Kiwi International Air Lines yesterday began serving the lucrative New York-Boston market with a fare structure it believes positions it o compete with higher-cost and more established shuttle service. "Right now, the shuttle carriers [Delta and US Airways] have as many as 10 fare levels whose availability varies according to their subjective whim and whose pricing philosophy forces travelers to pay more," said Kiwi Chief Executive Jerry Murphy.
U.S.-Japan talks started in Washington yesterday morning in a closed-door executive session, with a plenary scheduled for the afternoon. Negotiators have blocked out an entire week for the talks as they attempt to sign a new agreement, although a U.S. official speaking to The DAILY declined to predict how long this round would continue. Referring to the talks, Japan Airlines last week answered Northwest's suggestion that three JAL exemptions under the 1985 and 1989 MOUs be terminated as a response to continued denial of new Northwest service beyond Japan.
Eastwind Airlines said yesterday it ordered two 737-700s for delivery next April and June. Herman Gillis, president, said, "Acquiring new aircraft became more and more attractive as we looked at older 737s which could not meet our future plans."
Proposed airworthiness directives affecting hundreds of general aviation aircraft are the wrong way to address icing problems, according to the National Air Transportation Association (DAILY, Oct. 17). FAA proposed more than 20 ADs last month on single- and multi-engine aircraft equipped with unpowered aileron controls and de-icing boots. The agency took similar action earlier on most regional turboprop aircraft.
TWA signed a code-share agreement with Air Europa, the U.S. carrier told DOT in its comments on the American-Iberia code share proposal (see related story to follow). Signed last Thursday, the pact will be submitted to DOT "in due course," TWA said. Like the American/Iberia code share, TWA/Air Europa's proposes to serve numerous U.S. points, some covered by the U.S.- Spain bilateral, some not.
DOT approved Gemini Air Cargo's bid for an initial exemption to conduct scheduled foreign combination service between Honolulu and Sydney, via Nadi, Fiji, and to integrate the authority with its existing exemption and certificate authority. The authority does not include intermediate or beyond rights "to serve markets where U.S. carrier entry is limited." (Docket OST-97-2977)
Italy is pushing Alitalia to team with Air France instead of KLM after meetings between Italian Prime Minister Romano Prodi and France's Lionel Jospin, an airline source said yesterday. According to reports in Europe, Italian Transport Minister Claudio Burlando is coercing a decision from Alitalia, which currently code shares with Air France on seven routes.
Emery Worldwide Airlines awarded a five-year contract to GE Engine Services to overhaul and repair 97 CMF56-2 engines that power its DC-8-70 aircraft. All work will be performed at Stroher Field, Arkansas City, Kan.
KLM is adjusting its departure and arrival times from Amsterdam Schiphol Airport for the winter season to improve connections and cut waiting time for transfer passengers. Instead of three daily "blocks" or banks of departing and arriving flights, the airline will offer four, redistributing its intra-European and intercontinental flights. The three-block system has been in place since 1992. The new program is known as "SCORE," for Schiphol Connections Redesign, and it takes effect with KLM's winter season Oct. 26.
Air France traffic increased 4.6% in September to 6.4 billion revenue passenger kilometers. Capacity rose 2.7% to 8.1 billion available seat kilometers, and the load factor was up 1.4 percentage points to 79.1%. Air France cargo volume dropped 1.7% to 428 million freight ton kilometers.
Continental will start daily nonstop service between Newark and Dublin and Shannon, Ireland, next June. It will operate separate flights to the two destinations with 172-seat, two-class 757s during the peak season and a single flight to both airports during off-peak periods. The new destinations will bring to 13 the number of European cities Continental serves from Newark.
British defense ministry has signed a long-term lease agreement with TAG Group of Luxembourg to operate Farnborough Airport as a business aviation facility.
Top executives of Boeing, Boeing Business Jets and Executive Jet are expected to announce today in New York a program that will provide customers with fractional interests in the Boeing Business Jet. Executive Jet invented the concept in 1986, and its NetJets shared-ownership program currently serves more than 700 customers who own partial interest in the 100-plus airplanes the company manages.
American Airlines Cargo said it flew 505.6 million cargo ton miles in the third quarter, surpassing the previous record of 504.2 million CTMs in the third quarter 1994. Despite increased passenger loads and a slight drop in capacity, cargo revenue was up 2.6% year over year, said AA Cargo President Dave Brooks. He credited strong traffic in Pacific, Caribbean and Latin American markets.
Continental Express will have the industry's first all-jet regional fleet within five years, Continental Chief Executive Gordon Bethune said yesterday. Continental has a firm commitment to lease 50 Embraer aircraft and leasing rates are "locked in" for up to 200 more, Bethune told securities analysts in New York City. The plans grew out of Continental's original Embraer deal in September 1996 - an order for 25 EMB-145 regional jets valued at $375 million and options for 175 more over the next 12 years (DAILY, Sept. 4, 1996).
Bavarian regional carrier Augsburg Airways is expanding its TeamLufthansa services within Germany, has acquired new aircraft and will open a base at Hamburg Airport in January. The airline has selected the de Havilland Dash 8-Q200 and -Q300 aircraft and is seeking more Dash 8-qualified flight crew and maintenance staff. It expects to add about 90 jobs to its work force of 229 as it increases cooperation with Lufthansa. It will serve 15 domestic and two European routes this winter.
FAA plans to fine Reuters America $100,000 for shipping undeclared hazardous materials, citing the New York company for "knowingly offering hazardous materials for transportation by air when the materials were not properly classed, described, packaged, marked and labeled." When a FedEx employee at the carrier's Indianapolis sort center found a fiberboard box that was leaking, FAA determined that the outer box contained three inner boxes, each containing Fuji color bleach replenisher, which is classified as corrosive liquid.
United has urged DOT to reject a bid by American and Canadian Airlines International to code-share beyond the U.S. to South America and the Caribbean. Its own Canadian partner, Air Canada, is barred from a similar agreement by the Canadian government, United said. "Whatever may be the motivation for Canada's protectionist attitude toward CAI, the U.S.
Aviall reported net earnings of $7 million in the third quarter, compared with a loss of $2.4 million during the same quarter last year. Sales for the quarter rose 9.9% to $100.3 million, which Aviall attributed to growth in its airline and general aviation markets. Eric Anderson, president, predicted continue improvement in results.
Europe's duty-free sales industry is sharpening its attacks on European Union policymakers in its attempt to avoid the end of such sales for intra- EU travelers next June.
Transbrasil told DOT that it and TWA "have agreed not to pursue a code- share alliance" and asked that its applications for exemption authority be dismissed. (Dockets OST-96-1591, 1658)
FAA Associate Administrator Guy Gardner announced the appointment of Tom Kraft and Robert Eastin to the agency's national resource specialist team, which provides experts to advise industry, government agencies and international aviation authorities. Kraft, who worked for Boeing, will be responsible for aeronautical communications, and Eastin, who worked for McDonnell Douglas, will advise on fracture mechanics, fatigue and damage tolerance.
FedEx may have to purchase seven additional MD-11 aircraft for delivery beginning no later than 2000 under an option agreement, the carrier told the Securities and Exchange Commission. The company is committed to 12 Airbus A300s, four A310s, one DC-10, seven MD-11s and 50 Ayers ALM 200s to be delivered through 2002. Agreements with American and United require FedEx to acquire 53 DC-10s through 2001 and the carriers may exercise options requiring FedEx to buy up to 29 more.
