Skydivers are among the aviation community's few clear winners in the new tax law. As sought by the United States Parachute Association, the Taxpayer Relief Act declares that skydiving flights are not "air transportation" and therefore not subject to the passenger ticket tax. In 1993, the Internal Revenue Service ruled that all skydiving centers using aircraft weighing more than 6,000 pounds should be collecting and remitting a 10% tax on fees paid by each skydiver boarded.
Amerijet International asked DOT for a second extension, until Jan. 1, 1998, to begin scheduled all-cargo service in the Los Angeles-Mexico City/Guadalajara/Merida markets. The department approved the carrier's unopposed application for an exemption to begin service Feb. 13, subject to startup within 90 days. Amerijet was granted a 90-day extension on May 8 to convert an aircraft, which "still has not been completed and will not be available to return to service for at least 90 to 120 days."
International Brotherhood of Teamsters, striking at UPS, is branching out from its roots as a truckers union. Building on a handful of airline mechanics and pilots as a base, the Teamsters are going after the non- unionized gate and reservations agents at American. The union represents flight attendants at Northwest, World Airways and - a recent addition - Reno Air.
A delegation of House Transportation Committee members and government officials will travel to Europe Aug. 17-26 to meet with commercial and civil authorities in four countries. Led by aviation subcommittee Chairman John Duncan (R.-Tenn.), the group will visit the U.K., France, Germany and Belgium, accompanied by representatives of the FAA and possibly DOT, the State Department and the White House.
British Midland is forming a closer bond with Austrian Airlines, increasing cooperation and asking its London Heathrow employees to wear Austrian's uniforms. The move will give Austrian more visibility at Heathrow, British Midland said.
Rep. Frank Wolf (R-Va.) chairman of the House Appropriations transportation subcommittee, will discuss the balanced budget agreement, the fiscal 1998 DOT appropriations bill, new FAA Administrator Jane Garvey and the just- opened terminal at Washington National Airport on Aviation News Today, to air Sunday on Washington NewsChannel 8 at 12:30 a.m. and at 1:30 p.m.
Atlantic Southeast Airlines posted a 13% increase in traffic to 83 million revenue passenger miles in July, as capacity rose 1.8% to 155.1 million available seat miles. As a result, the load factor climbed 5.3 percentage points to 53.5% Boardings were up 10.3% to 340,720 from 308,783.
New Jet Aircraft Deliveries April 1997 Last 12 Months Carrier # Type Engines Delivery Aero Lloyd 1 A320-200 V2527-A5 3 Air Berlin 1 737-400 CFM56-3C1 2 Air Canada 2 A319 CFM56-5A5 4
Officials from the Krasnoyarsk Territory of Russia meeting in Washington with FAA and U.S. airlines told The DAILY yesterday regular charter flights on cross-polar routes from the U.S. to Asia could begin in two years, and scheduled service could begin in four years. The governor of the Krasnoyarsk region, Valery Zubov, said the routes could save three hours on a flight from Singapore to Washington. He said the biggest challenge is not technical but political - the new routes require China to open its airspace to all countries' airlines.
Tower Air's scheduled traffic inched up in July to 454 million revenue passenger miles, a 0.4% increase on 10.2% fewer available seat miles, totaling 570 million. The load factor rose from 71.2% last July to 79.6%. For the first seven months of the year, RPMs were down 14.3% to 1.730 billion from 2.018 billion during the same period last year, and ASMs fell 17% to 2.335 billion from 2.814 billion. The load factor was up 2.3 points to 74%.
Sources familiar with labor relations at British Airways report "slow but sure" progress in private negotiations following last month's noisy, bitter flight attendants' strike. The much-higher-than-usual absenteeism of a month ago, which led U.K. newspapers to write about the "Sick Note Strike," has almost returned to normal.
DOT has accepted, effective July 30, the registration by Business Express Airlines of the trade name "American Connection" for use in its new code-sharing operations with American. DOT notes that use of the word "America" or "American," already part of the corporate or trade names of several carriers, does not make a trade name similar, so Business Express is not required to notify such carriers.
Pam Am and Carnival Air Lines requested DOT approval of a de facto transfer of Carnival's certificates and other authorities to Carnival under the ownership of Pan Am. The carriers expect Pan Am's acquisition of Carnival stock to be completed at a shareholder meeting during the last week of August. Pan Am then will control Carnival and Pan Am World, which would operate as independent airlines until integration plans are finalized.
New regional Air Virginia, which had received approval in early June to operate public charters, is threatening to sue the FAA after it was told it could not operate because it was flying scheduled service when that was never the case.
National Transportation Safety Board sent a team of 12 investigators to the site of yesterday's fatal crash of a Fine Air DC-8 cargo jet during takeoff from Miami International Airport. Four people were aboard the aircraft. The carrier operates 15 DC-8s serving Latin American markets.
Chairman Conrad Kalitta said the Kalitta Companies will sell 16 727s to Kitty Hawk Inc., a Dallas-based air freight and air charter company, for $51 million. Kalitta also signed a letter of intent to combine the Kalitta Companies - American International Airways, American International Freight, American International Cargo, Kalitta Flying Services, Flight One Logistics and O.K. Turbines - with Kitty Hawk. Kalitta would receive cash, Kitty Hawk common stock and a management role in the combined entity.
Aviation Sales Co., which sells parts for commercial jet transports and engines, said operating revenues rose 42% for the June quarter to $51.4 million and net income increased 89% to $3.7 million. For six months, operating revenues rose 40% to $100.5 million, but net income fell to $6.5 million from $7.3 million.
The National Civil Aviation Review Commission is preparing to recommend that airlines be assess cost-based user fees - rather than the current and future aviation taxes - to recover FAA's air traffic control and other capital needs, but the group's consensus on general aviation's contribution appears strained and likely will be debated further before the report is finalized. The commission envisions the issuance of proposed charges by July 1, 1999, and the imposition of fees on July 1, 2000.
Chile is proposing open skies talks with the U.S. in October, and negotiators on both sides are checking their schedules to nail down a specific date. The talks will be in Washington, as agreed after spring meetings in Santiago. France has suggested the week of Oct. 13 for bilateral talks in Paris that were postponed from the summer at the request of the French.
Incumbent Great Lakes Aviation will be allowed to provide subsidized essential air service at Fairmont, Minn., Brookings and Yankton, S.D., Devils Lake and Jamestown, N.D., and Norfolk, Neb., through July 31, 1999, DOT said. Four of the cities - Fairmont, Brookings, Yankton and Norfolk - currently have no air service, and the other two - Devils Lake and Jamestown - lost service when Great Lakes suspended flights from mid-May until July 22, after the carrier shut down voluntarily under FAA pressure.
Correction: Cathay Pacific Airways said it released incorrect currency conversions for its second quarter earnings (DAILY, Aug. 7). Net profits were HK$1.07 billion (US$137 million) and revenues were HK$15.8 billion ($2.02 billion).
Honeywell and Pelorus Navigation officials said yesterday their differential Global Positioning System ground station satellite landing system is the first to win FAA approval. The first operational system will be installed at Minneapolis/St. Paul Airport. "This approval demonstrates our ability to apply DGPS-based technology to practical uses that will increase operating efficiency and safety at airports worldwide," the companies said, Ed Fitzhenry, Pelorus president, said the system stems from an alliance forged two years ago.
