Formosa Airlines agreed to pay the equivalent of US$245,000 to the families of each of 16 people who died Aug. 10 in the crash of a Formosa Dornier 228 on the offshore island of Matsu. The airline made earlier payments of $14,000 to each family for funeral costs and consolation. The aircraft crashed making an approach at Tatao Airport, Matsu, on a flight from Taipei.
After numerous short-term extensions of authority for Air Jamaica to fly extrabilateral service to the U.S., cargo carrier Amerijet has moved for revocation of the exemption, saying it remains blocked from securing ground-handling facilities in Jamaica for its own operation. Air Jamaica argues it is an innocent bystander in a dispute between its home government and Amerijet. The service at risk consists of the use of aircraft flown for Air Jamaica under a wet-lease by Lineas Aereas Allegro, now set to expire Aug.
United has been approved to operate its second daily Chicago-London Heathrow flight on a year-round basis. The carrier initially received approval from the U.K. Department of Transportation for this summer only. Both flights will operate to Heathrow using 292-seat, three-class Boeing 777s starting Sept. 1. The move adds 17% more capacity on the route from the current flights, which operate with one 777 and one 206-seat 767. "As early as last year, we were limited by the U.K.
Great Lakes Aviation said it has reached a tentative deal with its pilots, represented by the Teamsters union. The jointly announced agreement is contingent on a ratification vote by the pilots. Douglas Voss, Great Lakes president, said the accord resulted from 15 months of effort and is a "fair and equitable agreement for the company and the pilots alike." The airline, a United Express carrier in some markets, serves 48 points in 11 states.
U.S. National Carriers Traffic July, 7 Months 1997 July July % 1997 1996 Change American Trans Air Revenue Passenger Miles (000) 954,666 996,630 -4.2 Available Seat Miles (000) 1,322,852 1,365,719 -3.1 Load Factor (%) 72.2 73.0
Taiwan's EVA Airways and Indonesian regional Merpati Nusantara Airlines have finalized an agreement to expand passenger and cargo service to Bali. EVA introduces nonstop three-times-weekly flights between Taipei and Denpasar today, using 212-seat 767-200s. The service supplements twice- weekly flights to Bali via Kaohsiung. Merpati operates jet service to several South Pacific destinations from Bali, as well as to Surabaya and Jakarta, also served by EVA.
India's Supreme Court found private domestic airline Skyline NEPC guilty of more than $2 million in lease rental defaults and ordered it to return two 737-200 aircraft to the lessor, U.S.-based PLM Transport. The Chennai- based (formerly Madras) carrier also must return a Pratt&Whitney engine. The action follows what court officials described as more than a year's legal battle between PLM and Skyline NEPC in which the airline admitted default and submitted a payment schedule but reneged soon after.
Hughes Aircraft Co. filed damage claims of $266 million with the federal court in Canberra, Australia, against Airservices Australia in the loss of The Australian Advanced Air Traffic System (TAAATS) contract in February 1994. The company said the suit is based on a court finding, published June 30, that Airservices Australia was guilty of a breach of contract and violated the Trade Practices Act when it awarded the contract to Thomson CSF.
Japan Airlines parent JAL Group is opening as many as 100 European-style eateries and cafes in Japan. The new "J-Spot" restaurants will produce mass quantities of international dishes, but they will not serve airline food.
Indian Airlines will extend its biweekly Calcutta-Yangon flight onward to Singapore. The state-owned domestic carrier already operates two Calcutta- Singapore nonstop flights per week.
Qantas began increased service this week to Beijing and Shanghai from Sydney, adding its third and fourth weekly frequencies. The flights, like the current service, stop in Shanghai before reaching Beijing. The new overnight flights depart Sydney Thursday and Sunday, and current service leaves Tuesday and Friday. The increase gives Qantas more Australia-China service than any other airline. A year ago, Qantas became the first Australian airline to operate nonstop to Shanghai.
Arinc has begun operations of its new Airline Operations Center Network for eight major U.S.-based airlines, saying it will reduce operating costs, decrease flight delays and boost safety by providing a single integrated source of information. "This will help increase collaboration between airspace users and the FAA," it said. The private intranet connects airline operations centers with FAA via the Volpe Transportation Center in Cambridge, Mass.
Softer-than-expected loads from Hong Kong and Japan caused Canadian Airlines' traffic to drop 5.2% in July on 2.1% less capacity, depressing the load factor 2.4 percentage points to 74.4%. International traffic fell 6.1% on 1.9% lower capacity, causing the international load factor to drop 3.4 points to 77%. Domestic traffic declined 6.5% on 2.6% less capacity. "Our focus this year remains on improving yield and profitability, not capacity," said Doug Carty, chief financial officer.
