New York-based United States Travel Agent Registry selected vendors for key elements of its project to develop a new, non-profit computer reservations and settlement system owned and operated by travel agents. USTAR will start briefing interested parties on a construction and implementation schedule in October.
U.S. Regional Carriers Traffic July, 7 Months 1997 July July % 1997 1996 Change Air Wisconsin Revenue Passenger Miles (000) 59,660 49,962 19.4 Available Seat Miles (000) 83,223 77,597 7.3 Load Factor (%) 71.7 64.4
FAA and Europe's Joint Aviation Authorities are asking for public comment on harmonization efforts at a Sept. 11 meeting in Arlington, Va. The Harmonization Work Program is FAA's and JAA's attempt to carry out a commitment to harmonize their rules regarding the operation and maintenance of civil aircraft and their standards, practices and procedures governing the construction of civil aircraft, engines and other components. The meeting will be held at the Crystal City Hyatt Regency Hotel.
B/E Aerospace said yesterday it has reached agreement with Harris Corp. on a joint venture to provide "LiveTV" - broadcast television - to individual passenger seats on narrowbody aircraft. The joint venture will market the equipment, services and broadcast media. B/E will control a 51% voting interest and will provide its in-seat video distribution systems, while Harris will supply the antenna and receiver system. The launch airline customer is expected to be announced later this year.
A U.S. delegation led by House Transportation aviation subcommittee Chairman John Duncan (R.-Tenn.) met yesterday in London with British Airports Authority representatives and key figures in the American-British Airways alliance proposal, including BA chief Bob Ayling, Virgin Atlantic's Richard Branson and Freddie Laker, whose Florida-based airline filed antitrust charges this summer against BA. The U.S. group continues on to France, Germany, Spain and Belgium, meeting in Brussels with European Commission officials assessing the alliance (DAILY, Aug. 11).
US Airways Air Line Pilots Association pilots this week launched a web site at http://www.usairwayspilots.org. The site includes public-access areas and pages reserved for ALPA members. Public areas include updates from the Master Executive Council and briefings from the pilot negotiating committee.
AirFuel International, which markets jet fuel to more than 80 airlines and 2,500 corporate aircraft worldwide, recently became a separate subsidiary of AR Group and will focus its efforts not only on fuel procurement but also on providing "total fuel management services and cost price analysis." Fuel costs account for 15% to 35% of airlines' total operating budgets. AirFuel said it has the capacity to operate as an external fuel department, assisting with the fuel tender process, negotiating into-plane rates and helping make fuel decisions.
Hawaiian Airlines reported a 22.7% rise in July traffic on 9.5% more capacity, which lifted the load factor 8.9 percentage points to 82.9% from 74%. The airline flew 5.2 million cargo ton miles, up 27.4%. For the first seven months of the year, traffic was up 12.2% on 10% more capacity, and the load factor increased 1.5 points to 77.4%.
AirNet Systems said it plans to repurchase up to 600,000 of its common shares over the next 12 to 18 months. The shares will be used to fund AirNet's 1996 incentive stock plan and for possible future acquisitions.
With a tentative Teamsters contract covering ground workers in the pocket, UPS started implementing plans yesterday to restart its operation and handle an expected surge in business from customers "warehousing" packages, a company spokesman said. The Independent Pilots Association (IPA), which supported the Teamsters, said it was "delighted" with the settlement and hopes the "apparent change in the company's attitude prevails when we return to the negotiating table in early September." Pilot talks have been in recess.
The American Society of Travel Agents is willing to work with airlines on consumer compliance with the carriers' back-to-back, hidden-city and non- refundable ticket rules, provided that the effort "is not simply focused on how to make travel agents into tariff police at their peril," ASTA President and Chief Executive Mike Spinelli said yesterday. Many major airlines realize that tariff compliance "is not just a problem about travel agents" and are willing to work with ASTA on it, Senior VP Joe Galloway said.
U.S. antitrust officials told General Electric this week it may complete its acquisition of Greenwich Air Services Inc. without any special conditions or requirements to divest businesses or product lines, and GE said it plans to close Sept. 2 on the GASI portion of its planned acquisition of GASI and UNC Inc. Earlier, the Justice Department's Antitrust Division completed its review of the proposed acquisition of UNC by either GE or GASI, and UNC shareholders are expected to vote their approval next month.
US Airways Express will start service Oct. 1 between Sacramento and Santa Barbara. The four daily 19-seat Jetstream 32 flights will be operated by Trans States Airlines under a marketing agreement with US Airways. With the schedule addition, US Airways and its regional partners will operate 108 weekday flights in California.
