London Gatwick-based AB Airlines, formerly Air Bristol, received overwhelming support from investors who oversubscribed its stock offering by more than 2.5 times. The airline plans to list on the AIM market in Britain in early 1998. AB recently began twice-daily London-Lisbon and three-times-daily London-Shannon service, with load factors topping 80%. Airline Chairman Brian Beal said the stock offering will enable the carrier to expand with new aircraft and new routes. He confirmed that AB is in discussions with Boeing and expects to add aircraft in January.
Air Europa was misidentified as Air Europe (DAILY, Oct. 23) in the headline of a story about Spanish carrier Air Espana changing its corporate name to Air Europa, which is its trade name. Air Europe is an Italian carrier.
U.S. negotiators initialed an open-skies agreement with Chile Tuesday, but the terms do not take effect until formal adoption by both governments. Chile would be the first South American country to sign up for open skies.
Alitalia is beginning "Italy Intermezzo," offering air-lodging packages starting at $629 for a three-night trip from New York. The packages include four-star hotels in Rome, Florence and Venice and the chance to add extra days to 30 different Italian destinations.
Canadian Airlines reported a C$106.4 million (US$75.8 million) net profit for the third quarter, up 24.2% and the highest quarterly earnings in its history. The load factor was 78.8% and unit cost fell 2.8%.
Air France and Air-India have taken the first step toward a broader alliance with the launch of connecting service at Air France's Paris Charles de Gaulle hub for Air-India's daily India-France service. This week, Air-India's first 747 service from Delhi connected passengers at Air France's Terminal 2 at de Gaulle. The carriers, along with Indian Airlines, signed an agreement in May and expect to enlarge it in January by starting code-share service. Air-India operates four weekly flights from Delhi and three from Mumbai.
Airlines looking to cut distribution costs have struck gold in electronic ticketing. Delta saved nearly $20 million between February and June with e-ticketing, which makes up about 75% of its in-house bookings. About 29% of Northwest's total North American bookings in October were e-tickets, accounting for more than 80% of its in-house and Internet bookings. About 35% of Reno Air passengers use e-tickets, said spokesman Richard Guess, as do about 90% of those who book directly or through the Internet.
Tunisair has ordered four 737-600 aircraft and taken options for three additional next-generation 737s in a deal estimated at $300 million, Boeing said. The model of the three optioned aircraft will be determined later. The 737-600s will be powered by CFM International CFM56-7 engines.
Louis Comeau has been appointed chairman of Nav Canada and John Crichton has been named president and chief executive. Crichton previously was chairman. Comeau served on Nav Canada's board (DAILY, Oct. 16).
Improved inspections of critical engine components such as turbine disks will begin on a "priority basis" in the first quarter of 1998, FAA said yesterday. Tom McSweeny, director of aircraft certification, said improved practices and technology to detect potential defects and prevent uncontained engine failures, including automated inspection methods, can cut down on the historical causes of engine-related accidents.
Rep. James Oberstar (D-Minn.), ranking minority member of the aviation subcommittee, has expressed concern to DOT Secretary Rodney Slater and FAA Administrator Jane Garvey that former PATCO controllers hired by the agency are being held back in their jobs.
Senate Commerce Committee hearing this week on Chairman John McCain's (R- Ariz.) bill to boost competition at slot-controlled airports drew criticism from top airline executives. Cyril Murphy, United VP-international and regulatory affairs, and Lawrence Nagin, US Airways executive VP and general counsel, said its passage could harm service prospects for smaller communities (DAILY, Oct. 29).
Virgin Atlantic is mounting its first Internet auction, where frequent flyer members will bid on a package that includes tickets to San Diego and the 1998 Super Bowl. The auction will occur Nov. 3-15, starting with a minimum bid of 150,000 Virgin Freeway miles. Results will be posted at web site http://www.fly.virgin.com.
