DOT reissued ValuJet Airlines' certificate under the name AirTran Airlines to reflect parent company ValuJet Inc.'s merger with AirTran Airways' parent, Airways Corp. DOT issued a notice Sept. 17 registering the AirTran Airlines trade name for ValuJet, which has used the new name since late September.
Taiwan-based China Airlines applied to DOT for exemption authority to fly scheduled combination and charter service from points in and behind Taiwan to the U.S. and beyond. Taiwan and the U.S. initialed an open-skies agreement this year, and the pact is in force provisionally even though it has not yet been formalized through an exchange of diplomatic notes. The exemption application is largely a formality, a DOT spokesman said.
Despite stepped-up competition over the Atlantic, U.S. carriers had the highest operating margins in the region during the second quarter of 1997, the most recent period for which divisional figures are available. Among all world regions, Delta's, Continental's and Northwest's Atlantic divisions had the top operating margins in the quarter, at 25.5%, 25.3% and 24.7%, respectively. The Atlantic results came despite new competition from carriers such as CityBird, Virgin Atlantic, Air Europa, Laker Airways, Emirates and Aer Lingus.
The carriers of Canadian Airlines' regional system posted last month an 18.1% increase in traffic to 98 million revenue passenger miles despite a capacity reduction of 1.3% to 149 million available seat miles, compared with figures for October 1996. As a result, the load factor jumped 10.8 percentage points to 65.8% from 55% in the prior period. Although on average the company's regional aircraft operated two-thirds full, the parent did even better - domestic flights achieved a 78.2% load factor. Enplanements were not reported.
American Eagle has placed orders with IBM for 365 network computers with which it hopes to save "millions in long-term computing costs." The regional system will install the new IBM Network Stations at its 20 line and maintenance centers to automate and accelerate parts ordering and inventory, "which are now paperwork intensive," Eagle said in a prepared statement.
Aero International (Regional) is demonstrating the ATR 72-210A in a five-day tour across China this week, the company said. AI(R) estimated the potential Chinese market for the aircraft at more than 200 units over the next 15 years. More than 40 Chinese airlines will test the aircraft during the tour, the company said.
Untied has opened a new 98,500-square-foot cargo transfer facility at New York Kennedy Airport. The facility is equipped to handle bulk and containerized shipments and has a drive-through capability for landside or airside deliveries. It includes a 2,000-square-foot cooler space, a 500- square-foot security area and 13,500 square feet of office space. Four drive-up ramps accommodate automobiles and vans, and there are 12 standard truck doors and two oversize docks with scissor lifts.
Thomas Roeck, senior VP and chief financial officer at Delta, is retiring from the airline and will pursue other professional interests, Delta said yesterday. Roeck, 53, became senior VP at Western in 1984 and joined Delta as VP-finance in 1987, when Western and Delta merged. Delta President and Chief Executive Leo Mullin praised Roeck yesterday for his contributions to the industry during the past 10 years. Delta has launched a search outside the company for a new CFO, and Edward West, VP-financial planning and analysis, will be acting CFO.
DOT issued a show-cause order tentatively approving Tradewinds Airlines' application to provide foreign and domestic charter passenger service. Tradewinds, based at Piedmont Triad Airport, Greensboro, N.C., currently operates an L-1011 for all-cargo service. It applied Aug. 11 for expansion into passenger service, proposing to focus on vacation destinations in the U.S., the Caribbean and Mexico, initially with one L-1011 separate from the cargo operation and possibly with a second added in the airline's fourth quarter.
Swissair will buy four MD-11 trijets from German charter airline LTU as a step toward harmonizing its long-haul fleet. The Swiss carrier said the acquisition will give it "substantial flexibility" in the eventual replacement of its five aging 747s. Swissair will take delivery of the MD- 11s in November 1998, reconfigure the cabins and put them in service during the first half of 1999. The aircraft, less than five years old, will bring Swissair's MD-11 fleet to 20.
U.S.-Canada consultations in Washington this week produced an agreement to permit third-country marketing arrangements. The understanding provides, among other things, for third-country code shares recently applied for and now approved for Air Pacific Limited and Canadian Airlines International from Nadi, Fiji to Vancouver and Toronto via Honolulu.