US Airways will save $19 million annually by exercising its right to redeem all outstanding Series B preferred stock. Following the repurchase and conversion of Series F and T preferred shares earlier this year, the company will benefit from annual dividend payments that are $46 million lower than in previous years. The redemption price will be $51.75 per depositary share, plus dividends, and the shares will be redeemed Sept. 15.
Two industry groups have asked New York legislators to drop a proposal that would require state approval for runway expansions beyond 5,000 feet. The proposal passed the state assembly this month and now is before the senate. The Aircraft Owners and Pilots Association and the National Air Transportation Association separately wrote to Joseph Bruno, chairman of the Senate Rules Committee, expressing their concern that the proposal will hamper aviation development in New York.
About 3 million Americans will travel by air during the Labor Day holiday, part of a record 34 million people expected to take a trip of 100 miles or more during the period, according to AAA. Using data from a Travel Industry Association survey of 1,500 adults, the association estimated that overall travel volume will be 3% greater during this year's holiday than in 1996. About 30.7 million people will travel by auto, light truck or recreational vehicle, up 3% over 1996, and 3.3 million will use aircraft, buses, rail or ships, up 6%.
Star Alliance partners Air Canada and Lufthansa said yesterday they will introduce code-share service to Ukraine Aug. 25. Air Canada will code share from Toronto, Calgary and Vancouver via Frankfurt to Kiev and Odessa, as well as Berlin, Dusseldorf, Hamburg, Hannover, Munich and Stuttgart. The two carriers offer daily Toronto-Frankfurt, Calgary-Frankfurt and Vancouver-Frankfurt nonstops, and they will expand Montreal/Halifax- Frankfurt next year. Lufthansa will continue to operate the Germany- Ukraine service with its aircraft.
The merger of ValuJet and AirTran, with AirTran Chief Executive Robert Swenson as chairman, could be the first of a series of consolidations the carriers seek among low-fare airlines, as envisioned by ValuJet management. Swenson, chairman of AirTran parent Airways Corp., will become chairman of the combined company, according to ValuJet's S-4 registration statement filed with the Securities and Exchange Commission. ValuJet President and Chief Executive Joseph Corr will retain his title after the merger.
Horizon Air reduced its lowest fares as much as 40% for travel from California, Idaho, Montana, Oregon, Washington, British Columbia and Alberta. Sale fares also are available from many points to the San Francisco and Los Angeles areas and Alaska in conjunction with jointly owned affiliate Alaska Airlines. The non-refundable tickets are available through Friday for travel between Aug. 28 and Dec. 16. Tickets must be purchased within one day of making a reservation and a Saturday-night stay is required. Blackouts apply.
AirTran Airways posted an 0.8% traffic drop in July on 16.2% less capacity, which improved the load factor 11 percentage points to 70.8% from 59.8%. Despite the lower capacity, AirTran carried roughly the same number of passengers during the month, 96,477. Year-to-date traffic declined 3.4% on 4.7% less capacity, boosting the load factor 0.9 points to 68%.
United, aiming to reach rural points that cannot sustain air service, said yesterday it will launch "luxury" bus service connecting two points in Oregon to Portland Airport. Portland is the fourth city to receive the bus service. United Ground Link will provide Salem and Corvalis residents transport to Portland, beginning Sept. 9. Tickets, available to all passengers, can be purchased through United or a travel agent. The airline is offering 500 frequent flyer miles for each roundtrip journey, and the buses will have newspapers and outlets for laptop computers.
TACA group carriers applied to DOT to permit wet-leasing and other cooperative arrangements under the open skies aviation agreements that Central American countries signed this year with the U.S. The carriers - TACA International Airlines, based in El Salvador; Guatemala's Aviateca, Panama's COPA, Costa Rica's LACSA, NICA of Nicaragua and TACA De Honduras - asked individually for authority to conduct code-share operations for any of the others on routes for which the operator and code-share partners have DOT authority to fly scheduled combination service.
Air Line Pilots Association members flying for the American Eagle carriers approved a revised contract, voting 62% in favor. An earlier contract negotiated by union leadership was rejected last month in a 642-505 vote (DAILY, July 29). The contract covers Simmons Airlines, Flagship Airlines, Executive Airlines and Wings West, whose pilots won the right to bargain as a single entity in August 1995.
Lauda Air will receive the first of four 777s Sept. 24, expanding its fleet to 20 aircraft. The new twinjet will enter service Oct. 1 on the Vienna- Singapore-Sydney-Melbourne-Singapore-Vienna route. Lauda will host inflight gambling on the 777s, with roulette, blackjack and slot machine poker.
