John Tague, chairman, chief executive and president of Columbia, S.C.-based Air South, has assumed the new role of chairman, chief executive and president of Kansas City-based Vanguard Airlines. Vanguard Chief Executive and President Robert McAdoo resigned, effective last Friday, but will remain on the board of directors. Tague will continue with his role at Air South and remain living in Columbia. Tague was president and chief operating officer of American Trans Air, which he left in July 1995.
Canadian Transport Minister David Anderson last week completed the formal transfer of the nation's civil air navigation system from Transport Canada to the Nav Canada not-for-profit, private corporation. The government still will be responsible for overseeing safety, but Nav Canada Chairman John Crichton said safety is "at the heart of Nav Canada's mandate.
Seven years after it was privatized, Air Canada still is struggling to counter the perception that it is a government-owned carrier. President and Chief Executive Lamar Durrett said that "even some in the [Canadian] government" don't know that Air Canada was taken private in 1989.
Canadian Airlines International posted 13% lower net profits of C$85.7 million (US$64 million) for the third quarter, but the slightly lower results are worse than they look, the airline said. Continuing operating losses "are threatening the company's viability," said President Kevin Benson, and the carrier is embarking on a new attempt to reduce overhead and increase efficiency. Benson expects to cut as many as 250 jobs, 1.5% of its work force, and plans a 10% pay cut for all surviving employees.
Open skies agreements between the U.S. and individual European countries have limitations compared with a comprehensive but elusive pact involving the entire European Union, European Commission director for air transport Claude Chne notes. For example, if Lufthansa gave up a U.S.-coveted slot at congested Frankfurt Airport, the slot would have to be thrown back into the common European pool, up for grabs by any European airline under Commission rules, regardless of the free-market understanding between Germany and the U.S.
Alliance for Safe and Efficient Air Transportation is pushing DOT to make sure its congressionally mandated independent assessment of FAA's needs is done by a firm or organization that has no current or recent contractual relationship with FAA, DOT or the aviation industry.
America West appointed Jeffrey Anderson station manager-Miami. British Airways World Cargo appointed Geoff Corpe general manager- worldwide sales and marketing.
United's new federal inspection facility in the midfield terminal at Washington Dulles Airport has reduced processing time to 10 to 12 minutes per passenger from 45 to 90 minutes in the FIS facility in the main terminal, the carrier said at a dedication ceremony last week. The new facility will be used exclusively by United and partner Lufthansa, enabling them to process 1,400 passengers an hour. During a test run, processing took only seven minutes per passenger.
Continental President and Chief Operating Officer Greg Brenneman toured thePacific last week in search of an alliance partner. Continental said he met with Korean Air Lines and Asiana Airlines before heading off to Saipan and Guam.
DOT has approved code sharing by United and Air Canada in the San Francisco-Toronto-Montreal market and amended the carriers' authorities to permit intra-Canada code sharing in all markets where they hold the underlying economic authority. The department dismissed, however, United's request for blanket authority combining authorized U.S.-Canada services with existing authority between the U.S. and third countries, to permit code sharing beyond Canada on third-country flights operated by Air Canada.
Internet Travel Network (ITN) and Global Discount Travel Services (GDTS), a provider of discount air travel, are offering an online reservation system that makes available travel to 85 destinations worldwide at discount prices. The companies said the fares are available only on their World Wide Web site at http://www.lowestfare.com. ITN is a privately held company based in Palo Alto, Calif.
DOT, which has started an enforcement action against American and Sabre for computer reservations system bias in the Preference MAAnager add-on program (DAILY, Oct. 29), has dismissed a bias complaint from Delta charging that the CRS adopted practices that violate rules against discriminatory pricing. Sabre now charges "segment cancellation fees" - 12 cents per cancellation in North America and 14 cents per cancellation in other regions except Europe - to airlines, like Delta, that participate at the Direct Connectivity level.
- In Federal Register dated Oct. 25...Proposed to supersede an airworthiness directive (AD) on Bell 412 helicopters concerning inspection of certain swashplate support assemblies...Revised a proposed AD on Raytheon 125-800 aircraft concerning inspection of the fuel feed hose assemblies of the auxiliary power unit.
Continental filed for authority to serve the London market out of Cleveland, saying it would like Heathrow - it has applied for slots there - but will take Gatwick. Currently there is one unexercised "roving route" to Gatwick available to U.S. carriers. If no competing applications are filed and Continental wins the service, it would start operating the route next April 1.