FAA Administrator Jane Garvey, who late last month told the Aero Club of Washington, D.C., that an improving safety record would require industry cooperation, continued this week to reach out to the aviation community, praising regional airlines as a prime example of how such cooperation has enhanced safety. Garvey, the keynote luncheon speaker during the Regional Airline Association's Fall Meeting Tuesday, noted RAA members' effort to comply with former Transportation Secretary Federico Pena's one level of safety mandate (DAILY, Nov. 19).
Delta will open a reservation sales and city ticket office in Rio de Janeiro in January. The carrier began service to Brazil with its own aircraft in June and has developed code-share service with Transbrasil. It intends to increase service to and from Latin America (DAILY, Nov. 19).
Corpac of Calgary, Alberta, has purchased a third Jetstream 31 to support the company's business shuttle operations for Edmonton-based telephone company TELUS, British Aerospace Asset Management-Turboprops announced. Corpac offers four daily roundtrips on the 175-mile route between Calgary and Edmonton on behalf of TELUS.
Reno applied to DOT for authority to implement its previously announced code-share agreement with Qantas, starting Jan. 6. Reno wants to place the Qantas code on Reno flights between San Francisco and Los Angeles, listing Reno's service as a Qantas online connection from San Francisco. Qantas has authority for flights from San Francisco to Sydney and other South Pacific points. Reno said approval of the code share is required under the U.S.-Australia bilateral.
Royal Wings Airlines of Jordan has joined the European Regions Airline Association as an affiliate member, ERA announced. Royal Wings, formed Jan. 1, 1996, operates two 50-seat Dash 8-300 turboprops from Amman, Jordan, to Aqaba, Jordan, and Tel Aviv and Haifa, Israel.
British Midland will start daily service from London Heathrow to Dresden via Cologne/Bonn Oct. 27 as part of its code-share service with Lufthansa. British Midland's Discover Europe Airpass for U.S. travelers has priced London-Dresden at $218 each way.
FAA plans to change the Atlantic High Offshore Airspace Area in an attempt to expedite the flow of air traffic, increase capacity and use the airspace more efficiently. The agency will extend the area to coincide with the boundary of the San Juan Enroute Domestic Airspace Area, currently separated from it by about 80 nautical miles.
Western Pacific is contemplating a frequent-flyer link with a U.S. major airline, and discussions are underway with several carriers. The move would mirror Reno Air's highly successful frequent-traveler link with American.
US Airways' application for Philadelphia-Milan service drew opposition from Delta, a call for deferral by United and no opposition from American - provided its own longstanding application for additional service to Italy is approved. The application cannot be approved under the current bilateral, but US Airways filed it in anticipation of an expansion of rights. U.S.-Italy open-skies talks have been postponed until next year (DAILY, Nov. 13).
FAA yesterday selected Lockheed Martin for its 10-year, $1 billion National Airspace System Implementation Support Contract (NISC II). The contract, which has a four-year base period valued at $350 million and three two-year options, contains a maximum 22.5 million hours of technical and professional services, making it one of the agency's largest support programs.
With the completion this week of the merger between Orlando-based AirTran Airways and Atlanta-based AirTran Airlines, both sides are focusing on the revenue generating possibilities of the combined entity, and joint computer reservations system listings has been the first boost. The carriers announced their intention to merge July 10 and shareholders approved the deal this week. "Everything's done, and now we can work on generating revenue and continuing to build the AirTran identity," said Mark Rinder, chief financial officer of AirTran Airways.
Northwest Airlines' ALPA unit is attempting to negotiate a new scope clause in its latest contract that will protect pilots as the company expands its regional-jet services through Airlink affiliate Mesaba. ALPA wants Northwest to invest more of its resources into its core fleet, according to a union spokesman. The pilots are concerned that the carrier is giving up some of its DC-9 routes to the 69-seat-configured Avro RJ85 quadjet, which falls just within the limit of the existing scope.
Trans States plans to enter the regional-jet fray whether or not DOT grants it 10 additional slot exemptions at Chicago O'Hare (DAILY, Nov. 19). The carrier will enter a new code-share agreement with United to initially operate from three to five Canadair Regional Jets using eight "experimental" slots already awarded on a two-year basis. Trans States, which already code-shares with TWA, US Airways and Northwest, wants to use the CRJs in the Chattanooga, Roanoke and Tri-Cities markets. American Eagle also wants RJ slots for Chattanooga and Roanoke.
