German Transport Minister Matthias Wissman, during Star Alliance ceremonies in Frankfurt Wednesday, heralded the partnership of United, Lufthansa, SAS, Air Canada and Thai Airways as a reflection of open skies policies, open competition and liberalization. He said the companies are following the philosophy set forth in the air transport agreement signed by the U.S. and Germany last May, and the airlines are on track to "use opportunities of a changed environment worldwide" (DAILY, May 15).
AlliedSignal Aerospace announced certification by FAA of its TFE731-20 turbofan engine, the 3,650-pounds-thrust powerplant for the Lear 45 business jet. The engine provides 15% better cruise performance and 9% better fuel economy than previous models, the company said. It will enter service with intervals of 2,500 hours between major periodic inspections and 5,000 hours between compressor zone inspections.
Airbus Industrie executives, hosting reporters this week in Toulouse, are asking whether or how the planned Boeing-McDonnell Douglas merger will affect the giant aircraft order divided between the two companies two years ago by Saudi Arabia. Boeing's answer: the customer will decide.
European Competition Commissioner Karel Van Miert tomorrow is expected to put foward rules that would give the European Commission authority over airline alliances involving carriers from outside the European Union as well as ones within it.
U.S. Major Carriers Pacific Share of Service Fourth Quarter 1996 Total Revenue Departures American 521 Delta 702 Northwest 6,044 United 5,923 Total 13,190 Average Number of Seats Per Departure American 232 Delta 265
GRA Aviation Specialists Inc. has issued the second edition of The Guide, its jetliner value reference book. The publication contains profiles of 65 jet aircraft, including current and future values, list and lease prices, specifications, and order and delivery information.
European Union Competition Commissioner Karel Van Miert dismissed as "totally nonsensical" talk of a potential trade war between Europe and the U.S. in the event he blocks the Boeing/McDonnell Douglas merger.
Airbus Industrie officials yesterday defended their forecast of a 20-year market for more than 1,400 very large aircraft - such as its prospective A3XX - saying most skeptics come from Europe while most of the market is in the Asia/Pacific region. Estimating that 74 airlines will need 1,440 VLAs, Adam Brown, VP-strategic planning, pointed out that two-thirds of passenger 747s serve only 20 airports and the top nine airport pairs are in the Asia/Pacific region.
Banner Aerospace said this week it will offer its shareholders rights to buy preferred stock, using the proceeds to reduce debt. It will issue rights to as many as 5.2 million shares of convertible preferred stock at a rate of one non-transferable right per 4.5 shares of common held as of May 23. Subscribers will be able to buy one share of preferred for one right plus $9.20. Assuming approval of its registration statement by the Securities and Exchange Commission, the company expects to end the subscription period June 18 but may extend it as late as June 30.
Air Canada traffic for April rose 7.3% on 3.4% more capacity, which raised the load factor 2.5 percentage points to 69%. International traffic led the rise, up 9.3%, while domestic traffic grew 3.7%. During the first four months of the year, traffic increased 8.6% on 4.9% more capacity.
TWA announced yesterday added service to London, Barcelona and 10 domestic points. A second daily St. Louis-London flight will start today (DAILY, May 13) and New York-Barcelona service June 15. St. Louis will get more flights to Colorado Springs, Portland, San Francisco, Seattle, Chicago and Salt Lake City, and TWA's Kennedy hub will add flights to Las Vegas, Orlando and San Francisco.
U.S. airlines are ahead of schedule to install smoke detection systems in cargo compartments and are acting voluntarily on fire suppression as well now that the Environmental Protection Agency has approved use of halon for suppression systems, Air Transport Association President Carol Hallett said yesterday. Installation of detection systems likely will start by the beginning of the fourth quarter, she said, during regular C and D maintenance checks, and it will take several years to equip the more than 3,000 aircraft involved.
Niche carrier ProAir answered DOT inquiries about its financial situation and startup plans (DAILY, May 9), and with its FAA air carrier certificate in hand has asked the department to issue a final fitness order. Its original plan was to base operations at Detroit City Airport, and it aims for that goal. But it cannot operate there until it gets environmental- impact approval, which has been delayed. ProAir said it has made arrangements to operate temporarily at Detroit Metropolitan Airport, provided it gives two weeks' notice.
