United, Continental and Delta have applied for seven weekly frequencies becoming available Dec. 15 for U.S.-Chile service (DAILY, April 10). The trend for strong demand in Latin American markets continues, with all three carriers seeking the total seven frequencies offered. United wants to extend an existing Miami-Sao Paulo flight to Santiago. United said the aircraft that would be used for the service is currently "parked on the ground in Sao Paulo for several hours every day," leaving it available for Sao Paulo-Santiago rotations.
Senate Commerce aviation subcommittee is planning a hearing May 15 on airline competition issues, including predatory pricing and barriers to entry for low-cost carriers. The same issues emerged at a conference by the Business Travel Contractors Corp. yesterday in Washington. BTCC, founded to make business travel more affordable, originally proposed a net fare program that would charge a standard fare for a set length of haul.
Midwest Express posted record revenue, operating income and net income for the first quarter, buoyed by strong yields and passenger volume. Revenue jumped 20% to $79.9 million, while operating income soared 46.6% to $6.5 million. Net income reached $4.2 million, up 49.2%. "Revenue yield increased 10% from a year ago, and traffic was up 7% on a 12% capacity increase," said Timothy Hoeksema, chairman and chief executive. He cited the airline's seasonal service to Florida and Phoenix and new year-round service to Orlando as reasons for the gain.
American has selected Dallas-based Corgan Associates program manager of its new 47-gate terminal at Miami Airport and this week called on other airlines to drop their efforts to block the project. The airline also has named 15 contractors for the design and development phase, all based in the greater Miami area. DOT last month cleared the fees imposed by the Dade County Aviation Department to help finance the project (DAILY, March 20).
U.S. Major and National Carriers Rental Expenses Fourth Quarter 1996 % Of Total Operating Systemwide Expenses Alaska $ 44,683,000 14.80 America West 74,131,406 17.74 American 260,042,000 7.40 Continental 162,098,000 12.71
First quarter billings for general aviation manufacturers hit a record $886 million, an increase of 60% from the first quarter of 1996, the General Aviation Manufacturers Association reported. The performance was powered by strong jet deliveries, up 40% over last year to 63 units, the most since any first quarter since 1982, GAMA President Ed Bolen said. Total shipments increased to 237 units, up from 225 units the same quarter a year ago.
Reno Air's flight attendants narrowly voted in the International Brotherhood of Teamsters as its new representative. The group of employees previously was unrepresented. The 442 flight attendants eligible to vote cast 280 ballots for the IBT and 10 for the Association of Flight Attendants. Thirteen votes were counted as invalid and one was cast for another union.
InVision Technologies said it has received orders from three repeat customers for seven CTX 5000 explosives detection systems. The customers are Israel Airports Authority for two, El Al for three and Manchester Airport, U.K., for two. The units are scheduled to be shipped over the next 12 months under terms of the $6.7 million in contracts. The airport authority orders are in response to the growing number of passengers using Tel Aviv Airport. El Al units will be placed at various airports, giving it a total of four devices.
Northwest wants DOT to delay renewing Air-India's exemption for India- Chicago service until India approves third-country code-share applications by Northwest and United. Air-India seeks to renew an India-Chicago routing via Toronto, London, Paris and Frankfurt, with local traffic rights between Chicago and London, Frankfurt and Paris.
Tower Air's first quarter earnings improved, slightly, but the airline still lost $5.4 million, compared with $8.1 million in the prior-year period. Operating revenues dropped 9.1% to $78 million. Expenses fell 14% to $85 million. During the quarter, Tower's scheduled passenger traffic shrank 26.5%, while capacity dropped 25.5%. The carrier retrenched from the India market and stopped serving Brazil in March.
The European Commission adopted a proposal yesterday to create the legislative framework for a European Union-wide system of airport charges based on three main principles - cost-relatedness, transparency and non- discrimination between domestic and intra-EC air services. The proposal was to have been adopted last week but was delayed due to technical problems (DAILY, April 17). The legislation must be agreed to by the Council of 15 EU transport ministers.
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 provide technical integration of the National Airspace System Infrastructure Management System (NIMS). It is the centralized management system for FAA equipment and facilities and will consolidate previously separate efforts.
