Record numbers of aircraft passed through the U.K. air traffic control system this year with no compromise in safety, the U.K. National Air Traffic Services (NATS) reported. ATC staff at the London Area and Terminal Control Centre said they handled a record 1.5 million movements in 1997, and current forecasts show more growth is in store. NATS also said it has some new procedures in the pipeline to contain delays and enhance safety. The record traffic levels affected all areas of the U.K.'s ATC system.
Virgin Atlantic has become the first airline to sign a firm order for eight A340-600s with options on another eight. The Rolls-Royce-powered aircraft seats 378 passengers and has a range of 7,500 nautical miles.
Virgin Express reported an 84.8% increase in November traffic on 48.9% more capacity, which forced the load factor up 12.5 percentage points to 64.4%. The airline operated 119 million available seat miles and flew 163,097 passengers versus 100,093 a year ago. The carrier's web site is www.virgin-exp.com.
Tower Air reported an 82.7% increase in November traffic and a 2.6% rise in capacity, which lifted the load factor 3.9 percentage points from the same month in 1996. Revenue passenger miles rose to 274 million and available seat miles to 385 million, boosting the load factor to 71.2%. Total block hours flown jumped 66.7% to 3,067 hours, up from 1,840 hours.
U.S. Carriers Landing Fees, Third Quarter 1997 Cost Landing Fees Per Landing Major Carriers Alaska $ 6,389,000 151.33 America West 8,634,541 160.89 American 65,089,000 319.54 Continental 32,669,000 286.59 Delta 64,167,000 261.47
Austrian Airlines has more than doubled its stake in Tyrolean Airways, exercising a purchase option included in the 1994 agreement in which it took 42.85% of the regional carrier.
US Airways and The Sabre Group yesterday finalized the longest-duration airline information technology outsourcing contract yet signed, in which Sabre will take over for 25 years the airline's entire IT operation - facilities, hardware, software and people. When the companies signed a letter of intent on the deal last summer, Sabre described it as a "multi- billion-dollar technology relationship" that it expected to last "longer than the traditional 10-year agreement" (DAILY, Aug. 29).
Western Pacific has been paying its bills this month and is on track to making a full recovery after a $50 million commitment from Smith Management, said Westpac Chief Executive Robert Peiser. The carrier faces significant internal hurdles, however. Peiser, speaking at the Institute for International Research's Aircraft Finance Conference last week, said Westpac has a major void in its yield management capabilities and needs a quick improvement in revenue per available seat mile.
Contract negotiations between TWA and the Machinists union continued last week despite a Dec. 9 walkout at the carrier's hub in St. Louis. The job action was the culmination of years of frustration over cutbacks and give- backs, a spokesman for the Machinists' local chapter said, and Bob Grier, a member of the Machinists' grievance committee, said union leaders were "literally dumbfounded" when they heard ramp workers had walked off the job. He said the walkout was spontaneous and took place just as the union leadership came from a meeting with TWA.
Saab Aircraft is pulling out of the regional aircraft manufacturing business to pursue subcontracting for other parties in the field and to focus resources on its military aviation and aerospace sectors, Saab's board announced yesterday. Following its Oct. 23 decision to analyze the company's prospects in the regional airliner business, Saab will discontinue production of the Saab 340 and Saab 2000 regional aircraft by mid-1999.
Kiwi Airlines will offer travel agents 20% commission on all K and Y class tickets in any market until Feb. 28. It also is discounting all fares between New York and Boston. Weekend fares will cost $112 roundtrip, or $58 one way for a seven-day advance purchase and $78 one way for bookings made less than seven days before departure.
Slot availability at Tokyo Narita Airport remains a monumental obstacle in U.S.-Japan negotiations, which resumed in Tokyo yesterday, and its importance is highlighted by questions about FedEx's operation at Narita.
