Rep. Frank Wolf (R-Va.), chairman of the House Appropriations transportation subcommittee, who earlier asked the DOT inspector general to investigate cost overruns in FAA's Wide Area Augmentation System program, has called for an IG investigation of the Standard Terminal Automation Replacement System (STARS). Both programs, which involve hundreds of millions of dollars, were contracted under FAA's new acquisition reform program.
Northwest and the Air Line Pilots Association continue to make progress in contract negotiations. The talks will proceed next month with the help of a federal mediator, but the negotiating committees will continue to meet without a mediator before then.
Delta officials discussed expansion in Latin America and Asia yesterday - including its hopes of Argentina service - and signed a code-sharing, blocked-space agreement with Transbrasil Airlines. The carriers want to code share on daily service from Orlando, Miami, Washington Dulles and New York Kennedy to Sao Paulo, Rio de Janeiro and Brasilia. Beyond service in Brazil would reach Porto Alegre, Florianopolis, Curitiba, Belo Horizonte, Fortaleza, Manaus and Salvador.
Continental's request for more information in the American-TACA code-share case is a transparent attempt to delay its implementation, according to separate filings by American and Central America's TACA Group carriers. Continental said DOT should ask for more data in light of American's investment in Aerolineas Argentinas and Iberia, and Iberia's code-share agreement with British Airways (DAILY, July 29). TWA has called for an evidentiary hearing including cross-examination of witnesses, also opposed by TACA.
DOT revoked the interstate and foreign combination service certificate of Pacific International Airlines, which ceased operations July 13, 1996. The carrier had applied Oct. 1, 1996, to resume operations but withdrew the request Oct. 18, 1996. Pacific International later told DOT it had closed officially Nov. 27, 1996, and had returned its air carrier certificate to FAA. (Docket 50187)
House Transportation Chairman Bud Shuster (R-Pa.) introduced legislation (H.R.2282) requiring DOT to limit or deny all-cargo, third-country rights to airlines of countries that DOT finds deny those rights to U.S. carriers contrary to their aviation agreements with the U.S., provided that DOT finds that the denial or limitation is consistent with the public interest and U.S. international aviation policy.
After skirmishes between Carnival Air Lines and its leasing companies over who paid higher-than-usual maintenance costs on four leased A300s, two separate courts told the carrier the lessors could repossess the aircraft for lack of payment. But unlike most decisions of this sort, the rulings caused no financial difficulties for the airline, which said it planned to phase out the aircraft type eventually anyway.
Women in Aviation International (WAI) said it has doubled its membership in one year to about 2,000 members. Peggy Baty, president and founder, said the "visibility gained by such notables as new FAA Administrator Jane Garvey and Secretary of the Air Force Sheila Widnall has a significant impact on the continued success of women in aviation." The organization is open to women and men. WAI's next conference will be March 12-14 in Denver. For more information, call 937-839-4647.
Sabre's Travelocity will add an international pricing feature to its Web site early next month, enabling consumers to book trips, hotel rooms and rental cars in local currencies. The system will provide fare and tax quotes in the user's local currency, determined by entering a country code in the personal profile section. Users can select another country code when booking outside their home country.
The European Commission issued its 13th annual Report on United States Barriers to Trade and Investment, citing commercial aviation as one among many industries in which the U.S. places obstacles for foreign exporters and investors. While acknowledging growing trade links it calls the strongest in the world, the EC continued to argue against the "very high level" of government funding for the Large Civil Aircraft (LCA) industry. "In the face of very large public funding for NASA aeronautics R&D budgets, the U.S.
Airborne Freight reported record net earnings for the second quarter of $28.3 million, up from $10.6 million. Revenues increased 14.5% to $712.8 million. For the first six months, net earnings rose to $42.7 million from $11.9 million, while revenues gained 12% to $1.4 billion from $1.2 billion. Chief Financial Officer Roy Liljebeck said domestic shipment growth was "very strong," increasing 15% in the quarter, with the higher- yielding overnight product growing 17%.
Federal Express asked DOT to approve its acquisition of Florida West International Airways' all-cargo authority to Colombia under expedited, non-hearing procedures. Pending in a separate application is FedEx's acquisition of Florida West frequencies to Argentina, opposed by Polar Air Cargo and Fine. FedEx seeks the Colombia route transfer as a solution to access problems - it said that although the current bilateral places no limit on U.S. cargo carrier designations or frequencies, Colombia has refused to accept the designation of another U.S. carrier.
