Hughes Training Division of Hughes U.K. received an $8 million contract from Denmark's Civil Aviation Administration to provide FIRSTplus air traffic control training systems. The installation will include 34 radar simulator work positions, five aerodrome trainers and one advanced ATC visual tower simulator.
Korean Air posted an 11% increase in cargo revenue during October, reaching a record $100.5 million. It achieved the gain despite persisting recessionary conditions in the Korean economy. The airline, which has the world's second-largest passenger airline cargo operation, has added service to Denver.
FAA's Terminal Integrated Product Team briefed FAA Administrator Jane Garvey yesterday on color display options for the tower at Dallas/Fort Worth. At issue is whether to implement the Early Display Configuration for the Standard Terminal Automation Replacement System (STARS) or the ARTS Color Display in mid-1999. Internal FAA documents indicate that the ARTS solution would be ready about two months sooner but would cost about $11 million more. Both options could have a negative impact on the STARS program if funding comes from fiscal 1998 appropriations.
Delta and TWA are offering substantial fare discounts for holiday travel. Delta fares begin at $98 roundtrip, and discounts also are available for travel beginning Dec. 24 and returning the same day or on Christmas day, or for Dec. 25 roundtrips. Discounts also apply for travel beginning Dec. 31 and returning the same day or Jan. 1, and for Jan. 1 roundtrips. The carrier also is offering holiday-to-holiday fares beginning at $148 roundtrip, for travel beginning Dec. 24 or 25 and returning on Dec. 31 or Jan. 1.
Western Pacific's corporate travel incentive will offer businesses of any size the chance to earn 15%, 20%, or 25% bonuses on travel purchased in $1,000, $3,000 and $5,000 increments, the airline said. Travel must be pre-purchased by credit card through Westpac's corporate account desk, and the carrier will send a miscellaneous charge order to the designated passenger or travel agency. The MCO is non-refundable, but the remaining balance may be applied to future travel or added to future corporate program renewals.
A group of Middle East investors is developing an aviation company that would buy as many as 12 GIV-SP aircraft over six years and establish a Mideast fractional ownership program, Gulfstream Aerospace and Executive Jet announced. The new company would work with Gulfstream and Executive Jet to attain the operational capability needed to comply with regulatory standards. In addition to the GIV-SPs, Gulfstream will provide two core fleet aircraft in mid- to late 1998, technical support and general sales and marketing support.
America West filed with DOT supporting an extension of computer reservations system rules until early 1999 but seeking quicker action on its request for regulations barring what it regards as abusive use of booking systems by travel agents and some consumers. DOT wants to extend the life of the current rules so that CRS regulation does not expire while the department conducts a comprehensive review of the rules.
Microsafe Industries is working on an "Air Faspak" self-contained fire detection and suppression system for cargo bays that it expects to have certified by the end of 1998. The system, which contains its own power source and requires no wiring, has three sensors that detect smoke, heat and flame. It uses halon gas, but Microsafe Chairman Pat Golden said it will be able to use any new suppressant developed in the future, including gas, liquid or dry chemicals.
Citing the need to stay competitive, most major carriers have followed the lead of Continental and increased the administrative service charge on ticket changes from $50 to $75. Continental increased its fee two weeks ago because changing a ticket "is a rather labor-intensive interaction," said Continental spokeswoman Sarah Anthony. "The cost of reissuing tickets has gone up year after year but we have not raised our fees since 1993." United, US Airways, American, Delta and TWA raised their fees after Continental.
About 32.4 million Americans will travel 100 miles or more from home this Thanksgiving, and 5.2 million of them will travel by airplane, train or bus, an increase of 5% over last year, the American Automobile Association estimated. About 14% of Americans aged 35-54 and 12% of those 55 or older will fly to their Thanksgiving destinations. Americans in the 18-34 age group will be the most mobile - 24% will travel and 27% of the travelers will fly.
Vanguard Airlines is hanging on with little cash and its survival is contingent on securing additional financing, according to the carrier's 10- Q filing with the Securities and Exchange Commission. "The company's continued operations are dependent upon the additional financing," Vanguard said. "Failure to raise such funds could result in the company significantly curtailing or ceasing operations." The airline, due to introduce new markets next month, had $234,924 in cash and cash equivalents as of Sept. 30.
