British Airways diverted some services to Paris Orly from Charles de Gaulle's (CDG) Terminal 1 after French authorities allowed Air Algerie to resume services to CDG. Saying the presence of the Algerian flag carrier posed a threat to the security of other airlines, BA took legal action against Aeroports de Paris (ADP), demanding "appropriate security measures." About 60,000 people are estimated to have been killed in Algeria since 1992, when Muslim fundamentalists won a general election but were denied access to power.
Michael J. Fenello, 81, FAA deputy administrator 1981-1983, died of cancer April 16. Starting as a pilot for Eastern, he was active in the pilots union and ran the airline's operations center. After leaving FAA, he worked as a consultant and served on the advisory board of the Air and Space Museum in Washington.
Senate Commerce aviation subcommittee has scheduled a May 13 hearing on airline competition issues. The hearing is slated for 2 p.m. in Room 253, Russell Building. The subcommittee also tentatively plans a May 21 hearing on international aviation issues, focusing on the U.S.-U.K. and U.S.-Japan situations. That hearing also is tentatively planned for 2 p.m. in Room 253.
TAT and Air Liberte pilots resumed work on Sunday after 17 days of strike; British Airways' French subsidiaries expected operations to be "close to normal" yesterday. Pilots of low-cost Air Liberte managed to obtain some advantages that TAT pilots already have, such as a 48-hour weekly rest or the payment of a "13th month's" salary bonus.
Jiro Hanyu, deputy director general of Japan's Ministry of Transport, remained in Washington for the weekend and at least most of Monday following the departure of most of the delegation accompanying Prime Minister Ryutaro Hashimoto. Informed sources said that President Clinton and Hashimoto touched briefly on aviation issues when they met last week, and that they do not believe Clinton used the occasion to insist on open skies. Hanyu told the recent Asian Open Skies conference in Phoenix that he was "firmly against" open skies as defined by the U.S.
TAP Air Portugal said the 48-hour pilot strike that grounded its international flights last week cost about $6 million and jeopardized its return to profitability in 1997, after 23 years in the red. The airline has resumed talks with the pilots, who have been working to rule in the past weeks. The pilots oppose TAP's plans to make their schedules more flexible, claiming their work load already is heavier than that of their European colleagues.
Aviation officials from seven Asian nations participated in an air cargo conference hosted by McDonnell Douglas last week in Beijing. Vice Minister Shen Yuankang of the Civil Aviation Administration of China welcomed representatives of 25 airlines and other industry executives to the event. Liu Don Sheng, director of management for China Eastern Airlines, which built international cargo service with an MD-11F, spoke on developing an air cargo operation.
Air France has signed a major franchise deal that will cut costs and likely infuriate its unions. French regional carrier Brit Air will put its entire fleet and personnel - 23 aircraft and 580 staff - at the disposal of the French flag carrier. All operations will be sold under the Air France brand. In return, Air France will entrust a dozen routes to its regional partner, which expects to operate 150 daily flights.
Industry officials were surprised at the public briefing given by France last week after the conclusion of U.S.-French bilateral talks (DAILY, April 25), but none thought it would much affect the course of negotiations. Far more important is the substance of the French position, which includes a nine-year phased liberalization that does not end with open skies. "This is just a negotiating position," one official said. Few if any observers expect the U.S. to sign a nine-year phased treaty that retains competition controls.
Daimler-Benz Airport Systems will build an air freight terminal at Hong Kong Check Lap Kok Airport under an agreement concluded April 24 in Singapore between the Daimler-Benz AG division and the Asia Airfreight Terminal Company Ltd (AAT), an international joint-venture. Daimler said the site's material-handling system will be controlled by a wireless computer network and on-line interfaces to the terminal's cargo management, information and communication network.
Teamsters General President Ron Carey has told UPS the union will honor pilot picket lines if the Independent Pilots Association strikes, and it will not handle struck goods.Under the contract, UPS does not have to stop handling goods, but union members cannot be disciplined or discharged for stopping.The IPA, in tough contract talks with UPS, will count strike authorization ballots May 5 - by coincidence, the same day the Allied Pilots Association at American counts ballots that will lead to contract ratification or another strike.
Airbus Industrie denied yesterday a report that it has an exclusive contract to furnish aircraft to US Airways. An Airbus spokesman said US Airways has a "firm contract for 120 aircraft, but if they want to buy other aircraft, they are free to do so." Airbus was commenting on an Avmark report that it had an "exclusive, one-supplier agreement" with US Airways that was a "prototype for later agreements by American and then Delta" with Boeing (DAILY, April 28). Airbus said its US Airways contract is a "straightforward transaction.
