KLM and Air UK, celebrating the launch of cooperative flights from London City Airport to Manchester, have announced fares starting at #55 (US$87) roundtrip. The new route opened this week, with flights operating four times a day with 50-seat Fokker 50s. The carriers are counting on travelers based in London to use the close-in airport. Other fares being marketed include an #89 ($141) one-way tariff for departure at 8:45 a.m. and arriving in Man-chester at 10 a.m., with a flexible return, either on the same day or subsequent days.
Boeing Wichita said it was contracted by Japan Airlines to convert four 747-300s from domestic to international passenger configurations. The modifications will give JAL the flexibility to configure the seating in four different arrangements, depending on its needs and routes flown, Boeing said. Changes will include new lavatories and galleys, rearranged seats and passenger service units, a video entertainment system and smoking corners with special venting. Modifications will enable crews to change seating within a few hours, Boeing said.
Italy this week formally joined the Schengen zone, the group of European Union member states that have abolished identity checks at their common borders. In practice, the decision forces Italian airports to reorganize the flow of passengers traveling to and from other Schengen members - Germany, France, Spain, Luxembourg and Portugal. Checks will remain in place temporarily for air travelers to two other Schengen countries, The Netherlands and Belgium, because of "technical problems" in moving passengers at Brussels and Amsterdam airports.
AlliedSignal said its enhanced ground proximity warning system has been approved for Airbus A319, A320 and A321 aircraft, its first certification under the aircraft type certificate of an air transport category aircraft. Airbus Industrie "has made a big contribution to air safety" by making it easier for airlines to acquire EGPWS on new aircraft and through retrofits, said AlliedSignal VP Frank Daly. The type certificate, the first of EGPWS by the European Joint Aviation Authorities, clears the way for Airbus to offer it as an installed option on A320 family aircraft.
TWA yesterday reported operating profits of $63.8 million, the its best results since 1989, and pre-tax income of $47.2 million was the highest since 1990. Net income was $9.4 million, versus a loss of $10.8 million last year. TWA was able to keep unit costs flat "even with reductions of capacity and retirement of L-1011s and 747s," said Chief Executive Gerald Gitner. Cost per available seat mile was 8.29 cents versus 8.27 a year ago. Operating costs fell $132.2 million, or 13.5%, as TWA replaced older, larger aircraft with smaller, more efficient 767s and 757s.
Swissair has completed the harmonization of its short-haul fleet with the delivery of a 34th Airbus aircraft. Beginning Oct. 26 with its winter schedule, Swissair's European fleet will consist entirely of models from the Airbus A320 family of aircraft - A319, A320 and A321 - replacing its A310-200 and MD-81 airplanes. Swissair's last MD-81 will be removed from the fleet early next month. All of Swissair's A320 models are equipped with the same flight management systems and flightdecks, providing commonality for the cockpit crew.
Air France's new international advertising campaign on television will feature the voice of French actress Jeanne Moreau, who starred in European masterworks such as Luis Bunuel's "Diary of a Chambermaid" and Francois Truffaut's "Jules and Jim." Ammirati Puris Lunitas, a member of the U.S. advertising network Interpublic, will manage the campaign, whose purpose is to erase the French public's "amorous disappointment" with their flag carrier, the ad agency said.
The Allied Pilots Association, American's 9,000-member pilots union, is backing unanimously the development of four-dimensional cockpit instrumentation to counter controlled flight into terrain (CFIT) accidents. The 4D cockpit displays depict a three-dimensional view of terrain with graphics of the aircraft's future flight path, generated from databases and aircraft sensor inputs. They enable the pilot to navigate along a synthetic flight path using real-time images of the surrounding landscape, APA said.
Sabena is scrapping first-class service on its intercontinental flights, starting Jan. 1, because of insufficient profitability, the airline said last week. Sabena halted first-class services on European flights five years ago, as did Swissair, Lufthansa, KLM and other European carriers.
Boeing 767 Systemwide Aircraft Utilization Per Day Second Quarter 1997 B767-200 American Delta TWA Number of Aircraft Operated 30 15 12 Total Fleet Operations Departures 55 65 24 Block Hours 332 165 147
Canadian Airlines is increasing code-share service with American to include Nicaragua and Costa Rica, beginning Nov. 19. Canadian will code share from Toronto through Miami to the two countries. The carriers coordinated schedules to accommodate Canadian travelers. In June, Canadian began serving Central America with code-share service to El Salvador and Guatemala.
