TWA says it is in compliance with an arbitrator's ruling on how to calculate pilot pay, a spokesman said in response to an Air Line Pilots Association suit filed in St. Louis. Claiming that pilots' overall pay will decrease under the methodology, ALPA said the company is imposing unilaterally a system that is not in the contract (DAILY, June 9). TWA said ALPA sought the arbitrator's ruling, which causes TWA's costs to go down, and now wants TWA not to impose the portions that are unfavorable to the pilots.
Summary of U.S. Major International Traffic Fourth Quarter 1996 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) Alaska 196 24.26 1,089 213,263 Latin 196 24.26 1,089 213,263 American 3,530 (0.97) 2,201 7,770,085
The first Aviation Services and Suppliers SuperShow, a combination of the annual trade shows of the National Air Transportation Association and the Professional Aviation Maintenance Association (DAILY, April 16), will be held April 1-3, 1998, in Kansas City, Mo., in conjunction with the still- separate conventions of the two associations. Sharing risks and profits equally, the associations hope the larger show will yield increased attendance and press coverage, better opportunities for exhibitors and economies of scale for themselves.
Northwest recorded a 3.8% gain in May traffic on 2.4% higher capacity, which pushed the load factor ahead 1 percentage point to 74.8%. International traffic rose 4% on 5.6% more capacity, which lowered the load factor 1.3 points to 80.8%. Domestic traffic improved 3.6% on 0.2% more capacity. May 97 May 96 5 Mths 97 5 Mths 96 RPMs 6,025,072,000 5,804,957,000 28,231,512,000 26,699,538,000 ASMs 8,052,468,000 7,864,949,000 38,966,902,000 37,549,697,000
The Eurocopter consortium and Intertechnique of France, unsuccessful in last week's attempt to fly a single-engine light helicopter across the Atlantic (DAILY, May 20), said they intend to try again. Last week's Ecureuil flight logged 2,800 kilometers, ending soon after the third of five planned inflight refuelings, when an auxiliary fuel tank developed a leak.
BAA Plc said yesterday its pre-tax profits for the fiscal year that ended March 31 jumped 10.2% to #444 million (US$ 723.7 million), and it will pay a dividend that rose more than 10% for the 10th year in a row. Total revenue for the group in all key revenue sectors - airport and other traffic charges, retail, property and international activities - increased 9.6% to #1.37 billion ($2.23 billion).
The German Land of North Rhine Westphalia, which has decided to sell its 50% stake in Dusseldorf Airport, said eight German and international companies submitted bids by last week's deadline. The government turned to privatization after the fire of April 1996, which requires massive reconstruction investments. Frankfurt airport company Flughafen Frankfurt Main, confirming that it is among the bidders, said it intends to set up a German airport network.
The four Airbus Industrie partners have agreed on a broad outline for the reorganization of the European consortium, Aerospatiale Chairman Yves Michot said last week, but Daimler-Benz Aerospace (DASA) of Germany said yesterday that a key issue - ownership of assets - remains unresolved. Michot said the chairmen of the Airbus partners - Aerospatiale, DASA, British Aerospace and CASA of Spain - agreed the previous week in Paris that the new Airbus, to be set up by 1999, will not own any of the partners' assets but will have "a management mandate" over them.
Air Technology Engines, Naples, Fla., said it received FAA approval to overhaul, maintain and modify seven Allison turboshaft engine models, the 250-C20, 250-C20B, 250-C20C, 250-C20F, 250-C20J, 250-C20S and 250-C20W. The company opened a 6,500-square-foot maintenance facility adjacent to its headquarters building.
KLM experienced a surge in traffic during May as revenue passenger kilometers increased 16%. Since April, traffic has risen 17%. Capacity in May was up 7% and the load factor soared 5.6 percentage points to 77.3%. Passenger traffic rose strongly in Europe, 20%, Africa 24%, and Central and South America, each 26%. Cargo revenue ton kilometers gained 4% to 328.1 million, even as capacity declined 1% to 470.8 million available ton kilometers. Cargo improved 9% to and from Central and South America.
Delta posted a 5.3% increase in May traffic on 1.9% more capacity, which pushed the load factor up 2.4 percentage points to 73.2%. Domestic capacity increased, while international capacity fell. Domestic traffic rose 7% on 4.3% more capacity, and international traffic declined 0.1% on 6.7% less capacity. So far this year, international capacity rose 2.2%, while domestic climbed 5.8%. Passenger yields declined due to a heavier concentration of leisure traffic and the return of the 10% ticket tax, which was dormant last year.
DOT rescinded its order denying route renewals to El Al for service from Israel to Baltimore/Washington, Dallas/Fort Worth and Orlando after the Israeli government changed course and authorized Tower Air's New York- Athens-Tel Aviv route (DAILY, June 6). El Al's service, flown on wet-lease by North American, will continue without interruption.
