Continental's complete turnaround in operational performance and Northwest's consistently good on-time performance propelled both carriers to the top of an airline customer satisfaction poll. Frequent Flyer Magazine and J.D. Power and Associates, referring to both carriers' performance a year earlier as "less than stellar," announced that Continental was chosen by frequent travelers as the favorite carrier in long-haul markets (500 miles or more) and Northwest in short-haul.
Virgin Atlantic, which stands to lose plenty from an American-British Airways alliance, has unleashed a #10 million (US$15 million) print campaign to whip up opposition to the proposed union in the U.S. and the U.K. One advertisement , slated to run in The Economist, reproduces part of the now-famous pricing conversation between American Chairman Robert Crandall and defunct Braniff's Howard Putnam. The ad notes that a tape of the conversation was used as evidence in a prosecution by the Justice Department of Crandall for breach of antitrust laws.
American is offering passengers Moments of Serenity - an audio program designed to help travelers relax by teaching them techniques for reducing stress. The tape was produced by KRS Edstrom, a stress management consultant.
Lufthansa has applied for renewal of its authority to hold out United's designator code on Lufthansa flights between Frankfurt and Kiev, Ukraine, operated under the Lufthansa-United Alliance Expansion Agreement, which DOT approved and accorded antitrust immunity recently. In addition, the German carrier is seeking an expansion of its authority, to include code-share services from any point in Germany to Kiev.
BBL Travel, one of Belgium's largest travel agencies, reported a gross profit in 1995 of 725 million Belgian francs, up 15% from the year before. The company said business air travel sales rose 16% and accounted for BEF3.9 billion of BEF6 billion total sales. The company is expecting lower results in 1996, however, "as companies scrutinize their travel budgets for ways to cut costs."
The Air Freight Association told FAA that its proposed rules governing pilot duty time and rest requirements are unnecessary and counterproductive, and must be withdrawn in their entirety. The issue is between labor and management, and it is best left to individual airlines, the association said in comments filed at FAA. AFA also said FAA cannot issue new rules until the backup material to NASA's conclusions on fatigue and duty time is provided so industry can assess the credibility of the NASA results.
HeavyLift Volga Dnepr has applied for an exemption to operate not more than two one-way An124-100 outsized cargo charter flights. The carrier is transporting General Electric GE90 aircraft engines for Boeing 777 aircraft, and related parts, from Wilmington, Ohio, to Boeing Field Seattle. HeavyLift asks for approval to operate the proposed flights between July 5 and Aug. 4.
Hollywood Trenz Inc. will move forward with construction of a family entertainment park in Phoenix after a Delaware court this week lifted a restraining order brought by individuals claiming to represent the company's shareholders. The company said the group actually consisted of dissident individuals trying to gain control of the company. The new center, which is expected to open by the end of summer, will include a Hollywood Kiddz Fantasy Park, an interactive theme restaurant and entertainment and retail areas.
Canadian Holidays' senior management said it will purchase the tour operation from parent company Canadian Airlines International. The tour company will retain its name and maintain a working relationship with Canadian Airlines. The purchase is subject to the signing of a final agreement and regulatory approvals. Holidays' President Errol Francis said, "After much speculation and uncertainty, this agreement promises to revitalize Canadian Holidays' historic position as one of Canada's premier tour operators.
MCI received a 10-year, $165 million FAA contract to construct and deploy FAATSAT, the FAA Telecommunications Satellite system to transfer radar, navigation and weather data to air traffic control facilities throughout the U.S. The company will build multiple hubs and Earth stations, and the FAATSAT Network Management Center will be in Cary, N.C. FAA chose MCI over Harris Corp.
Hilton Hotels Corp. says it is launching one of the biggest frequent flyer promotions in its history - 13 million airline miles will go to members of the Hilton HHonors program. Each of the company's 13 airline partners will give one million miles to the 13 HHonors members who record the greatest number of "double dip" stays with the same partner from July 1 through Sept. 15. To qualify, members must pay business rates for stays at any one of more than 220 Hiltons, and request both miles and HHonors points at check-in - the double dip.
The House Transportation Committee will issue subpoenas, if necessary, to compel testimony of FAA inspectors who fear retribution from FAA management over information they might disclose, Chairman Bud Shuster (R-Pa.) said yesterday. The committee will not tolerate intimidation of or retribution against employees who cooperate with its investigation of FAA's safety oversight of airlines, he said.
