American, accusing Delta of violating confidentiality procedures, asked that its comments on various alliances be stricken from the record and called for sanctions against the carrier. Delta vigorously denied the charges.
Delta is expanding its weekend escape discount travel program to include New York. Each Sunday after 12:01 a.m., the airline will offer two domestic and two international destinations for escape plan members at roundtrip discounts as much as 60% off normal, advance-purchase, coach fares. SkyMiles members who pay a $49 membership fee can call an automated toll-free number to hear the list of new cities each week. Sale roundtrip tariffs include $228 from New York to Amsterdam, a saving of 60%, and $198 for New York to Mexico City, a saving of 57%.
Gate Gourmet International, the catering subsidiary of the Swissair holding group, SAir Group, has formed a joint venture with Malaysian Airlines Systems and Manila Integrated Airport Services (MIASCOR), which specializes in ground-handling and freight-forwarding activities. The three parties plan to build an inflight catering facility at Manila Ninoy Aquino Airport. Construction of the new catering site will begin by the yearend, with operations scheduled for the second half of 1998.
DOT Secretary Rodney Slater wrote to National Civil Aviation Review Commission Chairman Norman Mineta on the commission's preliminary Finance Task Force report, outlining areas that require further discussion.
Atlanta-based AirTran Airlines is reinstituting its "X-Fares" program, offering 18- to 24-year-olds a standby fare of $35 each way for travel to any of the 22 cities it serves. Available for travel through Feb. 28, 1998, the program requires customers to present a valid government-issued photo ID at the ticket counter at least one hour before scheduled departure. Standby processing ends 30 minutes before scheduled departure.
Atlantic Coast Airlines reported third quarter operating income of $9.1 million, up 18%, and pre-tax profits of $8.4 million, up 10.3%. Despite the gains, after-tax net profits fell 32% due to a much higher tax bill. The airline paid $3.5 million in third-quarter taxes, at a 42% tax rate, versus $440,000 at a 6% rate last year. Operating revenue increased 10.7% to $54.9 million. In a major achievement, cost per available seat mile fell 0.9% to 20.6 cents. Yield fell 9.3% to 45.2 cents, however, and the breakeven load factor rose 3.9 percentage points to 44.9%.
Midwest Express will build a state-of-the-art 70,000-square-foot hangar at Milwaukee General Mitchell Airport, doubling its hangar space there, to handle maintenance of its current and expanded fleet. In September, Midwest Express signed a letter of intent to acquire eight MD-80s, increasing its fleet to 34 aircraft, and spokeswoman Lisa Bailey said the carrier needs the additional space for maintenance work required before the aircraft enter service. The company has not decided whether to lease or buy the new airplanes.
Spanair will launch North American service Nov. 20 with a split commission structure and low fares that the airline hopes will draw traffic onto its Madrid-Washington route. The carrier, owned 51% by the largest travel agent company in Spain, Viajes Marsans, and 49% by SAS, will serve the route four times weekly with Boeing 767-300ERs configured for 18 seats in business class and 248 in economy. Spanair will offer the only nonstop on a route United dropped in favor of more lucrative business.
Varig Brazilian Airlines officially joined the Star Alliance yesterday, becoming the sixth member and adding every major South American city to the alliance network. The alliance, including Lufthansa, United, SAS, Air Canada and Thai Airways International, serves 642 destinations and has 230,000 employees. Combined revenue was $45.7 billion last year. Varig, South America's largest airline, has 18,100 employees, carried 9.7 million passengers last year and produced $3.4 billion in revenue.
US Airways, which declined to say Tuesday whether it had arrangements with Airbus Industrie to receive more than 21 of the 400 narrowbody aircraft it ordered and optioned from the European manufacturer, has placed firm orders for engines to power 120 of them, CFM International said yesterday.
Air Espana, holding out service as Air Europa, asked DOT to register the name Air Europa Lineas Aereas, S.A., as its corporate name. The change, accomplished by amendment to the company's articles of incorporation on file in Spain, was made to "more closely align" the legal and commercial names; no change in ownership or control was involved. The carrier holds a foreign permit to engage in U.S.-Spain charter combination service and exemptions for scheduled combination service from Madrid to New York/Newark and Miami.