Ketchikan Air Service (KAS), together with Southeast Aviation and Taquan Air Service, has asked DOT to transfer its certificate to Southeast. KAS and Taquan want to separate their now-combined operations, including future service options, and reduce liability for losses. Because the financial risks are distinct for each business, Taquan, as parent company, will be responsible only for financial debts but otherwise be unaffected by Southeast's fortunes. "Southeast could change, move or even cease operations without any impact" on Taquan, the filing said.
New York-based United States Travel Agent Registry selected vendors for key elements of its project to develop a new, non-profit computer reservations and settlement system owned and operated by travel agents. USTAR will start briefing interested parties on a construction and implementation schedule in October.
U.S. Regional Carriers Traffic July, 7 Months 1997 July July % 1997 1996 Change Air Wisconsin Revenue Passenger Miles (000) 59,660 49,962 19.4 Available Seat Miles (000) 83,223 77,597 7.3 Load Factor (%) 71.7 64.4
FAA and Europe's Joint Aviation Authorities are asking for public comment on harmonization efforts at a Sept. 11 meeting in Arlington, Va. The Harmonization Work Program is FAA's and JAA's attempt to carry out a commitment to harmonize their rules regarding the operation and maintenance of civil aircraft and their standards, practices and procedures governing the construction of civil aircraft, engines and other components. The meeting will be held at the Crystal City Hyatt Regency Hotel.
B/E Aerospace said yesterday it has reached agreement with Harris Corp. on a joint venture to provide "LiveTV" - broadcast television - to individual passenger seats on narrowbody aircraft. The joint venture will market the equipment, services and broadcast media. B/E will control a 51% voting interest and will provide its in-seat video distribution systems, while Harris will supply the antenna and receiver system. The launch airline customer is expected to be announced later this year.
A U.S. delegation led by House Transportation aviation subcommittee Chairman John Duncan (R.-Tenn.) met yesterday in London with British Airports Authority representatives and key figures in the American-British Airways alliance proposal, including BA chief Bob Ayling, Virgin Atlantic's Richard Branson and Freddie Laker, whose Florida-based airline filed antitrust charges this summer against BA. The U.S. group continues on to France, Germany, Spain and Belgium, meeting in Brussels with European Commission officials assessing the alliance (DAILY, Aug. 11).
US Airways Air Line Pilots Association pilots this week launched a web site at http://www.usairwayspilots.org. The site includes public-access areas and pages reserved for ALPA members. Public areas include updates from the Master Executive Council and briefings from the pilot negotiating committee.
AirFuel International, which markets jet fuel to more than 80 airlines and 2,500 corporate aircraft worldwide, recently became a separate subsidiary of AR Group and will focus its efforts not only on fuel procurement but also on providing "total fuel management services and cost price analysis." Fuel costs account for 15% to 35% of airlines' total operating budgets. AirFuel said it has the capacity to operate as an external fuel department, assisting with the fuel tender process, negotiating into-plane rates and helping make fuel decisions.
Hawaiian Airlines reported a 22.7% rise in July traffic on 9.5% more capacity, which lifted the load factor 8.9 percentage points to 82.9% from 74%. The airline flew 5.2 million cargo ton miles, up 27.4%. For the first seven months of the year, traffic was up 12.2% on 10% more capacity, and the load factor increased 1.5 points to 77.4%.
AirNet Systems said it plans to repurchase up to 600,000 of its common shares over the next 12 to 18 months. The shares will be used to fund AirNet's 1996 incentive stock plan and for possible future acquisitions.
With a tentative Teamsters contract covering ground workers in the pocket, UPS started implementing plans yesterday to restart its operation and handle an expected surge in business from customers "warehousing" packages, a company spokesman said. The Independent Pilots Association (IPA), which supported the Teamsters, said it was "delighted" with the settlement and hopes the "apparent change in the company's attitude prevails when we return to the negotiating table in early September." Pilot talks have been in recess.
The American Society of Travel Agents is willing to work with airlines on consumer compliance with the carriers' back-to-back, hidden-city and non- refundable ticket rules, provided that the effort "is not simply focused on how to make travel agents into tariff police at their peril," ASTA President and Chief Executive Mike Spinelli said yesterday. Many major airlines realize that tariff compliance "is not just a problem about travel agents" and are willing to work with ASTA on it, Senior VP Joe Galloway said.
