Air Canada today will add six Scandinavian cities to its network under its code-sharing agreement with SAS, beginning Sept. 11, offering as many as 68 daily flights from eight Canadian cities to Stockholm and Gothenburg in Sweden, Copenhagen and Billund in Denmark, and Oslo and Stavanger in Norway, via London, Frankfurt and Newark. Seats go on sale today.
Japan Airlines is amending its operations manual to stiffen its stance on what it believes is increasing passenger violence in flight. JAL's manual gives new authority to airline staff, including the ability to hold and tie down a passengers who is harmful or violent toward other passengers and crew. The carrier will empower captains and airport office managers to reject boarding of drunken passengers and permit landings to force violent passengers to deplane.
Northwest and Garuda Indonesia applied jointly to DOT for initial two-year exemption authority to code share on flights between the U.S. and Indonesia, which they plan to begin in October. The carriers signed an alliance, the first between a Jakarta-based carrier and a U.S. airline, earlier this year (DAILY, April 23). The U.S.-Indonesia bilateral neither prohibits nor specifically authorizes code sharing.
TWA expanded its fall schedule yesterday to include year-round nonstop service between St. Louis and Paris. Service had been seasonal. The carrier also will boost flights from St. Louis to Cincinnati, Louisville and New Orleans to six daily nonstop roundtrips each, and increase nonstops from St. Louis to Orlando and Knoxville to eight and four, respectively.
US Airways' Air Line Pilots Association unit will picket the carrier's RIDC Park facility in Coraopolis, Pa., today at 7:30 a.m. The union picketed yesterday at Boston Logan Airport as part of its ongoing action against US Airways over contract negotiations.
United asked DOT for two-year blanket authority, on an expedited basis, to expand its code-share operations with Air New Zealand under the terms of the U.S.-New Zealand open skies pact. United would display ANZ's code on any United flight within the U.S. in conjunction with ANZ code-share services between New Zealand and the U.S., nonstop or via intermediate points, and between Los Angeles and Vancouver. ANZ applied separately for an exemption as well as authority to code share with United on ANZ flights to points in the South Pacific (DAILY, Aug. 27).
Millon Airlines, still campaigning for recertification as a fit carrier, told DOT it is moving from Miami to Melbourne, Fla., to take advantage of lower costs and signify a clean break with the past. New facilities available at "very low cost" will reduce operating expenses, and taking Millon "out of the Miami environment" will yield "immediate improvement of the overall operations and reduce costs," the carrier told DOT.
Boeing's 737-700 beat out the MD-90, a competing product before Boeing took over McDonnell Douglas, to become the replacement for the U.S. Navy's aging C-9 transport. Boeing received a $111 million contract for an initial two aircraft, both scheduled for delivery by December 2001. The 737-700 is in development as part of Boeing's new-generation 737 upgrade, with an initial delivery to launch customer Southwest scheduled in December, and the only modification to the commercial aircraft expected for the Navy is a larger cargo door.
Sabena's maintenance division, Sabena Technics, has signed a three-year contract with Sudan Airways for the full maintenance and repair of the carrier's two A310-200 and A300-600 aircraft. The "full support" contract is worth $12 million. Sabena said it will carry out the bulk of the work by sending a dedicated team of technicians to work at Sudan Airways' home base in Khartoum but mange parts supplies and repairs from Brussels. The contract also covers training of host country maintenance personnel.
The top negotiators in U.S.-Japan talks met informally yesterday, sources said, attempting to break what appears to be a deadlock. The parties adjourned formal talks last week as scheduled (DAILY, Sept. 2), and Alan Larson, assistant secretary of state for economic and business affairs, and Jiro Hanyu, deputy director general in Japan's transport ministry, discussed pending issues yesterday at an unknown location, according to sources. The DAILY was unable to reach Larson for comment, and the Japanese embassy did not respond to calls.
