Gulfstream Aerospace, under an agreement worked out with the Pension Benefit Guaranty Corp. (PBGC), will pay $120 million over five years into three underfunded pension programs covering 5,600 workers and retirees. Gulfstream agreed to contribute the funds at the time of its initial public offering. The agreement was part of a larger $1 billion pool that PBGC negotiated with several companies during the past 12 months as part of its Early Warning Program.
Supporting last week's motion by United, TWA called yesterday for a DOT investigation into the proposed American/British Airways alliance. TWA wants DOT to require the prospective partners to submit their agreement so the department can weigh its impact on U.S. and European aviation markets. It argues that the alliance must be viewed as "part of a broader global pattern of attempts not only to monopolize major hubs, but also to secure regional domination." TWA President Jeffrey Erickson said, "Clearly, we are at a turning point in international aviation.
The travel and tourism industry created 236,500 new jobs in 1995, 3.7% more than in the previous year, according to the Tourism Works for America Council. Traveler spending directly supported more than 6.6 million jobs - 2 million in food service, 1.076 million in lodging; 970,400 internationally generated; 931,000 in public transportation; 894,800 in entertainment and recreation; 312,300 in general retail sales, 229,300 in auto transportation and 210,600 in travel planning. Domestic and international travelers spent $421.5 billion in the U.S.
Traffic outgained capacity by nearly three percentage points among 15 of the nation's largest regional airlines during September. Revenue passenger miles generated by the group increased 8.3% to 874 million, compared with a 5.6% increase in available seat miles to 1.7 billion. Nine carriers posted positive spreads, with RPMs rising at a faster pace than ASMs and six were negative. Northwest Airlink had the biggest positive spread, with traffic growing by 33%, 16.6 percentage points greater than the 16.4% increase in capacity.
British Airways and Airbus Industrie signed an agreement under which Airbus will provide its customers with software to record and share information on incidents related to human factors. The software is based on the British Airways Safety Information System (BASIS), which was described as the "only global system for operators to inform each other about aircraft incidents and the remedial action that was taken." Developed by BA six years ago, BASIS is used by more than 100 airlines and helicopter operators.
KLM will serve three new cities, according to its winter schedule, including new MD-11 service twice a week from Amsterdam to San Juan, Puerto Rico. It also will add service to Bologna and Baku, the capital of Azerbaijan. The Baku service will start in September, earlier than the others, operated with 767s three times per week. Bologna, KLM's fifth destination in Italy, will receive two Fokker 70 flights a day.
Hughes Aircraft Co. said yesterday it expects to complete negotiations with FAA on a definitive Wide Area Augmentation System contract by the end of the month, before the expiration of the 180-day bridge contract it received in May to begin work. FAA chose Hughes for WAAS without competition after it dropped its original prime contractor, Wilcox Electric, and last week the agency rejected Wilcox's protest of the Hughes award (DAILY, Oct. 10).
DOT is "looking into" allegations that Mountain Air Express (MAX), the new regional subsidiary of Colorado Springs-based Western Pacific, is selling tickets before receiving economic authority from the department. "There is a review of that in progress, but there are no conclusions at this point," said a DOT spokesman. The airline, which expects to begin scheduled service in December to about six Rocky Mountain ski towns with a fleet of new Dornier 328s, says it is proper to sell tickets early using the parent airline's certificate until it gets its own.
New entrant wannabe U.S. CalJet Airlines d/b/a CalJet Airlines wants to fill the service void at Long Beach, Calif., created when Jet America was purchased by Alaska Airlines in 1986. Initially, CalJet proposes to serve San Francisco, Sacramento and Las Vegas with leased, 148-seat MD-80s and expand to Chicago and Atlanta in the second quarter next year. Later, it plans to add Dallas, eventually operating six of the aircraft.
Sterling, Va.-based Atlantic Coast Airlines earned a net income of $7.1 million, or 79 cents per share, for the third quarter of 1996, a 19.8% increase from nearly $6 million, or 61 cents per share, for the third quarter of 1995. Per-share earnings jumped 30%. Total revenue increased 12.7% to $49.5 million from just under $44 million, and yield per revenue passenger mile rose 13.1% to 49.8 cents from 44 cents.
Northwest Airlink affiliate Express Airlines I posted 36.5 million revenue passenger miles flown in September,a 14.6% increase from September 1995's 31.8 million. The carrier said it was the 10th straight month in which it logged double-digit increases in traffic. Capacity declined 1.1% in September to 68.7 million available seat miles from 69.5 million, allowing the load factor to climb 7.3 percentage points to 53.1% from 45.8%. The number of passengers boardings increased 13.2% to 144, 768 from 127,905.
