Alaska Airlines and its pilots union have agreed tentatively on a 5 1/2- year contract offering improved retirement benefits and wages in return for increased productivity and staffing, and scheduling flexibility.
Amsterdam Schiphol Airport and the Dutch government have won a small victory in keeping control of noise rules at the airport. Three lawsuits against the government were thrown out, according to wire reports, as environmental groups did not prove actions at Schiphol were illegal. The court found the government has taken action to ensure noise levels next year will not exceed limits.
The Air Line Pilots Association unit of Atlantic Southeast Airlines will re-enter contract negotiations with management next week, but union officials are not optimistic they can resolve disputes in time to avoid a November strike. The National Mediation Board will continue negotiations until the end of this month under NMB member Magdalena Jacobson, who will decide at that time whether negotiations have reached an impasse. If NMB releases ASA and the union from negotiations into a 30-day cooling-off period, the pilots will call a strike during the holidays.
Sabre Group Holdings yesterday posted a third quarter net profit of $56 million, a 10.3% increase over pro forma results for the same 1996 period. Revenue jumped 11.9% to $456 million and operating income reached $88 million. The pro forma results comparison includes contracts Sabre signed with American July 1, 1996, and Sabre's 1996 reorganization. Without the comparison, third quarter net earnings grew $11 million, or 24.5%.
Travel agents are accusing Southwest of a "sneak attack" - offering a fare sale exclusively to customers who book through its Internet site, which does not pay commissions. Beginning tomorrow, Southwest will offer discounts on nonstop flights from Houston for travel Nov. 4-Jan. 5 to customers who buy tickets via the web site. Fares start at $30 one-way based on roundtrip purchase.
Continental and Virgin Atlantic will share the responsibility of filling aircraft from six U.S. cities to London beginning Feb. 2, 1998. Continental, fresh from code-share approval (DAILY, Oct. 9), said it will offer six new flights to its passengers. It will sell seats on Virgin- operated flights between Los Angeles, San Francisco, Miami, Washington Dulles, New York Kennedy and Newark and London Heathrow; between Newark, Boston and Orlando and London Gatwick, and seasonal service between Orlando and Manchester.
AlliedSignal Electronics&Avionics said it was selected to provide avionics to carriers ACES, TACA and United. ACES ordered enhanced ground proximity warning systems (EGPWS), solid state flight data recorders, cockpit voice recorders and aircraft communications addressing and report systems. TACA will receive EGPWSs for four new A320s. United placed an $8 million order for solid state cockpit voice recorders for its entire fleet.
FAA said World has agreed to a $610,000 fine for nine cases "involving violations of U.S. aviation-security regulations." The agency said eight of the nine cases involved a wet-lease agreement between World and Malaysia Airlines. FAA alleged that the aircraft violated security regulations in 1996 while conducting flights in Cape Town and Johannesburg, South Africa, and in Belfast. FAA said it could "not discuss details of the security violations," none of which occurred in U.S. airspace.
The European Commission decided yesterday to shelve complaints against Athens Heraklion Airport dating from 1994. Several airlines charged that Greek flag carrier Olympic Airways was abusing a dominant position there, providing poor ground-handling service at "non-transparent" prices. The EC closed the infringement procedure it initiated at the time, finding that Olympic's service shows improvement. Greek authorities launched construction to upgrade the airport's east terminal, and on Jan. 1 a second operator will offer passenger-handling services, the EC said.
High-level, informal U.S.-Japan talks raised serious issues concerning slots, code sharing and beyond rights that may not be resolved after next week's formal round, set to start Monday in Washington. Chief negotiators Alan Larson, assistant secretary of state, and Jiro Hanyu, Japanese transport ministry deputy director general, discussed key issues in Washington last week but at a more general level than expected, sources said. Officials from both governments briefed U.S. and Japanese industry representatives after last week's informal talks ended.
U.S. and French negotiators made progress yesterday in Paris, according to informed sources, but a new bilateral probably will not result from this round.The two sides appear closer to agreement on code sharing, designating new airlines and a shorter transition period to broad liberalization, but they remain far apart on capacity issues. The U.S. will present a negotiating paper to France this morning, and the round may conclude later in the day.
Atlas Air's stock has been approved for listing on the New York Stock Exchange as of Nov. 11. The move from the NASDAQ market will alter the airline's stock symbol from ATLS to CGO.
