ValuJet will use AMR Corp.'s Sabre computer reservations system for ticketing and distribution, the carrier said Friday. ValuJet will continue to use its own booking system, which accounts for 75% of all sales. The carrier's decision to add a traditional CRS was made public late last month at the company's shareholder meeting, where Chief Executive Joseph Corr said listings will appear by midsummer, followed by online booking (DAILY, May 23).
Concern is building at FAA and in industry circles that once all ground- based navigation aids are phased out, civilians will have no control over a Global Positioning System-based, sole-source air navigation system. Air Force refusal to consider an FAA request for a joint-use Satellite Navigation Center is a case in point. Another worry: whether the Air Force can sustain a 24-satellite system in the face of budget cuts.
LanChile's $300 million purchase of three 767-300ERs for delivery beginning next year (DAILY, May 29) is being financed entirely by a Canadian bank, airline officials said. The carrier purchased options for two more of the aircraft, and the deal, following a recent $70 million capital investment program, brings its total commitment to $370 million over the next three years.
Shareholders of Messier-Bugatti and Carbone Industrie agreed last week on a merger of the companies. The new entity will be known as Messier-Bugatti and will be headed by current Messier-Bugatti Chairman Yves Leclere.
All Nippon Airways posted a 3.9 billion yen (US$31.4 million) net profit for fiscal 1996-97, up 26.6%, despite sharply higher fuel costs and a weak Japanese yen. Although ANA projected revenues of 880 billion yen, revenue came in above the estimate, up 4.9% to 887.4 billion yen ($7.15 billion). Expenses increased 6% to 869 billion yen. Load factor dropped 1.5 percentage points to 67.7%, while international capacity rose 17.4% and domestic 5.6%.
Teamsters Union and Air Canada have reached a tentative agreement on a new 30-month contract, subject to member ratification. The union said details of the agreement will be made available Wednesday.
The Texas legislature has dropped all consideration of aviation fuel taxes that could have cost airlines operating in the state as much as $100 million a year. The Senate dropped aviation taxes from its revenue bill, but a conference committee of the House and Senate still tried to reach a compromise on the House proposal. The last version considered was a two- cent-per-gallon fuel tax, down from 10 cents when first proposed by a House committee and from four cents in the House bill (DAILY, April 15).
Eastwind Airlines has switched to a new PC-based reservations system, a modified version of Wings 2000 produced by Support Systems International. The program provides Arinc connectivity to Sabre, System One, Apollo and Worldspan. Eastwind will have Internet booking capability by the end of June. Ron Peri, president of Support Systems, said Wings 2000 "leapfrogs Eastwind ahead of the majors in reservation system technology."
China Airlines said it will add seven new aircraft to its fleet before the end of this year and 11 more in 1998. The additions will raise CAL's fleet to 52 aircraft, and by 2003, it expects to have 67 aircraft. Passenger aircraft scheduled for delivery this year are four 747-400s and two A300- 600Rs. In 1998, CAL will accept delivery of two 747-400s and eight 737- 800s. The expanded capacity will enable CAL to increase weekly frequencies on its Taipei-Los Angeles route to 11, beginning June 21, and to 14, beginning Jan. 16, 1998.
America West and National Car Rental have formed a partnership to offer FlightFund members more miles. Members will earn 500 miles for every National rental. Double miles are being offered until July 31 in the U.S. and Canada.
Air Express International said it acquired 50% of Korea Air Freight, its agent in South Korea for the past 20 years. The joint-venture company will be renamed AEI Korea Ltd. Y.T. Lee, Korea Air Freight president and principal shareholder, will become president of the new enterprise.
Global Leisure Inc., a startup travel company in Seattle, has taken a majority stake in Sunmakers Travel Group and intends to acquire Jetset Tours Inc., North America. Led by investment banker Mike Lavigne, Global intends to cater to the expanding international leisure travel market. Los Angeles-based Jetset, an air ticket consolidator, packages tours to the South Pacific, Asia and Europe. Sunmakers owns tour company Maupintour. "Our immediate plan is to operate Sunmakers, Jetset (NA) and Maupintour as three sister companies, working together in synergy," Lavigne said.