United's travel software, United Connection, now can be downloaded from the carrier's World Wide Web site at http://www.ual.com. United Connection enables travelers to make their own reservations for airline tickets, hotels and rental cars.
Continental Express's traffic rose 14.3% in September to 72.7 million revenue passenger miles from 63.6 million in September 1995. Capacity increased 17.7% to 153.7 million available seat miles from 130.6 million, forcing the load factor down 1.4 percentage points to 47.3% from 48.7%. Boardings rose 6% to 326,114 from 307,576.
Air Canada flew 5.5% more revenue passenger miles in September than in the same 1995 month, and its capacity rose 5.8% to 2.6 billion available seat miles. Domestic RPMs fell 7.2% in September but were up 5.3% for the first nine months of the year. International RPMs jumped 13% for the month while international capacity gained 9.4%. Systemwide load factor edged slightly lower to 69.6%. Sept 96 Sept 95 9 Mths 96 9 Mths 95 RPMs 1,818,000,000 1,723,000,000 14,883,000,000 12,917,000,000
FAA Administrator David Hinson's address to the National Press Club will be the subject of this week's Aviation News Today, to be aired Sunday on Washington's NewsChannel 8 from 12:30 a.m. to 1 a.m. and from 1:30 p.m. to 2 p.m.
FloridaGulf, the Mesa subsidiary operating as USAir Express, will begin new service between Jacksonville and West Palm Beach and between Tallahassee and West Palm Beach effective Nov. 6, USAir Express announced.
Hoping to promote itself through its employees, SkyWest Airlines has opened what it calls a "Resource Center" at Salt Lake City, designed to increase workers' knowledge of the company. The facility, which opened Oct. 12, seats 80 in a theater setting, SkyWest said. "New employees will view videos illustrating the spirit of SkyWest as well as a CD-ROM interactive package of Corporate SkyWest history, present position, future and company benefits."
Spurred by expanding international markets, air cargo grew 4.4% in August, the Air Transport Association said yesterday. Domestic air cargo grew only 1.6%, while international cargo rose 8.3%.
United awarded Sextant Avionique a contract to equip its newly ordered Airbus A319 fleet with multimode receiver approach and landing-aid equipment. The MMR is an onboard system that integrates receivers for instrument, microwave and global positioning landing systems.
U.S. National Carriers Productivity In RPMs And ASMs Per Employee Second Quarter 1996 Revenue Available Passenger Seat Miles Miles Total (000) (000) Employees American Trans Air 2,239,840 3,398,586 4,350 Carnival 605,133 893,036 1,243
Delta Shuttle intends to bypass electronic ticketing and roll out a smart card technology next year, enabling passengers to swipe an everyday credit card through a machine and board the aircraft. The technology is being tested with about 500 passengers, using a separate card containing a chip that holds the passenger's name and frequent flyer program number. "Right now, the test system takes less than a minute," said Hiram Cox, Shuttle manager.
Air France took the first steps yesterday to improve its penetration of the North American market by signing preliminary agreements with Delta and Continental. In two carefully worded announcements, each called a "letter of understanding," the U.S. carriers said they are exploring "enhanced interlining of passengers and freight, computer reservations systems," facility and passenger handling, and joint sales and marketing. They said they intend to pursue code sharing with Air France, following government approval.
FAA Administrator David Hinson said yesterday he does not foresee any relaxation of new security rules, even if the TWA Flight 800 crash is found to have been an accident rather than sabotage. FAA, the FBI and the CIA were working to "elevate the level of security" at U.S. airports before the TWA crash, Hinson said at the National Press Club in Washington. Airlines that complained at first about requiring passengers to have a photo ID have changed their minds, he said. Security is its purpose, but "photo ID stopped ticket fraud dead in its tracks."
Rand McNally's TripMaker 1997 Edition has been named a finalist by PC Computing Magazine for the most valuable product award in the CD-ROM category. The multimedia trip planner sells for $39. Winners will be announced Nov. 17 in Las Vegas.
The Business Travel Contractors Corporation (BTCC) is giving airlines another crack at participating in a simplified net fare structure under a revised proposal that has made significant changes to the pricing scheme. In response to requests from airlines that considered and passed on the original mileage-based fare structure, BTCC will send 18 U.S. carriers a proposal next month that covers 1,300 city-pairs at 26 airports instead of setting fares on a straight mileage basis. Airlines wanted more control over pricing, said BTCC President Kevin Mitchell.
