A 5% increase in air fares among major airlines will remain in effect, despite reports that the hike was abandoned after a public outcry. Fares went up last week after Northwest, responding to an improved economy, passed a 5% increase on unrestricted coach and first-class fares. American, United, Continental, America West, US Airways, TWA and Delta matched over the next few days. On Sunday, United wanted to "fine-tune" its fares to rescind the hike in markets where it competes with Southwest, said spokesman Joe Hopkins. Air Line Tariff Publishers Co.
Travelocity and Continental are offering a $99 companion fare for travelers who book tickets on Continental through Travelocity's on-line reservations system. Customers who buy a ticket by Sept. 30 and complete their travel by Feb. 14, 1998, qualify for a $99 roundtrip companion ticket for the next time they book a Continental flight through Travelocity. The companion fare is available for 150 destinations in the U.S., Mexico and the Caribbean.
American and LanChile announced a code-sharing agreement yesterday, and American said they will apply for immunity from U.S. antitrust laws once the U.S. and Chile negotiate an open skies aviation accord. The agreement also provides for reciprocal frequent flyer participation. Beginning as soon as they win regulatory approval, the carriers plan mutual code sharing on each other's flights between Santiago and Miami, American's between Santiago and Dallas/Fort Worth, and LanChile's between Santiago and New York Kennedy.
Air Courier Conference of America named as president Donald Smith, VP and general manager of Airborne Express' same-day delivery subsidiary Sky Courier. Previous President Phil Belyew of General Parcel Service resigned the position, citing the direction of his company toward truckload carriage.
DOT will issue today its Advance Notice of Proposed Rulemaking on renewing computer reservations systems rules, which, unless extended, will expire Dec. 31. The department will file a separate ANPRM to extend application of the rules past that deadline while the CRS rule is being reconsidered.
Labor and management officials yesterday debated before the House Transportation aviation subcommittee a bill intended to guarantee that pilots flying overseas routes for U.S. carriers are covered by the Railway Labor Act, just as they are when flying domestically. Some supporters of the bill (H.R.991) regard it as a clarification of the intent of the act, which governs airline labor relations, while opponents cite case law showing the act does not apply to operations primarily outside the U.S.
Business travel service TheTrip.com has developed an online information system, FareAware, that helps business travelers comparison shop for the best fares. Historical airfare information is updated quarterly, but users can check on fares as far back as a year, said Chad Morris, senior account executive at Metzger Associates in Boulder, Colo. The free database, developed as a service to potential TheTrip.com customers, shows average fares for large and small carriers in each city.
Canadian AirCargo said it will end service at Montreal Mirabel Airport, which will be closed to international flights as of Sept. 15. International service will be shifted to Dorval Airport at that time, and Canadian AirCargo said it could save money and serve its customers better by consolidating operations there.
Boeing Co. is putting together a team to evaluate whether it can use facilities at Kelly Air Force Base, San Antonio, Texas, for future modification and heavy maintenance work. Many facilities at Kelly will become available in 2001 in a planned base closure and the removal the following year of maintenance work on C-5 airlifters. Boeing was an unsuccessful bidder for the C-5 maintenance contract, which was won by Warner Robins Air Logistics Center in Georgia.
American will offer nonstop service beginning in November to ski areas in Vail/Beaver Creek, Steamboat Springs, Durango/Purgatory, Gunnison/Crested Butte and Jackson Hole. Departures to Vail/Eagle County will start Nov. 16 from Dallas/Fort Worth and Chicago hubs and Dec. 10 from Miami, Newark, Los Angeles and New York LaGuardia. Flights to Steamboat Springs, Gunnison/Crested Butte and Durango/Purgatory from Dallas/Fort Worth, and to Jackson Hole from Chicago, begin Dec. 15.
American will begin nonstop daily service from its newly renovated facility at Newark Airport to London Heathrow March 2, 1998. Flights will depart Newark at 6:50 p.m. and arrive at Heathrow at 6:50 a.m. the following day. The return flight will leave Heathrow at 1:05 p.m. and arrive at 4:30 p.m. EST. The flights will be operated with A300 and 767 aircraft in three service classes. American offers six daily nonstops from New York Kennedy to London.
Airline leaders are expected to meet today in Washington with Undersecretary of State Stuart Eizenstat on whether the U.S. will commit to more stringent aircraft emission standards. AMR Chairman Robert Crandall said he is "genuinely worried" that the U.S. might agree to standards beyond the capability of engine makers.
