Embraer is selecting a new advertising agency to replace New York-based Rudder Finn. Candidates are Keeton&Rich of Dallas and three New York firms, Young&Rubicam; Earl Palmer, Brown; and Bozell. The Brazilian manufacturer is seeking to combine advertising and public relations in one agency in an account described at "around" $2 million a year. Three finalists will make final presentations in October in Brazil to Embraer Chief Executive Mauricio Botelho. The contract is expected to cover Europe and Asia as well as North America.
FAA, together with the Society of Automotive Engineers, has scheduled a transport fuel flammability conference Oct. 7-9 at the Crowne Plaza Hotel in Washington, D.C. The conference is expected to attract experts from around the world to discuss issues related to fuel flammability. Manufacturers will discuss aircraft fuel system designs, safety considerations and testing requirements. Airlines will cover maintenance processes and procedures.
French Prime Minister Lionel Jospin wants Christian Blanc to continue as chairman of Air France within the directions defined by the government, according to a government statement issued last night after a two-hour meeting in Paris between Jospin and Blanc. Blanc refused to comment as he left the prime minister's office, but industry observers expect his resignation soon. He favors privatization of Air France, an option the government rejected (DAILY, Sept. 3).
Continental and Virgin Atlantic have applied jointly to DOT for authority to act on their blocked-space, code-share agreement. Virgin announced the end of a similar accord with Delta at the same time it and Continental unveiled their intention to form an alliance (DAILY, March 14). Approval of the application will enable Continental to replace Delta at London Heathrow, restoring the presence of a third U.S. carrier at Heathrow. The carriers urge approval in advance of further U.S-U.K. open-skies talks. Code sharing is permitted under the U.S-U.K. bilateral.
MLT Vacations, based in Detroit, is adding vacation packages, including charter air travel and hotel accommodations, to seven destinations this fall. The packages will include Grand Cayman, St. Martin, Ixtapa, Puerto Vallarta, Cancun, Jamaica, and the Dominican Republic. MLT, a subsidiary of Northwest Airlines, will offer frequent morning and afternoon departures on Champion Air.
McCauley Propeller Systems reached a definitive agreement with Aviall to stock and sell McCauley propellers and associated parts to McCauley Service Centers and regional airlines worldwide. Under the agreement, Cessna Parts Distribution will retain sales responsibility for Cessna Service Centers and support Aviall to supply McCauley Service Centers.
CommutAir officials Thursday characterized as "premature" reports that the US Airways Express carrier would take a majority position in fellow US Airways Express carrier Chautauqua. The Indianapolis-based carrier is on the block by owner Guarantee Reassurance Corp., of Jacksonville, Fla. President and CEO Tim Koon has been attempting to put together a management buyout package that could include the principals of CommutAir. VP/CFO Andy Price said Chautauqua is "one of many" opportunities in which the company is interested.
Continental Express yesterday launched EMB-145 service between Wichita and Houston's George Bush Intercontinental Airport. The carrier is offering three daily roundtrips.
Documents made available to DAILY affiliate ATC Market Report indicate that when Loni Czekalski files formal allegations in her Equal Employment Opportunity Commission complaint against FAA deputy administrator-designate George Donohue, she will charge that Donohue cannot work with women, especially successful women. Sources said the allegation will cite the relationship between Donohue and former FAA Deputy Administrator Linda Daschle, charging that he ignored her and treated her with disrespect. Donohue's critics within FAA see merit in her case.
The market value of eight regional airline stocks rose an average of 5.4% in August, climbing from an average $14.71 per share to $15.51 per share, a difference of 80 cents. Overall value increased by $92 million to $2.87 billion. Lead gainer was Northwest Airlink Mesaba, whose stock jumped $2.75 per share, or 16.3%, from $16.88 on July 31 to $19.63 at the end of August. It was followed closely by Delta Connection SkyWest, up 16.8% from $16.75 at the July close to $19.13 on Aug. 29.
FedEx is expanding its Cedar Rapids operation to a new 90,000-square-foot cargo facility. The facility is part of a joint-use, 150,000-square-foot air cargo apron and $2.3 million in infrastructure improvements. Construction of the $10.6 million expansion is expected to be completed in November.
IATA member airlines posted record North Atlantic passenger load factors during the first six months, averaging 77.8% and reaching a 22-month high of 84.7% in June. IATA said loads are running 1.5 percentage points on average above last year's figures. "These figures show the airlines' efficiency in filling their available capacity," said Director General Pierre Jeanniot. "But it remains to be seen whether this efficiency is being converted into significantly higher profitability." IATA's monthly statistics are available on its web site http://www.iata.org.
