Association of European Airlines Traffic November 1996 Passenger Data RPKs % Change ASKs Region (Mil) 96/95 (Mil) EUROPE 7,399.7 8.4 13,360.8 NORTH AFRICA/MIDDLE EAST 1,312.6 14.1 2,120.6 LONGHAUL North Atlantic 8,942.7 14.1 12,653.1 Europe - Far East 7,464.9 13.6 10,334.0
In an unusual public dissent, Japan is challenging policy recommendations by the Organization for Economic Cooperation and Development (OECD) to expand international aviation liberalization. Paris-based OECD, most of whose 29 member nations formed the group in the wake of the Marshall Plan's reconstruction of postwar Europe, makes the recommendation in a study to be issued next month, The Future of International Air Transport Policy. OECD has no legal authority outside the actions of individual nations, so its policies are usually arrived at by consensus.
Airlines' use of "safe harbor" rules for depositing the aviation excise taxes last year, coupled with a lapse in the Treasury Department's authority to transfer money to the aviation trust fund, apparently will cost the trust fund $1.5 billion to $2 billion that FAA was counting on this year. Based on an interpretation from the Internal Revenue Service, airlines held excise tax receipts during the fourth quarter last year and are not required to deposit them until Feb. 28.
Aero International (Regional) CEO Patrick Gavin said this week there is a large market for the Jetstream 41 as a replacement for 19-seaters, despite the fact there were only orders for 13 of the 29- to 30-passenger aircraft during 1996. Twelve of those were from United Express Atlantic Coast. Jetstream Aircraft has made major advances in the production line at its Prestwick, Scotland, manufacturing facility, he added, including the flexibility to adapt the production rate to demand.
Fairchild Dornier's 1996 orderbook lists 39 firm orders and 16 options, 12 orders and 12 options of which - for the Do 328 - came from Western Pacific regional unit Mountain Air Express. Twenty-seven units of the high-speed turboprop 328 were sold during the year, as were nine Metro 23s and three Do 228 19-seaters. Fairchild Dornier said the Do 328 has achieved a 23% market share in the 20- to 39-seat category. The combined Metro 23/ Do 228 market share, in the 15- to 19-seat category, has reached 35%, the manufacturer said.
USAir's customer service and reservations employees have voted down representation by the Communications Workers of America (CWA) (DAILY, Nov. 19). Of 9,272 employees eligible to vote, the National Mediation Board counted 3,973 ballots in favor of the CWA. USAir Chairman Stephen Wolf told employees yesterday that "your decision allows us to continue to expand our employee participation program, which we believe to be in everyone's best interest.
Recommendations in the Gore Commission draft report on aviation safety contain few suggestions that did not arise in its hearings, except for mention of a second ranging signal for the Wide Area Augmentation System (WAAS) as an air navigation enhancement. A second signal probably would mean an independent navigation payload on two dedicated satellites that would augment the constellation of Global Positioning System satellites. The Gore Commission's final report is due Feb. 11, and the draft is tightly held.
Federal Judge James Rosenbaum has approved the settlement to travel agencies in the class-action commission cap suit brought against six airlines by the American Society of Travel Agents (ASTA) and other plaintiffs. Distribution will be based on Airlines Reporting Corp. reports documenting domestic ticketing for the period in question, according to ASTA. Six defendant airlines and TWA, which signed an earlier settlement, will pay $86.9 million (DAILY, Sept. 5).
Hong Kong Airport Authority has increased the traffic forecast for its new Chek Lap Kok Airport. Previously, it predicted 29.5 million passengers in 1998, the year the facility opens, but now it expects 33.9 million. It also sees sizable growth in 2001, up from 33.2 million to 40.7 million.
FAA's proposed amendment to its Commuter Rule likely will contain few changes, including an exemption for Alaskan carriers from certain dispatch requirements, according to industry sources. The rule calls for the transition of Part 135 operators of 10- to 19-seat aircraft to Part 121 by March 20, but some of the new dispatch requirements are nearly impossible for Alaskan carriers to fulfill.
Although several airlines agreed recently to install fire detection equipment in Class D cargo compartments on aircraft, "it is time to require cargo compartments with adequate fire safety systems to protect aircraft and occupants," according to Bob Chipkevich, chief of the National Transportation Safety Board's Pipeline-Hazardous Materials Division. Chipkevich, speaking yesterday at the IATA Dangerous Goods By Air Conference in Atlanta, reminded airlines they have until Feb.
Bombardier's new 70-passenger CRJ-X - officially launched last week and now designated the CRJ-700 - will offer a huge reduction in direct operating costs compared with the 50-seat CRJ. The General Electric CF34-8C1 will provide specific fuel consumption that is 8% lower than that of the CRJ's CF34-3A1. The smaller costs, coupled with the additional 20 seats over which to spread them, should make the aircraft's direct operating examples very attractive to potential operators.
