Kintetsu World Express (USA) named Robert Chiarito VP-Asian development; promoted Joji Tomiyama to regional VP-West and Tetsuya Yamanaka to terminal manager-SFO/export; reassigned Jennifer Oh to regional staff manager for the import department; elected David Cohen qualifying officer of the customs brokerage operation, and appointed Yoshitaka Hagiwara president-KWE Brazil. Hagiwara also was elected a director of KWE Brazil, as were Carlos Benach, Jose Bedoya and Kazuya Mori.
French President Jacques Chirac expressed full support last week for the European Commission's opposition to the Boeing-McDonnell Douglas merger. Speaking in Brussels during an official visit to Belgium, Chirac defended the EC's policy of "firmness and determination to safeguard European interests against attacks which are not compatible with free competition."
Lufthansa plans to list its catering subsidiary, Lufthansa Service Holding AG, on international stock exchanges next year. The carrier will retain a majority stake.
Four airlines joined forces Friday in moves that will shake up the world airline picture for decades to come. American won the yearlong battle against Continental to acquire stakes in Iberia and Aerolineas Argentinas. Separately, British Airways and Iberia agreed to code share, and BA has the option of buying a minority stake in Iberia. The agreements further solidify American's role in Latin America and BA's in continental Europe, but they mean an even larger boost for Iberia and Aerolineas.
Air Transport Association has belatedly sided with foreign carriers opposing the way FAA went about imposing overflight fees, criticizing the agency's failure to "engage in meaningful advance consultations." In a filing last week, ATA said that if other governments impose "arbitrary and discriminatory fees," it does not want to be in the position of advocating consultations "and receiving the response that our government has not adhered to that principle."
None of the flight attendants on a recent American flight from Washington to DFW had heard of the airline's "Ax The Travel Tax" campaign, despite cards placed on every domestic meal tray asking passengers to support the House bill. "Our base hasn't told us anything about this," said one flight attendant. Her base? Washington.
America West Holdings has appointed John Garel president and chief executive of the wholly owned leisure travel subsidiary it created in January. The subsidiary, not yet named, includes America West Vacations, a sports and ad hoc charter business and America West Golf Vacations. The company, expected to begin operations in the first quarter of 1998, currently employs 360 agents promoting travel to 20 destinations.
U.S. National Carriers Traffic June, 6 Months 1997 June June % 1997 1996 Change American Trans Air Revenue Passenger Miles (000) 758,761 770,330 -1.5 Available Seat Miles (000) 1,054,244 1,178,586 -10.6 Load Factor (%) 72.0 65.4 Passengers 445,425 474,939 -6.2
SAS plans to increase service from Copenhagen to Beijing from four flights per week to five, beginning Sept. 19, and from Copenhagen to Delhi from three per week to four, beginning Nov. 8. The carrier said its passenger traffic grew 30% during the past year between Europe and China and 14% in six months on the Delhi route. It will decide next year whether to add a fifth weekly Delhi frequency.
United asked DOT to dismiss the Air Carrier Association of America's motion supporting slot exemptions for niche/new-entrant carriers (DAILY, July 17). United said ACAA filed late and distorted United's position by quoting out of context a comment made by General Counsel Stuart Oran that United does not use all its Chicago O'Hare slots. United submitted an April Crain's Business article in which the comment appeared.
In Federal Register dated July 11...Superseded an airworthiness directive on Gulfstream G-1 aircraft concerning inspections of the upper diagonal engine mount tube...Issued an AD on Raytheon 1900 aircraft requiring inspection of the flap aft roller bearings...Proposed an AD on de Havilland Dash 8-100/200/300 aircraft to require modifying the flight compartment door.
The European Investment Bank is lending #125 million (US$208.8 million) to BAA plc to help finance construction of the new fast-rail link between Heathrow Airport and the center of London. The dedicated line, estimated to cost #440 million ($734.8 million), will create a 15-minute connection between Heathrow, Europe's busiest airport, and Paddington Station. About 80% of the 56 million travelers who pass through Heathrow each year use roads to and from the airport, and BAA seeks a 50-50 split between roads and public transport.
SH&E promoted Gabor Kovacs and Robert Krenitsky to director; David Kistner and David Paddock to consultant, and Jonathan Culley and William Warlick to senior analyst.
Austria says it will remove airport passport controls by yearend on passenger movement within the European Union despite fears by Germany and other adjacent EU countries about whether it patrols its 800-mile border with Eastern Europe well enough. Vienna, which assumed on July 1 the revolving six-month presidency of the countries that have signed the Schengen Accord, which reduces regulation of intra-EU travel, wants to implement the accord's passport-free rules at airports and other transportation points as early as November and no later than Dec. 1.
Carnival Air Lines has reached an agreement with NationsBank to have access to a $25 million line of credit. The two $12.5 million bridge facilities are guaranteed by Pan Am Corp., which is acquiring Carnival, and Mickey Arison, the principal shareholder of Carnival. Each facility will mature one year after the date of closing. The Pan Am shareholder vote to close the transaction is scheduled in mid-August.
The proposed American-British Airways alliance should give up about 350 slots, while committing to a freeze on certain routes for five years and service reductions of 50%, in some cases, according to a draft report submitted in Brussels last week by the European Commission's competition advisory committee. Other restraints would be placed on code-share operations and computer reservations system displays.
U.S. Bankruptcy Court in Newark approved the sale of Kiwi International Air Lines to Kiwi International Holdings Inc., a company formed by corporate rescue investor Charles Edwards. The sale, valued at $16.5 million, was approved after two days of hearings last week. The new company will not be subject to the bankruptcy proceedings of the former company, and Jerry Murphy is expected to remain president and chief executive. Edwards, chairman of the holding company, will help the airline become more efficient, although he will not displace senior management.
American and United are disputing the extent of code shares permitted under the U.S.-Philippines aviation agreement. Challenging an American- Philippine Airlines proposal as extrabilateral, United said it wants to ensure that all non-designated carriers, not just American, are allowed to code share. American told DOT in response that PAL has "long had the right" to code share with a non-designated carrier such as American, citing an earlier, similar agreement between PAL and TWA.
Orally approved new authority for Aerochago to conduct scheduled cargo service linking the Dominican Republic to Miami, New York and Puerto Rico, and to operate cargo charters, through wet-leases operated by an authorized third party...Approved an Air Aruba charter using an ALM Antillean Airlines MD82 for two roundtrips July 16 and 17 on Aruba-Miami and Aruba-Tampa/St. Petersburg routings...Approved a Hughes Electronics Corp.
