United has redesigned its SkyNet intranet system to provide employees more information, such as updates on the proposed ticket tax under debate between the House and Senate. United said the improved system will help it meet two company goals - increased communication and a move to a paperless work environment.
Boeing, in a last-ditch effort to win approval for its merger with McDonnell Douglas, sent several proposals to the European Commission, including an offer to give up its long-term contracts with U.S. airlines, European Union sources said yesterday in Brussels. EU Competition Commissioner Karel Van Miert and the members of his cabinet met yesterday to study Boeing's proposals, but the final decision, expected today, lies with the collegial body of 20 European commissioners.
All unions represented in the works councils of Aena, the Spanish airports authority, have called for a strike at airports and air traffic control centers throughout the country on Aug. 2, 3, 9, 10, 16, 17, 30 and 31. The workers claim Aena has refused to sign a company-wide labor contract. Employee representatives at Binter Mediterraneo Airlines, an Iberia subsidiary, have called for strike action on July 24, 28 and 31 and Aug. 1 in protest of the company's alleged failure to abide by labor agreements dating back to 1992.
Last week's public share offering of Italian airport operator Aeroporti di Roma won considerable success and was heavily oversubscribed. As a result, managers of the sale will exercise an option to increase the stake for sale from 41% to 45%. Italian holding company Istituto per la Ricostruzione Industriale's share of Aeroporti di Roma will fall to about 54%, after the final overallotment. The government of Italy is expected to privatise the airport further in 1998.
U.S. Carriers Landing Fees First Quarter 1997 Cost Landing Fees Per Landing Major Carriers Alaska $ 5,790,000 153.07 America West 8,828,207 167.27 American 58,090,000 299.65 Continental 30,818,000 278.26 Delta 62,862,000 263.27
Air France has introduced a range of discount Concorde fares from the U.K. to New York via its Paris Charles de Gaulle hub. The tariffs apply to travel from London Heathrow, London City, Birmingham and Manchester airports. The fares cost #2,650 (US$4,425.60) one way and #5,330 ($8,901.10) roundtrip without restrictions.
American declined comment on a European Commission advisory committee draft report urging sweeping controls on an American-British Airways alliance's marketing and service, and reactions from others ranged from doubts the alliance would conform with the limits to praise for the EC for recognizing the competitive implications.
TWA said yesterday it must shrink itself by cutting 1,000 positions by December. Acting on the eve of today's announcement of second quarter financial results - expected to show a small loss - Executive VP-Operations William Compton tied the job reductions to new aircraft.
Carnival Air Lines asked DOT to renew for two years its exemption authority to provide scheduled combination service linking New York and Miami to Port-au-Prince. Carnival ended service on the route in 1996 but hopes to resume it as market conditions warrant. The carrier said renewal of the exemption is "especially important given the existing market dominance of a single U.S. carrier, American Airlines, with three daily Miami/Port-au- Prince and two daily JFK/Port-au-Prince nonstops." (Docket OST-95-394)
Travel Industry Association has named Vivian Stanley chairman of its National Council of Area and Regional Tourism Organizations (CARTO). Stanley is executive director of the Mystic and Morel tourism district in Connecticut. TIA also announced at a meeting in Grapevine, Texas, that Desi Harris, assistant director of the Illinois Bureau of Tourism, is the new chairman of the State Travel Information Center Directors Alliance, an affiliate of TIA's National Council of State Tourism Directors.
America West posted a net profit of $23 million in the second quarter, down 19% year-over-year, attributing the drop to the return of the 10% ticket tax. Revenue rose 3% to $477.8 million, while operating profit fell 18.5% to $50.6 million. Excluding the effect of the 10% federal excise tax, which was dormant last year, America West estimates that earnings "would have been the highest in company history," said President and Chief Executive Richard Goodmanson.
Northwest has exercised previously announced options for 24 more RJ85 regional jet aircraft, bringing its total orders to 36, Aero International Regional said yesterday. Deliveries of the aircraft will begin in May 1998 and continue for four years. Northwest placed its initial order for 12 RJ85s and 24 options last October. The first aircraft entered service in June with Mesaba Airlines, and three are operating to nine points from the regional carrier's Minneapolis hub. The RJ85 seats 69 passengers in two service classes.
