In a major development in India's civil aviation sector, a panel of government-appointed aviation experts recommended that the government dilute its equity stake in domestic carrier Indian Airlines to 49% within two years to ensure IA's survival, civil aviation ministry officials said yesterday.
Alaska's application for enhanced cargo operations at Alaskan airports has sparked mixed reviews, mainly negative from U.S. carriers and positive from Asian airlines. The state and its major airports have asked DOT to amend the Foreign Air Carrier Permit and exemption authority of all foreign carriers authorized to serve the U.S. to enable them to engage in expanded cargo transfer activities at Alaska's international airports (DAILY, July 30).
Southwest Airlines has begun upgrading the flight data recorders on its fleet of 737s ahead of the timetable suggested by the FAA. The carrier currently operates 237 Boeing 737 aircraft and will have 241 by yearend. The enhanced recorders are not needed in aircraft manufactured after 1991, which in Southwest's case total 90. Most of Southwest's upgrades will be completed by the end of 1998, with "a half dozen or so" left for 1999, a spokeswoman said. FAA proposed to require airlines to begin the modifications no later than 1998 and complete them sometime after 2000.
The Carlyle Group said yesterday it will buy Textron's Aerostructures Division for $180 million in cash and a subordinated note. The sale, which is not expected to result in a book gain or loss to Textron, is targeted for completion in September, Carlyle Managing Director William Conway said. The Aerostructures unit had 1996 revenues of $190 million producing wings and wing components for business, commercial and military aircraft.
Most major airlines increased domestic ticket prices by 10% last week, excluding sale fares, as the 10% federal ticket tax is expected to be reinstated today by President Clinton as part of the minimum wage package (H.R. 3448). The excise tax, as well as the $6 international departure tax and the 6.25% cargo waybill tax expired Dec. 31 as a result of the federal budget impasse. If signed into law today, the tax will go into effect Aug. 27.
Boeing 737 Systemwide Aircraft Utilization Per Day First Quarter 1996 B737-300 America West Continental Delta Number of Aircraft Operated 40 66 13 Total Fleet Operations Departures 262 287 69 Block Hours 471 678 119
Delta will show CNN, Headline News and the Discovery Channel programming from DIRECTV on its Spirit of Delta 767 during a six-month test. The programs replace short-subject videos and feature films.
American applied to DOT for renewal of its allocation of 11 weekly U.S.- Brazil frequencies and its exemption to operate scheduled New York- Vancouver and Miami-Vancouver services. The carrier uses the Brazil frequencies to provide daily service in the Dallas/Fort Worth-Sao Paulo and Miami-Sao Paulo markets. (Dockets OST-96-1652&OST-95-710)
As U.S. and U.K officials prepare to meet next week in another round of talks, TWA is increasing the pressure on DOT to act on its application for service to Heathrow. A U.S. official described the negotiations, planned to be held Aug. 27 and 28 in Washington, as government-to-government and said they will not include industry representatives. The two sides will address the issue of dispute resolution, a key sticking point in earlier discussions.
Carnival Air Lines is offering weekly select discounted fare and vacation package information exclusively on the Internet at http://www.carnivalair.com. When visiting the Web site, users can choose "cyberdeals" and find weekly offers. The current offer is for a companion ticket at half price.
In an amendment to its 10-Q statement at the Securities and Exchange Commission, TWA said its "operating strategy contemplates a capacity increase in 1996 of approximately 7% as measured by total ASMs [available seat miles], through, among other things, (i) the acquisition of four additional used Boeing 747s (including two that were delivered through July 8, 1996), 12 additional new or used MD-80s/83s (including two that were delivered in April 1996) and three new Boeing 757s, (ii) an increase in seating density across TWA's fleet and (iii) more efficient use of existin
Reno Air will launch service to San Francisco from Orange County Oct. 1 with four daily roundtrips and fares starting at $76 one way. The highest walk-up coach fare will be $129. "We've been evaluating potential markets from Orange County for some time," said Robert Reding, president and chief executive. Reno flights offer American AAdvantage frequent flyer miles and EZtrip ticketless travel.
Northwest appointed Laurence Grimard VP-aircraft maintenance operations, responsible for the airline's fleet of 388 aircraft. He previously was VP- operations at Aero Systems Engineering Inc., St. Paul, Minn.
A federal grand jury has indicted a man who became disruptive and interfered with a flight crew's duties last month on a USAir flight between Savannah, Ga., and Charlotte, N.C. The Air Line Pilots Association yesterday applauded the court's action in handing down the one-count indictment for striking fellow passengers and flight attendants, trying to break into the cockpit and attempting to open an emergency door during flight. The passenger is scheduled to be arraigned in U.S. District Court for the Southern District of Georgia in Savannah Sept. 12.
Airline pilots are ignoring about half the time the commands of the cockpit system designed to avert midair collisions, according to officials in charge of the system. The Traffic Alert and Collision Avoidance System (TCAS) has wide support in industry and has been credited several times with resolving close encounters and avoiding midair collisions between airline aircraft.
ATA Connection, the code-sharing operation of American Trans Air and Chicago Express, has started service between Midland/Bay City/Saginaw, Mich., and Chicago Midway Airport. The flights connect with American Trans Air's service between Midway and Florida and the West Coast.
Delta has asked for renewal of its exemption authority to operate scheduled service between Atlanta and Cincinnati, on the one hand, and Vancouver, on the other hand. The carrier proposes to continue to offer one daily nonstop roundtrip frequency for each route, using Boeing 757-200 aircraft or other suitable aircraft as market conditions demand. Delta said it reserves the right to use other aircraft types that it determines to be appropriate for and consistent with market conditions at any given time. (Docket OST-95-717)
DOT issued a show cause order tentatively granting Pro Air an operating certificate to provide interstate scheduled passenger air transportation. Headquartered in Seattle, Pro Air plans to provide service initially from its operational base in Detroit to Baltimore, Milwaukee and Boston, using two 118-seat Boeing 737-200 aircraft. Kevin Stamper, Pro Air's president and a board member, was managing partner from 1979 to 1995 with Crane, Stamper, Dunham and Drury, a law firm that practices aviation law.
Hong Kong-based Dragonair will launch service today o Qingdao, its 15th destination in mainland China. The coastal city, known as the Pearl of the Yellow Sea, will be included as a package tour destination for Dragonair Holiday. The flights will operate on Mondays and Fridays. The carrier also said it will serve Haagen Dazs ice cream through September on flights to Shanghai and Beijing.
In a decision Rolls-Royce wanted to hold for announcement next month at the Farnborough Air Show, United Parcel Service has exercised options on five 757 package freighters for delivery in 1998. That will give UPS 75 of the aircraft, and the carrier also is moving forward a 747-300ER freighter delivery to 1998 from 2000. UPS will have 30 767s at the end of 1999.
Kiwi says it needs continued favorable payment terms from its lessors, $6 million to $10 million in new capital and significant additional funds from operations beyond what it has been able to generate in the past in order to meet its existing debts, fund capital expenditures and improve its liquidity. On June 30, the carrier had cash and cash equivalents of $781,351 and an accumulated deficit of $36,912,000.
GPS Aviation Applications by Bill Clarke. Focuses on current and future GPS applications in all flight environments and provides details of FAA regulations relating to GPS technology. McGraw-Hill; $34.95 paper. For more information, call 212-337-5951.