DOT made final its tentative order selecting Northwest and United for two available U.S.-South Africa code-share opportunities and dismissing Continental's bid for service with Air France. Service to Johannesburg, Cape Town and Harare will be operated by Northwest under code share with KLM via Amsterdam and by United under code share with Lufthansa via Frankfurt (DAILY, Sept. 19). Northwest, KLM and Lufthansa were granted two-year exemptions, and United received a certificate for five years.
Chinese, European and Singaporan industry partners in the AE100 program to develop a 100-seat jetliner by 2003 still cannot agree on how to divide the work. Chinese industry, seen mainly as a source of low-tech labor when initial agreements were reached in May, wants roles in design and marketing as well, befitting its 46% program share. European companies, with 39%, fear technology transfer would cause delays.
FAA Administrator Jane Garvey will deliver today what is being billed as one of her first major speeches. The address, at the Aero Club of Washington, is expected to stress safety issues and initiatives.
ASA Holdings, parent of Atlantic Southeast Airlines, reported a third quarter net profit of $15.3 million, down 7.3% from $16.5 million in the prior-year period. Operating profit fell as well, by 10.5% to $22.8 million. Even so, Atlantic Southeast posted a 23% operating margin. The Atlanta-based carrier reported revenue of $99 million, up 4.6% due to 8% traffic growth. Yield dropped 2.9% to 40.5 cents per revenue passenger mile, however. The load factor increased 2.9 percentage points to 51.9%.
DOT's rejection of American Eagle/Simmons slot exemptions applies to a 1995 request for six slots for Chicago O'Hare-London, Ontario, not its more recent bid for 60 slots from O'Hare as reported yesterday (DAILY, Oct. 27). But given the service approved, DOT's reasoning and its new policy, Simmons has little reason to hope its massive application will be approved. The approvals were for service by Reno and Trans States for O'Hare, and Frontier, ValuJet and AirTran for New York LaGuardia.
Reno Air reported record net third quarter profits of $4.8 million, versus $4.75 million in the same period last year. Revenue increased 4.4% to a record $105.2 million, but the carrier continued to feel a financial bite from carrying five additional spare Pratt&Whitney engines after a spares shortage earlier this year forced it to ground several aircraft. The move has cost it $250,000 each month, but Chief Executive Robert Reding predicts the engine crunch will end by early next year.
Continental is adding six new routes and increasing frequency on five to Mexico and Central America as part of its Latin American expansion. Subject to government approval, Continental will add daily service between San Diego and Mexico City, Dec. 18; Los Angeles-San Salvador, Feb. 12; Newark/New York-San Salvador, April 5; Mexico City-Guatemala City, May 7, and Newark/New York-San Jose and -Guatemala City, next summer. The Mexico City-Guatemala flight will be an extension of its daily Newark/New York- Mexico City route and provide same-plane service from Newark.
Delta and United filed in opposition to the American/LanChile code share, arguing that American already is dominant in Latin America through its Miami hub and that code shares like this one will make its position virtually irreversible. In its filing on the proposal - the code share itself is undocketed but LanChile's bid for authorization is not - Delta noted DOT has yet to rule on a Sept. 11 motion filed by United asking the department to force American and TACA to submit information on how that proposed alliance relates to LanChile.
U.S. transportation stocks mirrored yesterday's record drop in the Dow Jones industrial average, as every major airline fell. The Dow Jones transportation average lost 7.2% of its value, with most airline stocks falling between 6% and 10%. Southwest and US Airways lost more than 10% of their value. Analysts noted that the market correction was not a reflection of current positive aviation industry trends and that U.S. major airline stocks are up more than 35% so far this year, even after yesterday's decline.
Ryanair is lowering the bar further on European airfares, offering seats for as little as #19 (US$31) each way between Dublin and Newcastle. The carrier is undercutting Aer Lingus, which dropped prices on the route to #59 roundtrip. Ryanair serves Teesside Airport, south of Newscastle, while Aer Lingus serves Newcastle Airport.
Senate Commerce Committee Chairman John McCain (R-Ariz.) praised DOT's approval of slot exemptions last week (DAILY, Oct. 27; also see Page 162), but he said it is not sufficient and questioned why acting on some of the applications took two years.
America West is increasing roundtrip nonstop service between Florida points Miami and Fort Myers and hub at Columbus, Ohio, and between Palm Springs and Phoenix. An introductory "Go-First" fare on Fort Myers/Miami routes enables passengers to book first-class services for at least 50% less than regular first-class fares - $600 roundtrip with a 14-day advance purchase and a Saturday night stay. Tickets must be purchased within 24 hours of booking and are non-refundable. Seats are limited and may not be available on all flights.