American has become a partner in a privately financed arena that will bear its name and house the Miami Heat basketball team. The American Airlines Arena will be located in Miami's downtown waterfront area, and the airline will pay $2.1 million per year for 20 years for naming rights. Symbols of the airline will be woven into the 680,000-square-foot building's architecture. Fabrics, millwork and details will feature the AA logo, and a display area on the concourse level will be dedicated to the history of aviation.
Delta said it has signed "definitive aircraft purchase agreements" to finalize the March deal that made Boeing its sole supplier over 20 years, placing 106 firm orders "subject to certain exemptions." The carrier said the sole-supplier clause is "not enforceable until the European Union permits Boeing to enforce the provision." In July, the European Commission required Boeing to free Delta, American and Continental from sole-supplier commitments as one condition of its approval of the Boeing-McDonnell Douglas merger, and EU Competition Commissioner Karel Van Miert has
US Airways, acting on the strength of the "positive direction recently taken in U.S.-France aviation relations," has asked DOT for a two-year initial exemption to provide nonstop combination service from Pittsburgh to Paris, the first nonstops in the market. Pointing to strong community, state and congressional support, the carrier said its Pittsburgh-Paris route "should be the top U.S. government priority in further negotiations with France." It seeks approval on the basis of a "newly positive spirit of comity and reciprocity" in advance of a formal agreement.
House Transportation aviation subcommittee Chairman John Duncan (R-Tenn.) is drafting a bill to improve service for smaller communities, with provisions similar to those in a bill being drafted by Senate Commerce Committee Chairman John McCain (R.-Ariz.) and in Sen. Bill Frist's (R- Tenn.) bill aiding regional jet acquisitions. An early version of Duncan's draft would limit the number of slot exemptions for underserved points to two per hour for all high-density airports and six per day for Washington National.
U.S.-Japan negotiators are considering a novel solution to the Narita slot problem, sources said - freeing capacity by moving all-freighter operations to Tokyo Haneda, now virtually a domestic-only airport. If the idea is adopted, however, Japan apparently would insist on labeling it an unwritten understanding - not a formal part of the agreement - in part to avoid antagonizing other parties lined up for slots.
Air Transport Association Cargo Traffic Aug-97 Revenue Ton-Miles (000) August August % Domestic 1997 1996 Change Freight 711,750 742,081 -4.1 Mail 187,106 147,881 26.5 Total 898,856 889,962 1 International
Sky King applied at DOT to conduct domestic and foreign charter combination service under a FAR Part 121 operating certificate. Currently operating under a Part 125 certificate, Sky King has provided Sacramento Kings basketball team charters for seven years using a leased BAC-111 and had lease contracts for entertainment tours, including the Beach Boys and Bon Jovi. The carrier wants to serve corporations, sports teams and other entertainment tours, using a leased or purchased 737-200 with custom interiors. (Docket OST-97-3017)
U.S. National Carriers Traffic September, 9 Months 1997 September September % 1997 1996 Change AirTran Airlines Revenue Passenger Miles (000) 99,973 n/a - Available Seat Miles (000) 263,797 n/a - Load Factor (%) 37.9 -
Europe will develop its own satellite navigation system if it cannot agree with the U.S. and other countries on an international system, European Union Transport Commissioner Neil Kinnock said this week in Berlin. "My preference would be a single global system....If we are not convinced that such a global system is a realistic possibility, Europe must press ahead with its own system," he said.
America West faces opposition from US Airways, United and TWA for its slot exemption requests, with the last carrier lodging similar objections against American Eagle/Simmons and American Trans Air. America West filed for exemptions for several Columbus-New York LaGuardia and Phoenix-Chicago O'Hare flights, American Trans Air for three to LaGuardia, and Simmons for 60 slots to serve various points from O'Hare.
U.S. and Japan appear virtually agreed on third-country code sharing and the number of additional frequencies in the new bilateral, informed sources said yesterday, but beyond rights, slot issues and the regime that will go into effect after the four-year interim agreement remain unresolved. The talks' ultimate outcome may be delayed with the absence of Charles Hunnicutt, assistant secretary and lead negotiator for DOT, who became ill - possibly from a mild heart attack, sources said - and had to withdraw from the talks.
Omni Air Express asked DOT to register Omni Air International Inc., as its new corporate name. The carrier will continue to do business under the name Omni Air Express. (Docket 0ST-97-2750)
