Continental said yesterday profit sharing and on-time bonuses, added to increased wages announced Monday, will put its employees' salaries above the industry standard (DAILY, Sept. 23).
U.S. National Carriers Traffic August, 8 Months 1997 August August % 1997 1996 Change American Trans Air Revenue Passenger Miles (000) 1,014,626 1,042,794 -2.7 Available Seat Miles (000) 1,314,402 1,387,127 -5.2 Load Factor (%) 77.2 75.2
Delta introduced this week worldwide sale fares for travel throughout the U.S., Bermuda, Canada, the Caribbean, Mexico, Europe, Russia, South America and Asia. Fares for points in the U.S., Bermuda, Canada and the Caribbean are good for travel between Oct. 6 and Feb. 10, 1998, and travel to San Juan and the U.S. Virgin Islands must occur Oct. 6-Dec. 16. Fares for Mexico, Europe, Russia, South America and Asia, except Japan and Singapore, are for travel Nov. 1-March 31, 1998. Tickets must be purchased by Sept. 30.
U.S. Regional Carriers Traffic August, 8 Months 1997 August August % 1997 1996 Change Air Wisconsin Revenue Passenger Miles (000) 59,373 51,688 14.9 Available Seat Miles (000) 83,775 77,053 8.7 Load Factor (%) 70.9 67.1
FAA yesterday successfully conducted the first trilateral demonstration of what it calls the North American Wide Area Augmentation System. Director of satellite navigation, J.C. Johns, said by telephone from Tijuana that four demonstration flights with a Nav Canada Challenger corporate jet performed approaches as low as 50 feet, and Mexican officials consider the technology "very promising."
In what Chairman and Chief Executive David Burner called an "offensive move" to increase its aerospace business, BFGoodrich reached agreement on a merger with Rohr Inc. after two weeks of negotiations. Rohr shareholders will receive 0.7 shares of BFGoodrich stock for each share of Rohr. The $1.3 billion price tag is split between $882 million in stock and the assumption of $418 million in Rohr debt. The companies expect the deal to close 90 to 120 days after regulatory and shareholder approval.
Lufthansa has recovered three 737-200s leased to Modiluft, its former Indian partner, after a 16-month dispute. The aircraft were leased to Modiluft under an agreement signed in March 1993. In May 1996, Lufthansa tore up the contract on the grounds that the Indian regional carrier had not fulfilled its financial commitments. Modiluft retaliated in November 1996, demanding $140 million in damages for breach of contract.
Virgin Atlantic is relaunching its tour product, now called Virgin Atlantic Vacations, and raising travel agent commissions to 15% on bookings for travel between Nov. 1 and March 31, 1998. The airline also set up a toll- free number - 1-888-OK-VIRGIN - and priced fall and winter air/hotel packages to London from several U.S. points as low as $439 roundtrip.
FAA has completed certification of the Learjet Model 45 and deliveries will begin in November, Bombardier Aerospace said. With 135 orders for the two- engine, eight- to nine-passenger business jet, Learjet plans to deliver about 12 aircraft this year and 60 per year through 2002. Carrying four passengers and two crew, the aircraft can fly 2,000 nautical miles, 8% farther than the initial estimate of 1,850 nm.
The Internal Revenue Service has determined that 420 airports in the U.S., 73 in Canada and five in Mexico are eligible for a lower ticket tax rate and exempt from segment fees that take effect Oct. 1. DOT's Office of Airline Information (OAI) has published the list on the DOT web site at http://www.dot.gov/ost/aviation/.
National Transportation Safety Board hopes to issue a final report early next year on the 1994 USAir Flight 427 crash at Pittsburgh, its longest- ever investigation, but it still doesn't know how much longer its TWA 800 probe will take, Chairman Jim Hall told the Aero Club of Washington yesterday.
Hawaiian Airlines said yesterday it is pledging 25% of the savings from Hawaii's two-year landing fee waiver for tourism promotion (DAILY, Sept. 11). The carrier - apparently the first airline to commit to spending some of the savings on tourism development - estimates it will save $6 million a year because of the moratorium.
Lufthansa CityLine reported more than 20% growth in revenue, passenger volume and capacity during the first half of 1997. The regional, which recently completed its metamorphosis to an all-jet carrier, reported revenue of 659 million Deutschmarks (US$371 million), up 24.8%. The airline, which operates 29 Canadair RJs and 17 80-seat Avro RJ85s, carried 1.8 million passengers in the period, up 25.9%. Capacity jumped 22.4% to 2.1 billion available seat kilometers, while revenue seat kilometers improved more than 22% to 1.1 billion.
