Air France Chairman Christian Blanc is expected to argue against U.S.- France open skies arrangements when he meets with DOT Secretary Federico Pena, scheduled Thursday in Washington. While in the U.S., Blanc also is expected to discuss possible alliances with officials of potential U.S. partners.
Macau Airport, which opened 11 months ago, expects up to 1.3 million passengers its first year of operation. Nineteen airlines operate 282 weekly flights from the Portuguese territory. Macau is negotiating air pacts with Japan, Nepal and the Philippines and expects new service from each country next year.
CIBC Wood Gundy, a Canadian bank with a diversified focus a year ago, has zeroed in on the needs of airlines lately, becoming a financing source and adviser for $4 billion in aircraft transactions in the last seven months. "It's just the beginning," said Tom Gallagher, managing director of CIBC's global airlines and aerospace group and former lead aviation financier at Chase Manhattan. CIBC's hiring of aviation-insider Gallagher in January came just as airlines in various countries were about to make fleet moves.
The Royal Bank of Canada will arrange C$3 billion in financing for Nav Canada to acquire the Canadian civil air navigation system from the government and help finance ongoing needs, Nav Canada said. A three- tranche facility will provide the initial funding for the company until it phases in capital markets financing, Nav Canada said. Nav Canada, a non- share capital corporation, is expected to acquire the air traffic system assets at the end of October.
All Nippon Airways is studying the feasibility of beginning new service next year to Honolulu, spokesman Tom Fredo said. ANA holds three-times- weekly rights to Honolulu from Nagoya, but it has no international crew base in Nagoya and the cost and logistics of establishing one will weigh heavily in the decision. ANA intended to begin code-share service with Delta between Osaka and Honolulu, but delays in U.S.-Japan bilateral negotiations have forced ANA to consider other routes. "New Honolulu- Nagoya service is under consideration," said Fredo.
FAA has prohibited flight operations over Iran airspace by U.S. operators. The agency said that increased military presence and activity adjacent to civil air traffic corridors in Iran have "increased the potential threat to civil aircraft overlying the area." The order is to remain in effect until further notice. Iran last year set up an Improved Hawk surface-to-air missile site near its border with Turkey, and FAA said it has determined that the site increases the potential threat to civil aircraft.
Set to begin extensive services Oct. 27, Delta and alliance partners Austrian Airlines, Sabena and Swissair have applied for authority to operate international code-share services to points on Delta's route network and to enable Delta to provide code-share services to international points on the other carriers' networks. The alliance partners noted the U.S. has open skies pacts with their respective homelands, and they earlier received antitrust immunity from DOT that essentially permits them to operate as if they were a single carrier.
General Services Administration expects to save $2.4 billion in Fiscal 1997, starting Oct. 1, through contracts it awarded 18 airlines for service on 6,100 domestic city-pairs. Delta has by far the most city-pairs, 1,410, worth an estimated $367.3 million. The government rates are on average 62% less than unrestricted commercial rates, an improvement on last year's average of 56%. The one-year contracts include about 1,300 new markets. The fares do not require advance purchases or minimum stays.
House and Senate aviation leaders will resume today their informal efforts to resolve differences between the House and Senate versions of the FAA authorization (H.R.3539, S.1994) in hopes of completing action before Congress adjourns. The official target date for adjournment is Sept. 27, but many observers believe legislators will remain in Washington beyond Friday. It is unclear when on if lawmakers will meet for a formal conference on the FAA bill, but staff and legislators are continuing to hash out differences behind the scenes.
Hawaiian Airlines completed both a shareholder rights and an investor offering last week, raising $39.3 million in new capital for ongoing operations. Hawaiian will use the net proceeds for general working capital and possibly to retire existing debt, said airline spokesman Keoni Wagner. The airline sold 12.1 million shares at $3.25 per share. Separately, Hawaiian next week will increase Honolulu-Portland service to daily from five times per week.
Officials of Dalfort Aviation were determining their next step this week following a DOT ruling that their plan to use large aircraft configured for 56 or fewer seats for a new airline at Dallas Love Field still violates Wright Amendment limits on commercial airline service at the close-in airport. DOT General Counsel Nancy McFadden wrote Dalfort owner Bruce Leadbetter that the 1979 law limits commercial service from Love Field to points in Texas and the four contiguous states for aircraft with a "capacity" greater than 56 seats.
