Tower agreed to pay $90,000 in settlement of a consent order in which DOT says the carrier violated regulations covering false advertising, deceptive practices, denied boarding and reporting requirements. Tower attributed some of the problems to high demand for its growing domestic service and the failure of a Tower official, no longer working with the airline, to refer all advertising to legal counsel.
US Airways has until Nov. 23 to exercise its option to purchase the profitable Shuttle Inc., which it operates as the US Airways Shuttle, and the other contender for the buy, American Airlines, expects its Arlington, Va.-based rival to complete the acquisition. US Airways had no comment yesterday on the transaction or the deadline. A third-party evaluator, The Blackstone Group, has appraised the US Airways Shuttle at $285 million, according to American, and that is likely to be the final purchase price.
Delta will introduce nonstop service between Tucson and Atlanta Dec. 14, with flights leaving Atlanta at 7:50 p.m. and Tucson at 12:20 a.m. Travelers will be able to connect with early-morning flights from Atlanta to New York, said Bill Tatman, Delta's district sales manager. Delta currently has 617 departures from Atlanta.
Tower Air reported increases of 77% in traffic and 52.7% in capacity in October, resulting in a 10.3 percentage point increase in its load factor. Revenue passenger miles rose to 361 million from 204 million in October 1996, while available seat miles went from 313 million to 478 million this year. The load factor was 75.5%, up from 65.2%. Total block hours flown jumped 35.8% to 3,326. Year-to-date RPMs were up 2.1% to 3 million and ASMs dropped 4.7% to 3.9 million. Block hours decreased 3% to 36.2 million, mainly due to increases in scheduled service.
CresSoft said it has implemented the first module of PilotStaffer, an expert system intended to enable Northwest to assign pilot training on the basis of staffing needs. With plans to offer other airlines "customizable" versions of PilotStaffer in 1998, the company said the system "significantly reduces costs by reducing training surplus and shortage and by minimizing error." At Northwest, PilotStaffer will reduce the time currently needed to assign pilot training, three to four days, to "a few hours," CresSoft said.
Reno Air is unconcerned about the eventual halt in production of the MD-80 and MD-90, which the airline flies exclusively. "If you look at the useful life of Douglas products at 20-40 years, we expect them to be around for a long time," said Todd Keogh, VP and treasurer. "It actually will create a buyers' market for us, possibly, as airlines get rid of theirs."
Frontier Airlines will begin service between Denver and New York LaGuardia Airport Dec. 3, attaining one of its top marketing objectives. The carrier received LaGuardia slot exemptions from DOT for three daily roundtrip flights (DAILY, Oct. 27) and will initiate two-per-day service with fares starting at $151 each way. It will offer an introductory one-way fare of $119 through Nov. 30 for travel until May 20, 1998. Frontier will add a third daily roundtrip in January.
Northwest traffic for October increased 5.2% on 2.2% more capacity, which raised the load factor 2.1 percentage points to 74.1%. International revenue passenger miles were 5.1% and domestic RPMs 5.3%. Cargo ton miles grew 9.8%, mostly because of a 16.8% surge in international cargo ton miles. Oct 97 Oct 96 10 Mths 97 10 Mths 96 RPMs 5,983,471,000 5,686,851,000 60,745,936,000 58,135,930,000 ASMs 8,073,505,000 7,897,207,000 81,135,517,000 78,684,798,000
Hawaiian Airlines reported a third quarter net profit of $1.4 million, the same as a year earlier, as unit costs and unit revenue stayed virtually the same. Cost per available seat mile held steady at 7.35 cents versus 7.39, and revenue per ASM was 7.74 cents versus 7.73. Yield decreased to 9.3 cents from 10.1 cents. Revenue increased to $105.4 million from $101.2 million as overseas charter revenue rose 11% to $8.1 million. Hawaiian's load factor increased to 78.8% from 72.8%. Chief Operating Officer Michael McQuay will leave the airline Nov.
CFM International and FlightSafety Boeing Training International reported that FAA has certified the CFM56-7 engine and the simulator for Boeing's new-generation 737-700. The certification clears the way for the airplane's entry into revenue service this year with launch customer Southwest. GE said the CFM56-7-powered 737 has "become the fastest-selling engine/aircraft combination in history." Announced orders total 720.
