United and Air Micronesia, citing pending service requests, urged DOT to defer action on the joint application by Northwest and Garuda Indonesia for initial authority to code share on U.S.-Indonesia flights (DAILY, Sept. 4). Northwest and United withdrew separate complaints about violations of the U.S.-Indonesia bilateral when they received the rights they sought from Indonesia (DAILY, Oct. 2, 1996).
DOT approved Delta's code-share proposal to serve the U.S.-Egypt market with alliance partner Swissair; service is scheduled to begin Oct. 26. The carriers hold blanket authority to engage in code-share services.
IATA is forecasting international scheduled passenger traffic growth at an average of 6.6% per year between 1997 and 2001. Passenger volume will reach 563 million by 2001, the association said. Carriers are "more pessimistic" about short- to medium-term traffic projections than they were a year ago, and the traffic forecasts have been revised downward. The IATA report, covering 21 geographic areas, can be ordered from the organization, and more information is available via its www.iata.org web site.
V-Span Inc. is marketing its Infrequent Flyer Program as a time-saving alternative for top managers who spend hours flying to meetings. With the company's video conference system, executives can sidestep air fares and earn points that can be redeemed for airline vacation tickets, American Express awards, and other prizes, V-Span said.
Mike McNally, executive VP of the National Air Traffic Controllers Association, has won a runoff election as president for the next three years, the union said yesterday. Succeeding him as executive VP is Randy Schwitz, formerly VP of the Southern Region. McNally brings to the job 10 years of experience as a member of NATCA's contract negotiating team. He also is a registered lobbyist for the union. The first election, whose results were announced Aug. 1, led to the runoff races for both positions, in which about 60% of ATCA members participated.
Air Canada has developed The Cyber Ticket Office, an Internet booking system that will offer travel agents and the public 24-hour online access to its reservations area via its home page, www.aircanada.ca. Customers will be able to check flight availability, request fare quotes, choose seats and meals, and create their own travel profiles to speed up future transactions.
DOT is revoking Air Jamaica's exemption to operate to New York and Atlanta via intermediate points in the absence of a lease or occupancy agreement for Amerijet operations from Kingston's airport and no signs of construction of warehouse space there for the U.S. airline. Air Jamaica's exemption is for scheduled combination service to the U.S. points from Barbados via Antigua and Barbuda and St. Lucia, and unless there are further, prompt developments, it will expire Friday at 11:59 p.m.
Luxembourg-based cargo carrier CargoLux has taken delivery of its fourth new 747-400 freighter. CargoLux currently operates eight 747 freighters and will take delivery of a ninth in November.
FedEx, announcing that net income for its Aug. 31 quarter more than doubled to $143.3 million, attributed the performance to the Teamster strike against UPS (DAILY, Sept. 16). Chairman Frederick Smith said that FedEx delivered more than 9.5 million extra packages during the strike, and Alan Graf, chief financial officer, said international operating profit increased sixfold. "It is difficult to precisely analyze the impact of the additional volume during the 12 operating days of the UPS strike," Graf said.
Severe economic consequences will result for the U.S. and Northwest if negotiators settle on an agreement for regulated expansion being proposed by Japan, according to a study commissioned by the airline. The GKMG Consulting Services study predicts the current U.S. aviation trade surplus of $5.3 billion annually would fall by $2.1 billion by 2001, under an accord the company said is being proposed by Japan (DAILY, Sept. 16). This figure compares with a $6.4 billion surplus by then at current rates of growth under the existing bilateral.
A Russian firm, Aviaconversia, displayed a portable Global Positioning System and Glonass jammer at the Aug. 19-24 Moscow Air Show and now is looking for buyers, according to reports from two independent sources. The four-watt jammer is said to interfere with civil and military frequencies of the U.S. and Russian satellite navigation systems up to a range of 200 kilometers. The DAILY has yet to obtain independent verification of the reports.
