Struggling Air Aruba, which recently returned the last of its four MD-80s to the air, intends soon to make a decision about its fleet within the context of its restructuring efforts. The carrier expects to sign alliances with a North American and a Latin American carrier before yearend.
Kiwi International Air Lines will drop fares in May to as low as $39 one way between Chicago and Atlanta, and Atlanta and Orlando or West Palm Beach. Fares from Chicago to Orlando and West Palm Beach are $71. No Saturday night stay is required. Tickets must be purchased by April 30 for travel during the month. No advance purchase is required, and some blackout dates apply.
LanChile applied to renew and amend its exemption authority for scheduled combination service between Santiago and Miami via Bogota, Cancun, Montego Bay and Punta Cana, Dominican Republic, adding the new intermediate points of La Paz and Santa Cruz in Bolivia.
American is giving 500 frequent flyer miles to AAdvantage members who donate $50 to the National Park Foundation, and 10 miles for every dollar over $50. The DAILY April 25 incorrectly reported the number of miles given for every dollar over $50.
Ireland's low-cost airline Ryanair has fired the opening volley in a what promises to be a price war with the introduction last week of a rock-bottom domestic fare. It is offering a #19 (US$31) ticket for a one-way flight between Glasgow Prestwick and London Stansted. Although the number of seats available at the fare is limited, the offer presents a challenge to British Airways and British Midland, both of which charge #99 for the same service.
DOT observed the second anniversary of the U.S.-Canada open transborder agreement last week by noting traffic growth and competition in the market. The phased agreement is in its final transitional year, with limits still placed on service to Toronto. DOT said since the pact was implemented, transborder traffic has grown 28%, average fares in the top 50 scheduled nonstop markets have fallen 22%, and the load factor has remained high despite the increase in available capacity. According to the department, U.S.
Air France forecasts a net profit of 500 million French francs (US$85 million) in fiscal 1998, according to figures issued at a board meeting last week in Paris. Results for fiscal 1997 will be disclosed in May, but Chairman Christian Blanc said losses will total FRF200 million ($34 million). Air France stands at the end of a three-year restructuring program, which included a FRF20 billion ($340 million) capital injection by the French state and 5,000 job cuts.
U.S. major airlines collectively posted net profits of $867 million in the March quarter. Operating earnings reached $1.57 billion despite losses by TWA and Alaska Airlines.
FAA said it plans to fine Grand Strand Aviation, a Myrtle Beach, S.C., cargo operator, $90,000 for alleged "improper aircraft maintenance and operation of unairworthy aircraft." The agency said the airline operated an aircraft "with knowledge of an improperly maintained landing gear for 29.4 flight hours," and it "operated an aircraft with an inoperative marker beacon system in excess of 205 flight hours."
Hong Kong-based Dragonair began new service last week to Chongqing, China, and is considering new service to several other new Asian destinations. Chongqing, on the Yangtze River, has a population of 6.5 million and becomes Dragonair's 16th destination in mainland China. The airline is considering serving two new destinations in Japan, in addition to its current flights to Hiroshima and Sendai. Dragonair also wants to serve Pusan, Korea and Wuhan, Fuzhou and Shantou in China, according to Stanley Hui, who became Dragonair's Chief Executive in February.
United's Latin America Division posted record first quarter results, as profits rose 27%. In a rare statement by an airline on the profits of single operating division, United said Latin American yield increased 13% and load factor rose 7.7 percentage points to 70.4%. "Latin American was United's star international performer this quarter," said VP-Latin America Maria Sastre. The airline did not give any specific dollar amounts about the division, however. During the first three months of the year, Latin America traffic rose 7.6%, but capacity shrunk by 4.2%.
Boeing and KLM have signed a contract worth about 80 million guilders (US$40.8 million) to convert two of the Dutch carrier's 747-200 stretched Combi aircraft to freighter configuration. The first aircraft will be delivered to KLM in March 1998 and the second in May. The conversion, the second for the two aircraft, will increase their maximum payload to 100 tons from 35 at a cost of 40 million guilders per aircraft.