Air Express International said its net income rose 46% to $10.6 million in the third quarter, on revenues that gained 8% to $340.9 million. For the first nine months, net income was up 33% to $26.5 million while revenues rose 7% to $956.4 million. Dennis Dolan, chief financial officer, said the company "continued to perform very well, with our foreign operations reporting significant gains in operating income in the quarter."
Business Express Chapter 11 bankruptcy is coming down to the wire with a reorganization plan expected to be approved by the court shortly. Sources indicate that USAir would like to acquire all 90 of the carrier's slots at New York Kennedy and LaGuardia and Washington National airports and that Business Express, along with its 37 Saab 340s, could go to USAir Express Commutair. One analyst suggests that with sufficient slots, LaGuardia would be a "juggernaut" as an O&D hub for 50-passenger regional jets or the Saab 2000 turboprop.
Roanoke, Texas-based Medical Air Services Association (MASA) will purchase one Jetstream 31 turboprop aircraft with an option for a second J31, British Aerospace Asset Management Inc. - Turboprops announced. The firm aircraft, configured with two Spectrum Aeromed aero medical equipment units and six passenger seats, will be delivered to the operation in mid- November.
Republican Presidential Candidate Bob Dole said yesterday he will "significantly reduce" the tax burden on aviation if he is elected. The Dole campaign has told the travel industry Dole believes that a key to its success is "ensuring that its tax burden is not increased by saddling it with the costs of unrelated federal programs." Dole said he opposes President Clinton's proposed $10 increase in the international departure fee to pay for college tuition tax credits.
Jersey European Airways has agreed to operate as an Air France franchisee on a limited basis and is expanding its fleet of BAe 146 quadjets. The regional will lease two additional BAe 146-100 aircraft from British Aerospace Asset Management-Jets (AMJ), bringing its 146 fleet to nine aircraft. One of the two aircraft, which are being leased for five years each, already has been delivered; the other will be delivered by yearend.
Northwest's selection of the Aero International (Regional) RJ85 to replace its aging fleet of DC-9-10s and be operated by Mesaba has led to speculation that the aircraft - configured for 16 first-class and 53 coach seats - may be an interim choice pending the availability of the new AI(R) 70 regional jet, which is expected to be launched by next June. Sources at both AI(R) and Mesaba say there are no early turn-back terms in the leasing agreement.
Continental and Alitalia will expand their code-sharing relationship next summer to twice-daily service on the Newark-Rome route. The two carriers currently operate one daily flight in the market, plus another between Newark and Milan. Both share cargo and passenger capacity. The flights are operated by Continental.
Northwest Cargo is scheduled to begin 747 freighter service to Manila today, departing the U.S. on Tuesdays, Fridays and Sundays and arriving in Manila on the next day. Flights will originate in Chicago, Los Angeles and New York and stop in San Francisco, Anchorage and Tokyo, depending on the day of the week they depart. Vince Puccia, director of cargo marketing, said demand for service to Manila "has grown by more than 35%."
Burlington Air Express's operating profit increased 17% to $20.5 million in the third quarter, while revenues rose to $377.7 million from $365.8 million. Net profit was $10.7 million, up slightly from $10.5 million. For the first nine months, operating profit was up 14% to $45.5 million and net income rose to $23.2 million from $22.6 million. Revenues were up 6% to $1.1 billion.
Aviation talks concluded without fanfare in Washington yesterday between the European Commission, the State Department and DOT. A senior U.S. government official described the discussions as "informative" but said no clear action will be taken immediately as a result. He said the Europeans made some concrete suggestions: that the parties meet around March or April next year; that working groups be formed on some specific issues like computer reservations systems, and that a memorandum of understanding improving information exchange between the EC and the U.S.
Georgia-based Delta Connection affiliate Atlantic Southeast posted a record net income of $16.5 million, or 53 cents per share, for its third 1996 quarter, compared with $15.1 million, or 46 cents per share, for the prior-year period. Total revenues rose to $94.7 million from $84.2 million in the comparable 1995 quarter. Average shares outstanding during the third quarter decreased 6.4% to 31 million compared with 33.1 million for the similar 1995 period, the company said, attributable to the company's stock repurchase program.
