US Airways is offering $78 roundtrip fares July 27 on the first flight out of Albany, N.Y., to Washington National Airport, observing the opening of the new terminal at DCA. To qualify for the fare, passengers must return on the same day. Flight 1721 leaves Albany at 7:10 a.m. and arrives at National at 8:24 a.m.
Northwest and First Bank System are offering a Visa corporate charge card and an air travel management system under a joint program, the Northwest Airlines Corporate Travel Program. A no-interest Visa card will be offered, as will emergency services, discounts, flexible billing statements and "sophisticated" management reports. First Bank Corporate Payment Systems has acquired the Air Travel Card portfolio issued by Northwest. Its more than 2,000 corporate accounts will be converted to First Bank's central travel system.
The code-sharing agreement inked this week between United and SkyWest - one in which United will buy ASMs from SkyWest at a fixed rate - is unique in that SkyWest will operate two separate airlines at the hub. The carrier will continue to operate in its own livery on behalf of Delta and Continental, but the United Express operation will be completely dedicated to United, with United Express uniforms and livery. SkyWest will serve 12 markets for United and eight for Delta. In seven of the eight, SkyWest/Delta and SkyWest/United will compete.
Some 1,200 American sales and marketing employees from around the world were briefed this week in Miami on the importance of selling American Eagle as well as American. The regional fed American 7.8 million connecting passengers in 1996 and generated more than $1 billion in connecting revenue, American President Don Carty said. While many American employees have regarded Eagle as "the competition," Carty said "we should be helping them and talkin' 'em up.
Millon Air filed a summary of its progress toward meeting fitness requirements, noting it was the only carrier recently to emerge from a Miami Airport environmental impact inspection without violations and citing this as an example of the thoroughness of its new management. Millon told DOT it is focusing "additional care" on hiring after a recent Immigration and Naturalization Service inspection turned up two alleged undocumented aliens.
SkyWest, St. George, Utah, reported net earnings of $4.3 million, or 43 cents a share, for the three months ended June 30, more than 10% below the 1996 June quarter figures of $4.8 million and 48 cents per share. Operating revenues rose 2.2% to $72.1 million.
Delta has appointed Mary Johnston Evans, a board member, as acting non- executive chairman and Maurice Worth, its executive VP-customer service, as acting chief executive to run the company from July 31, when Ron Allen retires, until a new chairman and CEO is named. Evans, 67, said the board "feels a real sense of urgency about finding a new leader for Delta, but we don't feel rushed. There is no self-imposed deadline." Worth, 56, acting chief operating officer since May 12, said he has not been interviewed for the permanent CEO position.
United's decision this week to take eight of 16 Los Angeles feeder markets away from Mesa Air Group and award them to SkyWest Airlines - already a Delta Connection carrier and Continental code-sharing partner - could have a chilling effect on other code-sharing agreements when arguments arise between partners. Mesa, which also operates as United Express at United's Denver hub, has repeatedly stated in SEC filings that if the high operating costs at Denver cannot be reduced, it would likely move those assets elsewhere.
Hughes-Avicom International said it is entering an alliance with Industrial Technology Research Institute and AeroVision Avionics, both of Taiwan, to develop and manufacture inflight entertainment systems. Hughes will transfer key IFE technologies to ITRI for use in joint development of enhanced IFE systems. Aero Vision will design IFE products for Hughes.
ValuJet yesterday reported a $9.2 million net loss for the second quarter, a slight improvement over the loss of $9.6 million during the 1996 quarter, in which ValuJet Flight 592 crashed in the Everglades. Operating revenues were $47.8 million in this year's quarter, down from $81.2 million. Expenses totaled $57.6 million and the operating loss was $9.9 million. The load factor was 54.9%, off only slightly from 55.7% last year, but the breakeven load factor was 73.6%, excluding non-recurring expenses, compared with 45.2% a year earlier.
American has appointed Sue Oliver VP-employee relations, replacing Jane Allen, who was named VP-flight service recently. Oliver will be the liaison between management and employee groups, including the pilots, flight attendants, mechanics and ramp personnel unions. She joined the employee relations department in 1986.
America West said it will begin the only daily nonstop service between Phoenix and Baltimore/Washington Sept. 25. The carrier will expand its nonstop service between Phoenix and Philadelphia from one to two flights daily starting Sept. 4. The nonstops, to be operated with A320s configured with 12 first-class and 138 coach seats, will complement several daily direct flights between the two city-pairs.
National Air Transportation Association asked the Environmental Protection Agency to drop avgas from the seven substances to which EPA proposes to apply the Clean Air Act of 1990. The avgas rulemaking seeks to reduce emissions of fuel vapors from the transfer and storage of fuel, aircraft refueling and fuel spillage, all sources of alkylated lead in the atmosphere. NATA said the industry already is spending millions of dollars on underground storage tank upgrades, stormwater runoff and possible particulate matter and ozone regulations.
