September traffic for TWA declined 7.9% on 13.7% less capacity, which improved the load factor 4.1 percentage points to 64.7%. Retiring several widebody aircraft and an international retrenchment in January were reflected in international traffic, which fell 29.5% on 37.6% less capacity, pushing the load factor up 8.7 points to 76%. International capacity for September represented 22% of its systemwide total, compared with 30% a year earlier. Domestic traffic rose 3.2% on 3.3% less capacity, resulting in a 61.5% load factor, up 3.9 points.
London City Airport said it processed 107,492 passengers in September, up 47% from September 1996 and its fourth straight month of handling more than 100,000.
The final version of the fiscal 1998 DOT funding bill (H.R.2169) provides $152.83 million for FAA to continue development of the Wide Area Augmentation System (WAAS), but the appropriations committees are directing FAA and DOT to withhold some of the spending until they submit reports on the program to Congress. The House recommended $114 million for the program. On a related issue, the bill includes language that prohibits implementing the Flight 2000 demonstration program during fiscal 1998.
George Donohue's nomination as FAA deputy administrator was placed on hold by Sen. Bill Frist (R-Tenn.), a member of the Commerce Committee and its aviation subcommittee. Frist is angry that DOT Secretary Rodney Slater has not replied to his request for slots at two high-density airports by two carriers that want to serve Tennessee points. Frist threatened earlier to place a hold on the nomination of Jane Garvey as FAA administrator but was "convinced by DOT and FAA officials that they would act promptly" on the requests, an aide said.
Barlow Partners II, a group of airline investors, is proposing to acquire the United Express divisions of Mesa Air Group for $50 million, sources close to the deal told The DAILY. A written proposal to Mesa for the divisions that feed United in Denver and Los Angeles has not been rejected outright, one source said, and three other airlines - SkyWest, Air Wisconsin and Atlantic Coast, all three United Express feeders - have spoken with Mesa about United Express.
DOT has granted initial one-year authority to Continental for foreign combination code-share service with Virgin Atlantic between Los Angeles/Miami/New York Kennedy/Newark/San Francisco/Washington Dulles and London Heathrow. The approval restores the presence of a third U.S. carrier to Heathrow; Delta's Heathrow service ended when Delta and Virgin Atlantic terminated their code share.
Hokkaido Air System has been formed in Japan by Japan Air System and the Hokkaido island government. JAS owns 51% and the government 49%. HAS's initial capital totals 125 million yen (US$1 million). The capital will be increased to 490 million yen ($4 million) before March, when the airline intends to start. HAS has selected three intra-island routes, to be flown with a 36-seat Saab 340. A second aircraft will join the fleet in July, the third in 1999.
SAir Group subsidiary Gate Gourmet is buying British Airways' inflight catering units at London Heathrow Airport for #65 million (US$105 million) and a 10-year deal to supply the U.K. carrier. The sale, announced yesterday and to be concluded by yearend, involves BA's long-haul catering operation, whose 1,200 employees produce about 25,000 meals a day, and its short-haul catering unit, which produce an equal number of meals and has been managed by Gate Gourmet since 1982.
Mechanics at Frontier voted 46 to 2 Tuesday against representation by the Teamsters. All of the company's seven stock clerks voted against the union. Frontier President Sam Addoms thanked employees for what he interpreted as a vote of confidence in management, pledging to continue "our active direct involvement" with workers. "My intent, and that of the rest of management, is to work hard to listen and respond to the ideas and concerns of the Frontier family." A Teamsters spokeswoman said yesterday the union has no plans for further action at Frontier.
U.S. and foreign aviation organizations yesterday outlined a cooperative 2 l/2-year fuel system inspection program involving 2,000 transport aircraft of various types operated by 68 airlines in an attempt to eliminate disasters like the TWA 800 crash. The organizations participating in the multi-million dollar program, already under way on Boeing 747s, include the Air Transport Association, Aerospace Industries Association, Association of European Aerospace Industries, Association of European Airlines and Association of Asia Pacific Airlines.
Metropolitan Washington Airports Authority (MWAA) said AirTran Airways' bid for new slot exemptions at Washington National is plainly blocked by the law, which "could not be more clear." The power given DOT for granting exemptions at high-density airports under exceptional circumstances is expressly denied at National, MWAA said, citing the U.S. Code. So is authority to grant exemptions for essential air service and foreign air carriers.