Kitty Hawk said it has increased its aircraft-crew-maintenance-insurance business with Burlington Air Express, providing two more 727-200 cargo aircraft under two-year contracts with renewal options.
Fuel Cost and Consumption U.S. Majors, Nationals and Large Regionals April 1996- March 1997 Total Total Cost Gallons (Dollars) 1996 April Domestic 1,077,888,886 695,741,756 International 352,573,608 251,259,146 System Total 1,430,462,494 947,000,902
One day after filing a lawsuit against the City of San Francisco to prevent enforcement of the domestic-partner ordinance, the Air Transport Association prepared for legal maneuvers while discussing with the city solutions that could terminate the suit. The city's Board of Supervisors last November unanimously passed an ordinance requiring companies that do business with the city to extend employment benefits to registered, non- married domestic partners, aimed at gay and lesbian couples.
Code-share partners Continental and America West yesterday won top honors in frequent flyer customer satisfaction from J.D. Power&Associates and Frequent Flyer magazine. The survey, based on 7,000 flights by 2,500 U.S. frequent flyers, rated Continental best for long-haul service and America West best for short-haul. It was Continental's second straight victory. America West's rise among short-haul airlines was striking - it was a distant fifth last year. In flights of 500 miles or more, No. 2 was TWA, with United third and Southwest and American tied for fourth.
United, Lufthansa, Air Canada, Thai Airways and SAS launched their global partnership, Star Alliance, yesterday in Frankfurt while confirming that Brazilian carrier Varig will become the sixth airline to join and promising to search for other partners. Varig President and Chief Executive Fernando Pinto signed an agreement committing his carrier to become a member by October.
Decisions on the sale of stakes in Aerolineas Argentinas and Iberia are "closely linked," said Continental Chairman Gordon Bethune, indicating that the winner of the Argentinian contest will raise its stature significantly in South America and Europe. Continental and American are competing for a shareholder's role in both contests, and the winner of the battle for Aerolineas is expected to be announced first. The Aerolineas decision, expected several weeks ago, has been delayed and Continental has taken the extra time to revisit its original proposal.
British Airways has signed an agreement with ADI Group Ltd. involving its ground-handling business for corporate and private aviation based at London Heathrow. BA's current ground-handling operation, Executive Aircraft Services, will be transferred to the new company, Executive Aircraft Services Ltd., which will be operated by ADI.
British Airways has begun to focus some of its marketing efforts on attracting business from the gay and lesbian community. BA announced it has joined the International Gay&Lesbian Travel Association and hosted a booth for the first time at the group's convention last weekend. "Rather than developing new products aimed specifically at the gay and lesbian market, we're working to make sure our British Airways Holidays product line offers great vacations to all travelers," said Jill Donaldson, VP- leisure marketing.
Vanguard Airlines lost $7.9 million in the first quarter, up significantly from a net loss of $5.9 million the year earlier. Operating revenues increased 53% to $21.5 million, and operating expenses rose to $28.9 million from $20 million. Vanguard Chairman John Tague said he is "disappointed" with the results, but they should be reviewed in the context of the airline's December restructuring. The airline chose to focus on building a hub in Kansas City, and two-thirds of the markets Vanguard now serves came from the restructuring.
Aviation Information Resources, Inc. (AIR) has made its 1997-1998 U.S. airlines salary survey available for purchase (DAILY, April 14). The 140- page booklet estimates average monthly pay rates for pilots at 53 airlines. Cost is $35 to AIR Inc. members and $40 for non-members. To order, call 800-AIR-APPS.
International Association of Natural Resource Pilots will hold its annual workshop June 22-25 at the Hotel Santa Fe in Santa Fe, N.M. Hosted by the New Mexico Department of Game and Fish, the meeting will feature presentations on fields related to conservation aviation, such as remote sensing, wildlife aerial surveys, law enforcement, forest fire detection and suppression, and aerial photography. For more information, call Francis Satterlee at 703-560-1271.
Pan Am will triple the number of flights it offers between New York Kennedy and Los Angeles - from one to three daily roundtrips - starting June 1 after taking delivery of its fifth and sixth A300s. Pan Am also said it expects to complete its acquisition of Carnival Air Lines in June.
