American Chairman Robert Crandall will speak with Charles Barclay, president of the American Association of Airport Executives, on this week's Aviation News Today, to be broadcast Sunday on Washington's NewsChannel 8 from 12:30 a.m.-1 a.m. and from 1:30 p.m.-2 p.m.
Alaska Air Group subsidiary sustained a 0.9% decline in traffic last month to 68.4 million revenue passenger miles, but capacity was off 5.7% to 114 million available seat miles, compared with May 1996 figures. The load factor as a result rose three percentage points to 60.1% from 57.1%; boardings were off 6.1% to 289,100.
The Sabre Group has reorganized itself to spur information technology growth by combining its two IT divisions, Sabre Decision Technologies (SDT) and Sabre Computer Services (SCS), effective immediately. The move will merge Sabre's consulting, outsourcing, applications development and data center operations, said Michael Durham, president and chief executive. SDT President Thomas Cook will be president of the new division and SCS President Bradford Boston will be executive VP. Durham said the change will make Sabre "the premier technology solutions provider" worldwide.
El Al Israel Airlines took delivery of an extended-range 757, its eighth of the type and fifth with extended range, for use on routes to Europe and Africa. The carrier is leasing the aircraft with an option to buy it.
United will introduce a "bigger, better Boeing" today in service between Los Angeles and London Heathrow, replacing the current equipment on the route, a 767, with the longer-range Boeing 777B. The 777B offers the same 292 seats in three classes as on United's 777As but has higher-thrust engines, longer range and a heavier payload. It will be United's first aircraft in transatlantic service with a business section equipped with the Connoisseur Class seat, which has so many features, flight attendants hand out instructions on how to use it.
Representatives of general aviation users urged the National Civil Aviation Review Commission yesterday to drop a draft proposal to double the aviation gasoline tax and almost triple the non-commercial jet fuel tax over the next five years. Under a staff draft considered this week, avgas fuel would increase four cents per gallon each year in fiscal 1999 through 2002 to 31 cents from the current 15. Over the same period, the jet fuel tax would rise eight cents per gallon each year to 51.5 cents from the current 17.5 cents.
TWA named advertising executive Donald Casey executive VP of marketing. Casey, formerly the chief executive of design firm Landor Associates and an executive with Landor's parent, Young and Rubicam, will be responsible for worldwide marketing and sales, airport operations, revenue management and cargo. He worked for TWA from 1968 to 1981, leaving as senior VP- marketing. Rod Brandt, currently senior VP-marketing and planning, will return to his former role as senior VP-planning, reporting to Chairman Gerald Gitner.
U.S. officials expect to initial an open skies agreement with Korea in July, DOT Assistant Secretary Charles Hunnicutt said in testimony prepared for yesterday's Senate Commerce aviation subcommittee hearing on the American-BA alliance.Hunnicutt added the U.S. is "very close to reaching final agreement" with Malaysia. Talks are proceeding at the embassy in Kuala Lumpur.
Dallas/Fort Worth parties support the American/TACA code-share proposal to alter an "abysmal pattern of service" from that point to Central America. Dallas/Fort Worth Airport, home hub for American Airlines, has little service to the region despite being the world's third-busiest airport in enplanements, the Cities of Dallas and Fort Worth, their respective chambers of commerce, the DFW International Airport Board and the North Texas Commission said in a DOT filing this week.
United recorded a 3.1% traffic gain in May on 3.3% higher capacity, which lowered the load factor 0.1 percentage points to 71.5%. Atlantic and Latin American operations both posted increases during the month. Atlantic traffic rose 18% on 15.9% more capacity, improving the load factor 1.5 points to 85.5%. Latin American traffic grew 5.2% on 2% less capacity, which pushed the load factor up 4.1 points to 59.7%. North American traffic gained 1.7% on 1.3% more capacity. Cargo ton miles were up 19.5%.
Western Pacific Airlines reported a 42.9% increase in revenue passenger miles in May to 169.6 million from 118.7 million in May 1996. Capacity rose 22.8% to 258.4 million, driving the load factor up to 65.6% from 56.4%. For the first five months of the year, traffic rose 25.6% to 696.8 million RPMs and capacity 31.2% to 1.3 billion ASMs, while the load factor fell 2.5 points to 55%.
ValuJet's traffic continues to improve each month, as decreases in traffic over last year continue to shrink. In May, revenue passenger miles were down 34.7% to 124.6 million from 191 million a year earlier, while capacity fell 34.8% to 236.1 million available seat miles. The load factor rose 0.1 percentage points to 52.8%. For the first five months of the year, traffic was down 58.3% to 526.2 million RPMs from 1.3 billion, and ASMs declined 56% to 958.2 million from 2.2 billion, resulting in a load factor drop of 3.1 points to 54.9%.
