Lockheed Martin and Northrop Grumman, soon to merge, said yesterday they are teaming up to pursue FAA's new Air Traffic Control Beacon Interrogator (ATCBI-6) contract, for which the agency is expected to issue a request for proposals early this month. The agency plans to issue a contract in mid- 1998. FAA has identified a need for 127 monopulse secondary surveillance radars (MSSRs) with selective interrogation capabilities to replace 25- year-old beacon interrogator equipment.
Lynden Air Cargo told DOT that its Loken Aviation subsidiary "has ceased to exist" and asked it to reissue the Lynden certificate of public convenience and necessity "eliminating the Loken trade name." Lynden told FAA it intends to surrender the Part 135 operations specifications issued to Lynden Air Cargo LLC, d/b/a Loken Aviation.
British Airways has sold its 14 Boeing 747-100s to AAR Corp.'s Aircraft and Engine Group and will replace them with 747-400s. Illinois-based AAR will take the aircraft from 1998 through 2000, and BA said the majority will be broken up for spare parts. The purchase includes 11 spare engines. AAR is entering a consignment agreement to sell BA's surplus spare parts to support the aircraft that are sold, and BA expects tens of millions of dollars profit from the sale.
Aer Lingus this week is launching a two-month North American advertising campaign with the slogan "Ireland Is Not The Only Place We Fly." The promotion seeks to build awareness of the connections possible through the airline's Dublin and Shannon gateways to the U.K. and continental Europe. Aer Lingus serves 21 European cities outside its home country. The ad campaign was developed by New York-based Hampel Stefanides.
Carriers and foreign parties filed written brief in preparation for oral arguments scheduled Nov. 21 contesting FAA's overflight fee. The parties said FAA had not satisfied notice-and-comment requirements "merely by receiving unsolicited comments; violated a directive against using value- based fees; and was in error in asserting it has no obligation under bilateral agreements to consult with foreign air carriers before imposing the fees."
DOT approved American's request to display TAM-Mercosur's code on American's flights between Miami and Asuncion, Paraguay, but it dismissed a request to display American's code on TAM-Mercosur flights in the market. Paraguay is a Category 3 country, an FAA rating which bars its carriers from serving the U.S. with their own aircraft and crews. United sought deferral of the request until the government of Paraguay agreed to permit code sharing between itself and Varig, to serve Asuncion via Sao Paulo, as well as American/TAM-Mercosur.
Detroit Metropolitan will be the first airport in the U.S. to benefit from the full-scale development (FSD) version of Northrop Grumman's Airport Movement Area Safety System (AMASS). The company's Norden Systems has delivered subsystems to the airport authority for the first FSD version of the automated conflict alerting system. Deliveries include the AMASS signal and data processing electronics and an automated radar terminal system interface.
The Justice Department said yesterday FAA's proposed security screening program does not illegally discriminate against travelers, but it recommended five steps to help prevent violations of civil rights. FAA said it would adopt the recommendations. DOT Secretary Rodney Slater, who met recently with civil rights groups that expressed concerns about screening, said safety is DOT's highest priority but "we must also be vigilant about protecting the civil rights of airline passengers."
Pratt&Whitney Eagle Services said yesterday it has completed acquisition of Interturbine's Flight Repair Group, creating one of the world's largest jet engine parts repair organizations. The Netherlands-based company agreed in July to sell its repair facilities in Dallas and Singapore to P&W.
UPS's Independent Pilots Association rejected the company's "last, best, final" contract offer yesterday by a vote of 1,861 to 39. UPS said it was disappointed with the vote but would be ready to resume talks next year with a federal mediator or submit remaining issues to binding arbitration. IPA said it is not interested in starting negotiations again in 1998.
Newcastle-based Gill Airways agreed yesterday to provide franchise service for Air France between Paris Charles de Gaulle and Newcastle. Gill becomes the second British regional franchisee for the French carrier after an earlier agreement with Jersey European Airways, which serves Toulouse and Lyon from London. The agreement with Gill takes effect Oct. 26 with two daily flights Monday through Friday and one daily flight during the weekend. Gill's ATR-42 turboprops will have Air France colors.
Pan Am yesterday sent out "seasonal furlough notices" to 465 of its 2,200 employuees, a 21% cut. The furlough is effective Oct. 15. Pan Am President Martin Shugrue told employees the layoffs will be temporary, with the hope that some staff can be recalled within six weeks. Pan Am, which received shareholder approval last Friday to merge with Carnival Air Lines, will suspend New York Kennedy-Los Angeles service Oct. 6 and switch aircraft on some routes from A300s to Carnival's smaller 727s and 737s.
FedEx said DOT can "send a clear message to Indonesia" to "facilitate...resolution" of airport access issues by deferring action on the Garuda Indonesia/Northwest application for exemption authority to code share between the U.S. and Indonesia.
