Orally approved an initial one-year exemption permitting Pan Am to conduct scheduled foreign combination service between Miami and Santo Domingo, Dominican Republic, under its code share with Carnival Air Lines...Orally approved a two-year exemption renewal for TWA to conduct scheduled foreign combination service between New York and Santo Domingo, Dominican Republic...Orally approved a two-year exemption renewal for Midway Airlines to conduct scheduled foreign combination service between Raleigh/Durham and St.
Delta pilots' Master Executive Council intends to take a more aggressive tack against management. The Air Line Pilots Association unit said "overwhelming input" from its ranks shows members are dissatisfied with the current contract and "management's failure to comply with many contractual provisions." Union chief Denny Dolan asked members to indicate satisfaction with an MEC action plan.
American Airlines told DOT it opposes the Delta-TAP Air Portugal code share, an arrangement that would require extrabilateral authority, unless the carrier gains assurances from Portugal that it will permit third- country code shares for other carriers that want to compete with Delta-TAP. American plans to serve Portugal via London in a code share with British Airways if the American-BA alliance is approved. American cited DOT policy that the U.S. does not approve code-sharing between U.S.
ValuJet completed Friday a private placement debt offering that will give it $80 million. The airline will use the net proceeds to refinance some of its secured debt and buy hushkits for its DC-9s. The debt placement to institutional investors gives ValuJet more flexibility, said Chief Financial Officer Steve Nevin. "The company will no longer be subject to any financial maintenance covenant tests," he said, and about $50 million in payments due between now and April 2001 under previous financings has been deferred. The 10.5% senior secured notes are due 2001.
Advanced Aerodynamics&Structures said it has received 22 orders with non- refundable deposits in the last 30 days for its Jetcruzer 500 propjet executive aircraft. The new orders, valued at $26 million, bring the total to 53 aircraft valued at $65 million. Deliveries are expected to begin in the third quarter of 1998. The single-engine aircraft is based on an advanced canard wing design and features 360 miles per hour performance. List price is $1.3 million.
Although Delta's new chief executive, Leo Mullin, comes from outside the aviation industry, he likely enters his job with more than a few insights about the business. The president of Unicom and Commonwealth Edison, Mullin's former firm, is Samuel Skinner, former DOT secretary. (See Mullin story that follows.)
-- In Federal Register dated Aug. 11...Proposed an airworthiness directive on certain McDonnell Douglas DC-10 series aircraft to require inspection of the aft lower cargo doorjamb...Proposed an AD on certain Fokker F28 aircraft to require replacing the fusible pin in the upper torque link of the main landing gear...Proposed an AD on Israel Aircraft Industries AA21 through AA24 series aircraft to require inspections of the trim actuator.
NASA is using its new Boeing 757 research aircraft to test prototype systems designed to increase the efficiency of airport surface operations in low-visibility conditions. Through last week, agency pilots conducted 22 flights with the systems, which integrate differential Global Positioning System data and positioning information from the aircraft's inertial navigation system to tell pilots and controllers the aircraft's position as it taxies in bad weather and low visibility.
ALPA President Randolph Babbitt told members a number of carriers whose aircraft are operated by union pilots have agreed not to carry UPS traffic. ALPA leadership urged members to press management for such an agreement last week. The union simultaneously argued against any action to escalate the strike, agreeing with UPS's Teamsters and Independent Pilots Association that this might provide a pretext for Taft-Hartley intervention by President Clinton.
Boeing's commercial aircraft business is experiencing a "near-term decline in productivity" as a result of its rapid production rate buildup, the company told SEC. The faster pace resulted in a substantial increase in employment, material and fabrication demand, and "overtime in engineering and production areas continues at high levels." The buildup will continue - Boeing is producing about 30 aircraft a month now and plans 43 a month next spring.
FAA Administrator Jane Garvey is taking a hard look at the Wide Area Augmentation System program and its cost and schedule problems. Garvey has given George Donohue, who is in charge of acquisition programs and has been nominated to be her deputy, nearly three pages of questions on the justification for WAAS. One related question from Garvey: why FAA would certify the Global Positioning System for oceanic use when "interference has been experienced precluding the use of GPS."
U.S. Immigration and Naturalization Service said it will order 45 MD 600N helicopters from Boeing valued at $70.7 million, including spares and support. The helicopters will replace OH-6As on Border Patrol sectors.
United has selected Noise Cancellation Technologies Inc. to improve the on its long-haul flights, integrating active noise cancellation technology into the passenger control units in First and Connoisseur classes on 747- 400s, 767-300s and 777s. Each seat will have an active-ready headset. Installation begins this fall and all aircraft will be equipped by early 1999.
Air France is struggling to restore the image of the domestic shuttle services launched last October by Air France Europe, its regional unit. The flights have drawn widespread criticism from passengers who endured massive delays and cancellations over the past months. Air France acknowledges May and June have been "dramatic" for a number of reasons, including pilot shortages as a consequence of strikes, bad weather and computer problems.
Baltia Air Lines, which seeks a six-month exemption from DOT to delay further the launch of its long-planned service between New York and St. Petersburg, Russia, challenged Delta's bid for at least temporary allocation of the U.S.-Russia frequencies reserved for it (DAILY, Aug. 12). Baltia said it is "in a position to actually commence service within six months," and granting Delta's proposal would "jeopardize Baltia service." It said its goal to develop the U.S.-Russia market remains unwavering after seven years of effort, and "by contrast, Delta ceased service to St.
UPS filed suit yesterday against the Independent Pilots Association on the same day the union warned the company and its customers they could face "back-to-back strikes" if UPS-pilot differences are not resolved. Speaking at a news conference in Washington, IPA President Bob Miller called on UPS customers to urge management to settle with the pilots, echoing UPS's appeal to consumers to call the White House in support of its own position.
Mesaba Airlines, a Northwest Airlink feeder, experienced a 43% rise in revenues to $185.7 million from $129.6 million in 1994, and is expected to top $200 million this year. Net income during the three years has soared 227%, while unit costs rose 3.8% to 19.2 cents per ASM from 18.5 cents.
Jim Wilding, general manager and chief executive of the Metropolitan Washington Airports Authority, will discuss the newly opened terminal at Washington National and the construction history of the building, as well as the challenges facing airports nationwide, in an interview on this week's Aviation News Today to air Sunday on Washington's NewsChannel 8 at 12:30 a.m. and at 1:30 p.m.
Hughes Information Technology Systems reported the early integration and verification of software and equipment for the China United Airlines (CUA) air traffic control system at Guangzhou, Zhengzhou and Chengdu. Hughes trained CUA controllers and technical personnel on its Guardian system, and they in turn will train other Chinese personnel. Transferring technology from Hughes, CUA will establish four more sites - Beijing, Shenyang, Changchun and Fuzhou, which are scheduled to be completed this September.