FAA and French aviation authorities are conducting a joint investigation of allegations that Air France shipped "more than 900 undeclared oxygen generators" into the U.S. on two flights this year, the agency said yesterday. Air France said it is "working with both the FAA and the French DGAC [Direction Generale de l'Aviation Civile] on this investigation.
US Airways cut fares for weekend travel between Albany, Buffalo, Rochester and Syracuse and Boston, New York LaGuardia, Philadelphia, Pittsburgh and Washington National, with tariffs ranging from $59 to $79 one way. Travel must begin on a Saturday, with return the following Sunday, Monday or Tuesday, and be completed by Dec. 16. Tickets must be purchased for roundtrip travel at least three days before departure. The Albany-LaGuardia fare is $59, Rochester-Boston $79, and most other routes $69.
United President John Edwardson said a team-building exercise just before contract negotiations with flight attendants helped the airline reach its uncommon 10-year deal. Neither side relished a short-term agreement, he said, and the settlement will give United "a much closer relationship with flight attendants in the future than we ever had."
An industry-wide engine parts shortage grounded several Reno Air aircraft in the second quarter, leading the carrier to post sharply lower profits. A manufacturer's shortfall in spare parts for the Pratt&Whitney JT8D engine was the sole reason for the drop in earnings, according to Robert Reding, Reno president and chief executive. "We lost more than $4.5 million because of this," he said. The airline earned a profit of $224,000 in the June quarter, down from $3.3 million in the year-ago period.
World Airways reported operating profits of $6.5 million in the second quarter, down 57% from $15.3 million a year ago. Revenues declined to $81.9 million from $86.5 million. The company's net profits of $5.6 million were up from last year's loss of $14 million, but the year-ago loss included a $28.5 million restructuring charge for discontinued operations.
Reason Foundation, which campaigned for airport privatization, has set its sights on the Global Positioning System, calling for GPS to be "converted into a commercial company oriented primarily toward millions of civilian users such as airlines, ocean shippers, truckers, urban bus, taxi, ambulance fleets, farmers, mapmakers and cell-phone users." It said FAA's Wide Area Augmentation System should be put on hold in favor of commercially financed work on signal correction.
Eagle USAir Airfreight reported record revenues for its third quarter, ended June 30, of $71.3 million, up 48%, and record net earnings of $4.1 million, up 32%. For the nine months, revenues increased 57% to $220.4 million while net earnings rose 49% to $11.6 million. James Crane, chairman, said the results came from rapid expansion of the firm's core freight forwarding business and strong increases in the number of shipments and total weight shipped.
U.S. National Carriers Productivity, In RPMs And ASMs Per Employee First Quater 1997 Revenue Available RPMs ASMs Passenger Sea Per Per Miles Miles Total Employee Employee (000) (000) Employees (000) (000) American 2,211,902 2,985,556 4,447 497.39 671.36
Pedro Reis, Portugal's new director general of civil aviation, met with State Department, DOT and U.S. carrier officials in Washington yesterday to exchange views on aviation issues. Reis meets today with officials at FAA.
The $81 million Congress appropriated to increase airport security after the crash of TWA Flight 800 should instead be spent to increase safety in other areas, according to Stuart Matthews, chairman of the Flight Safety Foundation. Matthews said the expedited security plan was a "knee- jerk" reaction following the crash, based on conjecture that a bomb or missile was the cause. "It would be better for these funds to be applied toward overcoming the recognized causes of accidents, rather than conjecture problems," he said.
DOT orally approved a third extension, from July 21 to Aug. 23, of the startup date for Polar Air Cargo's scheduled cargo service in the U.S.- Philippine market. Polar believes it will have necessary Philippine approvals by that date. The carrier was awarded two-year authority Jan. 24, provided service started by April 24. (Docket OST-97-2265)
Vanguard Airlines has discounted by at least 50% its regular three-day advance purchase fares for travel Aug. 11-Dec. 16 when reservations are made by Aug. 15. No overnight stay or roundtrip purchase is required. Sample one-way fares include Chicago Midway-Dallas/Fort Worth, $64, and Kansas City-San Francisco, $79. Vanguard will start New York Kennedy service Sept. 3, with one-way fares from Kansas City, $99, Denver, $129, and San Francisco, $139. Also beginning Sept.
London Heathrow Airport slots suited for flights to and from Europe and other U.K. points must be given equal priority with those for transatlantic travel when government regulators impose conditions on the proposed American-British Airways alliance, according to Michael Bishop, chairman of British Midland.
