Comair agreement this week to code-share with AirTran Airlines in Florida is but the latest in a string of multiple market agreements by Delta Connection carriers and other captive regionals (see related story, Page RA3 of the hard copy of this issue). Delta affiliate Business Express also code-shares with Northwest and now American; Connection carrier SkyWest feeds Continental at Los Angeles and is exploring other opportunities to boost its Los Angeles market.
U.S. and Ukrainian negotiators conclude two-day talks in Washington today. The parties are revising an annex that expires at yearend, and the U.S. is seeking more liberal route rights.
Departing from an earlier draft, the General Accounting Office shied away from making recommendations to Congress on the allocation of costs for air traffic control services, and on what share of ATC costs the Defense Department accounts for. In a report sent to Congress April 28 but not yet issued publicly, GAO listed issues Congress and the administration must deal with to resolve the user fee issue. At the top of the list is the need for "accurate and reliable cost data" to develop a cost-based user fee structure.
Atlantic Coast Airlines has appointed Jennifer Heronema as public relations manager, effective April 28. Heronema is a former staff writer and editor for the Army Times Publishing Company in Springfield, Va. She was a writer and editor for the weekly Space News between 1994 and 1996, and from 1996 until April 1997 was associate editor of Air Force Times. Atlantic Coast operates 29 Jetstream 41s, 29 Jetstream 32s and has on order 12 Canadair jets with an option through 2002 for 36 more.
Rep. Robert Menendez (D-N.J.) introduced legislation (H.R.1483) this week to subject non-military government aircraft to safety regulation by DOT. Exempting public aircraft from DOT safety regulations is "an unsafe relic of the past," Menendez said. "There is no reason to allow public aircraft to operate under a lesser standard of safety than is required of the private sector - except cost."
Northwest Airlines' pilots will receive a 3% pay increase, retroactive to Oct. 31, based on an arbitrator's decision resolving a disagreement with the Air Line Pilots Association. The company said the issue "was a good faith disagreement between Northwest and ALPA over the meaning of one paragraph in a 400 plus-page contract that was negotiated in 1993." The agreement contained provisions dealing with a "snap-up" to reflect the pay rates of competitors after pilots gave wage concessions. The arbitrator denied ALPA's request that Northwest pay interest on the wages.
SimuFlite Training International said FAA issued it the first Part 142 Training Center certificate, meeting national standards for training centers that use simulators and training devices. SimuFlite said its certification process lasted nine months. All Part 142 training centers must be certified by Aug. 3, 1998.
Continental inaugurated daily Newark-Lisbon service yesterday, using a 757. The carrier is the only airline to offer daily, year-round nonstop service to Lisbon from the New York area.
Alaska Air Group subsidiary Horizon Air posted a pretax loss of $3.8 million in the quarter that ended March 31, compared with a $1.6 million pretax loss in the counterpart 1996 quarter. On an operating basis, the carrier lost $3.7 million, compared with $1.5 million in the prior period, as operating expenses rose 0.9% to $74.7 million from $74 million, while operating revenues dipped 2.1% to $71 million from $72.5 million.
The Internet address of the Air Transport Association Electronic Marketplace Committee is http://www.air-transport.org/emc.htm. An incorrect version appeared April 30 in The DAILY.
Millon Air Inc. clarified for DOT its relationship to Millon Air Cargo, the subject of questions as the charter carrier works to become recertified. The two operations are legally separate, it said, although family members own and work in both. Millon Air Inc. (Millon Air) is majority-controlled by Juan Millon, who owns 74% of the charter airline. Ernesto Millon owns 25%, and about 2% is owned by passive investors. Millon Air Cargo, an air freight forwarder, is 100% owned by Ernesto Millon.
International Air Transport Association and the Air Transport Association of Canada asked FAA yesterday to postpone for at least 90 days the overflight fees it plans to impose May 19.The agency, conducting a public hearing in Washington, was accused of abandoning 20 years of "enlightened leadership" in aviation commerce and open skies in favor of a "parochial" method of financing its national airspace system. Canadian carriers said they will pay more than $50 million of the $90 million FAA expects to collect annually from the fees.
