Persisting social unrest is leading the Air France Group to consider giving up its plans to set up a European carrier, Air France Europe, based on the former Air Inter. The project "is strongly jeopardized by the persisting social crisis," said Alain Lamassoure, French minister of the budget and government spokesman. "We will have to consider, because it will be the only solution, the merger" of Air France and the former Air Inter, he said. At the same time, moves to axe 18 of Air France's European routes were met by strikes and heavy resistance from French workers.
America West is seeking an exemption to operate scheduled combination service between Phoenix and Acapulco, Mexico. The carrier proposes daily service beginning Nov. 22 on the route, using Boeing 737-300s. Noting that the air services agreement between the U.S. and Mexico permits single designation of U.S. carriers on the Phoenix-Acapulco route, America West points out that no U.S. carrier has been designated to serve it. (Docket OST-96-1491)
The Association of Flight Attendants (AFA) has asked DOT Secretary Federico Pena to ban smoking on all domestic flights and all service between the U.S. and foreign points. "The health hazards of environmental tobacco smoke, which are well documented, are even greater in the confines of an aircraft cabin," said AFA President Pat Friend. "Flight attendants, because of their position and duties, are particularly susceptible to these hazards," she said.
Kiwi International Air Lines said yesterday it has signed up Recovery Equity Investors (REI), San Mateo, Calif., to invest between $2 million and $10 million in Kiwi notes that are convertible into common stock. REI will retain a large stake in Kiwi and will be represented on its board. The amount of control it wields will depend on what stock options it exercises and how Kiwi performs financially, the carrier said.
DOT awarded new Ecuador service rights yesterday to Continental and American. The new service "will provide valuable new travel options in important South America markets, while adding momentum to the department's efforts to expand services to travelers and shippers in the U.S.-Ecuador market," said DOT Secretary Federico Pena. Continental was granted authority to operate daily Newark-Guayaquil service, via Panama City, beginning Dec. 12. The carrier plans to operate Boeing 757 aircraft on the service.
Gulfstream Vice Chairman Bryan Moss, in a cool reaction to Boeing's announcement of a new 737-700 business jet, noted yesterday that the Seattle giant has tried and failed before to find a business aircraft market for its commercial airliners. "We have seen it with various models, including the 707, the 727, the 757 and now with a version of the 737," Moss said. "Each time, when Boeing has gone to the market, companies have considered the size of those airliners and the infrastructure required to support them.
Wide Area Augmentation System requirements either stayed the same or were made more difficult when FAA's Satellite Program Office shifted the contract from Wilcox Electric to Hughes Aircraft Co., the program office said in a response to Wilcox's protest of the Hughes award. FAA terminated the Wilcox contract April 26 and awarded it to Hughes soon after, and Wilcox contends that the agency deleted or deferred many of the requirements when it did so.
Citing intensive price cutting, Taiwan's Ministry of Transportation and Communications has announced it will order a reduction in the number of flights operated between Taipei and Kaohsiung. The ministry has not yet said how extensive the reduction will be, but the plan already is meeting opposition from local travel agents, who say the intense competition among airlines serving the route has resulted in better service and sharply lower ticket prices. One-way tickets on the route, officially priced at US$51.25, currently are available for as little as US$18.20.
DOT has assessed civil penalties of $10,000 against Midway Airlines for violating the full disclosure requirements of regulations on fare advertisements. In a published ad, the carrier promoted new fares without disclosing that they were non-refundable and, in a television ad, listed certain fares without mentioning that passenger facility charges would be added, according to the DOT Office of Aviation Enforcement and Proceedings. Saying that each ad appeared only once, Midway said it believes that no consumers were harmed.
AAR Corp. expects net income for its fiscal year ending May 31 to increase 53% to $16 million compared with the previous year and net sales to increase 12% to $505 million. David Storch, president, disclosed the expected results in an interview last week with Dow Jones. The company said net income for the fourth quarter is expected to be up 42% to $5 million and sales up 6.5% to $138 million.
Officials of Taiwan's Chiang Kai-shek Airport, stung by increasing complaints about high surcharges demanded by taxis operating between the airport and downtown Taipei, are planning to introduce a free shuttle service before the end of this year. One official said the service will transport passengers from the airport to Taoyuan City, where they will be able to take taxis without paying the surcharge or connect with other forms of public transportation. The airport also has agreed to allow privately owned United Highway Bus Corp.
A June 28 Regional Aviation story - on a November 1995 incident in which a Simmons Saab 340 lost power in one engine and made an emergency landing at Corsicana, Texas - failed to mention FAA's followup action two months later. The National Transportation Safety Board linked the incident to ice accumulation in the engine and subsequent failure of the auto- ignition system. In January 1996 (DAILY, Jan. 12), FAA issued an emergency order requiring flight crews to verify that the auto-ignition system is operational.