American, opposing a United/Thai Airways code-share renewal, told DOT that none of United's cooperative pacts should be approved or renewed until DOT subjects United to the same scrutiny it has applied to American-British Airways. American cited - and included in its filing - a September 1997 Airline Business story finding the United/Lufthansa-led Star Alliance to be "well on its way to being the largest alliance group."
Polar Air Cargo has relocated to expanded facilities at Miami Airport, consolidating warehouse and office space, and ramp operations. The airport is the carrier's primary gateway to South America and a hub for shipments between Europe, Asia, the South Pacific and the Middle East.
Art Wegner, chairman and chief executive of Beech 1900-maker Raytheon Aircraft, has assumed the duties of chairman of the board of the General Aviation Manufacturers Association. Wegner had served as vice chairman of the GAMA board and moved up to the chairman's post to succeed Fred Breidenbach after he resigned as president and chief operating officer of Gulfstream Aerospace. It is anticipated that Wegner will be elected to a full one-year term as GAMA chairman at the organization's November board meeting.
Atlantic Southeast will replace senior code-sharing partner Delta's service between Gainesville, Fla., and Atlanta, effective Dec. 7. The regional carrier initially will boost its current four flights to eight, operating the additional frequencies with the BAe 146-200 jet and ATR 72- 210 turboprop. Delta had operated four daily flights.
InVision Technologies, which manufacturers the CTX 5000 explosives detection system, said it will acquire Quantum Magnetics, which has developed explosives detection equipment based on quadrupole resonance technology, in a stock-for-stock merger. Quadrupole resonance is similar to medical magnetic resonance imaging and has a high detection rate for some types of explosives. InVision said these capabilities complement the X-ray and computed tomography technology it uses in the CTX 5000.
Lufthansa is pondering how to adjust its non-hub European routes so it can operate all of them profitably, and its decisions could change the way it approaches service on the continent. The core issue is how to adapt Lufthansa's intra-Europe jet service to increasing competition.
Emery Worldwide has opened a 120,000-square-meter Regional Distribution Center in Singapore serving more than 25 countries in the Asia/Pacific region. "The opening of this Singapore center is only one facet of a larger expansion plan we inaugurated in 1995 to enhance our service" in the region, said Emery President David Beatson. "We have also enlarged our network through the opening of six other major distribution facilities throughout the region in Melbourne and Sydney, Bangkok, Hong Kong and Bombay."
Mesa is planning several new routes for its growing fleet of Canadair Regional Jets. Two are now in operation between Fort Worth Meacham Field and Houston Hobby and three, as America West Express, serve Phoenix-Des Moines and Phoenix-Fresno. The carrier will begin Fort Worth-San Antonio and Phoenix-Santa Barbara service Sunday and San Antonio-Colorado Springs Oct. 5. In mid-December, as America West Express, Mesa will launch daily Phoenix-Aspen roundtrips. The latter route will be served by turboprop equipment during the summer, however.
Nice, France-based regional Air Littoral and its senior partner Lufthansa will add code-sharing service in two Munich markets - Nice and Nantes, France - effective Monday, Lufthansa reported. The new flights, to be operated by Air Littoral with Canadair Regional Jets under flight numbers it shares with Lufthansa, give passengers through-checking on both airlines and mileage credit in their frequent flyer programs. Lufthansa and Air Littoral initiated their overall partnership on July 1.
TWA's August load factor increased 1.5 percentage points to 75.8% despite unfavorable year-over-year traffic comparisons. Due to a reduction in January on some international routes, August traffic fell 11.9% on 13.7% less capacity. The load factor for the first eight months rose one point to 70.1%. The airline's on-time arrival rate for August shot up 15.6 points to 83.4% and it operated 99% of scheduled flights, up from 97.5% last year. Aug 97 Aug 96 8 Mths 97 8 Mths 96
DOT has tentatively decided to reselect Trans Executive Airlines d/b/a TransAir to provide essential air service at Kamuela, Hawaii, Oct. 1, 1997 through April 30, 1998. Under the decision, TransAir will continue to operate its current level of service - 10 roundtrips a week from Kamuela to Honolulu using nine-seat Cessna 402 aircraft at an annual subsidy rate of $292,061 - through the end of the month. With the beginning of the new fiscal year Oct. 1, the carrier will operate 12 weekly C402 roundtrips at an annual subsidy rate of $376,848.
Members of Congress and other government officials on a fact-finding tour in Europe last month found European Competition Commissioner Karel Van Miert taking a "tough line where U.S. carriers are concerned," a congressional staffer said. The delegation, led by House Transportation aviation subcommittee member John Duncan (R.-Tenn.), inquired about the Commission's reasoning in getting involved in the Boeing-Douglas merger, and Van Miert detailed its effect on European interests, as he has previously.