Lufthansa Technik (LHT) has developed a revolutionary way to wash the fuselage of jumbo and smaller jets. The Skywash device is the first computerized washing manipulator for aircraft and will substantially cut the time needed to wash a Boeing 747, LHT said. The system comprises a truck-mounted, 33-meter-long manipulator arm with a whirling brush, which sweeps over the fuselage, tail fin and wings.
Latin American carriers are actively seeking alliances with European or North American airlines to secure agreements - from shared frequent flyer programs to equity stakes - that will give them entree to the global aviation market. Speaking at the Aviation Latin America&Caribbean's 5th Annual International Airline CEO Conference Monday in Miami, several Latin carriers discussed their desires for and fears of linkups with much larger competitors.
World Travel and Tourism Council (WTTC), meeting in Washington, D.C., last week, focused on job growth in the industry via its "Millennium Vision" mission statement, which calls for cooperation between the private and public sectors to promote tourism as an economic strategy. The goal is to create 100 million new jobs over the next decade. The WTTC, which has signed on 29 new members for a total of 88, said 17 governments have expressed interest, and the Philippines has signed the first formal agreement.
A symposium on corporate culture and transportation safety will be held tomorrow and Friday by the National Transportation Safety Board at the Hyatt Regency Hotel in Crystal City, Va. NTSB Chairman Jim Hall and Transportation Secretary Rodney Slater will set the stage for discussions by experts in a variety of safety and transportation fields. They will explore the impact of corporate management philosophies and practices on transportation safety.
Airport Authority of India has deferred for the fourth time the deadlines for completion of two air traffic control modernization projects by Raytheon Company, AAI officials said this week. The company now has until May and August, respectively, to complete equipment installation and system commissioning at New Delhi and Mumbai airports, the officials said. Raytheon, which was awarded the contract in March 1993, was expected to commission the projects by October 31, 1995, AAI sources said. The dates were revised twice in 1996 and once this year.
Coltec Aerospace has been contracted by Northwest to overhaul the landing gear systems on 757s. The five-year contract is valued at $10 million. Northwest's 757 fleet is expected to increase from 48 to 73 by 2000.
Delta's Belgian partner Sabena will launch three weekly 737-300 services to Beirut, starting May 18. Swissair, another partner of the "global alliance," operates flights from Zurich to the Lebanese capital on the other days of the week. The new service responds to the economic boom in the area due to reconstruction after 20 years of war. Sabena also said it is awaiting the necessary landing slots to start serving Cairo and Toulouse.
Bombardier Aerospace and Lufthansa's maintenance service subsidiary, Lufthansa Technik (LHT), signed an agreement last week to set up a technical center to service Bombardier business jets in Europe. The joint venture, Lufthansa Bombardier Aviation Services GmbH, will be based at Berlin Schonefeld Airport to carry out maintenance, repair and overhaul of Learjet 31, 35, 36, 45, 55 and 60 models; Canadair's Challenger 600, 601 and 604 models, and the long-range Bombardier Global Express aircraft.
Bombardier Aerospace has named Sextant Avionique of Versailles, France, prime supplier of a secondary integrated flight control system, stall protection equipment and electronic integrated standby instrumentation for its new CRJ-700 Canadair regional jet. The contract amount remains confidential. Work will begin immediately on a joint definition phase, said Sextant, with final certification of the aircraft planned by the end of 2000.
AB Airlines plans to start a new route from London Gatwick to Lisbon on May 1 at an introductory fare of #119 roundtrip which, it claims, is the lowest scheduled price currently available from the U.K. to the Portuguese capital. The carrier already operates a three-times-daily flight to Shannon from Gatwick. Tony Auld, managing director, said the company is "expansion-minded....We will continue to look at niche routes using Gatwick as a hub."
Lauda Air will launch a second daily service May 12 from Vienna to Manchester plus a new flight between Vienna and Geneva. The regional carrier will end its flights to Brussels from the Austrian capital as of May 11 in view of competing services between the two cities by Sabena and Austrian Airlines, which share a marketing alliance. Austrian is Lauda Air's new part-owner.
The interests of neither airline management nor labor are served by lobbying for a presidential emergency board (PEB) prematurely, the chairman of the National Mediation Board said yesterday. In a speech to the Aero Club of Washington, Kenneth Hipp said the threat of a PEB, which is constant in the rail industry, leads to contract negotiations that are more guarded and less likely to produce an agreement.
