Five international carriers - Continental, American, KLM, Air France and British Airways - are involved in "intense negotiations" to acquire between 5% and 10% of Iberia, according to Felix Ortega, Iberia's manager- international relations. One U.S. and one European airline are likely to emerge as victors and alliance partners, and a decision should be announced in a month. Iberia is banking on its new non-government executives, new investors and leadership from the investors to enable it to compete.
UPS's express volume increased 9.6% during the first quarter to an average of 1.8 million packages and documents a day. Domestic volume was up 9.8% and international volume 8.7% from the same quarter in 1996. During the latest quarter, UPS announced plans to expand its South American services, leasing aircraft to Challenge Air Cargo to serve the area.
Delta has redesigned its World Wide Web site, saying the new layout provides easier navigation. It includes new features, such as SkyLinks Online Assistant, an interactive guide.
U.S. National Carriers Operating and Net Profit Fourth Quarter 1996 Operating Net Profit/Loss Profit/Loss (000) (000) Fourth Quarter 1996 American Trans Air $ (20,389) $ (16,081) Carnival (13,052) (13,556) Hawaiian (6,176) (3,857) Midwest Express 6,370 3,957
FAA yesterday ordered emergency inspections and a halt to extended range twin-engine operations to the U.S. of Boeing 777s powered by Rolls- Royce Trent 800 engines until new parts can be installed. The agency took the actions after the U.K. Civil Aviation Authority said it received 10 reports of oil loss and one of a bearing retainer failure in the intermediate pressure compressor. In an airworthiness directive, FAA said redesigned parts must be installed before an airline begins or resumes Extended Range Twin-Engine Operations (ETOPS).
Taiwan's first regularly scheduled passenger helicopter service is expected to get under way this month, when D'Urban Airlines inaugurates routes between Taitung in eastern Taiwan and the offshore Orchid and Green islands. Taiwan's Civil Aeronautics Administration said it is conducting a final review of D'Urban's operational plan and approval is expected shortly.
DOT will expand its test program on handling unruly passengers beyond the current two airports to the three major New York area airports. The program, now at Honolulu and Los Angeles, is designed to ensure appropriate action is taken against disruptive passengers. Since the program began, there have been 24 reports on 12 carriers serving Honolulu and Los Angeles, resulting in seven criminal prosecutions and 14 civil actions brought by FAA.
Northwest, Delta and United urged DOT not to waste a third-country code-share designation on American for service to the Czech Republic. Filing replies at DOT, each carrier promoted its own proposal. Outlining the advantages of its own service, Delta in particular found shortcomings in American's and said that since American's bid was clearly inferior, DOT could award the three available code shares to the remaining carriers. Delta said that it would offer more than three times as many nonstop-to- nonstop connections as American between the U.S.
Comsat Corp. announced yesterday that C.J. Silas resigned as chairman and board member for health reasons and that Edwin Colodny was elected chairman. Silas recently had open-heart surgery. Colodny, a Comsat director since 1992, was chairman of US Airways Group, where he remains a director.
David Traynham, executive director of the National Civil Aviation Review Commission, will be the luncheon speaker May 7 at an Air Traffic Control Association symposium on Future Airway Facilities Outlook, to be held at the Crystal City Hyatt Regency Hotel, Arlington, Va. For information, call 703-522-5717.
Delta Air Cargo has reached agreement with Circle International in which Circle will buy advance capacity and use selected cargo facilities to assemble shipments for transatlantic and transpacific destinations. Air carriers and freight forwarders generally have viewed each other as critical but separate parts of the supply chain, "each with different priorities," said Steven Leonard, president of Circle.
Construcciones y Auxiliar de Ferrocarriles, the Bilbao-based Spanish train manufacturer, has won a $275 million contract to supply rolling stock for the 34-kilometer urban rail link from Hong Kong to the city's new airport, Chek Lap Kok, scheduled to be operational in May 1998.