Delta posted yesterday a net profit of $301 million for the June quarter and a record net profit of $886 million for the fiscal year ending June 30, excluding restructuring charges. Its annual profit was up 34% from $661.7 million in 1996. After restructuring adjustments, Delta reported a net profit of $854 million for the fiscal year. Operating income for the quarter dropped 9% to $519 million, but swelled 22% to $1.6 billion for the year. The June quarter net profit of $301 million appears nearly double the $161 million earnings of a year ago.
FAA research and development officials, responding to DOT Inspector General Kenneth Mead, said satisfying Gore Commission recommendations will add $65 million to the cost of the Wide Area Augmentation System (WAAS), increasing the estimate to $1.02 billion. Not counting cost growth from new safety requirements and the Gore Commission recommendations for atomic clocks, the projected cost would be $755 million, according a document obtained by The DAILY.
Era Aviation expanded its code-sharing partnership with Alaska Airlines in the Yukon-Kusokwim Delta region of Western Alaska. Era, which flies to 17 villages in the Western Alaska region from Bethel, will carry the Alaska Airlines designation in computer reservations systems. Era operates 18-passenger de Havilland Twin Otters under FAA Part 121 standards. "Having the Alaska Airlines 'AS' designator on Era's flights from Bethel will provide a strong benefit to travelers in this area," said Era Senior VP James Vande Voorde.
Cincinnati and Orlando-based Comair Holdings posted a net income of $25.2 million, or 57 cents per share, for the quarter ended June 30 - 14.4% and 14.0% higher, respectively, than the comparable-quarter 1996 earnings figures of $22 million, or 50 cents per share. Operating revenues rose 14.8% to $152.1 million from $132.5 million.
Midwest Express Holdings, parent of Midwest Express Airlines and Skyway Airlines, reported second quarter net profits yesterday of $5.6 million, down 15.1% from a year earlier. The company attributed the decline almost totally to sharply higher maintenance expenses, with an unscheduled jet engine repair and higher maintenance labor costs during the quarter. Skyway Airlines reported higher maintenance costs, plus an overall cost increase due to its transition to Part 121 operating specifications. Company-wide maintenance rose 75% to $8.4 million from $4.8 million.
The U.S. recorded the largest travel and tourism surplus in its history in 1996 - $26 billion, 18% more than in 1995. The Commerce Department said international visitors spent more than $90 billion last year in what Leslie Doggett, deputy assistant secretary for tourism industries, termed a "banner year" in which spending by international visitors "supported nearly one million U.S.
Mesaba Airlines flew nearly 54 million revenue passenger miles in June, a 45.9% increase from June 1996. Capacity almost - but not quite - kept pace, rising 43.7% to slightly more than 94 million available seat miles. As a result, the load factor rose 0.9 percentage points to 57.4%. Passenger boardings were up 38.6% to 230,000. Mesaba said it continues the conversion of its turboprop fleet to all- Saab 340 aircraft, and the introduction of its 12 Avro RJ85 jet aircraft will be completed by May 1998.
Legislation in the House and Senate to rein in FAA's abuse of "emergency" certificate actions - or threats thereof - will likely refocus attention on a number of current and past cases, such as Mall Airways, which was forced out of business before its principals were exonerated by the NTSB. The most recent case was Great Lakes Aviation, which is pulling its way back from a "voluntary" shutdown in May. TPI International Airways, forced into Chapter 7 liquidation in Brunswick, Ga., has cases pending before federal appeals courts in D.C. and Atlanta.
A proposed conference agreement under consideration by House and Senate Republican tax negotiators would raise $33 billion from the aviation industry over five years - between $3 billion and $4 billion more than current law, depending on the estimate - and phase in per-passenger fees for each domestic flight segment. Adoption of the plan would be a blow to both low-fare airlines and the Big Seven.
Government representatives of India and Singapore have signed an agreement for expanded air traffic, according to the Indian civil aviation ministry. The accord entitles Air-India and Singapore Airlines to offer 800 seats each per week for three years. SIA also will make available to Air-India a block of seats on its daily flights to destinations on the U.S. West Coast, Canada, Australia and New Zealand. SIA will receive one additional Indian destination, Thiruvananthapuram in the southwestern state of Kerala.
Fine Airlines Inc. urged DOT to ensure that Florida West International Airways (FWIA) complies with Order 96-8-6 - requiring it to tell DOT of any changes in its U.S. or foreign ownership holdings, board composition or corporate governing documents - when the department considers FWIA's applications for renewal of certificate and exemption authority and frequency allocation. At issue is foreign ownership and control of FWIA. Fast Air of Chile holds 25% of FWIA's voting stock, has a representative on FWIA's board and holds a "significant amount" of FWIA debt.
Southwest is offering another round of Friends Fly Free fares, good for companion travel through Dec. 16 on tickets purchased by July 31. Roundtrip travel and a one-night stay are required.
