Summary of U.S. Major Carriers International Traffic January 1997 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) Alaska 71 28.27 1,114 79,309 Latin 71 28.27 1,114 79,309 American 1,265 4.63 2,094 2,648,823
Continental will use N.W. Ayer&Partners to manage worldwide advertising, becoming the third major U.S. airline during the past year to choose a new direction for its corporate image. The move follows decisions by United and Delta to drop old - and familiar - portrayals and to build new bonds with consumers. Ayer, which started work for the airline in April creating a campaign to promote Newark Airport in New York, will assess Continental's advertising needs and agencies in countries throughout the world.
U.S. and Japanese negotiators are approaching a "historic agreement" that will change the nature of aviation operations through the Pacific, setting the tone for Asia and altering the structure of competition, according to Cyril Murphy, United's VP-international affairs. Open skies is the focus of sharp debate in the negotiations, and United advocated it until accepting the controlled expansion concept. Murphy told The DAILY he regards open skies as a response to commercial activity, not the engine that drives it.
FAA plans to fine Air South $162,000 for "minimum equipment list (MEL), weight and balance, inspection, manual, airworthiness, training and record- keeping violations." The agency said the MEL violations include three instances of "improperly deferred maintenance and subsequent use of the aircraft for passenger-carrying flights." On several occasions, the carrier "used improper weight and balance procedures for loading cargo and baggage and incorrectly calculated and recorded passenger and cargo weights," FAA said.
Western Pacific has begun marketing transcontinental service in the Washington, D.C., area, countering United's Dulles nonstops with its one- stops via Denver. Westpac connects Washington with five West Coast markets - Seattle, Portland, San Francisco, Los Angeles and San Diego. Some service is operated by code-share and merger partner Frontier.
Pemco World Air Services' facility in Dothan, Ala., faces a strike by the Machinists union, according to Matthew Gold, chairman of parent Precision Standard. He said the contract with the Machinists covering shop floor employees has expired, and the union has voted to stop work. Gold said the company "made a very equitable proposal and regrets the union's decision not to recommend it to its membership."
FAA has granted its highest safety rating, Category 1, to India's directorate-general of civil aviation (DGCA) following an on-site assessment of the government regulatory body, DGCA officials said yesterday. A four-member FAA aviation safety inspection team headed by the agency's international field office manager, Robert Jensen, visited DGCA offices and installations in New Delhi and Mumbai last week for flight operations and airworthiness evaluations, with emphasis on DGCA's oversight capabilities.
The International Air Transport Association said yesterday that "there is no clear evidence of the environmental need" to impose new aircraft gaseous emissions surcharges at Swiss airports (DAILY, Aug. 27). The charges, to be levied at Zurich next month and at Geneva in January, represent "a dangerous precedent which threatens the worldwide standardization of emissions limits and ignores the concerns expressed by IATA and others during earlier consultations," the Geneva-based organization said.
AMR Airline Services is acquiring Dalfort Aviation Services and will use its facilities at Dallas Love Field to "help accommodate a growing work force," the two companies announced. The purchase includes Dalfort's fixed-base operation at Love and AMR Airline Services, whose customers now will be handled by AMR's existing AMR Combs FBO at Love Field. Most Dalfort FBO employees will be offered jobs by AMR Combs.
United urged DOT not to authorize code-share cargo service to Vietnam by American and China Airlines unless it also acts on a deferred application by Northwest and on American's, FedEx's and United's certificate renewals. Answering American's application to expand its CAL code share to serve Ho Chi Minh City, United noted that American will need extrabilateral authority from Vietnam. The U.S. ban on travel and trade with Vietnam, imposed against North Vietnam in 1965, was lifted Feb. 3, 1994, but there is no U.S.-Vietnam aviation agreement.
FAA issued Harris Corp. a contract valued at up to $120 million to replace the current system under which flight service stations provide pilots with information, including emergency assistance and weather briefings. Harris will replace existing flight service automation equipment with a new system, the Operational and Supportability Implementation System (OASIS), one of the first programs to be acquired completely within the guidelines of the agency's new Acquisition Management System.
Lufthansa will soon launch what is believed to be the airline industry's first truly "push" service, in which it will regularly transmit carefully profiled fare information to customers' personal computers via the Internet. Scheduled to begin next week, the free service will be used to transmit short-notice, low-fare information to those who sign up. In the coming months, Lufthansa will use it to advertise its enhanced business- and first-class "Intercont" - short for intercontinental - product.