American rebutted opposition to its Iberia code share from Continental, Delta, TWA, and United, saying carriers like United, "which stands at the center of the global Star Alliance, have no standing to oppose a simple code-share arrangement." American rejected suggestions that its proposal should be consolidated with the American/TACA code-share proceeding, and said its straightforward, non-immunized code share with Iberia is explicitly permitted under the U.S.-Spain bilateral.
Great China Airlines of Taiwan ordered two de Havilland Dash 8Q(x) Series 300 aircraft worth about $38.2 million from Bombardier Regional Aircraft, the company said. The airline intends to replace two older Dash 8 Series 300s with the new Q aircraft, which are scheduled for delivery at the end of the year.
Airlines should immediately establish communications systems and procedures with families of air disaster victims, train their personnel to interact with family members and return victims' personal effects as quickly as possible, the Task Force on Assistance to Families of Aviation Disasters recommended yesterday. The task force issued 61 recommendations targeted at airlines, the government and the Red Cross in an attempt to establish clear guidelines for dealing with victims' families. Measures for airlines include:
All Nippon Airways' first 777-300 was rolled out this week by Boeing at Everett, Wash. ANA has ordered 12 777-300s, operates nine 777-200s and has nine more on order.
Telling DOT that a planned Nov. 1 strike by French truck drivers "will paralyze Air France's cargo operation unless the carrier can obtain alternate truck service from outside France," Air France asked for a short- term exemption to fly cargo to and from the U.S. using other European points. The authority "would end with the strike's end," according to the filing. "Non-French truckers can move the freight into France," the carrier said.
ValuJet Inc., parent of Atlanta-based AirTran Airlines, yesterday posted a third quarter net loss of $14.6 million, compared with a deficit of $21.9 million last year, when its operations were reduced. Revenues totaled $56.4 million, and its operating loss was $12.8 million. AirTran lost $9.2 million in the second quarter, the nearest comparable period, on revenues of $47.8 million.
U.S. and China have agreed to begin informal consultations on expanding and modernizing their civil aviation relationship, DOT Secretary Rodney Slater said yesterday. In conjunction with Chinese President Jiang Zemin's visit to Washington, Slater said he and the head of China's Civil Aviation Administration, Chen Guangyi, agreed to the talks yesterday during a meeting in Washington. The current bilateral is very restrictive, limiting each country to 27 frequencies a week. China is flying 25 and demand is expected to rise.
Airlines and Chicago aviation authorities renewed their opposition yesterday to a new airport at Peotone. A Peotone facility could do "serious harm" by drawing attention and resources from O'Hare and Midway airports, the Air Transport Association told an Illinois Department of Transportation hearing on a Peotone environmental assessment. Chicago Aviation Commissioner Mary Loney said Peotone could doom the $722 million Midway terminal project and the nearly 94,000 new jobs and $3.6 billion in economic benefits it will create.
Unlike the niche carriers that recently received slot exemptions, slot winner Trans States Airlines is a regional carrier flying for United, TWA, Northwest, US Airways and Alaska (DAILY, Oct. 28).
Fine Air said yesterday it has received authorization from FAA to resume flight operations and expects to operate to all of its destinations in Latin America and the Caribbean "within the next several weeks." Fine Air was shut down by FAA following the fatal crash in August of one of its DC-8 cargo jets during takeoff from Miami. The carrier said that, working with FAA, it has "implemented the newest and safest cargo loading procedures in the industry."
DOT has granted Lufthansa and SAS a two-year exemption to code share on certain U.S.-Scandinavia/Germany service. SAS will display Lufthansa's code on flights serving Seattle, Chicago and Newark. Lufthansa will display SAS's code on flights serving New York Kennedy, Newark, Chicago, Washington Dulles, Boston, Dallas/Fort Worth, Atlanta, Los Angeles, San Francisco and Miami. Atlantic Coast Airlines earlier applied to code share with Lufthansa under ACA's United Express code (DAILY, Oct. 10). (Docket OST-97-2963)
Alitalia plans to operate a new daily service five times a week, starting Nov. 3, between London City Airport and Milan Linate Airport. The flight will be operated by Italian startup AzzurrAir until early next year, when Alitalia will take over.