Boeing shareholders approved doubling authorized capital stock, which will comprise 1.2 billion shares of common stock and 20 million shares of preferred stock. The action supports a 2-for-1 common stock split approved Feb. 24 by the board. Record date for the split is May 16, with distribution June 6.
British Airways yesterday petitioned the French government to switch all its Paris flights to Orly Airport from Charles de Gaulle (CDG), as of today, because of its increasing concern over terrorism and safety hazards at CDG. Air Algerie resumed service to CDG April 25, and BA objected and filed suit against Aeroports de Paris (DAILY, April 29). Up to 60 flights per day, involving 6,000 passengers, could be affected. Most of BA's service from Paris operates to England and Scotland, and BA also has applied to the British government to intervene.
Weekend trips by U.S. residents have increased by more than 70% in the past 10 years, according to The Weekend Travel Report, published by the Travel Industry Association. Travelers took 604 million weekend trips in 1996, up from 356.8 million in 1986. Non-weekend travel during the decade increased from 484.5 million trips in 1996 to 557.2 million. By TIA's definition, a weekend trip lasts one to five nights away from home and includes a Friday and/or Saturday night stay.
American Airlines and British Airways had little to say about comments made Tuesday by Joel Klein, acting head of Justice Department's antitrust division. Klein, testifying before the Senate Judiciary Committee in hearings to confirm him in the position, said there were "real concerns" over the American-BA alliance because of the dominant position it would create on transatlantic routes. Justice Department continues an investigation of the alliance in preparation for a recommendation to DOT but until now has said little - if anything - about its views.
ValuJet reported yesterday a first quarter net loss of $18.5 million on revenue of $36.9 million, as non-recurring maintenance and aircraft expenses continued to punish its results. The airline had $9.3 million in extraordinary expenses, including $7.3 million in maintenance to return several DC-9-30s to operational status. The remainder of the extra cost came from having 17 of the airline's 42 DC-9s lie dormant. The airline has 25 aircraft in service, with three more coming on line in May, and ValuJet expects to have 30 flying by this summer.
The Los Angeles City Council voted eight to two yesterday to send back to the Department of Airports $30.3 million transferred to the city fund at the end of September. FAA's Office of Airport Safety and Standards issued a record of determination in March concluding that all but $786,628 of the $31.1 million transfer was diverted illegally (AIRPORTS, March 19). In late March, the city returned a separate $1.05 million that the DOT Office of the Inspector General had found to be diverted since the beginning of October.
Reserving final judgment until hearings are completed, the chairman of the Senate Commerce Committee said yesterday he has "heard good things" about Acting Federal Highway Administrator Jane Garvey, who is widely accepted to be President Clinton's pick to become FAA administrator. "I hope that [the nomination] comes over soon; I'd like to act on it as quickly as possible," said Sen. John McCain (R-Ariz.) in a meeting with reporters.
Former FAA Administrator David Hinson was named chairman of the Aircraft Owners and Pilots Association Air Safety Foundation Board of Visitors. He succeeds Najeeb Halaby, the first FAA administrator. The board of visitors comprises distinguished aviators or aviation professionals who volunteer their knowledge and experience to enhance the mission and funding of the non-profit foundation.
London-based international distribution company Air Action Group has established a freight forwarding franchise in Indonesia with Ritra Cargo, the country's second-largest IATA freight forwarder with a network of nine offices across Indonesia's business centers. Air Action's corporate strategy is to set up franchises in major markets around the world. It is currently negotiating with potential partners in seven other markets, the company said.
Robert Aaronson, executive VP and general manager of Airport Group International, will resign May 1 to acquire Thompson Consultants International, AGI's aviation planning subsidiary. "We are pleased that Bob will continue to provide services to AGI, albeit in a different role," said Patrick Cowell, AGI president.
FAA said it has reassessed Thailand and found that it now complies with international safety standards. Last Dec. 16, FAA gave Thailand a "conditional" rating, signifying that its inspectors found areas of operation that did not meet safety standards. Limited operations to the U.S. from Thailand were permitted, but only under heightened operations inspections and surveillance.