American Airlines Fly AAway Vacations is offering tour packages to overseas visitors for the first time. One example is a stay at the Mayan Dude Ranch near San Antonio, Texas, that includes two horseback rides per day, fishing, hayrides, nature trails, swimming, tennis, volleyball and basketball, three meals a day including a cowboy breakfast cooked on the "open trail," Mexican fiestas and complimentary beer and wine. The package costs $266 per person, based on double occupancy, for three days and two nights.
Continental traffic for May jumped 13.3% on a capacity increase of 8.4%, which pushed the load factor up to a record 71%, 3.1 percentage points more than in May 1996. International traffic gained 28.2% on 20.8% more capacity, increasing the international load factor 4.1 points to 70.4%. Domestic traffic rose 8% on 3.8% more capacity, and the domestic load factor grew 2.7 points to 71.2%. Cargo rose 12.9% in May to 46.2 million revenue ton miles and has risen 17.2% year-to-date. May 97 May 96 5 Mths 97 5 Mths 96
Seven international airlines have filed motions for a stay of the collection of overflight fees by the FAA, supporting the Air Transport Association of Canada's (ATAC) earlier filings. "This takes the issue to a new level," said Bob Kneisley, attorney for ATAC. While a court can take a long time to respond to motions of appeal, it normally acts faster on a motion to stay a process. The seven airlines - British Airways, Qantas, KLM, Air New Zealand, Lufthansa, LTU International and Asiana - are the same carriers that joined ATAC in suing the FAA, Kneisley said.
Labor strife from two unions is clouding the British Airways Business Efficiency plan that aims to cut costs #1 billion during the next three years. Some 9,000 ground workers in the U.K. and 8,500 cabin crew plan strike ballots in separate disagreements with the airline. Each group could vote to strike by the end of this month. The Transport and General Workers Union is protesting BA's planned divestiture of its Heathrow inflight catering unit, even though BA has guaranteed all 1,200 jobs and worker pensions.
Moody's Investor Service has lowered Japan Airlines' senior unsecured long- term debt and other ratings. Despite the improvement in global airline industry health, "JAL's relatively poor cost structure is likely to continue to adversely affect future profitability," Moody's said. The ratings agency also is concerned that increasing domestic and international competition will step up pressure on JAL's margins. JAL, barely profitable since fiscal 1992, lost $74.5 million last year (DAILY, June 2).
UPS pilots are hoping that a close call involving Air Force One, with the President and the First Lady on board, and a UPS 747 will prompt the Clinton administration to require collision-avoidance equipment on large cargo aircraft. The incident occurred May 27 shortly after midnight 213 miles west of Shannon, Ireland, at about 28,000 feet. The two 747s, one climbing and the other descending, were within seven seconds of closing their distance had their pilots not taken evasive action, the Independent Pilots Association (IPA) estimates.
The first of Cathay Pacific Airways's Rolls-Royce Trent 700-powered A330s will return to service today following an 11-day voluntary grounding. The airline completed testing yesterday and reached agreement with regulatory authorities in England, France and Hong Kong to reinstate service. Cathay's A330 service resumes with Flight 506 from Hong Kong to Osaka, and the carrier expects all 11 A330s to be operational within a week, "but it could happen sooner," said spokeswoman Diana Fung.
The work-to-rule action launched last weekend by Air France's Syndicat National des Pilotes de Ligne (SNPL) has had no effect on traffic, the French flag carrier said. Air France has taken steps in recent days to neutralize the radical union's influence over pilots, including adoption of accounting measures needed to withhold pay from strikers. During previous conflicts, the airline could not distinguish striking pilots from non- strikers. The work-to-rule action is due to last until Friday.
Raytheon Aircraft will form Raytheon Travel Air, a company offering fractional ownership of its turboprop and jet aircraft, and will place nine new turbine aircraft in the program this year, Raytheon said yesterday. Outlining examples of its offerings, Raytheon said one-fifth ownership of a new King Air B200 will cost about $788,000, a quarter share of a Beechjet 400A will cost $1.513 million and a quarter share of a Hawker 800XP will cost $2.79 million.
American chief Robert Crandall heaped praise on a General Accounting Office report reviewing U.S.-U.K. issues yesterday, but obstacles to approval of the American-British Airways alliance seemed no smaller after testimony before the Senate Commerce aviation subcommittee. Airline opponents continued their attacks, DOT outlined a U.K. negotiating position that could slow down approval further, and various parties, including GAO, offered no widely accepted solution to slot availability problems at London Heathrow.
Top 25 Domestic City-Pair Markets O&D Passengers Fourth Quarter 1996 1996 1995 Average Mkt Mkt Passengers Top Carrier Rank Rank City-Pair Per Day (% Share) 1 3 Los Angeles - New York 7,897 American (34.7) 2 1 Chicago - New York 7,269 United (42.9) 3 2 Honolulu - Kahului 7,107 Aloha (46.5)
Northwest objected to United's request for immediate use of Russian overflight frequencies, which have again become useful now that the FAA permits routing over Afghanistan airspace (DAILY, May 22). Northwest questioned whether there are enough frequencies for all interested parties, including Northwest, which does not want United to be granted temporary use while the issue is sorted out.
