While travel agents fumed Friday over United' decision to cut their commissions from 10% to 8%, other carriers waited to see which of them would be the first to follow United's lead. Spokesmen for Continental, Delta, Northwest, and US Airways refused comment. United said it will save $80 million to $100 million annually by cutting commissions, and travel industry officials said if one other carrier follows suit, other carriers will have to do the same to stay competitive.
The information technology (IT) budget at DOT will grow about 2% a year in each of the next five years, with the bulk of the growth driven by FAA, according to a study to be issued Wednesday by the Electronic Industries Association (EIA). The IT baseline for DOT is $1.7 billion for fiscal 1997. EIA said the budget projections take into account possible changes in the way FAA is funded, such as a shift to a user fee system that eliminates most funding from the general fund.
DOT stayed its order against Air Jamaica revoking an exemption for service from Barbados to New York/Atlanta via intermediate points, saying Jamaica's deputy prime minister indicated the impasse blocking Amerijet service can be resolved. The revocation was delayed from last Friday to Sept. 30.
Approved an Aerotransportes Mas de Carga charter using a Fast Air DC-8-71F for two weekly cargo flights for eight weeks beginning Sept. 18 on Miami- Guadalajara-Mexico City-Miami and Los Angeles-Guadalajara-Mexico City-Los Angeles routings, and approved flights by various charterers using an Aerotransportes Mas de Carga DC-8-71F for the ame service...Approved a Star Air Tours charter using an Air Atlanta-Icelandic 747-SP for a one-way passenger flight carrying The Rolling Stones rock band on a Toronto-Chicago routing Sept.
Dismissing the importance of reports that a Russian company was openly selling at last month's Moscow Air Show an electronic device that can block Global Positioning System and Glonass signals at ranges up to 200 kilometers, FAA said such devices are nothing new and the U.S. military can jam all civilian navigational aids if necessary.
Lufthansa is discussing alliance possibilities with at least half a dozen Asia/Pacific airlines. The German carrier is considering the potential relationships in consultation with Star Alliance partner Thai Airways. "Thai will remain an important part of our presence" in Asia, a Lufthansa spokesman said.
Despite healthy earnings, United cites rising competition as one motivation for slashing travel agent commissions. "There is a new and more intense level of competitiveness that all airlines must now confront in the global marketplace," said Chairman Gerald Greenwald. (See story, Page 508)
John Shaffer, 78, FAA administrator from 1969 through March 1973, died Sept. 14 in Frederick, Md., after a long illness. A graduate of the U.S. Military Academy, he flew 46 B-26 combat missions in World War II and later was the U.S. Air Force's program manager for development of the B-47 bomber. Congress passed the Airport and Airway Development Act during his term at FAA.
DOT confirmed the registration by ValuJet Airlines of the trade name ``AirTran Airlines'' for use after the planned merger of ValuJet's parent, ValuJet Inc., and AirTran Airways Corp., the parent of AirTran Airways. AirTran said it has no objection to ValuJet becoming AirTran.
US Airways canceled its remaining road-show employee briefings Friday to continue contract negotiations with its Air Line Pilots Association unit. Chief Executive Stephen Wolf was scheduled to meet with employees in Boston and Washington today, in Philadelphia Sept. 26 and Baltimore Sept. 29.
Nice Cote d'Azur Airport reported a solid increase in revenue and passenger traffic and a big jump in aircraft movements last year, and it expects to handle more than 7 million passengers this year. Revenue at the airport - France's largest after the two that serve Paris - increased 8.4% last year from 390.6 million French francs in 1995 to FF423.5 million (US$71 million). Revenue from landing fees jumped 10.1% to FF62.0 million ($10.5 million) and from passenger fees 8.5% to FF84.3 million ($14.3 million).
Southwest will keep 13 more 737s flying beyond the Stage 2 cutoff, Dec. 31, 1999, by fitting them with hushkits, ordered Friday from AvAero. With 33 shipsets on order overall, Southwest will make the older 737s Stage 3 noise-compliant within two years. Three shipsets have been installed to date.
DOT has invited responses to United's complaint against Russia claiming a "blatant breach" of the U.S.-Russia bilateral. United asked DOT to bring proportional sanctions against Russia by limiting the U.S.-bound flights operated by Aerflot, which dominates the U.S.-Russia market (DAILY, Sept. 10).
Attorneys and Family Assistance Task Force members wrestled last week with the legal and social issues related to the litigation that follows aviation disasters. The task force, made up of survivors and relatives, plus officials from DOT, the National Transportation Safety Board and other agencies, held a working group meeting in Washington. Panel members and attorneys discussed ways to protect family members from attorney solicitations after a crash.
State Department's lead negotiator in U.S.-Japan talks, Assistant Secretary Alan Larson, said he is confident an agreement on a new bilateral can be reached by monthend. Larson, DOT Assistant Secretary Charles Hunnicutt and Jiro Hanyu, deputy director general in Japan's transport ministry, begin another round of negotiations today in Tokyo. Larson, in Paris last week, made the Setp. 30 forecast during a videoconference with Japanese reporters in Tokyo. He said that while meeting the Sept. 30 goal is possible, "it depends on Japan." U.S.
China Southern, announcing service between Hong Kong and Kuala Lumpur, becomes the first Chinese carrier to operate internationally from Hong Kong since China resumed sovereignty July 1. The carrier joins Cathay Pacific and Dragonair as the Chinese airlines with international route authority from Hong Kong. Six-carrier frequent flyer program will be a hit, Star partner Varig believes
Reno Air says it is the only carrier among eight nationals whose stock has risen during the January-August period. Chief Financial Officer B.J. Rone cites a leisure travel surge and the airline's position "in the right business at the right time" as reasons for investor confidence. The average American family now takes three shorter-duration vacations each year, he says.
