The Colombian company that created coffee symbol Juan Valdez yesterday hired Canadian bank CIBC Woody Gundy to assist its airline in a refleeting decision that could become the bellwether for other Latin American carriers. ACES, the second largest Colombian airline, is owned privately by the Colombian Coffee Federation. The company plans to take the airline international in the same way it has marketed Juan Valdez and his mule to dozens of countries.
Like its major competitors, United is considering whether its regional partners should be able to operate jets in the 50- to 100-seat range, but it also could become the first major domestic carrier to operate them itself. United has conducted a study of a conceptual regional jet operation owned and operated by itself that it believes would cost $648 million to establish, not counting training, station support and other related items, according to United's Air Line Pilots Association unit.
Vanguard plans to announce new nonstop destinations this morning in Minneapolis/St. Paul and reveal its strategy to "liberate" the twin cities from high air fares.
Hong Kong, Las Vegas, Sydney and Cabo San Lucas were picked most often by travel agents as the most likely sleeping dog tourist destinations in 1997. Members of the American Society of Travel Agents have chosen Costa Rica as the most popular destination for ecotourism in 1997. Costa Rica tied with Colorado for second place, behind Alaska, for the most popular adventure travel spot.
Congress has ordered the Transportation and Commerce departments to submit within six months a plan for future use and funding of Loran-C. In a sharp rebuke - particularly of DOT, which ignored protests of Loran-C users by scheduling an early phaseout of the navigation aid - the Coast Guard authorization for fiscal 1996 and 1997 contains Loran-C language that received unanimous bipartisan approval.
The Securities and Exchange Commission has told Denver attorneys that it has terminated an SEC staff inquiry into the adequacy of the city's disclosure to bondholders of problems with Denver Airport's baggage system. Daniel Shea, the SEC's regional director, told Denver the inquiry was called off and no enforcement action was recommended to the Commission.
Tower Air has been cited as having the best domestic business class by Entrepreneur Magazine for the second year in a row. Tower, which recently reduced the price of its business class, gives passengers priority boarding and check-in, wide leather seats, more legroom, free headsets, cocktails and upgraded meal service, the airline said. It operates an all-747 fleet from its New York Kennedy base.
A provision in FAA's new Part 119 - certification and operating requirements - could threaten charter flyers by exposing aircraft operators' names to "persons with questionable intentions," according to the National Air Transportation Association. The rule mandates the display of the certificate holder's name outside the aircraft to help FAA personnel during ramp inspections. The rule goes into effect March 20, 1997, and NATA is trying to persuade the agency to amend this portion of it.
Northwest flew 7.5% more revenue passenger miles in September than during the comparable 1995 month on 8.5% greater capacity. The airline's load factor decreased 0.7 percentage points to 71.5%. International scheduled service RPMs rose 10.4% on 10.7% greater capacity in September, forcing the international load factor down 0.3 points to 82.2%. International capacity comprises 40% of the airline's systemwide capacity. Domestic scheduled service recorded a 5% rise in RPMs on 7% greater capacity.
Atlantic Coast Airlines reported a 0.7% increase in revenue passenger miles in September from the same 1995 month to 31 million. At the same time, available seat miles rose 5.5% to 66 million, resulting in a load factor decline of 2.3 percentage points to 47.1%. The number of passengers carried dipped slightly to 126,783. For the first nine months of the year, RPMs were up 2.5% to 267.1 million and ASMs 5.2% to 572 million, causing the load factor to fall 1.2 points to 46.7%.
Continental passenger traffic rose 4.6% in September after the carrier added flights to Latin America and Europe as well as domestic service. Available seat miles climbed 7.3%, depressing the load factor 1.7 points to 63.5%. The traffic gains were led by a 7.5% revenue passenger mile growth in Continental's international business on 9.5% international ASM growth. The international load factor dropped 1.3 points to 68% and the domestic load factor 1.9 points to 62%. Sept 96 Sept 95 9 Mths 96 9 Mths 95
U.S. Major Carriers Operating Revenues and Expenses Six Months 1996 Operating Operating Revenues Expenses (000) (000) Six Months 1996 Alaska $ 626,378 $ 592,207 America West 882,785 786,386 American 7,513,688 6,841,549
Alaska Airlines will introduce service between San Jose and Palm Springs Nov. 4 with a special fare of $59 one way with a 21-day advance purchase. Travel must be completed by Nov. 20. Alaska will offer one daily flight in the market. The carrier also will offer special fares to kick off flights to Mexican resorts Ixtapa and Zihuatanejo. It will operate to the Mexican points four times a week from Los Angeles and San Francisco, starting Nov. 7. Fares beginning at $160 from Los Angeles and $200 from San Francisco are good for travel through Dec. 15.