A detailed account of the role of air power in Operation Desert Storm. Smithsonian Institution Press; $16.95 paper. To order, call 1-800-782-4612. An Exhibit Denied by Martin Harwit. Account by the former director of the National Air&Space Museum of the museum's 10-year effort to mount an exhibit of the Enola Gay and veterans groups' media campaign to suppress it. Springer-Verlag New York; $27.50 hard cover. To order, call 212-460- 1634.
Airbus Industrie in late 1996 signed with US Airways the "prototype for later agreements by American and then Delta, albeit with the competitor, Boeing," according to Avmark.When Airbus canceled the delivery positions, US Airways lost an unprecedented opportunity to acquire new aircraft with early delivery slots and Airbus, "having designed a great scheme to lock in an order, has seen its competitor, Boeing, capitalize on the concept" and capture two prime U.S. airlines.Others are sure to follow.
Delta and Korean Airlines said they signed an agreement that "enhances" their code-share pact, launched in September 1995. Delta Executive VP- Marketing Robert Coggin said the revised pact will provide additional opportunities for the airlines; discussions will continue on improved interlining of passengers and freight, schedule coordination and shared facilities.
In Federal Register dated April 22...Superseded an airworthiness directive on certain McDonnell Douglas MD-80 series aircraft concerning fluorescent light ballasts in the cabin sidewall...Issued an AD on certain Boeing 777-200 aircraft requiring inspection of the forward mounts of certain General Electric GE90 engines, all of foreign registry...Issued an AD on CFM International CFM56-3 series engines requiring a reduction of the low-cycle fatigue retirement lives for certain fan disks...Proposed an AD on Lockheed L-188 series aircraft to prohibit positioning power leve
U.S. Major and National Carriers Interest Expenses Fourth Quarter 1996 % Of Total Operating Systemwide Expenses Alaska $ 5,569,000 1.84 America West 11,955,730 2.86 American 74,303,000 2.12 Continental 23,541,000 1.85
Lufthansa, which owns Lufthansa Technik, the world's largest aviation engineering and maintenance firm, said it will be sensitive to Boeing's forays into the maintenance business, but it would not affect the airline's aircraft-buying decisions. Chairman Jurgen Weber told reporters at a breakfast meeting last week in Frankfurt that Lufthansa would not look favorably at Boeing going into competition with its customers. But Weber stopped short of saying Boeing's maintenance desires would influence the airline's aircraft decisions, a Lufthansa spokesman said.
All Nippon Airways expects a second runway at Tokyo Narita by about 2000 to boost its international offering and help it become 50% international by 2001. ANA, in releasing its corporate plan, said currently 30% of its service is international. The airline began as a domestic carrier and had little international service until this decade. "Our future growth is definitely in international operations," said Yoshiyuki Nakamachi, senior managing director for corporate planning.
Food expenses for Southwest total just 23 cents per passenger on food, lowest among U.S. major airlines, according to fourth quarter statistics. American spends the most, $7.98, followed by United, $7.51, and TWA, $4.69. National carrier Midwest Express spends $9.82 per person, including its famous baked-in-flight chocolate chip cookies.
Southwest may expand its one-route marketing agreement with Icelandair, signed in December, to other U.S. cities because of its success in the Cleveland-Baltimore-Iceland market. Southwest is considering adding a couple of cities behind Baltimore. Icelandair operates the flights to Iceland, via the U.K. and Europe, and handles all promotion, reservations and ticketing.
British Midland and Lufthansa plan to start code-share flights May 26. British Midland will operate from London Heathrow to Cologne/Bonn and beyond to Rome Fiumicino, its first scheduled service to Italy and its first fifth-freedom flights. The Cologne route is the airline's second into Germany following its Heathrow-Frankfurt service, started in March 1993. It will operate a twice-daily roundtrip from Heathrow to Cologne and a daily flight from Cologne to Rome.
U.S. Major and National Carriers Advertising Expenses Fourth Quarter 1996 % Of Total Passenger Systemwide Revenues Alaska $4,045,000 1.65 Domestic 3,670,000 1.65 Latin 375,000 1.65 America West 6,432,635 1.57