Building on a strength, United intends to increase capacity 5% a year at Los Angeles, according to Senior VP-Planning Rono Dutta. L.A. accounts for 17% of United's system revenue, third behind Chicago, 24%, and Denver, 18%.
Japan Airlines posted a net loss of $74.5 million for fiscal 1996, blaming a "sluggish" Japanese economy and higher fuel prices. In contrast, All Nippon Airways, which made a profit last year (see ANA story below), said the domestic economy "is continuing its moderate recovery." JAL's earnings were down drastically from the previous year, when it reported a $4 million net profit. Revenues increased 7.1% to $9.64 billion, but expenses rose more, gaining 8.2% to $9.6 billion.
Comair, as expected, announced Friday an order for as many as 75 Canadair Regional Jets, including firm orders for 18 of the 50-seat aircraft, valued at $330 million, conditional orders for 12 and options for 45 (DAILY, May 30). Some of the options could be converted to Canadair's 70-seat jet, introduced this year. The Delta Connection carrier said the order maintains its position as the operator of the "largest fleet of regional jets." The Cincinnati-based airline, launch customer for the Canadair Jet in 1993, now has 50 aircraft.
Twelve airlines met with Boeing and other manufacturers last week to develop an industry response to recommendations by the National Transportation Safety Board related to the crash of TWA Flight 800. The discussions centered on preliminary recommendations on controlling fuel temperatures, reducing in-tank fuel vapors and other procedures.
Most host computers that access FAA's Aviation Safety Data site on the World Wide Web are operated by Internet service providers, according to the General Accounting Office. Other frequent users are the Air Force and airlines. About 10% of people who access the site do so using a computer outside the U.S., mostly in Germany and Canada.
DOT Secretary Rodney Slater and Interior Secretary Bruce Babbitt appointed Thomas Chapman, Aircraft Owners and Pilots Association senior VP- government and technical affairs, to the National Parks Overflights Working Group. National Council for Women in Aviation/Aerospace elected Kathleen Brown, senior evaluator navigator of the 141st Operations Group of the Washington Air National Guard, to the board of directors.
U.S. and France have agreed to meet July 9-10 in Paris for another round of bilateral talks. The last session, in Washington, ended at a cordial impasse as France proposed phased-in liberalization falling short of open skies. This month, U.S. negotiators will meet with Barbados, to discuss open skies, and Egypt, which wants more modest liberalization. A DOT spokesman said the U.S. expects to meet with Korea on open skies "later this summer."
American stands to reap a tidy profit if it does not buy the US Airways-run shuttle (DAILY, May 30).Its contract with the banks that own Shuttle Inc. includes a $10 million breakup fee, to be pocketed by American if US Airways exercises its option to buy the shuttle and the American deal falls through.
McDonnell Douglas DC-10, Systemwide Aircraft Utilization Per Day, Fourth Quarter 1996, DC-10-10, DC-10-40, DC-10-30 McDonnell Douglas DC-10 Systemwide Aircraft Utilization Per Day Fourth Quarter 1996 DC-10-30 American United Total Number of Aircraft Operated 14 25 39 Total Fleet Operations Departures 24 63 87
FAA said Friday it selected Booz-Allen&Hamilton to conduct a congressionally mandated review of its new acquisition system, which has been touted as a test case for streamlining the federal acquisition process across government agencies. The firm, under a $156,837 contract, also will review FAA efforts to promote full and open competition for contracts above $50 million, said George Donohue, associate administrator for research and acquisition.
Varig posted a 7% traffic gain in April, to 1.86 billion revenue passenger kilometers. Traffic for the first four months of the year rose 8.9%. Varig carried 5.3% more passengers in April. Domestic passengers comprised 73% and international passengers 27% of the total. The domestic load factor was 57.2% and international 64.9%. Year-to-date freight ton kilometers reached 394 million.