Reno Air, Inc. announced a 4.6% decrease in traffic and a 5.5% increase in capacity, resulting in a 6.5-percentage-point drop in load factor for October, compared with the same month in 1996. Revenue passenger miles fell from 261.7 million to 249.6 million, while capacity rose to 405.7 million available seat miles, up from 384.6 million. Year-to-date RPMs were up 5% and ASMs gained 5.3%, depressing the load factor 0.2 points.
Sun Country pilots voted overwhelmingly yesterday to authorize a strike if current negotiations fail. The pilots, represented by the Air Line Pilots Association, began two weeks of intense negotiations yesterday under the auspices of the National Mediation Board. The pilots fly 18 aircraft - 12 727s and six DC-10s. In ballots counted yesterday, 98% voted for a strike. "The tremendous response from our members is a clear and emphatic mandate for our negotiators to stay the course to achieve a fair contract," said Master Executive Council Chairman Terry Matson.
Summary of U.S. Major Carriers Domestic Traffic April 1997 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) Alaska 902 3.20 812 732,523 America West 1,489 0.37 887 1,320,914
Taxiways at 16 airports in Japan will be widened by at least five meters within three years to accommodate the 777-300, which Japan Airlines and All Nippon Airways plan to introduce in service next summer. The distance between the nose landing gear and the main landing gear of the stretched 777 is 31.2 meters, more than five meters more than that of the 747.
Delta traffic for October rose 2.6% on 2.6% more capacity, which left the load factor unchanged at 70.4%. Domestic revenue passenger miles increased 3% on 3.3% more capacity, while international RPMs grew 1.4% on 0.3% more capacity. So far this year, traffic is up 6.6% on a 4.2% increase in capacity. Oct 97 Oct 96 10 Mths 97 10 Mths 96 RPMs 8,370,567,000 8,156,868,000 83,813,894,000 78,681,691,000 ASMs 11,897,087,000 11,592,612,000 115,819,195,000 111,112,053,000
Airbus, as part of an agreement to supply 17 A320-200s to Guangzhou-based China Southern, will provide the airline with technical assistance in operating of the aircraft, including the assignment of technical representatives to locations designated by the airline. In addition, Airbus has agreed to provide, at its own expense, certain training services to China Southern's pilots, ground personnel and flight attendants in the operation and maintenance of the A320s.
The Association of Flight Attendants yesterday filed a lawsuit against Atlanta-based AirTran Airlines, formerly ValuJet, charging the carrier acted illegally and with "malice, spite and ill will" when it fired flight attendant and union negotiator Lisa Robinson. The suit, filed in U.S. District Court for the Eastern District of Virginia, seeks $600,000 in damages. Robinson was the lead negotiator in contract talks with the airline and lobbied on behalf of ValuJet's return to service following the May 1996 crash.
Summary of U.S. Major Carriers International Traffic April 1997 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) Alaska 82 16.00 1,095 90,207 Latin 82 16.00 1,095 90,207 American 1,225 4.69 2,184 2,675,847
Monthly passenger traffic at London City Airport reached an all-time high in October, when the facility processed 114,699 travelers, an increase of 47% from October 1996. Three new destinations - Strasbourg, Manchester and Vienna - recently joined the airport's route network.
British carrier AB Airlines will take over the London-Berlin route recently dropped by Lufthansa from Heathrow and Deutsche BA from Gatwick. Beginning Dec. 1, AB Airlines will operate Gatwick to Berlin Schonefeld, the airport recently designated Berlin's major international field. Most major carriers operate into Berlin Tegel, which is closer to the city center. The airline will fly two-class BAC-111s with one daily flight, increasing service during summer 1998.
Ryanair has increased its capacity from Luton Airport, north of London, to Dublin by 50%. The airline now operates five times daily between Luton and Dublin and for the first time will base one of its 20 737 aircraft at the airport. Placing the 737 at Luton also will terminate Ryanair's use of BAC-111 aircraft and create 20 jobs for cabin crew and ground-handling staff at the airport.
Embry-Riddle Aeronautical University said Michael Wiggins, professor and associate chairman of the aeronautical science department, received the V.L. Laursen Award for exceptional service in aviation education.
William Lipinksi (D-Ill.), ranking member of the House Transportation aviation subcommittee, introduced legislation requiring installation of TCAS-2 on all large cargo aircraft by Dec. 31, 1999. Writing FAA Administrator Jane Garvey that he will resolve the issue legislatively if FAA does not act, he said Acting Administrator Barry Valentine had told the subcommittee FAA would set a date for final recommendations by this fall.