Air travel demand in the Asia/Pacific region will grow at an average annual rate of 7.4% between 1995 and 2010, much slower than the 10.1% rate of 1985-95 but still double the rate of the rest of the world, a new IATA- produced study predicts. The 1.1 billion passengers flying to, from and within the region in 2010 nearly will equal the global traffic total for 1995, according to Asia/Pacific Air Traffic Growth&Constraints from the Air Transport Action Group, an independent coalition of aviation, travel and business organizations.
Net income for Alaska Airlines rose 15.5% to $20.8 million, a record for the second quarter. The airline cited "continued strong passengers and increasing average fares" as the chief reasons for the improvements, and the gains came despite losses at regional subsidiary Horizon Air. Alaska's yield was up 2.9% to 12.44 cents, while cost per available seat mile grew 5.9% to 8.46 cents.
Georgia, formerly the Republic of Georgia, selected Northrop Grumman to provide a countrywide air traffic control system. The company said selection of the $15.7 million ATC system follows a feasibility study it funded jointly with the U.S. Trade and Development Agency. The Export- Import Bank is guaranteeing the financing, providing the first loan to any country that relies solely on revenue generated by overflight fees to service and guarantee repayment.
United Chairman and Chief Executive Gerald Greenwald will speak Thursday at a luncheon sponsored by the Committee for Dulles and the Washington Airports Task Force. Dulles Airport is United's principal East Coast gateway. The luncheon will be held at the McLean Hilton Hotel at 11:30 a.m. Tickets cost $35. For reservations, call 703-572-8714.
Stumbling prices and overcapacity in the German charter market is forcing Germany's largest charter company, LTU International Airways, to launch a restructuring program, drop some of its long-haul routes and shift to smaller aircraft. The Dusseldorf-based company plans to reduce its overall capacity 11%, eliminating destinations such as Los Angeles, Acapulco and San Francisco for emphasis on more profitable routes to the Mediterranean area.
Senate Commerce Committee will meet in executive session tomorrow at 9:30 a.m. in Room 253 of the Russell Building to vote on the nomination of Jane Garvey to be FAA administrator.
Mesa and SkyWest are mum on which Los Angeles markets, served by Mesa and subsidiary WestAir under agreements with United, the major carrier wants to take away and award to SkyWest. The city name was omitted from a Regional Aviation intelligence item (DAILY, July 18).
American's chief lobbyist, Will Ris, conceded yesterday that bickering within the airline industry was one reason carriers are being hit with increased taxes. At an airport community legislative conference in Washington, an aide to Rep. Jennifer Dunn (R-Wash.) confirmed this conventional wisdom, at least in part.
Polish flag carrier LOT plans to establish a charter subsidiary to pursue business from Poles who are discovering package vacations abroad. Last week in Warsaw, the airline recognized a boom in charter business in Poland - frequencies in the first five months of 1997 are 50% higher than in the same period of last year. The most popular destinations are Greece, Tunisia, Spain, Turkey, Egypt and Cyprus. LOT said heavy demand for charter services led it to lease two new 145-seat 737-300s this month.
Alberto Fernandez, a 48-year-old aeronautical engineer, has been appointed chairman of CASA, the Spanish member of the Airbus Industrie consortium. Fernandez, who succeeds Raul Herranz, worked for Northrop before joining CASA.
House and Senate negotiators apparently have resolved their differences on the international elements of the aviation tax package and are centering on the true battle - whether Congress will adopt a segment fee on passenger tickets. Most major airlines strongly favor the fee and low-fare carriers oppose it. Also, the issue of taxing frequent flyer miles sold to credit card companies and other institutions reportedly remained open yesterday. However, agreement on any piece of the package is contigent on agreement on the whole package.
National Air Transportation Association said it is concerned about the potential for inadvertent application of FAA's unapproved parts program. FAA guidance, clarifies procedures, but contains a new definition of unapproved parts, NATA said, which leaves "too much room for interpretation that may result in more parts than ever being considered suspect." Andrew Cebula, VP, said that by "expanding the definition to include any parts that have been 'improperly returned to service,' the FAA has created a subjective situation.