Eagle County, Colo., Regional Airport says its new terminal is not exclusively for American's use, contrary to claims made by the Vail/Beaver Creek Jet Center (DAILY, April 25). All airlines were offered as much space as they wanted and, contrary to the Jet Center's assertions, American leases no gates, attorneys for the airport told The DAILY. Only certain counter space and ticket and operations offices are leased exclusively to American and are not funded by passenger facility charges, said Ted Ellett of Hogan&Hartson.
Dusseldorf Airport, in an out-of-court settlement last week with its six insurers, will receive 245 million Deutschmarks (US$147 million) in compensation for the fire that killed 17 people and destroyed large parts of its installations last year. The airport's supervisory board confirmed the , said German insurance company Provinzial-Feuerversicherungsanstalt der Rheinprovinz. The loss was estimated at DM350 million ($US210 million), while actual rebuilding costs were even higher, partly because of changes in design and higher safety standard.
British Airways has signed an interline agreement with American Eagle that enables passengers in Washington to connect with BA's Concorde flights from New York Kennedy. The new link replaces a previous agreement with US Airways, which expired at the end of March.
Daniel Tarullo, assistant to the president for international economic policy, will be the featured speaker Thursday at the International Aviation Club's monthly luncheon at the Grand Hyatt Hotel, Independence Ballroom A, 1000 H St., Washington, D.C.
Northwest Co-Chairman Al Checchi has resigned to pursue political aspirations in California as a possible candidate for governor, and Co- Chairman Gary Wilson has been named chairman. Checchi will remain on the board.
U.S. Major Carriers Unit Revenues and Expenses, By Region Fourth Quarter 1996 Operating Operating Operating Revenues Expenses Profit/Loss Yield per ASM per ASM per ASM per RPM Carrier (cents) (cents) (cents) (cents) Alaska 8.45 8.64 (0.19) 10.64 Domestic 8.60 8.80 (0.20) 10.64
Justice Department's Antitrust Division has requested additional information from General Electric, Greenwich Air Services and UNC in connection with its review of GE's proposed acquisition of Greenwich and UNC, announced March 10. The three companies said they will comply as promptly as possible, and they expect the transaction to close within several months, following completion of the regulatory review and the required shareholder approval.
FAA selected Hughes Information Technology Systems to provide a computerized monitoring and control system to help increase the reliability of its 30,000-plus facilities and pieces of equipment systemwide. Under the contract, valued at up to $100 million, Hughes will supply technical integration of the National Airspace System Infrastructure Management System. NIMS, the centralized management system for FAA equipment and facilities, will consolidate previously separate efforts.
Pakistan International Airlines will spend about $1.2 billion during the next three years to replace 21 of its 46-aircraft fleet. PIA will replace six 747-200s and revamp its domestic network by divesting all 13 of its Fokker F27s and two de Havilland Twin Otters. The airline has set an August target for a widebody decision, with the hope of its first new aircraft delivery in the third quarter of 1998.
The BMW Rolls-Royce BR715 turbofan engine being developed for the 90- to 130-seat regional aircraft market, and selected as the powerplant for McDonnell Douglas's MD-95, ran for the first time Sunday. First flight of the MD-95 is scheduled in the second quarter of 1998. A version of the BR715 is available for other new aircraft, such as the Sino-European AE-100 and IPTN's N2130.
Justice Department has formally asked European Commission competition authorities to investigate possible anticompetitive conduct by three European airlines and Amadeus, the European computer reservations system. The department said there are signs that Amadeus and its owners, Air France, Iberia and Lufthansa, may be engaging in exclusionary conduct, preventing U.S. companies from "vigorously competing" in CRS markets in Europe. It is the first time such a "positive comity" request has been made under a 1991 agreement meant to improve cooperation between the U.S.
Boeing reported yesterday operating earnings, reflecting the acquisition of Rockwell defense and space units, of $441 million on revenues of $7.3 billion for the March quarter, compared with operating earnings of $154 million on revenues of $4.3 billion in the same year-ago period. Commercial aircraft brought in revenues of $5.3 billion, up from $3 billion.
American will be forced to spend $120 million more on maintenance this year, as 22 F100s will have their first heavy maintenance checks in 1997, versus two in 1996. In addition, 19 more 727s than last year will need heavy checks, and 27 more 757s will need engine checks. After a 16% rise in first quarter maintenance, American's Chief Financial Officer Gerard Arpey said 1997 "certainly represents a spike in activity."
