Rich International Airways President William Meenan said he was "totally surprised" when the FAA suspended the carrier's operating authority late Monday. Meenan said Rich was told it was grounded, effective immediately, as a result of technical documentation discrepancies FAA allegedly found during an inspection conducted Aug. 26-31 of Rich's facility, manuals and records. FAA said the record-keeping discrepancies were found in crew training but also involved maintenance and equipment.
In its order on second-year U.S. Vancouver services, DOT yesterday denied American's application for authority to provide Chicago-Vancouver services and its request for allocation of a frequency from Northwest, and it granted Northwest an exemption to provide scheduled combination service between Los Angeles and Vancouver, on flights operated by Alaska Airlines. Amending an earlier order, the department also is allowing Northwest to shift its two second-year U.S.-Vancouver frequencies from Minneapolis and Detroit to the Los Angeles-Vancouver market.
South African Airways has asked DOT for an exemption to operate scheduled combination service between Johannesburg and Cape Town, South Africa, on the one hand, and Philadelphia, Boston, Washington, Houston, San Francisco, Dallas/Fort Worth, Chicago, Atlanta and Orlando, via New York and Miami, on the other. It plans to start the service Oct. 1 under a code-sharing arrangement with American. SAA also requested that the answer period be shortened and that all answers be filed by Sept. 9, so the department can act on its application by Sept. 13.
Northwest will open negotiations today with the Teamsters union, representing its 9,500 flight attendants. The Teamsters already are framing the talks, reminding the carrier that concessions the union made three years ago "helped save the airline from bankruptcy."
Newark-based Kiwi International Air Lines expects to raise $22 million-$24 million shortly and likely will decide in six to nine months how it will replace its 727 fleet, Chief Executive Jerry Murphy told The DAILY. The carrier already has narrowed the equipment choice to Airbus Industrie and Boeing, and it met recently with both manufacturers. "We want to transition forward to a newer fleet," said Murphy.
The Taiwan Aerospace Corp. (TAC) is working on a plan to form a joint venture with one or more partners to set up an aircraft leasing company. Taipei's China Post quotes TAC Chairman Jack Sun as saying that the new company, which will be capitalized at US$300 million, plans an initial purchase of 70 narrowbody passenger jets. The report quotes Sun as saying that details of the venture have yet to be worked out but the quest for capital is expected to begin within the next two months.
Executive Jet Aviation is purchasing 25 Cessna Citation X and 20 Citation VII business jets for its fleet of fractional-ownership aircraft, Cessna announced yesterday. The order, which surpassed the July 1994 EJA order for 25 Citation Ultras and is valued at more than $600 million, "is believed to be the largest business jet purchase in history," Cessna said.
A new agreement between American and its Allied Pilots Association union, tentatively signed on Labor Day, ends two years of bickering and strike threats and allows AMR Eagle to operate at least 67 regional jets for the four-year life of the contract. The deal, which also includes small pay raises and future stock options for the pilots, is part of a package APA President Jim Sovich called "industry-leading" and containing "the finest protections in the industry, bar none." The APA board will meet Sept.
American Trans Air, which has built its scheduled passenger operation to 55% of its total business, plans to refocus on its successful charter operation in a small, short-term downsizing. The carrier will buttress its core strengths and "de-emphasize those that are not producing," said Stanley Pace, new president and chief executive.
Swissair Group AG posted a net loss of 51 million Swiss francs (US$42 million) in the first half of 1996, an improvement from a loss of SF86 million francs (US$71 million) in the first six months of 1995, the airline told The DAILY. Group operating revenues rose 6.1% and total revenues were SF3.6 billion ($3 billion), up more than 10%. The airline said it will release more complete figures in the near future.
World aerospace leaders interviewed for coverage of this week's Farnborough Air Show by McGraw-Hill Aviation Week Group's Show News are optimistic but take a cautious approach in their view of the future.
Continental Express announced yesterday a firm order for 25 Embraer EMB-145 regional jets valued at $375 million and options for 175 more over the next 12 years. The carrier said the order is consistent with its previously announced five-year plan, which calls for "flexible growth" at its Newark, Houston and Cleveland hubs. Continental Express, which will be the first North American customer for the 50-seater, is a "key contributor to Continental's overall success," said Continental President Gordon Bethune.