United will resume its nonstop service between Denver and Mexico City Dec. 20. The airline dropped the service in 1994 because of low passenger loads. The flight will depart Denver on Saturdays at 3:30 p.m. and arrive in Mexico City at 8:30 p.m.
Alitalia will launch its Alitalia Express subsidiary Oct. 1. The 98% Alitalia-owned regional will operate a fleet of nine ATR-42s and four ATR- 72s, and it will employ 240 people, including 120 pilots. Alitalia Express plans to operate 24 routes, of which 11 will be international, between medium-size airports and large international hubs. Its foreign destinations include Cologne, Stuttgart, Vienna, Munich, Geneva, Marseilles, Nice, Lyon and Tunis.
Loudoun County, Va., is seeking users for the foreign trade zone at Washington Dulles Airport, according to new county Marketing Manager Vincent Press, formerly of Avitas Aviation. The Trade Zone Services Corp. at Dulles is available to help facilitate movement of imports and exports, and provide tax and duty analysis.
American is offering AAdvantage program members a chance to gain awards faster this fall by reducing the mileage requirement and adding a co- payment. For example, a customer can obtain an economy-class Plan-Ahead ticket valid on American or American Eagle to any point in the U.S. or Canada for as few as 15,000 AAdvantage miles plus a $200 co-payment, or 20,000 miles plus a $100 co-payment. Similar specials are available to the Caribbean, Mexico, Central America, South America, Europe and Tokyo. The promotion runs through November.
British Airways filed its own petition for reconsideration of a DOT request for more documents on the alliance with American, turning over 101 of the 128 items asked for but shielding, for now, the remainder. Like American, BA told DOT it is concerned over the abuse of access granted to competitors under Rule 39 confidentiality procedures (DAILY, Sept. 23). BA asked DOT to reconsider its need for other documents, including one related to the carrier's strategic business plan.
US Airways yesterday offered its Air Line Pilots Association unit a counter-proposal in continuing contract talks, but officials would not disclose details. Negotiations moved from Philadelphia to Washington.
Kitty Hawk Inc. announced a definitive agreement to acquire American International Airways and other properties, and it said it intends to sell 4.1 million shares of its common stock. The acquisition - of Kalitta Flying Services, Flight One Logistics and O.K. Turbines as well as AIA - will cost $20 million in cash and about 5.1 million shares of common stock. Kitty Hawk Aircargo has purchased 16 727s from AIA for $51 million in cash. It expects to take over daily operations of the first three aircraft next month and absorb the rest at a rate of about one per month.
Delta expects earnings per share for the September quarter to come in below current Wall Street estimates and below year-earlier levels. The airline said it is experiencing "revenue weakness" domestically, and revenue per available seat mile will be 2% lower this quarter. "The domestic yield softness first seen in May ATA [Air Transport Association] data extends well into September," said Delta Executive VP-Marketing Robert Coggin. The cause of the revenue weakness has yet to be pinpointed, however, and may involve several factors.
Sabena posted a 24.8% traffic surge in July and a 20.3% rise for the first seven months of 1997. The carrier flew 650,000 passengers in July, up 33.9%. Freight volume rose 17.4%, but has fallen 5.8% over seven months.
The Association of Retail Travel Agents (ARTA) promised to step up efforts to obtain limited antitrust immunity for agents in the wake of decisions yesterday by American and Delta to follow United in cutting travel agent commissions from 10% to 8% (DAILY, Sept. 19). Tickets purchased in the U.S. for domestic travel will earn 8% with a cap of $50 per roundtrip. Delta said it paid more than $1 billion in travel agency commissions last year and estimated the change will yield savings of $90 million-$100 million annually.
Northwest is extending travel on its Fly Local fares through Dec. 15. It launched the six-month program March 25 with an offer of 21-day advance purchase fares as low as $69 one way from Minneapolis to Bemidji, Brainerd, Hibbing, Grand Rapids and St. Cloud and a $99 one-way walk-up fare.
Delta is teaming with Flifo, an Internet travel reservations system, to offer online users a $99 companion bonus when they purchase a ticket through Delta's Skylinks web site at www.delta-air.com or Flifo at www. flifo.com. Customers who buy roundtrip tickets through Sept. 30 for travel through Feb. 7, 1998, qualify for a $99 roundtrip coach-class companion ticket with the purchase of one additional roundtrip, economy-class ticket.
