Association of Asia Pacific Airlines (AAPA) weighed in on computer reservations system rules, calling for DOT action on new Internet booking and agreeing with other carriers not affiliated with major CRS systems, notably America West, that travel agencies run up unproductive charges through passive booking and other practices (DAILY, Oct. 17)
DOT approved a one-year exemption for South African Airways to conduct scheduled foreign combination operations between Johannesburg/Cape Town and Tampa, Baltimore, Pittsburgh, Raleigh/Durham, New Orleans, Cleveland, San Diego, Columbus, Jacksonville, San Juan and Buffalo. The code-share service, with American, will link the U.S. points with SAA's transatlantic service via its New York and Miami gateways early in 1998.
Delta's November traffic increased 5.4% on 2.8% more capacity, which forced the load factor up 1.7 percentage points to 67.8%. Domestic traffic rose 5.9% on 3.4% more capacity, while international traffic climbed 3.6% on 0.2% more capacity. Nov 97 Nov 96 11 Mths 97 11 Mths 96 RPMs 7,687,779,000 7,295,901,000 91,603,415,000 85,977,592,000 ASMs 11,347,397,000 11,042,258,000 127,167,009,000 122,154,311,000
Lufthansa Cargo AG (LCAG) climbed out of a deep loss last year to a healthy operating profit for the first nine months of 1997. The independent cargo division of the Lufthansa Cargo Group said an export boom and internal restructuring were the main sources of the improved performance. LCAG generated an operating profit of 100.4 million Deutschmarks (US$60.2 million) for the January-September period, an improvement of DM166.4 million ($99.8 million) from the 1996 period, when the carrier racked up a loss of DM66 million ($39.6 million).
Don Fuqua, who led the Aerospace Industries Association through the industry's post-Cold-War downsizing and restructuring, intends to retire next year, AIA said yesterday. Fuqua became president of AIA in 1987 when he left Congress, where he represented Florida's Second District for 12 terms and became chairman of the House Science and Technology Committee. He plans to return to Florida, AIA said. A search committee of AIA Board of Governors members will seek a successor.
Asian airlines have begun to defer and delay delivery of aircraft, possibly involving dozens of units, and aircraft manufacturers should expect more action as carriers react to worsening market conditions in several Pacific Rim nations, according to Edward Pieniazek, director of consultancy and information services for Airclaims Ltd. In a presentation yesterday at the Institute For International Research's Aircraft Finance Conference in New York City, Pieniazek cautioned manufacturers against dismissing Asia's problems as small.
The office of the president of Queens, the New York City borough that is home to LaGuardia and Kennedy airports, filed in opposition to slot exemption requests for service to those points by Access Air, American Trans Air, America West, Colgan Air, Pan Am/Carnival and Spirit Airlines. Queens Borough President Claire Shulman noted that outstanding requests for slot exemptions would increase flights at the airports by 54 per week, in addition to the 21 already approved in the grant of slots for Frontier at LaGuardia.
Southwest's November traffic was up 8.5% on 9.6% more capacity, which lowered the load factor 0.7 percentage points to 63.3%. It said that despite the load factor dip, revenue yield rose from year-earlier levels. Nov 97 Nov 96 11 Mths 97 11 Mths 96 RPMs 2,354,005,837 2,170,453,403 25,959,256,307 24,707,782,851 ASMs 3,717,046,532 3,391,808,007 40,658,311,354 37,222,031,959 LoadFtr% 63.3 64.0 63.8 66.4
British Airways has created an internal working group to examine the amount of information it gives each passenger, from buying a ticket to stepping on board the aircraft. Customers who complain will be sent leaflets on what BA is doing to improve things. The carrier is testing a new route guide to help passengers checking in at Victoria Station in downtown London.
Continental reported its highest November systemwide load factor ever - 68.3%, 4.5 percentage points higher than November 1996. The airline posted 20.5% traffic growth on 12.6% more capacity. Domestic traffic increased 14.7% on 3.3% more capacity, improving the load factor 6.9 points to 69.4%. International traffic grew 34.6% on 37.2% more capacity. Continental Express reported 43.7% higher traffic on 20.8% more capacity, which raised the load factor 9 points to 56.5%. Nov 97 Nov 96 11 Mths 97 11 Mths 96
French all-business startup Fairlines postponed its launch from Dec. 8 to Dec. 22 due to late delivery of the personal video and computer systems to be installed in aircraft seats, chairman and founder Francois Arpels said.
Dragonair has experienced a 33% surge in cargo volume during October to a record 4,000 tons. The airline, which established an in-house cargo sales department in July, has watched cargo grow 43.3% this year.