Hungarian privatization agency APV is seeking to buy back Alitalia's 30% stake in Malev Hungarian Airlines so it can sell the shares to other investors. The Hungarian government is expected to approve the transaction this month, and talks with Alitalia on the buy-back price would follow. The Italian flag carrier paid $77 million for the stake at the end of 1992. Almost five years after their capitalistic linkup, the companies have failed to develop a real partnership.
TWA's May traffic declined 8.1% on 8.4% less capacity, which resulted in a 0.3-percentage-point rise in load factor to 67.8%. TWA cut capacity on several international routes this year, and year-to-date international capacity fell 24.3% while the international load factor grew to 72.6%. Domestic traffic in May dropped 0.9% on 2.7% less capacity, boosting the domestic load factor 1.2 points to 66%. May 97 May 96 5 Mths 97 5 Mths 96 RPMs 2,108,248,000 2,293,216,000 9,733,546,000 10,236,627,000
U.S. negotiators have a substantially liberalized Japanese aviation agreement within their grasp if they will only abandon open skies, according to a Western aviation industry observer familiar with Japan's position. The source, a supporter of phased liberalization if the alternative is nothing, echoed comments made in recent months by Japanese officials suggesting open skies is not a realistic option in bilateral negotiations. But he said the U.S. does not fully appreciate how far Japan will go, having stopped probing its position in the absence of open skies.
Atlas Air will buy 10 Boeing 747-400 freighters powered by GE engines, the carrier said yesterday, taking delivery of four in 1998, two in 1999, three in 2000 and one in 2001. Atlas took options to buy 10 more aircraft. The company will finance the buy through leveraged leases and enhanced equipment trust certificates.
Vivid Technologies Inc., Woburn, Mass., said it received a U.S. patent for a device that combines transmission and scatter X-ray technology to detect thin explosives and contraband. Offered as the Scatter Detection Enhancement option on Vivid's standard explosives detection systems for airport security, the device can detect sheet explosive "even when it is concealed in baggage containing many items that are thicker and heavier than the sheet explosive," the company said.
Southwest traffic for May increased 4.5% on 7.3% more capacity, which forced the load factor down 1.7 percentage points to 64.3%. For five months, the load factor has dropped 0.2 points to 62.3%. May 97 May 96 5 Mths 97 5 Mths 96 RPMs 2,378,292,754 2,276,617,608 11,096,537,164 10,256,282,809 ASMs 3,700,560,350 3,448,215,490 17,812,544,410 16,399,031,291 LoadFtr% 64.3 66.0 62.3 62.5
House Ways and Means Chairman Bill Archer (R-Texas) proposed yesterday a combination of a ticket price tax and a head tax to replace the current 10% domestic airline passenger ticket tax, beginning Oct. 1 (DAILY, June 9). As part of the budget reconciliation package, Archer also is proposing sharp increases in international taxes but only a continuation of current air cargo waybill taxes and noncommercial jet fuel and aviation gasoline taxes.
FAA said it will issue today its planned notice of proposed rulemaking to require fire detection and suppression systems in "inaccessible" aircraft cargo compartments by 2001. The NPRM, expected to go on display today at the Federal Register, would affect nearly 3,000 aircraft, 300 of them cargo aircraft that would need detection systems and means of shutting off airflow. It estimated life cycle cost of the NPRM at $296 million fleetwide and $90,000 per aircraft.
Representatives of personnel throughout Delta met last week in New York with members of the board's selection committee and search consultant Spencer Stuart to discuss the selection of a replacement for Chairman, President and Chief Executive Ron Allen. The Air Line Pilots Association has input through its pilot on the board, Capt. Mark Halsor.
An Israeli government commission has recommended the privatization of El Al, but industry and airline sources expect the latest push to take the carrier public to meet the same stonewalling that occurred in the past. The newest government proposal calls for selling the airline on the Tel Aviv Stock Exchange by the end of next year. Employees would be offered 10% of the company at a 30% discount, and the majority of shares would be held by Israelis. The airline has an estimated book value of $300 million.
Summary of U.S. Major Carriers Domestic Traffic Fourth Quarter 1996 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) Alaska 2,609 7.17 803 2,094,437 America West 4,520 9.16 857 3,875,434 American 16,018 2.36 1,112 17,816,076
Delta has reversed an earlier decision to remove L-1011s from its Atlantic operation and is using the aging aircraft to launch service from New York Kennedy to Madrid and Manchester. The carrier still plans to retire all L- 1011s by 2001.
Talks between Alitalia and the European Commission on Italy's proposed 3.3 trillion lire (US$1.9 billion) capital injection into the troubled airline have reached a "very sensitive and political stage," according to the spokeswoman for European Union Transport Commissioner Neil Kinnock. Italian Industry Minister Claudio Burlando and Kinnock met for three hours in Brussels last Friday but declined to make public statements after the meeting.