America West shareholders will cross Teamsters union picket lines today in Tempe, Ariz., to attend the carrier's annual general meeting as the union threatens a work slowdown and former President Mike Conway pursues efforts to obtain a controlling interest; backed by a group of America West pilots. The Air Line Pilots Association says it remains neutral on the possible buyout. A company executive described the meeting's agenda as "as bland as any" AGM, including the re-election of board members and a vote on the 1994 incentive plan.
DOT this week tentatively reselected Lone Star Airlines to provide subsidized essential air service at Enid and Ponca City, Okla., and Brownwood, Texas, for two years beginning March 1. For the first seven months of the period, March 1 through Sept. 30, Lone Star would serve Enid, Ponca City and Brownwood with 10 roundtrips a week to Dallas/Fort Worth at combined annual subsidy rates of $1,262,143. For the Oct. 1, 1997-Feb.
Farmington, N.M.-based Mesa Air Group posted a net loss of $989,000, or three cents per share, for the three months ended March 31, compared with a nearly $12 million, or 39 cents per share, net profit for the same 1996 period, the company reported this week. Flight operations expenses rose to $45.7 million from $43.8 million in the prior period. Fuel was up $3.2 million and pilot salaries, lodging and training expense $4 million. The company said it incurred a $400,000 expense when it centralized dispatch and training facilities.
Kitty Hawk, which provides air charter management and cargo airline services, reported record revenues for the March quarter of $28.1 million, up 39%, while net income rose to $1.4 million from $150,000. Revenues for air logistics services increased 30% to $13.2 million and the company booked 2,881 on-demand air charters, up from 2,333. Air freight services flight hours rose 36% to 5,830, resulting in revenue gains of 48% to $14.9 million. Tom Christopher, chairman, said seven 727-200s have been added to eight in service.
Asiana has increased its Los Angeles-Seoul service to 11 weekly flight from nine. The carrier now offers daily service and a second flight departing Mondays, Wednesdays, Fridays and Sundays.
Atlantic Coast Airlines, which is scheduled to receive the first of its 12 Canadair Regional Jets in July, has yet to hear from senior-partner United whether they will be allowed to fly under the United Express banner. "The status is unchanged," said an ACA spokeswoman. ACA, pressed by existing or future regional-jet competition from virtually every direction except the Atlantic Ocean, has said it will operate the airplanes from its Washington Dulles hub with or without the blessing or United and its pilot-owners. Carrier currently operates 58 Jetstream 32s and 41s.
Klaus Nittinger was appointed chairman of BMW Rolls-Royce, effective July 31 on retirement of Albert Schneider at the company's standard retirement age, 60. Nittinger, 53, has been with Lufthansa for 23 years, most recently as chief executive-operations.
Daniel Tarullo, assistant to the President for international economic policy and the White House point man for international aviation policy, told Washington's International Aviation Club yesterday he wants to correct the impression that the U.S. has changed its position on Japan. In prepared remarks, Tarullo said one principle of U.S. aviation policy is that the U.S.
Contract ratification vote by American's pilots - one that would enable the American Eagle pilots to fly regional jets - is looking more and more dicey. A number of observers who were sure the new contract would be approved are now less sure. "Too close to call," said one. "I have been seeing more negatives lately," said another. One American pilot, who favors the new contract, said fewer pilots are talking about it than talked about the original agreement - which was rejected. "I do not have a read on this one," he said. The RJ is still the issue.
Regional Airlines Association listing, compiled by AvStat Associates, of the top 50 regionals in the U.S., by passenger boardings, is shown on the facing page. Mega-regionals, such as American Eagle or Mesa, are broken down by component carriers. For more information, contact RAA at 1200 19th Street N.W., Suite 300, Washington, D.C. 20036-2422. Telephone 202-857- 1170, e-mail [email protected], or web site http://www.raa.org.
Air Transport Association objected yesterday to a Dade County, Fla., plan to use airport revenues for a loan.In a letter to the Metro-Dade Aviation Department, ATA President Carol Hallett said that based on newspaper accounts, the loan - to Pan Am as part of an incentive package given the airline for establishing its headquarters in the Miami area - appears to violate airport revenue retention requirements and grant assurances.
Recently assured funding for critical aviation weather services apparently is only temporary (DAILY, April 25). The Commerce Department, parent agency of the National Weather Service, announced earlier it will reprogram funding to maintain the number of meteorologists at the Aviation Weather Center, the National Hurricane Center and the Storm Prediction Center. The funding will continue only through Sept. 30, the end of the government's fiscal year.