British Airways' November traffic showed a 3.6% rise on 8% more capacity, which forced the load factor down 2.8 percentage points to 66.1%. BA's U.K.-Europe load factor fell 3.1 points and intercontinental load factors dropped 2.6 points. In Asia, BA said passenger figures remained "stable" despite softness in Hong Kong and Korea. Passenger yield has improved during the first half of BA's fiscal year, with premium traffic rising 4.3% and economy traffic 3.5%.
Star Alliance partners have agreed to form a broad cargo alliance to create a global air cargo system. Meeting Dec. 3-4 in Neu Isenburg, Germany, Lufthansa Cargo, United, Varig, SAS, Thai Airways International and Air Canada agreed to: -- Develop a global air cargo network strategy based on the networks of the individual partners, including cooperation in road feeder services; -- Improve sharing of information technology systems; -- Provide joint use of partners' handling facilities, and
KLM Cargo and two other freight Dutch transport companies - Jan de Rijk and Trailstar - will begin trial runs for the rail transportation of air freight between Milan and Amsterdam Schiphol Airport. Scheduled intermodal rail-based freight services will begin between the two cities in January 1998. The project is supported by the Dutch transport ministry, which is eager to promote rail freight to reduce cargo pressure on the country's heavily used roadways.
Midway Airlines pilots have voted for representation by the Air Line Pilots Association, ALPA said yesterday. In ballots counted at the National Mediation Board, 96 of Midway's 150 pilots voted for union representation, with 93 choosing ALPA and three the Midway Pilots Association. ALPA will conduct a membership drive, and members will elect representatives and begin collective bargaining. Midway operates A320s and Fokker 100s from Raleigh/Durham, N.C.
Air Canada yesterday launched a 200 million Deutschmark Eurobond via an international syndicate of banks under the lead management of Bayerische Landesbank, Munich. The carrier's issue has a seven-year maturity and carries a coupon of 6 5/8% per annum. Payment date is Jan. 14, 1998. The issue price is 102.10% at a re-offer price of 99.85%. There is a spread of 139 basis points over the 7.5% German Government Nov. 11, 2004, benchmark. Listing with official quotation will be applied for at Munich and/or Frankfurt stock exchanges.
Virgin Express is stimulating traffic in Europe the same way Southwest does in the U.S. As it ushered in low-fare service between Brussels and Barcelona, Madrid, Rome, Nice and Milan in 1996, passenger traffic for all carriers rose 21% on those routes. Virgin Express captured 80% of the new traffic.
Flight attendants at American are sending President Don Carty "bAah humbug" messages in their holiday cards. The verbal lumps of coal stem from American's decision to increase the cost of coach travel by employees 5% and nearly double the cost of buddy passes to most destinations, effective Jan. 1. Flight attendants will ask ground crew, pilots and other personnel to join the card campaign.
EasyJet Managing Director Stelios Haji-Ioannou intends to take British Airways to court if BA starts its planned "Blue Sky" operation out of London Stansted. In remarks yesterday at the IIR Aviation Finance Conference in New York City, Haji-Ioannou said BA is copying EasyJet's business plan and is trying "to prevent competition." He will seek "to invoke the same procedure against BA when they start" as EasyJet did with KLM at Amsterdam.
Flight tests show that increasing the temperature of Jet A fuel used in transport aircraft multiplies the risk of explosion dramatically, the National Transportation Safety Board was told yesterday in Baltimore at its public hearing into the crash of TWA Flight 800. This finding has "very significant implications for this investigation," said Cal Tech engineer Joseph Shepherd, a consultant in the investigation.
Air France is discussing the sale of its Jet Tours travel subsidiary to a consortium that includes the subsidiary's management and French travel group Tecker SA. Jet Tours has been up for sale for several months. In the autumn of 1996, Air France injected 320 million French francs ($54 million at the current exchange rate) into Jet Tours, which managed to get back into the black in the commercial year that ended March 31. Jet Tours is nearing the end of a three-year restructuring plan that cut 148 jobs from a total of 490.
DOT granted FedEx's request to extend the startup deadline for one of its five weekly widebody frequencies granted in February for the carrier to expand its U.S.-Brazil all-cargo operations to Feb. 28, 1998, when the 90- day dormancy period will begin. The carrier earlier requested a startup delay (DAILY, June 2) and began operations using four of the five frequencies the week of Sept. 28. FedEx told DOT it needs to "increase its capacity beyond Sao Paulo" before making use of the fifth frequency. (Docket OST-97-3115)
Trans States Airlines rejected American and American Eagle/Simmons arguments that the latter's 60-slot Chicago O'Hare exemption bid should be considered alongside Trans States' application. Trans States submitted a petition for reconsideration, asking for 18 slots instead of 32 and with an emphasis on regional jets, after most of its proposed services were rejected by DOT.