U.S. and Brazil have agreed to expand their bilateral. Both nations can add seven weekly combination frequencies in October 1998, bringing the total to 105. Both can increase code-share points from 20 to 25 immediately and to 30 by next October. Brazil can add Boston service, and a DOT spokesman said Varig appears interested.
British Airways has received 30,000 applications for its Cadet Pilot Training Scheme. About 100 will be accepted. Applicant Katie Meredith won't be among the 100 - she is five years old and won't be eligible until 2010.
America West, trying to expand into major business areas and grow its long- haul routes to the eastern U.S., will introduce additional daily nonstop flights to Baltimore, Newark, Detroit and Boston in 1998. The expansion will add a second daily nonstop flight to Baltimore, a fourth to Newark and a third to Detroit. With the increases, America West will offer the only daily nonstops from Phoenix to Boston, a total of seven to Newark and New York Kennedy, and morning, afternoon and evening flight options to Detroit.
US Airways, as expected, has agreed to buy the East Coast shuttle operation it has operated under contract for five years. The company will pay Shuttle Inc. $285 million for the hourly Washington-New York-Boston service, owned by a group of banks but branded "US Airways Shuttle" on the fleet of 12 727-200s. The other shuttle bidder, American, will receive a breakup fee of $10 million dollars. Even though American bid $300 million, the US Airways contract allowed it to pay less if a third-party assessment was less.
U.S. National Carriers Traffic October, 10 Months 1997 October October % 1997 1996 Change AirTran Airlines Revenue Passenger Miles (000) 120,202 N/A -- Available Seat Miles (000) 272,966 N/A -- Load Factor (%) 44.0
American denied as "utterly false" claims of opposing carriers that it "engaged in private negotiations" with the government of Peru when it developed its proposal to serve Cuzco. Peru advised Continental and United as well as American of Peru's "urgent need" for additional service to Cuzco, American told DOT, but no other U.S. carrier has stepped forward.
One regional and two major carriers filed with DOT for reconsideration of the recent slot-exemption order that granted entry for selected carriers at high-density airports and outlined new policy guiding such awards (DAILY, Oct. 27, 28).
Summary of U.S. National Carriers Systemwide Traffic Second Quarter 1997 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) American Trans Air 1,327 (3.22) 1,657 2,200,175 Carnival 555 7.22 1,174 651,987
Frankfurt Airport, which handles more passengers than any facility in Europe except for London Heathrow, needs another runway to prevent decline in the long term, according to Lufthansa Chairman Jurgen Weber. Expansion of the airport is very controversial - early in the 1980s, massive protests against the construction of Frankfurt's west runways led to violent demonstrations in which a policeman was shot fatally. Construction went forward anyway, under police protection.
Delta and American filed in partial opposition to the TWA-Air Europa code share, citing blockage by Spain of their own code-share proposals. Delta complained that the Spanish government has insisted on a restrictive reading of route descriptions in the U.S.-Spain bilateral.
Virgin Express reported a 197% increase in passengers carried in October, enplaning 173,250 travelers versus 58,306 in the year-earlier period. Traffic rose 143.9% on 95.9% more capacity, increasing the load factor to 71.2% from 57.2%. Brussels-Copenhagen, Rome-Madrid and Rome-Barcelona routes performed well and on-time performance rose to 79% from 69%.
The newly ratified contract for pilots at Great Lakes Aviation (DAILY, Nov. 17) will increase the company's compensation costs by about 12%, a pilot union representative said yesterday. Great Lakes Senior VP-Marketing Dick Fontaine said the carrier probably will pass along some of its increased costs to customers in the form of higher ticket prices and offset some through increased scheduling productivity.
In an unusual gesture, the FBI released a Central Intelligence Agency- produced videotape yesterday summarizing its investigation of the July 1996 TWA Flight 800 explosion, including assessments that no criminal activity was involved in the crash and the aircraft was not hit by a missile. The FBI withdrew officially from the investigation.
Alitalia will increase its daily frequency from Brussels to Rome and Milan from three to four when its 1998 summer season begins March 29. The carrier said the new flights will boost its Brussels-Rome and Brussels- Milan capacity about 22%.