America West, in a filing this week at DOT, accused computer reservations systems and travel agents of generating bogus charges and proposed protective measures for carriers that, like itself, do not control or have associations with large CRSs. American and United are shielded by such relationships - Sabre is majority-owned by American parent AMR Corp., and Apollo Travel Services Partnership, to be acquired by Galileo, is 77% owned by United, the filing said.
Rehired former PATCO controllers have expressed concern to the administration that FAA is dragging its feet getting them back to full- performance-level status. They say the agency is treating them "unevenly" in several other areas, including placing them in clerical roles, defeating the intent of President Clinton's directive to rehire qualified PATCO members.
British Airways will reinstate a fourth weekly flight to Harare, Zimbabwe, from London Gatwick, after a seven-month hiatus. The decision follows talks in recent weeks between the U.K. Department of Transport and Zimbabwe's Department of Civil Aviation.
U.S. and French negotiators meet in Paris today through Friday, resuming talks recessed without progress last spring (DAILY, April 25).The U.S. is pushing for open skies, but France's last proposal was a nine-year transition to expanded - but less than open - services. There is no current agreement, and the U.S. will not permit Air France to implement code shares with Delta and Continental until one is signed.
U.S. industry observers voiced skepticism about elements of a weekend Kyodo news service report about progress in U.S.-Japan talks, proceeding informally in advance of a formal round next week. Quoting unnamed Japanese sources, the story said the two sides are near a four-year "transitional" agreement that would let TWA start Japan service, impose limits on ANA's incumbency, add 70 weekly frequencies for U.S. carriers and limit some beyond rights for U.S. passenger carriers. The U.S. has given up its demand for third-country code-sharing, according to the report.
Eurofly, a charter joint venture set up by Alitalia and Italian electronics group Olivetti, is considering entering the long-haul market, according to Enrico Albanese, Eurofly's newly appointed general manager. The company's plans will be detailed in a three-year plan, to be unveiled later this month, he said. Eurofly, which specializes in short- and medium-haul charter operations, also will launch scheduled service between Rome Fiumicino Airport and Bergamo under a code share with Alitalia, starting Oct. 27.
DOT has given Congress its strategic plan for 1997-2002, the first required by law, and will integrate it into the budget cycle as a benchmark for the department's performance. Mortimer Downey, DOT deputy secretary, described development of the plan as an intense process involving political appointees, career officials and consultation with industry in all transportation sectors. "Every word in this document has been argued over by these people," he told reporters last week.
Lufthansa and British Midland will increase code-share service Oct. 27 between London Heathrow and Dresden, via Cologne/Bonn. This flight previously continued from Cologne/Bonn to Rome, but the airlines decided to substitute Dresden because traffic to Rome declines in the winter months. The new service will replace one of the three daily Cologne/Bonn-Dresden roundtrips currently operated by Lufthansa. It will be operated by British Midland with a 737 aircraft and carry a Lufthansa flight number.
Troubled flag carrier Cyprus Air is holding talks "with all interested parties" about a rescue plan compiled by British consultant Arthur D. Little, airline Chairman Takis Kyriakides said last week in Nicosia. He refused to comment on Cypriot press reports that the U.K. consultants suggested cutting 500 of the company's 2,000 employees, downsizing the fleet and privatizing some ground-handling services. The consultant's report suggests ways "to increase income, reduce costs, reorganize the company and reinforce its capital base," Kyriakides said.
Business Express (BEX), having invested its own funds for New York LaGuardia slots, filed against Spirit Airlines' request for an exemption from the high-density rule so it can fly two daily nonstops to Myrtle Beach, S.C. The service would replace operations shut down with the bankruptcy of Air South, which flew from Myrtle Beach to New York Kennedy. Spirit wants the slot exemption at LaGuardia, saying travelers strongly prefer Spirit on the route.
The German government priced its 143 million remaining shares in Lufthansa over the weekend and offered them for sale, the final step in the flag carrier's privatization. The bank consortium handling the sale said the issue was oversubscribed more than twice. The issue price was slightly below the shares' closing value quoted on stock markets last week. The government's 37.5% stake in Lufthansa was priced Sunday at 33.30 Deutschmarks per share, or approximately DM4.7 billion (US$2.6 billion), with all proceeds going to the government.