Rolls-Royce said it received an engine order valued at $75 million from Continental to power five 757 aircraft scheduled for delivery in June and December 1998 and the first three months of 1999. Continental has options on 36 more 757s, for a total of 41. Continental also contracted with Rolls-Royce Canada for repair and overhaul of the RB211-535E4 engines that power its 757s.
Flight attendants at ValuJet will hold two rallies next week to protest the absence of a contract. The Association of Flight Attendants unit has been seeking an agreement for two years.
Frontier Airlines, proceeding with its merger with Western Pacific Airlines, says it has experienced no major roadblocks despite a campaign by people connected with Frontier to derail it. The Denver-based airline expects to provide details of the merger in a few weeks, when it files its proxy statement with the Securities and Exchange Commission, and a Frontier board meeting Tuesday went off without a hitch. "There is some type of organized rumor campaign going on," said Frontier spokesman Bob Schulman.
DOT issued a consent order assessing civil penalties of $20,000 against Falcon Air Express for reporting delinquencies, with $10,000 to be paid within 15 days and the remaining $10,000 forgiven if Falcon meets filing deadlines for one year. Falcon has designated an individual to ensure required filings are accurate and timely. The department requested additional information on the carrier's reported expenses and clarification on missing and conflicting data (DAILY, July 28).
Casino Airlink Inc., a wholesale travel company focusing on the southern U.S., reported a profit of $327,082 for the three months ended June 30, versus a net loss of $653,526 a year earlier. Revenue reached $5 million, up from $3.6 million last year. The company began service from Atlanta to the Mississippi Gulf Coast in April and will serve Atlantic City starting Sept. 21 from Tampa, Orlando and Fort Lauderdale. Casino Airlink markets the travel packages and Spirit Airlines provides air service.
U.S.-Japan bilateral negotiations opened yesterday in Washington with a restatement of positions, par for the course at the start of a three-day formal round. A senior government official predicted negotiators will work through some specific issues this week, including new opportunities for non-incumbent carriers, the rights and opportunities of incumbents Northwest, United and Japan Airlines, and provisions for code sharing.
Summary of U.S. National Carriers Systemwide Traffic January 1997 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) American Trans Air 398 (0.06) 1,638 651,604
Any decision by FAA or Congress to end the Wide Area Augmentation System (WAAS) at the completion of Phase I, when the system reaches its initial operational capability, has a variety of cost, program and operational implications, according to the General Accounting Office. GAO said in its recent report (DAILY, Aug.
JAL said it has signed a contract to sell its 20 DC-10-40 aircraft to NI Aircraft Leasing Corp., which will buy the aircraft over the next nine years. The $170 million deal includes nine spare Pratt&Whitney JT9D-59A engines. Twelve of the DC-10s are operated by JAL, four by Japan Asia Airways and four by Japan Air Charter. The first two aircraft are to be handed over next March and as many as four a year will be delivered subsequently through 2005. The DC-10s are being replaced with Boeing 777s and 767-300s.
Vietnam Airlines has received a $15 million syndicated term loan from ANZ Investment Bank, the banking division of Australia and New Zealand Banking Group Ltd. The state-owned carrier will use the funds to buy aircraft. Vietnam Airlines operates A320s, 767-300ERs and Fokker 70s. The five-year loan, arranged by ANZ, also includes participation from Thai Farmers Bank, Bangkok Bank Public, Malayan Banking Berhad, United Overseas Bank, Bank of Ayudhya Public and the Commonwealth Bank of Australia.
Dutch Transport Minister Annemarie Jorritsma won support yesterday from a majority of the Dutch parliament for her plans to limit night flights at Amsterdam Schiphol Airport, according to a Dutch transport ministry spokesman. The details of the ban envisioned by the Dutch government have not been revealed. Jorritsma said she will make a final decision after consulting all parties concerned, including airlines. The formal implementation of the new rules is expected to take place Oct. 1.
The unions representing American's 37 Belgian employees based in Brussels threatened this week to go on strike over the airline's restructuring plans following the closure of its Brussels-New York route Oct. 1. American wants to keep three full-time and 25 part-time workers. The Belgian unions demand increased financial compensation, outplacement measures and the right to free tickets until December.