Boeing launched the stretched 757-300 and received orders for 68 jetliners valued at $6.3 billion from seven customers, Commercial President Ron Woodard announced at the Farnborough Air Show. He said the new 757, which will seat 20% more passengers, was developed on the basis of an accepted proposal for up to 24 copies from German carrier Condor Flugdienst.
AlliedSignal received an order from American worth more than $20 million for enhanced ground proximity warning systems. American is the first airline to order the systems, with plans to install them on its fleet of 635 aircraft by mid-1999, AlliedSignal said. The system addresses the problem of controlled flight into terrain.
Fairchild Corp. announced yesterday that Delta has ordered cargo and baggage loading systems for all its MD-88s and MD-90s from Scandinavian Bellyloading Co. Delta will equip 150 aircraft with two cargo systems, one installed fore and one aft. The system eliminates the need to position an employee within the cargo bay to handle bags or cargo and features a Kevlar-reinforced, fireproof carpet conveyor belt and a quick-release bulkhead. As loading starts, this bulkhead is near the cargo bay door.
The White House Commission on Aviation Safety and Security is scheduled to hold its first public meeting tomorrow. The meeting will be open to the public between noon and 1 p.m. Tasked to present an initial report Sept. 9, the group has a three-part mandate to address airline and airport security, oversight of aviation and modernization of air traffic control.
The American Society of Travel Agents yesterday reached an out-of- court settlement with six carriers on the antitrust, class-action lawsuit brought by ASTA. Details of the settlement will be made public today following a hearing in the Minneapolis Federal Court of Judge James Rosenbaum. The case was settled with all the carriers after ASTA earlier in the day reached an agreement with Continental in which the travel agent group agreed to drop its claim against Continental, while the carrier agreed to pay a cash settlement of $4.25 million.
Summary of U.S. Major Carriers Domestic Traffic March 1996 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) Alaska 927 29.02 817 757,670 America West 1,577 7.39 827 1,303,908 American 5,622 (1.90) 1,119 6,289,210
Summary of U.S. National Carriers Systemwide Traffic, March 1996 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) American Trans Air 644 23.71 1,476 950,187 Carnival 230 35.19 1,140 262,342 Hawaiian 465 13.25 704 327,253
Kitty Hawk Aircargo has landed a $21 million U.S. Postal Service contract to deliver mail during an 11-day peak Christmas holiday period. The contract is designed to help ease congestion at the major passenger airline hubs. Kitty Hawk, along with DHL Worldwide Express, will furnish and operate the mail delivery hub at Cincinnati Airport with more than 25 company-owned and contracted aircraft. Its employees will handle mail going to 25 network cities Dec. 14-24.
A powerful Air France union turned its attention, and its might, to the African refugee issue last week. CFDT said it wants to "uphold the dignity of French aviation" and stop the French government from chartering an Air France jet to deport more than 60 illegal African immigrants. A Wall Street source commented that this type of union move "will not help [Air France] lower its costs."
Douglas Aircraft said it received orders from four airlines valued at more than $365 million. Heliopolis Airlines, a new charter operator based in Cairo, ordered one MD-90 for delivery in 1997 and placed options on two more. Kibris Turk Hava Yollari, a charter carrier from Istanbul, ordered three MD-90s for delivery in December and January and took options on two more. Brazilian carrier VASP ordered a ninth MD-11 for delivery this October. Douglas said another MD-11 was ordered by an unidentified customer for delivery in December.
Canadian Marconi Co. said yesterday it has received a $5 million order from American for 80 airborne satellite communication antennas for A330, 767 and MD-11 aircraft. Installations will begin next month and run for 24 to 30 months. The CMA-2102 antennas will provide American with inflight telephone and data communication facilities, Marconi said. The CMA-2102 was Inmarsat access-approved for multi-channel voice and data communications in 1993, and Marconi said orders now exceed 600 from 26 airlines and several VIP users.
Airbus Industrie announced that Federal Express Corp. has ordered 11 more A300-600 freighters for delivery between 1998 and 2000. The General Electric-powered aircraft will be used on domestic routes. FedEx previously ordered 25 of the aircraft. Asiana Airlines of South Korea signed for 18 A321s, for delivery beginning in the second quarter of 1998, and Cathay Pacific ordered three more A340-300s, increasing to nine the number on firm order, Airbus said.
