All Nippon Airways is awarding double frequent flyer miles in the ANA Mileage Club to members of Delta's SkyMiles and US Airways' Dividend Miles programs on nonstop flights between the U.S. and Japan. The bonus, only for first- and business-class passengers, is available until Feb. 28.
Eurowings of Germany and BASE Airlines of The Netherlands have signed a code-share agreement for flights from London Gatwick to Germany. The accord will enable the carriers to offer passengers a choice of three weekday departures. BASE Airlines currently serves the Gatwick- Munster/Osnabruck route Monday through Friday, with Eurowings operating the code-share flights on the weekend. Under the pact, passengers can choose from weekday flights departing at 8:20 a.m., 1:05 p.m. and 6:20 p.m. Saturday services depart at 2 p.m. and Sunday flights at 5:45 p.m..
UPS Independent Pilots Association President Bob Miller will meet with FAA Administrator Jane Garvey in Washington today to voice IPA's support for requiring traffic alert and collision avoidance systems, emergency egress and fire-suppression equipment on cargo aircraft. IPA also wants Air Force bases that have been converted for commercial use to be required to have the same fire/rescue equipment as passenger airports.
Companies, responding to a recent 30% rise in business fares, are reducing corporate air travel, turning to budget carriers for corporate travel and negotiating more frequently with major carriers for reduced fares, according to a survey by the National Business Travel Association. More than 70% of corporate travel managers reported fare increases have had an impact on their travel programs and 30% have reduced the level of corporate air travel, the survey found.
Airline stocks moved higher yesterday, as the combination of improved domestic growth and potentially lower international oil prices boosted most major carriers. Goldman Sachs analysts Glenn Engel raised estimates across the board and spotlighted improved prospects for TWA, America West and Midwest Express. "Demand ran stronger in October, and the airlines with the most domestic exposure will fare better," he said.
DOT granted Florida West (FWIA) an exemption to continue providing scheduled all-cargo service between the U.S. and Colombia for six months following termination of the carrier's U.S.-Colombia certificate authority or until FedEx begins operations, whichever is sooner. Nov. 28 was the effective date for the route transfer approved by DOT, when FWIA's authority was set to expire and FedEx's was to become effective.
The U.S. airline industry's current positive revenue environment probably will continue throughout 1998 and load factors this year are expected to remain over 70% for the first time in 20 years, according to Standard&Poor's credit analyst Phil Baggaley. Although there has been pressure on passenger yields, earnings should reach or slightly exceed this year's level.
Numerous filings on slot exemptions for service at Chicago O'Hare Airport show that majors and regionals alike are maneuvering for the limited entry that remains to be awarded under new DOT policy. United filed against American and American Eagle operator Simmons, and American opposed Trans States' bid to refile for slots with a new regional jet plan and asked that an earlier eight-slot award to Trans States be vacated, opening the way for a new American application.
America West will expand nonstop service between Anchorage and Phoenix and add a third daily flight between Phoenix and Vancouver, beginning May 13. The new Phoenix-Anchorage flight will provide the only nonstop service in that market.
Duff&Phelps has reaffirmed the ratings of Southwest Airlines' senior secured and unsecured debt, citing its low cost structure, strong market shares in cities served and strong management team.
SAS Commuter completed a deal to acquire 15 de Havilland Dash 8Q Series 400 aircraft from Bombardier. It also took options on 18 of the aircraft. The firm order, valued at $350 million, represents the largest single order for the turboprop. The aircraft will be delivered between July 1999 and December 2000.
Lufthansa's pre-tax earnings more than doubled to 975 million Deutschmarks (US$558 million), the best result ever in the quarter ending Sept. 30. The profits came despite increased airport and air traffic control fees. Airline revenues were up 12.6% in the first nine months of 1997 to DM17.1 billion ($9.8 billion). Nine-month expenses rose 10.3%, mostly due to increased fuel costs and airport fees. Lufthansa spent DM1.6 billion ($916 million) on jet fuel this year, DM308 million or 24.3% more than last year.
With Leo Mullin installed at Delta, four of the six biggest U.S. airlines have leaders from outside the industry. Furman Selz analyst Ray Neidl comments that carriers are "finally shedding their insularity," looking for new ideas on how to run an airline. The trend, also present in Europe, ensures that airlines will be run as businesses; in the past, market share was the motivator.
DOT appointed Robert Land special assistant to Charles Hunnicutt, assistant secretary for aviation and international affairs. Land was senior adviser at DOT's Federal Railroad Administration for two years, and before joining DOT in 1995 was an attorney with Proskauer Rose Goetz&Mendelsohn. He was legislative director of President Clinton's National Commission to Ensure a Strong Competitive Airline Industry in 1993.
A passenger who regularly flies Midwest Express took exception recently to a travel guidebook's observation that the airline offers "no-frills flights." The passenger fired off a two-page letter to the guidebook publisher praising the Milwaukee-based carrier's seating, service and food offerings, including its tenderloin, shrimp and warm chocolate chip cookies.
Institute of Electrical and Electronic Engineers has named Jakob van Zyl, manager of the Radar Science and Engineering Section at NASA's Jet Propulsion Laboratory, the recipient of its 1997 Fred Nathanson Memorial Radar Award.
Airlines Reporting Corp. is considering granting accreditation to some corporate travel departments to allow them to issue tickets. ARC spokesman Allen Muten said some corporate travel departments already seek travel agency accreditation, a status that would allow them to do retail sales as well. This is not their goal, Muten said, but it is the only way they can write tickets. "They do not necessarily desire to compete with travel agents," Muten said.
Northwest chief John Dasburg is optimistic about the future of operations at Amsterdam Schiphol Airport despite government action to reduce noise pollution by curtailing flights there. Alliance partner KLM "has given us assurances they will fight this to the bitter end," Dasburg told The DAILY.
Teal Group predicts that 3,789 business aircraft valued at $45.9 billion will be produced in the 1997-2006 decade. Its analysts say that after "spending the late 1980s and early 1990s in the doldrums, the bizjet market has begun a healthy growth spurt" from 315 deliveries in 1994 to 353 in 1996. They predict 408 deliveries this year and 420 in 1998.
Denver-based Frontier Airlines has hit paydirt by marketing itself as a home-town carrier that offers low fares and quality service, analysts say. By controlling its growth and following a strategy of flying a few, but full, jets to secondary markets, the carrier, a new entrant three years ago, has been voted by analysts as the startup most likely to survive.
US Airways has set April 1 as the launch date for Philadelphia-London Gatwick service and is exploring Philadelphia-Amsterdam, soon to be served by Northwest/KLM. Expanding from its Pennsylvania hubs, the carrier has applied for Philadelphia-Milan and Pittsburgh-Paris.
FAA last week proposed two airworthiness directives aimed at potential ignition sources in or near the center fuel tanks of Boeing 747 aircraft. Tom McSweeny, director of aircraft certification, said the ADs are based on recent tests conducted by the National Transportation Safety Board but are "precautionary in nature. There is no evidence yet that either one of these ADs is linked to the cause" of the crash of TWA Flight 800.