The new Pan Am will be launched on the American Stock Exchange today, trading under the ticker symbol PAA. The new carrier began accepting reservations Sept. 18 for its inaugural service Thursday on New York-Miami and New York-Los Angeles routes.
Carlson Wagonlit Travel has acquired Sweden's third largest travel agency and its former partner, ReseCenter. Travis Tanner, co-president and chief executive of Carlson, said, "We have sought to strengthen our direct presence in Scandinavia, which is a strategic European market." There is a strong demand from Swedish companies for "another major worldwide operator to stimulate the competition in the business travel market," he added.
Hawaiian Airlines launched its World Wide Web page with an incentive to peruse the site - a contest to win first-class upgrades on Hawaii-U.S. mainland flights. The Internet address is http://www.hawaiianair.com. Consumers can make reservations on the site, and online booking capability will be available soon.
DOT Secretary Federico Pena will tour the aviation and security facilities at Miami Airport today. In connection with his participation with the White House Commission on Aviation Safety and Security, Pena will review security procedures at the facility.
America West has officially asked travel agents to stop making passive bookings, which cost the airline in computer reservations system fees (DAILY, Sept. 11). "A passive booking is a duplicate or mirror booking of an existing passenger reservation that is often created to generate itineraries or other support documents," America West explained.
Continental has put Caribbean, Mexican and Latin American fares on sale 25% off the normal excursion fare. Tickets must be purchased by Sept. 30 for travel completed by Feb. 13. A seven-day advance reservation is required.
Fourth Annual Aero Club Fall Classic Golf Tournament is scheduled Nov. 1-3 in Williamsburg, Va. At $338 per couple or $286 per individual, the weekend package includes two nights at the Williamsburg Lodge, championship golf, visits to historical sites and dinner at the Kings Arms Tavern. Call 804-229-1000 for reservations, using reservation code ACW 1196.
Reno Air and American Eagle carrier Wings West have signed a code-sharing agreement for flights connecting between Los Angeles and 10 points in California and Nevada. The pact applies to Wings West flights to San Diego, Orange County, Monterey, Bakersfield, Fresno, Santa Barbara, San Luis Obispo, Carlsbad, Palm Springs and Las Vegas. The Wings West flights will carry the Reno code beginning Oct. 15. Eagle operates Saab 340Bs.
Fresno, Calif.-based regional carrier Air 21 reported its second profitable month, with $1,800 earnings in August on sales of $1.3 million. The airline, which began late last year operating Fokker 28s, posted a $36,000 net profit in July on sales of $1.6 million. Chairman, President and Chief Executive Mark Morro said it earned six cents per passenger in August and is $400,000 ahead of budget projections. Due to strong demand on its Fresno-Los Angeles route, the carrier plans to increase service from two to four daily roundtrips in October.
Irish flag carrier Aer Lingus came to terms with its pilots Sunday, averting an Irish Airline Pilots Association strike by just 3.5 hours. The airline, which had arranged several wet-leases to operate much of its schedule yesterday, did not have a single disruption in service after the Irish Labor Court mediated an agreement with pilots. The new contract is in effect and does not have to be ratified, and Aer Lingus has no other pending labor negotiations.
American Helicopter Museum&Education Center will open Oct. 18 at 1220 American Blvd., Brandywine Airport, near West Chester, Pa. It is the first museum dedicated solely to rotary wing aircraft.
Airlines Reporting Corp. said August travel agent sales increased 5% to $4.901 billion. Domestic fares for the year were up 12% and international fares 8% from August 1995. Domestic commissions paid rose 3% to $2.614 billion, and international commissions were up by the same amount to $1.804 billion.
Northwest said its DreamPerks auction packages have attracted more than 400 absentee bids in anticipation of the auction Friday at Sotheby's New York. The auction enables the public to purchase frequent flyer miles at five cents per mile. The packages consist of first-class travel and lodging for 34 unusual vacation deals. Much of the profit goes to Habitat for Humanity.
Airline revenue passenger miles for Air Transport Association carriers rose 7.3% in August to 53.6 billion on 3.4% more capacity, for a total of 70.2 billion available seat miles. Passenger enplanements were up 7.1%. For the first eight months of the year, RPMs rose 4% to 347.1 billion and ASMs 2.6% to 511 billion. The average load factor for August was 76.3%, compared with 73.5% in August 1995, and the load factor for the first eight months was 67.9%.