Southwest is bringing Fun Fares back to California with a $39 one-way tariff for travel within the state. It also is offering $99 one-way fares to selected Midwest cities, including Chicago, St. Louis, Cleveland, Detroit and Columbus. Tickets must be purchased by Oct. 31 and travel completed by Dec. 8. Prices are based on roundtrip purchase and require a one-night stayover.
Pro Air Inc., has increased service from its Detroit City hub to Baltimore and Newark from two to three daily flights. Flights will depart for Baltimore at 7 a.m., 1 p.m. and 5:55 p.m., returning to Detroit at 9 a.m., 4 p.m. and 7:55 p.m. Flights to Newark will leave at 8:05 a.m., 12:45 p.m. and 5:40 p.m., and return at 10:20 a.m., 3 p.m. and 7:55 p.m. The unrestricted one-way coach fare is $79, and first-class travel costs $199 each way. Pro Air will continue daily nonstop service from Detroit to Indianapolis and Milwaukee.
American and Asiana are expected to announce a code-share alliance Oct. 17 during a briefing by chief executives of both airlines in New York. The Korean carrier and Northwest ended a partnership last month.
Transport Workers Union said yesterday it does not know if it will proceed with another attempt at unionizing America West fleet service workers. TWU organizer Frank Trotti said the union was surprised by Monday's election results, in which 54% of the ballots rejected union representation, because surveys had shown the union had enough support to win. Trotti said it will be up to the national TWU whether to try again. Of 1,899 eligible employees, 1,028 voted against union representation, according to the airline.
Delta and its pilots union have begun negotiations on pay for pilots who fly 737-700 aircraft due for delivery beginning in August 1988. The union is asking for industry-leading pay rates, and the Air Line Pilots Association unit's Master Executive Council is developing a contingency plan for use if management and the union cannot reach agreement within six months of the aircraft's entry into service. The plan would allow the pilots to park the aircraft, and it calls for a 1% assessment on union member salaries to pay the pilots until they can fly again.
The increasing globalization of air transport demands multilateral transatlantic pacts regarding tariffs, capacity limits and other restrictions that hold back development, said European Union Transport Commissioner Neil Kinnock.
Senate Commerce Committee will hold a confirmation hearing today at 9:30 a.m. in 253 Russell on the renomination of John Hammerschmidt, George Black and Chairman Jim Hall as members of the National Transportation Safety Board. House Transportation aviation subcommittee will hold a hearing tomorrow at 9:30 a.m. in 2167 Rayburn on foreign repair station legislation.
Tarom requested renewal of its exemption authority from DOT, last granted for 60 days, to conduct one weekly Bucharest/Timisoara-Chicago roundtrip, maintaining the only direct service "to the ethnic Romanian community in Chicago." The U.S.-Romania bilateral authorizes two weekly roundtrips by Romanian carriers to New York, which Tarom currently operates. Tarom said a DAILY report of progress in U.S.-Romania open skies negotiations (DAILY, Sept.
AirTran Airlines, formerly ValuJet, reported a 37.9% load factor for September and a year-to-date load factor of 58.3%. The airline flew 99,973 revenue passenger miles on 263,797 available seat miles. AirTran spokesman Gregg Kenyon said the company spent virtually no advertising dollars in the last week of August and the first three weeks of September in view of its name change. But it plans to spend nearly as much on ads in the last quarter of 1997 as in all of 1996 - roughly $10 million-$12 million - which should boost traffic.
Vanguard Airlines will initiate nonstop service between Kansas City and Washington Dulles Airport Dec. 17 with one flight daily. It is offering an introductory one-way fare of $119.
Atlas Air has contracted to provide a second 747-200 freighter to Lineas Aereas Suramericanas. Atlas currently operates five aircraft in South America. Its contracts provide for aircraft, crew, maintenance and insurance.
US Airways traffic increased 6.6% on 0.9% less capacity in September, pushing the load factor up 4.6 percentage points to 67%. Thus far in 1997, US Airways traffic has risen 9.8%, while systemwide capacity has increased 4.8% and domestic capacity has risen just 2.4%. In September, domestic traffic rose 5% while domestic capacity dropped 2.1%. Despite the domestic shrinkage, US Airways continues to grow internationally - traffic on international routes improved 18.7% on 12.8% more capacity.