National Transportation Safety Board recommended yesterday that FAA and Lockheed develop inspection criteria, including wear limits, on the slat drive systems of L-1011 aircraft. The board also wants flap indicators replaced for aircraft not in compliance with a company service bulletin. The recommendations grew out of an accident Aug. 25, 1996, involving a TWA aircraft that scraped the lower aft fuselage while landing at New York Kennedy.
Horizon Air is increasing nonstop service from Seattle to Redmond/Bend and Medford, Ore., and Billings, Mont., with sale fares and triple frequent flyer miles. One-way tickets are $49 to Redmond/Bend, $69 to Medford and $99 to Billings. Tickets can be purchased beginning Sept. 19. Members of the Alaska Airlines/Horizon Air Mileage Plan frequent flyer program will receive triple mileage on the flights through Oct. 31.
American Airlines, riding a wave of profitability, is trying to tweak its system further with new yield management technology that will produce as much as $200 million in additional annual revenue, starting next year. The new system will debut late this year, AMR Corp. Chairman Robert Crandall told the Society of Airline Analysts yesterday in New York. With Sabre, American will introduce a new version of yield management that will enable it to allocate capacity based on origin and destination (O&D) data rather than individual flight segments.
Appleton, Wis.-based United Express affiliate Air Wisconsin posted a 14.9% traffic increase last month to 59.4 million revenue passenger miles. Capacity rose 8.7% to 83.8 million available seat miles as the load factor climbed 3.8 percentage points to 70.9%. Passenger boardings were up 13% to 181,759.
Southwest launched one-stop connecting service between Jackson, Miss., and Fort Lauderdale, offering a $69 one-way fare with a one-day advance reservation through Dec. 16.
United formally asked DOT yesterday to impose sanctions against Aeroflot in retaliation for denial of a United/Lufthansa third-country code share to Moscow. The alliance partners, which launched Frankfurt-Moscow code-share service in July 1994, have been trying to renew it since March 1995. United said its complaint also follows Russian disapproval of United's bid to use a recently established route over Russia's Far East, improving the efficiency of its Pacific flights.
The aviation agreement within reach of U.S. and Japanese negotiators would meet the three chief objectives of America's international aviation policy - increase the variety of price and service options for consumers, promote carriers' development of new markets, and create a level playing field, "by whatever name we want to call it" - according to Access U.S.-Japan Chairman Gerald Baliles.
British Airways ordered four VDS-11 automated explosives detection systems from Vivid Technologies for more than $1 million. BA will use the systems to screen unaccompanied transfer baggage at London Heathrow Airport. Vivid said it loaned one system to BA immediately in response to an "urgent request" from the carrier, followed quickly by delivery of the first purchased system.
Flight attendants at Atlantic Southeast Airlines yesterday ratified a contract agreement with the Association of Flight Attendants and the Delta Connection carrier. They rejected a contract offer three months ago. The five-year agreement includes pay raises, work rule changes and an agency shop clause that requires new flight attendants to join the union or pay a service fee.
FAA Administrator Jane Garvey will be the keynote speaker at the Air Traffic Control Association banquet Oct. 2 at the Sheraton Washington Hotel in Washington, D.C. The Glen Gilbert Memorial Award will be presented to Yves Lambert, director general of Eurocontrol. The banquet culminates ATCA's 1997 annual international meeting and exhibits, which begins Sept. 29. For more information, contact Carol Newmaster at 703-522-5717.
DOT orally approved an exemption for Crossair to display Delta's code through April 30, 1999, on Crossair flights within and beyond Switzerland. The decision allows Crossair to operate flights to Prague in place of its parent, Swissair. Delta recently won seven additional U.S.-Czech frequencies (DAILY, Aug. 29). (Docket OST-97-2778)
US Airways' scheduled passenger traffic increased 7.3% in August on 3.2% more capacity, which boosted the load factor 2.9 percentage points to 77%. Domestic traffic gained 6.4% on 2.2% more capacity, while international traffic rose 15.7% on 13.6% more capacity. Aug 97 Aug 96 8 Mths 97 8 Mths 96 RPMs 3,934,189,000 3,668,023,000 28,639,046,000 26,210,281,000 ASMs 5,108,618,000 4,951,039,000 39,549,663,000 37,726,938,000
