Pan American announced that all its flights, including those formerly flown by Carnival Air Lines under the "KW" code, are operating under the "PA" code. Pan Am completed its acquisition of Carnival on Sept. 26.
Although recent attention about Southwest's growth has focused on its expansion in Florida and Providence, other increases emerge elsewhere in the U.S. from a comparison of the airline's seat capacity at its 20 largest stations in the third quarter of 1997 and the same quarter in 1994. "The fastest growth occurred in Nashville, as Southwest tripled its capacity in a race to fill the vacuum created by American's withdrawal," said economist Bob Gordon of Northwestern University. Capacity growth in Baltimore, 150%, was close behind.
Great Lakes Aviation posted a net loss of $1 million in the quarter ended Sept. 30, unchanged from the year-earlier period. Revenue fell 38.4% to $18.2 million and expenses dropped 45.4% to $13 million. The carrier reported an operating profit of $2.9 million, offset by a $2.64 million shutdown expense. Revenue per available seat mile rose 35.3% to 21.8 cents and yield was constant at 36.9 cents per revenue passenger mile.
Bombardier Aerospace yesterday received an order for five Global Express and five Challenger 604 business jets from TAG Aeronautics. The $250 million order, a record for Bombardier, increases firm orders for the Global Express past 70. TAG Aeronautics is the exclusive representative of Global Express, Challenger, the Canadair Regional Jet and the new CRJ Series 700 in 22 Middle East and Arab countries. Last month it acquired Farnborough Airport in the U.K., where it plans to develop a business aviation center.
Unac-Cgc, the Air France cabin staff union that has issued 20 strike calls since March 1996 with no noticeable effect on traffic, is calling for a 48- hour strike Nov. 21-22 to protest B-scales for pay and working conditions imposed in December 1995 on new hires.
Shareholders of ValuJet Inc., parent of AirTran Airlines, yesterday approved the company's merger with Airways Corp., parent of AirTran Airways. The holding company was renamed after the vote to AirTran Holdings Inc., eliminating the last vestige of ValuJet. As of today, all shares of both airlines will be traded under New York's Nasdaq market symbol "AAIR." Still operating separately, the AirTran carriers fly 32 DC- 9s and 11 737s with 239 daily departures to 46 cities. They expect to operate 50 aircraft during 1998.
Air Transport Association accused the American Society of Travel Agents yesterday of disseminating erroneous information on airline profits during an ASTA press conference last week in Washington, D.C. ATA said ASTA "claimed that airline profits soared between 1993 and 1996 to a combined total of $16.1 billion dollars - overestimating the industry's four-year earnings by $13.4 billion. They then used this erroneous information to bash airlines, saying 'soaring profits for major airlines [equals] plummeting service for consumers.'"
Summary of U.S. Major Carriers International Traffic Second Quarter 1997 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) Alaska 197 3.29 1,062 208,862 Latin 197 3.29 1,062 208,862
Omni Air Express, which recently changed its corporate name to Omni Air International, received charter passenger authority from DOT. The carrier intends to provide the service under contract with tour operators and cruise lines from major U.S. cities to vacation destinations in Florida, the Caribbean, Mexico and Hawaii, and to offer sub-service to other carriers. It will begin passenger operations using one leased DC-10-10 and plans to add a second in mid-December.
British Airways yesterday reduced its travel agent commission structure in the U.K., Canada and Eastern Europe and implemented a staggered commission system in the U.S. The European changes will begin Dec. 1 but the U.S. structure started yesterday. BA cut its U.K. commissions from 9% to 7%, as of Jan. 1, but a performance reward scheme takes effect Dec. 1. The airline reduced U.S. commissions from 10% to 5% for Concorde and first class and 7% for Club business class, and it retained 10% for economy tickets.
Cathay Pacific Airways and SITA have signed an agreement by which SITA will manage communications for the airline in more than 80 countries for at least five years. The deal includes the airline's headquarters facilities at Hong Kong's new Chek Lap Kok Airport, due to open next April, and its data processing center in Sydney. Cathay has begun upgrading or purchasing some 4,000 computers, and SITA will develop a secure, global intranet for them. The two companies have worked together for more than 35 years.
Egyptair has become a launch customer for the A340-600, ordering two and taking options on two more. Deliveries begin in 2003. Airbus, which began marketing the long-haul 380-seat A340-600 and the 313-seat A340-500 in June, reported "strong demand" from airlines.
As FAA asked airlines to do a better job of enforcing its carry-on baggage policies, Northwest extended its one-plus carry-on policy to all flights, not just flights with a booked load factor greater than 70% or ones for which gate and cabin personnel decide to enforce it. In addition to one carry-on, Northwest passengers may bring a briefcase, laptop computer, purse, coat, umbrella, cane, collapsible manual wheelchair, stroller, infant seat, diaper bags and crutches, braces or prostheses.
Most Air Transport Association members want FAA to create and enforce an across-the-industry rule on carry-on baggage, an industry source said. American proposed regulation last week, and ATA has launched a task force to study the issue. (See story to follow.)
Hughes Training and Lufthansa Technical Training agreed to pursue jointly technical and customer service training with airlines, maintenance organizations, original equipment manufacturers and other aviation suppliers. The alliance will be able to support most Airbus, Boeing, Canadair and Douglas aircraft. Instruction will be at customer sites or at Lufthansa centers in Hamburg and Frankfurt.
International Civil Aviation Organization named Tatyana Grigorievna Anodina recipient the Edward Warner Award for contribution as scientist and researcher to the development of national, regional and global air navigation aids for international civil aviation.
Third quarter pre-tax profits for Ryanair, the low-cost regional carrier based in Dublin, jumped more than 70%, compared with same period in 1996. The no-frills airline said half-year pre-tax profit ending Sept. 30 increased nearly 60% from a year ago. Ryanair's third-quarter, pre-tax profit rose 70.7% to 18.1 million Irish pounds (US$27.2 million) from IP10.6 million ($15.9 million) in 1996. Pre-tax profit for the six-month period expanded 59% to IP23.8 million ($35.7 million).
Western Pacific extended through Nov. 19 the deadline for buying its "Can Do Spirit" fares. Tickets must be purchased at least 14 days before departure and travel must be completed by March 11. Fares start at $49 one way and include $129 from Portland to Washington Dulles, $129 from Phoenix to Atlanta and $49 from Denver to Dallas/Fort Worth. Fares are good for travel on Tuesdays, Wednesdays, Thursdays and Saturdays, and daily to or from Denver. Some blackout dates and restrictions apply.
Continental Friday confirmed it lost signals to Global Position System receivers while flying over France, but it denied that a backup VOR was not available (DAILY, Nov. 14). "The backup VOR was available and working," a spokeswoman said. The carrier said it learned that the French military was conducting GPS jamming exercises, confirming what a source said earlier. The jamming exercise was being conducted "without our knowledge," the spokeswoman said.
Air South Chapter 7 bankruptcy liquidation will include both public and private asset sales during the next few weeks. The South Carolina Jobs- Economic Development Authority, owed $13.9 million, reached a settlement recently to receive half of the $110,000 in the airline's operating account.
The merger of Boeing and McDonnell Douglas apparently did not kill the market for the MD-80 series of aircraft. Far Eastern Air Transport said Friday it plans to buy two Boeing MD-83s and 10 757-200s to "cope with our route-expansion plans to Southeast Asia and direct air links with mainland China." The MD-83s and five of the 757s are firm orders, and the other five 757s are options. Deliveries are set for 1998 through 2000.