AMR Corp.'s stock offering of the Sabre Group may come tomorrow, possibly toward the close of business, a Goldman Sachs source said, paving the way for the American Airlines parent to raise an expected $434 million. Goldman Sachs, the lead underwriter, expects the initial public offering to generate tremendous interest. If the offering is over-subscribed, Goldman Sachs would be able to pro-rate it and give it to their best customers, said Steve Lewins, airline analyst with Gruntal&Co.
New York-based Polar Air Cargo's pilots have voted for representation by the Air Line Pilots Association. The National Mediation Board said out of 153 cockpit crewmembers eligible to vote, 113 voted for ALPA and two ballots were counted for the Teamsters.
CIBC Wood Gundy's Taipei affiliate and the International Commercial Bank of China are co-leading and underwriting a $72 million financing for China Airlines to purchase an Airbus A300-600R.
U.S. Major Carriers Operating and Net Profit Six Months 1996 Operating Net Profit/Loss Profit/Loss (000) (000) Six Months 1996 Alaska $ 34,171 $ 13,740 America West 96,399 42,143 American 672,139 281,199 Continental 278,072 255,272
KLM recorded an 8% increase in September revenue passenger kilometers on a 7% growth in capacity, which pushed the load factor up 0.7 percentage points to 79%. The airline attributed the growth to increases on routes to and from the Asia/Pacific region and Central and South America. Overall, revenue ton kilometers rose 7% to 755.2 million RTKs. Cargo traffic climbed 7% to 340.1 million RTKs. Available cargo ton kilometers increased 4% to 488 million and cargo load factor was up 2.1 points to 69.7%.
FAA has grounded 10 small airlines in the last several years for "largely minor paperwork violations" at a cost of 5,000 jobs and the loss of $1 billion in equity capital, according to longtime industry consultant Morten Beyer and Associates.
Delta will announce by monthend a third city - in addition to Atlanta and Cincinnati - eligible for its Escape Plan '97 weekend getaway specials. Revenues from membership in the plan have passed $1 million. With the launch of Delta Express operations this month, Delta, Delta Shuttle, Delta Express, Delta Connection and Delta's Worldwide Partners combined service will reach 5,000 flights a day to 39 countries.
United will beef up service at Newark Jan. 7, when it begins operating four daily roundtrips to Boston and one to San Diego. The flights will offer double miles to frequent flyer program members until Feb. 7. They will be in addition to the four flights a day offered by United Express in the Newark-Boston market. United's flights from Boston to Newark will connect with flights to London, San Diego and Seattle.
Alliance partners KLM and Northwest will introduce new joint service between Amsterdam and Newark, N.J., May 1, 1997. The move will raise to 12 the number of cities the carriers serve together from Amsterdam Schipol Airport. The service will be operated with Northwest's DC-10s. The two airlines, which also operate twice-daily service from New York Kennedy Airport to Amsterdam, offer code-share flights to more than 150 cities in the U.S. and more than 40 in Europe, the Middle East and Africa.
Zagat has published its first Las Vegas Restaurant Survey, rating more than 600 diners and 300 restaurants. Spago's at Forum Shops at Caesar's won the popularity contest, but the top-rated restaurant for its cuisine was Emeril's New Orleans Fish House at the MGM Grande. The guide is available for $9.95 in most bookstores.
Electronic Card Systems is awarding merchants American AAdvantage miles for every $200 they process in credit card transactions. At the end of the year, awards will be given to the highest dollar volume processed by the top three merchants, and 50,000 miles will be given away for a credit card transaction picked at random.
Southwest held onto the top on-time spot for the seventh month in a row with an 87% record for July. Overall, the nation's 10 largest carriers posted a 75.3% on-time rate during the month, up from 74.7% in June but down from 80.1% in July 1995, according to DOT's Air Travel Consumer Report, published last week. Northwest placed second at 79%, followed by USAir at 77%. American and Alaska trailed the field, each at 63%. Data still include delays caused by mechanical problems, and DOT still is considering whether to exclude them again from the on-time ratings.
