthansa will spend more than 250 million Deutschmarks (US$150 million) to renovate the first- and business-class sections of its long-haul fleet, according to Karl-Friedrich Rausch, VP-executive products and services. He said customer surveys show business travelers want more personalized service and more comfortable seating arrangements. As a result, the carrier will offer a wider choice of food and entertainment and install roomier seats in 47 long-range aircraft by next summer.
Delta yesterday boarded its 100 millionth customer for 1997. No airline had ever reached 100 million customers in one year, Delta said. The carrier awarded the passenger a prize package, including unlimited travel on Delta until 2000, $1,000 in American Express gift checks and 90-day unlimited Airfone service.
The Pacific alliance between Singapore Airlines, Ansett Australia, Ansett International and Air New Zealand will give Ansett the ability to compete more effectively, according to the three carriers' application, filed yesterday with the Australian Competition and Consumer Commission. If approved, the four-way pact will allow Ansett "to be more competitive by giving it access to efficiencies and an integrated global network," the airlines said. Ansett would grow under the scheme, adding to its Australian division work force.
Delta will begin Latin American expansion on April 5 with service from Atlanta to Guatemala City, Guatemala; Panama City, Panama; San Salvador, El Salvador, and San Jose, Costa Rica, on April 5. Northbound service will start the same day, except for San Salvador and San Jose, which will start April 6. Delta expects U.S.-Central American traffic to rise 9% annually through 2002.
DOT ordered American and British Airways to submit virtually all the documents the department originally requested, after reconsideration in response to American-BA objections. After the parties comply, DOT said, it will issue a schedule in the proceeding, which will include arguments by various parties to be made before DOT Assistant Secretary Charles Hunnicutt, who signed the order.
Delta and Air Jamaica received initial one-year approval from DOT to code share on service from Atlanta, New York Kennedy and Miami to Montego Bay and Kingston, Jamaica. Delta said Atlanta-Jamaica service will begin Feb. 23. DOT also approved code-share service to Antigua and Barbuda, Barbados and St. Lucia, for which the carriers await approval by the other governments.
Armed with "extremely good" results from testing the technological feasibility of radio frequency identification (RFID) tagging systems, FAA's Technical Center is seeking the participation of vendors, airlines and airport operators for the second phase of its positive passenger bag matching (PPBM) program. Phase I involved qualification and operational testing of the tag systems, and the second phase will expand to system tests, including integration with agent check-in, inter-airline transfers, tail-to-tail transfers and real-time PPBM operations.
FAA said it will fine Bath&Body Works $750,000 for shipping improperly packaged hazardous materials. It said the company, which operates a chain of domestic retail stores, knowingly shipped ethyl alcohol-based cosmetics with flash points less than 100 degrees Fahrenheit, which did not comply with the terms of an exemption. On at least 23 occasions, Bath&Body offered FedEx shipments that leaked, FAA said.
Olympic Airways ordered two Airbus A340-300s and took options on two more. It ordered two of the same aircraft in August and will have six A340s by 2000.
Schiphol Airport's World Trade Center reports it has achieved a 95% rate of rental occupancy since opening its doors a year ago. Some 80 companies, ranging from banks to airlines, are located in the building.
Three Latin American airline groups are in final negotiations for orders and options for nearly 200 Airbus aircraft, valued at $8 billion (DAILY, Dec. 11). Specifics on engines and deliveries still are under negotiation. Bob Booth, editor of DAILY affiliate Aviation-Latin America&Caribbean, said the transaction will give the carriers "aircraft ownership at a competitive cost to their U.S. and European competitors. It clearly shows the strength of the three airline groups working together.
FAA and the National Transportation Safety Board are collaborating on several programs growing out of the board's investigation of the July 1996 TWA Flight 800 accident, FAA Administrator Jane Garvey said Friday. FAA will form by yearend a team of experts to study NTSB contract research that suggests that the relationship between fuel temperature and ignition energy is significantly different from published literature, she said. The team will meet with the board and report back within 45 days.
