Interactive Flight Technologies, Phoenix, Ariz., elected President and Chief Operating Officer Tom Metzler to the board of directors. Board members Adam Aron, Brian Barents, Alexander Haig, Michail Itkis, Yuri Itkis, John Pritzker and James Zukin were re-elected. The company adopted a 1997 stock option plan providing for issuance of up to 1.5 million shares of Class A common stock, 8.3% of outstanding shares, upon exercise of options.
Federal Express Chairman Frederick Smith told the subcommittee he was "astounded" by Murphy's statement that Japan was meeting its obligations under a 1996 Memorandum of Understanding that has opened new routes for UPS and Polar Air Cargo. Although it was not part of the written agreement, Smith said FedEx was assured at the time that agreement to the MOU also meant 1952 rights would be respected, including FedEx's status as an incumbent carrier to launch new beyond service from Japan.
British Airways, unveiling 16 of its planned 50 painted tails last week, chose lesser-known artists to create its global image. They include a Dutch former graffiti artist, an abstract artist tribeswoman from the Kalahari desert and a Polish folk artist who cuts colored paper to create designs.
Summary of U.S. Major Carriers International Traffic November 1996 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) Alaska 72 28.24 1,089 78,172 Latin 72 28.24 1,089 78,172
DOT Secretary Rodney Slater's speech to the International Aviation Club tomorrow has been moved to an earlier time because of a scheduling conflict. Cocktails will begin at 11:30 a.m., as usual, Slater will speak at 12:15 p.m., and lunch will be served at 1 p.m. The event will be held at the Grand Hyatt Hotel, Independence Ballroom A, 1000 H Street N.W., Washington, D.C.
ValuJet is making several schedule changes July 10, including two new peak daily nonstops in each of two markets, Washington Dulles-Chicago Midway and Boston Logan-Philadelphia. The new service will have a big impact on fares in the latter market, which had the second largest increase in fares of any city-pair in the third quarter of 1996, rising to an average of $145 from $76 a year earlier, according to DOT data.
Environmental Protection Agency support for halon-based aircraft fire suppression systems is contingent on continued work toward non-halon systems for future aircraft, and an airline anathema - waterspray - stands out as a "very promising alternative," FAA said last week in its fire suppression rulemaking (DAILY, June 10&12). FAA, which has worked extensively but unsuccessfully to develop waterspray systems for passenger cabins, said applying the concept to cargo compartments as well might make it feasible.
U.S. and Malaysia initialed an open-skies agreement last week at the embassy in Kuala Lumpur, DOT said Friday. It is the standard open-skies pact with the addition of seventh freedom rights for cargo operators, a feature contained in some past agreements, including Singapore's, Brunei's and Germany's. It permits U.S. cargo carriers, for example, to operate a regional hub from the host country.
Summary of U.S. Major Carriers Domestic Traffic November 1996 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) Alaska 822 0.90 805 661,746 America West 1,406 2.37 848 1,191,736
A key Justice Department official last week identified some of the major features DOJ looks for in predatory activity investigations, minimizing the importance of pricing alone but scrutinizing capacity increases and the launch of new routes by incumbents. Roger Fones, chief of the Transportation, Energy and Agricultural Section's antitrust division, spoke Thursday to the American Bar Association's Forum on Air and Space Law in Seattle.
In Federal Register dated June 6...Proposed an airworthiness directive on certain Boeing 767 aircraft requiring replacement of the retaining bolt of the attendant seat lap belt...Proposed an AD on certain Boeing 767-200 and -300 aircraft requiring inspection of wire bundles in the ceiling above the main passenger door, and relocation of the wire bundles to prevent chafing.
Delta and TransBrasil signed a letter of intent to pursue a joint marketing agreement. Delta, which has been phasing out of its alliance with Varig, said it expects the TransBrasil relationship to include "enhanced interlining of passengers and freight," schedule coordination to improve passenger connections, computer reservations system cooperation, sharing of facilities and passenger service at joint airports, and participation in each others' frequent flyer programs.
American Society of Travel Agents is on a mission to eliminate card mills, companies that issue travel agency identifications - for a fee - to people who then seek travel discounts by representing themselves as agents. ASTA will file a petition with the Federal Trade Commission for a rule to prevent the card mills from offering credentials to anyone who has no connection with selling or managing retail travel, and it will develop a model bill for state legislatures. An ASTA official said the FTC petition will be filed as soon as it is written.
In a House Transportation aviation subcommittee hearing last Thursday originally intended to focus on U.S.-Japan issues, DOT Deputy Assistant Secretary Patrick Murphy emphasized repeatedly that the U.S. will not grant American and British Airways immunity to U.S. antitrust laws until the British agree to an open skies treaty. Murphy addressed U.S.-U.K. issues because the previous day's U.S.-U.K. hearing was postponed (DAILY, June 11). He said open skies is an absolute prerequisite for alliance approval but would not guarantee antitrust immunity.
United is installing an automated system for ordering meals from all U.S. catering locations. The system is intended to provide more accurate delivery of meals to aircraft and reduce costs $700,000 per year. Two United groups, Onboard Service and Information Services, introduced the system at all 104 U.S. catering locations. The Unix-based Central Meal Ordering (CMO) unit replaces United's FAMIS system.
World Airline Entertainment Association has revised the mission of its Technical Committee, commissioning it to identify and incorporate emerging audio, video, communications and data storage technologies as they apply to inflight entertainment (IFE). The committee will work with other industries, such as computers and communications, in an attempt to make sure product standards and formats are compatible with IFE needs, WAEA said. The committee will meet July 25 in Southern California.
US Airways had more fare disparity versus competitors than any other U.S. airline in markets it controlled in the third quarter of 1996. DOT data show that in markets of 151-200 miles, US Airways had the highest average one-way fare, $231, in one market while the average in more than half of the other markets was less than $83; in 201-250 miles, US Airways charged $240 in two markets while the average in 15 of 24 was under $100; in 251- 300 miles, it averaged $255 in one market while 33 others averaged less than $200.
Congressional anger with Japanese bilateral actions is building at the same time aviation industry segments increase their support for an expanded deal that falls short of open skies. United yesterday joined other carriers in urging the U.S. to sign a liberalized agreement. Several members of Congress attacked Japanese trade policy and the chairman of the House Transportation Committee has drafted retaliatory legislation. The clash is developing as DOT reviews Japan aviation policy "from top to bottom," according to Deputy Assistant Secretary Patrick Murphy.
Delta Connection affiliate Comair posted last month a 15.6% increase in revenue passenger miles - compared with May 1996 - to nearly 152 million as capacity rose 10.6% to 251.6 million available seat miles. The resulting LF, 60.4%, was up 2.6 percentage points.
Northwest Airlink affiliate Mesaba Airlines enjoyed a 3.1-percentage- point increase in passenger load factor to 55.5% from 52.4% as capacity increased 32.6% to 87.2 million available seat miles while traffic rose 40.3% to 48.4 million revenue passenger miles. Passenger boardings increased 32.7% to 207,000. May 1997 May 1996 5 Months 1997 5 Months 1996 RPMs 48,390,000 34,496,000 202,048,000 157,919,000 ASMs 87,181,000 65,772,000 396,712,000 316,302,000