In order to get flying again ValuJet must complete a three-part program, according to the consent order signed Tuesday by the carrier and FAA officials earlier this week. The order requires the carrier to pay $2 million for some FAA costs connected with its inspection and review. A ValuJet spokesman said the company will develop a timeline over the next few days to meet the FAA requirements and "is still very hopeful" that it can restart operations in 30 days.
All Nippon Airways has become the latest international carrier to offer first-class passengers a fully reclining seat. The carrier said its "Fullflat Seat" tilts back 180 degrees and has 83 inches of seat pitch, which it claims is the largest in the industry. Air France began offering its first-class passengers a fully reclining seat last year. British Airways went a step further with fully reclining compartmentalized seats.
Virginia Chamber of Commerce will hold its 48th annual Conference on World Trade Oct. 20-22 at the Williamsburg Lodge. The program will focus on Europe and regulations for selling in the European Union, and will include sessions on international travel and tourism and the state's new air cargo initiative. For more information, call 804-644-1607.
SabreTech, the contractor that passed on oxygen generators to ValuJet that likely played a role in the carrier's May 11 crash, said yesterday its internal investigation found that two contractors inaccurately signed documents stating the generators had been deactivated. "We understand that these mechanics, in the absence of shipping caps, made a good faith attempt to provide an equivalent level of safety by disabling the firing mechanism by cutting or wrapping the lanyards to the oxygen generators," said Steve Townes, president.
American Society of Travel Agents President Jeanne Epping has questioned the credibility of FAA Administrator David Hinson because of his statements on the safety of ValuJet, made after the May 11 crash, and his actions this week to shut down the airline temporarily. "Immediately after the ValuJet accident, ASTA went on record as having the fullest confidence in the FAA's ability to ensure the utmost safety of the traveling public.
ValuJet has a breakup value of $3 to $4 per share, according to Lehman Brothers' analyst Brian Harris. The carrier's stock closed up three quarters to $7.25 a share yesterday on heavy trading.
Air Canada is the seventh carrier to forge a frequent flyer link with British Midland. The arrangement will enable British Midland Diamond Club frequent flyer members to earn and redeem miles through Air Canada's Aeroplan program. Air Canada members will have the same access to the Diamond Club. Other carriers that participate in British Midland's program are SAS, Virgin Atlantic, South African Airways, United, American and Lufthansa.
Two Federal Express pilots, in comments filed at FAA on the agency's proposed flight and duty time rules, claim research results on pilot fatigue published by NASA were compromised by changes made to the original version at the request of FedEx management. The pilots said the original NASA technical memorandum shows that FAA cannot, in the interest of safety, write duty time and rest requirement rules that apply to pilots of overnight cargo carriers as well as other carriers.
American Trans Air's May traffic rose 17.2% to 707.6 million revenue passenger miles, compared with 603.7 million in May 1995. Available seat miles increased 30.7% to 1.1 billion, and the passenger load factor fell 7.2 percentage points to 62.5%. The carrier transported 471,667 passengers during the month. For the first five months, RPMs increased 10.4% to 4 billion, ASMs rose 11.3% to 5.8 million and the load factor was down 0.5 points to 69.8%.
Northwest has introduced summer saver fares that cut domestic ticket prices by as much as 40%. Tickets must be purchased by June 25 for travel completed by Sept. 9. Tim Griffin, senior VP-market planning and development, said, "Although many seats have been taken because of earlier summer fare sales, consumers can still realize significant savings." Most major airlines said they were matching in competing markets. Tickets must be purchased at least 14 days in advance.
MD-95 launch customer ValuJet plans to review whether it can continue to make payments to McDonnell Douglas while a government-forced grounding deprives it of revenue, ValuJet President Lewis Jordan said yesterday. The no-frills carrier launched Douglas Aircraft's new-technology revival of the carrier's workhorse DC-9 in October with an order for 50 firm aircraft worth more than $1 billion (DAILY, Oct. 20, 1995). But in the aftermath of the May 11 crash of an older DC-9 in the Florida Everglades, ValuJet's stock price, debt issues and assets have plummeted in value.