Startup candidate Global Air Cargo filed additional information on its financial picture as directed by DOT, but its lawyer expressed concern that the department avoid changing past practice and erecting higher barriers to entry. Winston, N.C.-based Global envisions wet-lease service for other carriers plus potential niche cargo service from North Carolina (DAILY, July 9). This week's filing included letters of intent from American Fidelity Trust and Market Maker Media Inc., which join Hughes Financial Group as funding sources (DAILY, July 23).
British Airways World Cargo is launching this month a new timetable of freighter service to Tel Aviv from London Stansted. Channel Express will operate the service, using an A300B4 aircraft.
DOT approved a one-year renewal of authority for FedEx and Qantas to continue operating blocked-space code-share cargo service between Sydney and Honolulu, Los Angeles, Chicago and New York. The carriers said Southern Air Transport will apply separately for renewal of authority for wet-lease services it provides to Qantas between Sydney and Los Angeles.
American and Iberia ratified their agreement on code sharing and frequent flyer programs this week in Madrid, with plans to implement it in December. Iberia's accord with British Airways, announced along with American's in July, is expected to be confirmed in October, Iberia said. The accords include the possibility that BA and American will purchase minority stakes in Iberia.
UNC said yesterday its shareholders have approved the purchase of the company by Greenwich Air Services, a subsidiary of General Electric. GE previously received Justice Department permission to complete its acquisition of UNC, expected today.
Embraer said yesterday it is launching the EMB-135, a 37-seat regional jet. The aircraft shares 90% commonality with the EMB-145, including the Rolls- Royce/Allison engines, main systems, cockpit, wing and tail structure. The fuselage, essentially the same, is 11.6 feet shorter. The prototype is scheduled to fly in the second quarter 1998, with certification and first delivery planned in the second half of 1999.
Bombardier added a fourth Global Express aircraft to its flight test program. The Global Express 9004 will make its public debut next week at the National Business Aviation Association annual meeting in Dallas. Certification is scheduled for next May.
Lufthansa will announce today the sale of its 24.5% stake in cargo airline Cargolux to SAirGroup, parent of Swissair and Swiss Cargo. Lufthansa acquired the stake in 1987, but it and Cargolux continued to compete for many cargo contracts.
Taiwan's Civil Aeronautics Administration plans to send a delegation to Japan this month to hold talks with Japanese aviation authorities. The talks, which will be conducted on an unofficial level, are expected to concentrate on ending the two-decade-old hiatus on flights between Taiwan and Osaka and on opening new routes between Taiwan and destinations in the Ryukyu group and southern Japan, including Ishigaki, Kagoshima, Miyazaki and Hiroshima.
British Airways and Qantas are putting seats on sale Sept. 27 for the expansion of their code share on the 'Kangaroo Routes' between Australia and Britain. The joint service via Singapore begins Oct. 26, subject to Australian government approval. Passengers will have the choice of 318 weekly flights between 18 destinations. BA code-share routes include London-Perth and London-Brisbane, while Qantas routes are to London from Melbourne, Sydney, Darwin, Cairns, Adelaide and Brisbane.
America West has ordered 22 A319 and 24 A320 aircraft, 12 of which are reconfirmable, Airbus Industrie said yesterday. The list price is $1.4 billion. Deliveries will begin next year and continue through 2000, Airbus said, adding that the carrier took purchase options on up to 40 A320 family aircraft for delivery between 2001 and 2005. America West currently operates 26 A320s. The new orders culminate 18 months of negotiations and conclude preliminary arrangements announced last September.
China Airlines will increase the number of flights it operates to Indonesia each week from four to five, beginning in October. CAL also wants to open a number of routes to popular tourist destinations within Indonesia.
Reno Air has turned around its second quarter operational woes and will report positive third quarter results, but acquiring additional spare engines to become a more reliable airline will affect yields in the September quarter. Engines bought as a buffer against a Pratt&Whitney JT8D shortfall cost Reno $250,000 per month. Although the load factor will be higher year-over-year in the third quarter, the additional engine expense will result in lower-than-expected yields.