DOT has disclaimed jurisdiction over the proposed reincorporation of Southern Air Transport, converting it from a Florida corporation established in 1949 to a Nevada corporation under the ownership of SAT Group, newly formed to hold 100% of Southern's stock. The department found Southern managerially and financially fit and in compliance, and it said the reincorporation "will have no effect" on the carrier's ownership, control, management or operation.
European Bank for Reconstruction and Development approved a $156 million loan to Joint Stock Company International Airport Terminal Pulkovo for construction of Pulkovo III at St. Petersburg, Russia. Skanska of Sweden will begin work early in 1998, and completion is expected about 2000. In its summary of the project, EBRD cited fast-growing international traffic to St. Petersburg.
United has acquired Premier Group, a meeting management company that also offers creative services and communications support. Premier previously was part of Apollo Travel Services, which was acquired by Galileo International. United took ownership of Premier late in July, when the Apollo-Galileo transaction occurred. Premier, based in Rolling Meadows, Ill., organized the Apollo Travel and Technology Conference in July, which drew 6,000 participants.
General aviation accounted for 29.9 million, or 57%, of the 52.1 million airport operations between January and October last year at controlled U.S. airports, according to FAA data. Airlines accounted for 11.6 million takeoffs and landings, or 22%.
Swissair and Malaysian Airlines plan to offer code-share services between Zurich and Kuala Lumpur, beginning Nov. 1. The agreement calls for flights between the two cities on Thursdays, Fridays and Sundays. Swissair will block a number of seats on a 777 to execute the arrangement.
Delta asked DOT to defer action on the applications of Air Pacific and Canadian Airlines to operate code-share/blocked-space service not provided for in the U.S.-Canada bilateral, which does not cover third-country code- sharing or fifth-freedom traffic. Northwest raised questions as well, commenting that Canadian negotiators "were unyielding in their opposition" to such provisions, even though the U.S. "ardently pursued a true 'open skies' bilateral." Northwest urged DOT not to permit "a Canadian carrier to do that which Canada will not permit U.S.
Air New Zealand, stung by a stronger currency, an upsurge in regional competition and higher fuel costs, posted a NZ$150.2 million (US$96.1 million) profit for the fiscal year ended June 30, 33.3% below the prior- year level. Revenue declined 2.3% to NZ$2.93 billion ($1.88 billion). During a year of alliance moves to strengthen its worldwide standing, ANZ suffered at home because of slow domestic growth and a stronger New Zealand dollar that reduced tourism. The rising currency depressed passenger yields in key origin markets and soured cargo exports.
Greyhound Air, a Canadian startup that operated Boeing 727s leased from Kelowna Flightcraft, will stop service as of Sept. 21, citing inability to make a profit. The company, owned by Greyhound Canada Transportation Corp., will continue to operate bus service, however, on routes previously flown with aircraft. Effective yesterday, Greyhound is no longer taking reservations, and Canadian Airlines has agreed to accommodate passengers booked for flights after Sept. 21, subject to seat availability.
The European Union said it is "quite optimistic" about the outcome of talks with Russia on "Siberian overflight rights," said the spokeswoman of EU Foreign Affairs Commissioner Hans van den Broek this week in Brussels. The reduction of these charges is "an extremely important issue for our airlines, which currently pay charges of $250 million a year." Van den Broek discussed the matter with Russian authorities during a visit to Moscow last week. "The Russians are willing to consider and study our position," said the spokeswoman.
Frontier Airlines has received government approval to offer special fares to federal employees on certain routes. Beginning Oct. 1, Frontier will offer government rates in the Denver-El Paso market. The approval required a federal safety inspection, conducted in a four-day Defense Department check in June.
Iberia is partially passing on to its customers a 9% cut in value added taxes on domestic air transport. The VAT is dropping from 16% to 7%, but the Spanish airline announced yesterday in Madrid that its domestic fares would be "readjusted [downward] by approximately 3.5%," as a consequence of the increase of external costs. In recent months, fuel costs went up 15.5% compared with 1996, the airline said. "The drop in VAT will allow the group's customers to pay reduced fares without affecting the company's results."