American is launching daily nonstops between Dallas/Fort Worth and Caracas, having received authority for the service from the Venezuelan government. Introductory roundtrip fares will begin at $499 from Dallas/Fort Worth, with similar discounts from other cities. Tickets require a three-day minimum stay, purchase by Oct. 24 and completion of travel by Dec. 9. American is offering double AAdvantage miles for members who fly the roundtrip through Dec. 15.
US Airways will offer 283 pilots furloughed since 1991 the chance to come back to work under the tentative contract agreement with its Air Line Pilots Association unit. All pilots furloughed in 1997 will be recalled by Christmas. ALPA and the airline reached a tentative agreement late Tuesday, sending it to union members for ratification. Airbus Industrie agreed to extend the terms of its 400-aircraft deal with the carrier - the deadline was midnight - pending pilot ratification.
Air Transport Association took a harsh view of the Wide Area Augmentation System at a House hearing yesterday, recommending a "technical time-out" for a systems and funding review after an initial system of 24 ground stations is installed. FAA Associate Administrator George Donohue said ATA was repeating "inaccurate" criticism he had seen in the press during the past year, and received varying degrees of support from the General Accounting Office, DOT Inspector General Kenneth Mead, and aviation leaders testifying before the House Transportation aviation subcommittee.
Delta Express will increase its 25-airplane fleet in the spring, VP Skip Barnette said yesterday as the carrier observed its first anniversary. Barnette said he did not know how many aircraft will be added. Celebrating its birthday, Delta Express added two daily nonstop flights between Orlando and Islip, N.Y., and Raleigh/Durham, offering a $99 one-way fare. It also launched a two-for-one companion fare offer valid through Dec. 16. Delta Express has flown more than one million passengers since its inception and load factors have averaged 71%, Barnette said.
U.S. Major Carriers Productivity, In RPMs, And ASMs Per Employee Second Quarter 1997 Revenue Available Passenger Seat Miles Miles Total (000) (000) Employees Alaska 2,620,738 3,828,681 7,647 America West 4,145,121 5,847,604 10,691
Mesa Airlines has extended its contract with the Sabre Group for five years and added electronic ticketing and Airport Check-In System to shorten check-in time. Electronic ticketing will enable passengers to make reservations directly through the airline. ACS simplifies the information agents enter into their computers, reducing passenger waiting time in line. Mesa said it also has improved its accounting processes with accelerated credit card billings to collect money from credit card companies faster, improving cash flow.
The agreement between US Airways and its pilots to create a US2 airline- within-an-airline will shake up the East Coast travel market and force competing airlines to rethink the way they expand on US Airways routes. Estimates are that the as-yet-undefined low-fare version of US Airways will grow to about the size of Alaska Airlines. US Airways pilots have agreed to seed US2 with 54 narrowbody aircraft and operate up to 23% of the US Airways total block hours (DAILY, Oct. 1). The US Airways Shuttle, which American wants to buy, also figured in the new contract.
Icelandair will begin offering direct connections to Glasgow from New York, Boston and Baltimore/Washington Nov. 1. Transfer within Iceland take less than an hour, and vacation packages start at $398, including airfare and two nights in a hotel.
Omni Air Express received a DOT waiver from rules that prohibit a company from issuing tickets or accepting reservations or payment until its authority becomes effective. Seeking the waiver, the carrier said it needed lead time to contract with tour operators for the 1997-98 winter season (DAILY, July 25). The partial waiver, made final by DOT order, will allow Omni to market and sell passenger charters to tour operators and cruise lines.
The culture clash that derailed the Frontier-Western Pacific merger extended to facilities and pay. When Frontier needed more space it moved into an inexpensive office and bought used furniture. Westpac moved into more expensive offices and bought new furniture. Frontier's Sam Addoms is paid one of the lowest salaries of any chief executive in the industry - $48,229 in 1996, down from $53,260 in 1995. Westpac Chief Executive Bob Peiser receives $325,000, nearly seven times more.
Delta is introducing The Shuttle Sheet, an inflight magazine for passengers traveling between New York, Boston and Washington, D.C. The monthly guide to entertainment, dining and shopping in the three cities served by Delta Shuttle will be distributed as a supplement to Delta's Sky magazine. Regular items will include Tip Sheet, a feature on new restaurants and the best shows; Best-Kept Secrets, featuring libraries, galleries and professional services in the three cities, and Happenings, a selective calendar of events.
Fine Air Services told DOT it reached agreement with FAA on an accelerated schedule that allows the carrier to relaunch operations Oct. 6. Fine was shut down Sept. 4 after the Aug. 7 crash of one of its DC-8s in Miami. Under a consent order agreed to last month, FAA withdrew enforcement actions, Fine agreed to a $1.5 million fine, and the carrier underwent an inspection that led to changes in some of its operations specifications (DAILY, Sept. 17).