FAA is flirting with another 737 disaster because it has not required flight data recorders on older 737s to be upgraded, National Transportation Safety Board Chairman Jim Hall said yesterday. Citing yaw problems experienced recently by an Eastwind Airlines 737-200, Hall criticized FAA Administrator David Hinson for the agency's failure to order FDR upgrades recommended by NTSB on Feb. 22, 1995, because it was concerned that not enough information was gathered from the FDR of a USAir 737 that crashed near Pittsburgh on Sept. 8, 1994.
FAA officials are looking at dispersing 54 domestic sectors of the New York Center and turning it into an oceanic center to solve chronic staffing problems, The DAILY was told. The plan reportedly has upset officials of the Washington, Cleveland and Jacksonville centers, but the Boston Center was more sanguine because it would handle more traffic and qualify for pay upgrades. The conversion would cost about $120 million. Bob Harris, head of Controllers United, said the plan "avoids the critical question. FAA cannot get sufficient talent to come into the facility.
DOT has granted American International Airways' request to add Guam as a co-terminal point on its Honolulu-Melbourne-Jakarta all-cargo service. AIA said it would operate initially once-weekly Boeing 747 service on a Honolulu-Guam-Melbourne-Jakarta-Honolulu routing (DAILY, June 26). (Docket OST-96-1378)
The French government said yesterday that Aerospatiale and Dassault Aviation will merge to form a $12 billion entity a year earlier than the timetable it announced in February. It said details are to be worked out before January 1997, versus the early-1998 goal set down when Prime Minister Alain Juppe outlined the government's merger plan in February. French President Jacques Chirac has pressed for the merger to help streamline France's defense sector, but Dassault has strongly opposed it and predicted slow progress.
Pratt&Whitney Canada Friday delivered the first PW530A production engine to Cessna Aircraft for its new Citation Bravo executive jet. The engine is the first in the PW500 family developed in collaboration with MTU of Germany.
Airlines Industry Stock Trends Closed Closed Exchange 6/28/96 5/31/96 Majors Alaska Air Group NYSE $ 27.370 $ 26.000 AMR NYSE 91.000 94.370 America West (Class B) NYSE 22.000 20.370 Continental (Class B) NYSE 61.750 56.870 Delta NYSE 83.000 82.870
FAA confirmed yesterday that all three vendors for the Standard Terminal Automation Replacement System (STARS) program submitted their final cost proposals during the day. Teams headed by Boeing, Lockheed Martin and Raytheon are trying to win the $1.5 billion contract. A selection is expected in late September.
Whether the U.S. and Japan will meet again on aviation issues is uncertain following their failure to make headway in two days of negotiations that ended Friday in Washington. "We failed to make progress on any of the [outstanding] issues," said a U.S. official. In a statement issued yesterday, the head of the Japanese delegation acknowledged that "the consultation failed to achieve any constructive results." The two sides set no future dates for talks.
Civil pilots now can find out whether the Air Force is conducting jamming tests of GPS signals, according to the Aircraft Owners and Pilots Association. Martin Shuey, VP-air traffic control for AOPA, said the electronic countermeasure tests are conducted almost daily in the Southwest and can make GPS navigation signals "unreliable" for several hours within 300 miles of the test site. It was difficult for pilots to find out the area of signal disruptions because FAA was classifying the GPS-ECM test warnings as local notices to airmen, Shuey said.
Pratt&Whitney said it has received FAA type and production certificates for the PW4090, its most powerful engine with 90,000 pounds of thrust. The certification clears the way for flight testing aboard the Boeing 777 this summer and entry into service on increased-gross-weight versions of the 777 next March. Customers have selected the PW4090 for both the increased-growth-weight version of the 777-200 and for the stretched 777- 300. The PW4084 now is used on 777s.
China Airlines asked DOT to withdraw its order approving Federal Express's complaint against Taiwan. CAL said the department "violated its own regulations and procedural order, as well as the requirement of due process by approving FedEx's complaint without giving CAL a hearing on the central issues that were addressed in its answer" to the complaints. Deferring on the question of imposing sanctions, DOT approved last month FedEx's complaint against the government of Taiwan (DAILY, June 25).
AirWays Corp. warned Wall Street yesterday that its Florida AirTran unit probably will not meet profit expectations set by analysts for its first quarter 1997, which ends June 30. "During the past few weeks, we have encountered an unusually difficult operating period with flight delays and cancellations not normally experienced by AirTran," John Horn, the carrier's president and chief executive officer, said in a statement.