Vanguard is marketing a three-part "Road Warrior" program geared toward frequent business travelers. The program offers (1) fully refundable executive fares, express check-in and guaranteed seat availability, plus waiver of penalty fees; (2) extra savings to companies buying 10 or more seats on any one route, and (3) customized fares for companies with special needs.
Airlines will install enhanced ground proximity warning systems voluntarily on a majority of commercial aircraft in the U.S. in a program to reduce controlled flight into terrain, one of the biggest causes of fatal aviation accidents, airline and top government safety officials said yesterday. The program will start six months to a year "sooner than if the government had acted alone" in requiring the equipment, as recommended by the National Civil Aviation Review Commission (NCARC), DOT Secretary Rodney Slater told a news conference in Washington.
US Airways is offering electronic ticketing services on Worldspan's computer reservations system, making its e-tickets available through all CRS systems.
United Chairman Gerald Greenwald forecast yesterday that after a record 1997, profits during 1998 will be even better. In closed-door remarks before the Society of Airline Analysts, Greenwald said fourth quarter profits will meet or exceed the First Call estimate of $1.58 per share fully distributed. In the fourth quarter of 1996, United earned a record $142 million before extraordinary items. Although UAL's net earnings for 1996 were $1.03 billion on revenues of $16.4 billion, net margin was just 6.3%.
Executives from nine airlines will attend a special meeting tomorrow in Glade Springs, W.Va., hosted by West Virginia's Sen. Jay Rockefeller and Gov. Cecil Underwood. The meeting is aimed at improving air service to the state, where daily flights this year have dropped to 86 from 167 in 1970 . American Chief Executive Robert Crandall and Northwest Chief Executive John Dasburg will meet with Rockefeller. Executives from United, US Airways, TWA, Delta, America West, Continental and AirTran also will attend.
UPS's pilots union is trying to settle pay grievances on behalf of 400 pilots through informal talks with management rather than going to arbitration Friday.The Independent Pilots Association claims rescheduling that followed last summer's Teamsters strike reduced some pilots' hours and pay.IPA's negotiating committee also is meeting this week to prepare for the resumption of contract talks Jan. 12.
The Equal Employment Opportunity Commission has reached an agreement with Midwest Express to settle and dismiss a lawsuit claiming the carrier did not hire and promote blacks in certain positions. EEOC filed suit May 30 in U.S. District Court in Milwaukee alleging that Midwest Express failed or refused to hire blacks for aircraft groomer and airframe and powerplant technician positions, and to promote blacks into first-line supervisory and management positions.
The Netherlands will set aside about 300 million guilders (US$149.2 million) to finance the involvement of Dutch companies and research institutes in the Airbus A3XX superjumbo transport project from 1997 through 2003, the Dutch Ministry of Transport said yesterday.
American's recent Internet promotion with ITN offering awards for half- price tickets on flights during the first half of November increased its sales 71%.
Horizon Air and its 275 flight attendants, represented by the Association of Flight Attendants, reached tentative agreement yesterday on a five-year contract. Details were withheld pending membership ratification. Horizon and AFA have been in negotiations for 18 months and in mediation since February.
British Airways is the first airline to purchase a global aircraft tracking system capable of pinpointing the location of each of BA's 300 aircraft, whether in flight or on the ground. The #150,000 system, developed by U.K. companies Smith System Engineering and Racal Survey, uses satellite data to show the real-time location of the 130 aircraft BA has in the air at any given moment. The system will help the airline make decisions faster when identifying routes affected by bad weather or closed airspace, BA said.
Alaska Airlines is conducting a stock offering of 3 million shares that should net $105 million for general corporate purposes. The offering was managed by Merrill Lynch and Morgan Stanley Dean Witter.
Lufthansa Cargo is launching an effort in conjunction with freight forwarders that aims to provide better customer service. The "Business Partnership Program" foresees more than a dozen areas of cooperation, including quality management, capacity and planning, product development, export/import process, information technology, marketing and training.