F28RE Partnership is expected to select one of three candidates within 30 days to re-engine the Fokker F28 regional jet. The partnership consists of The Perry Group, a Salt Lake City-based aviation consultancy, and Fokker Services BV., which owns the type certificate. The partnership will select from the BMW/Rolls Royce Br710, the Rolls Tay 620 and the GE CF34-8C. A 45-inch plug and use of the F70/100 wing leading edge and tips also is being considered.
Iberia agreed this week on a plan to rescue Venezuelan carrier Viasa, which shut down all flights last week. Iberia, which owns or controls a majority of the troubled carrier, intends to exchange $30 million of Viasa's $150 million debt for equity, while a Venezuelan state-controlled company would invest $30 million. Iberia also plans to manage Viasa's fleet in exchange for the extinguishment of the rest of Viasa's debt. Iberia still directly would control more than 40% of Viasa, and this could raise new objections from the European Union.
Several medium- to small-sized U.S. airlines, including a large charter operator, are forming the Air Carrier Association of America (ACAA), a new association to represent them on regulatory and legislative issues on which they have common interests. ACAA currently has eight members, said Ed Faberman of Ungaretti and Harris, former VP-government affairs at American and ACAA's counsel in Washington, D.C. The association is about one week away from going public with details and names of members, Faberman said yesterday.
United is opposing efforts by Turkish Airlines to serve Chicago with scheduled nonstop combination service from Istanbul. Chicago O'Hare is one of four high-density airports in the U.S., and FAA turned away an earlier Turkish Airlines application for lack of slots. The carrier then requested an exemption from slot controls, which DOT can grant if it finds that the proposal is in the public interest. But United wants to serve Istanbul as well, and its 1994 application was rejected by Turkey.
A majority of airlines serving Atlanta Hartsfield Airport voted in favor of an Atlanta Department of Aviation (DOA) proposal for a $444 million fifth runway at the airport. The runway, 6,000 feet long and 150 feet wide, initially would serve as a commuter runway. The DOA proposal calls for completion of the runway by March 2002, with construction to begin in January 1999. A DOA spokeswoman said a tally indicated sufficient airline support for the plan as of Jan. 29.
Fairchild Dornier 328 customers can decide as little as five months before delivery whether they want the aircraft to be powered by turboprop or turbofan. The 328 and 328JET will be virtually identical coming down the production line, with the major difference being a stronger landing gear to handle the additional weight of the turbofan version, which the company said this week would be powered by the Pratt&Whitney Canada PW306-9 engine. The 328JET has yet to receive its official launch, however, and that could come as early as next week, The DAILY is told.
Startup carrier Arriva Air supplied additional information to DOT on its ownership and financial backing this week, revising its relationship with New Quick Co. Ltd., in response to foreign-control issues. New Quick Co., which has arranged a $1-million line of credit for Arriva, was formed by New Quick, Valley Bank and Fuji Bank. The carrier added that it has received three additional equity investments totaling $175,000 and expects two more of up to $50,000 within a week. All the new investors are U.S.
Saab and the current management of Business Express have agreed on a reorganization plan that would leave existing BizEx management in place and turn over 100% ownership of the financially troubled company to a Philadelphia investment banking firm. The reorganization plan, combining BizEx and Saab efforts, calls for "a significant equity infusion" by the firm of Dimeling, Schreiber&Park. Saab would take a $10 million hit on the deal.
ValuJet will resume flights to Boston Feb. 20, making the city its 20th destination since it resumed service. It plans to offer five daily peak- hour roundtrips from Atlanta and four from Washington Dulles. Introductory fares until March 31 are $89-$149 one way to Atlanta and $49-$99 to Washington. Ponder Harrison, senior VP-sales and marketing, said, "ValuJet's absence from Boston has resulted in a consistent pattern of outrageously high air fares to the market."
Cargo carrier American International Airways said Federal Express does not deserve preferential treatment when more cargo frequencies open up between the U.S. and Brazil. An additional 8.5 weekly frequencies will be available in April, and with applications exceeding that level FedEx decided to scale back its earlier request for six, asking instead for five to avoid a lengthy carrier-selection proceeding. FedEx suggested to DOT that it be given "first priority" when an additional frequency is allocated, however.
Boeing 767 Systemwide Aircraft Utilization Per Day Third Quarter 1996 B767-200 American Delta United Number of Aircraft Operated 30 15 12 Total Fleet Operations Departures 54 67 29 Block Hours 362 169 147 Flight Hours 333 143 133
