The Transportation Department will review "promptly" agreements by airlines to drop the $75,000 liability limit on passengers injured or killed on international flights to and from the U.S., Secretary Federico Pena said. The administration "commends the airlines for using the tools that we gave them" - an immunity order that allowed carriers to discuss the liability limits - "to produce these agreements," Pena said.
Taiwan's Health Department says drinking water served on aircraft leaving the island may not be safe. Of 133 samples of drinking water taken from flights departing Chiang Kai-shek Airport for Southeast Asia, 18 failed to meet the department's hygiene standards. On flights from Kaohsiung Hsiaokang Airport, six of 11 samples flunked.
Digital Automatic Termination Information Service was commissioned last week at the Houston Intercontinental Airport tower by FAA's Aeronautical Data Link Integrated Product Team. Plans call for the service to be available at 56 more airports by the end of the year, according to Arinc, which developed the application as part of the Tower Data Link Services system for FAA to provide messages to pilots via data link in addition to voice communications. Tower Data Link Services are operational at 55 airports in the U.S.
McDonnell Douglas can expect a long-awaited earnings boost in the third quarter from settlement of an eight-year dispute with the U.S. Navy over a training aircraft contract. The Navy will pay the company $209 million by the end of September, for a net of $169 million, or about four cents per share, after taxes and paying off suppliers. MDC got about 93% of what it sought.
Nine regional airline stocks fell by an average of 11% during July, from $13.05 at the June market close to $11.61 Wednesday. The average price per share dipped as low as $11.14 on July 15. Only one of the nine issues was in positive territory for the month. United Express Atlantic Coast Airlines stock rose $1.81 per share to $14.88. Independent Air L.A. was unchanged at nine cents per share. Taking the biggest hit was Delta Connection Atlantic Southeast, which tumbled $4.63 to $23.63 per share.
Mesa Air Group Inc. reported record operating earnings per share during the June quarter - 29 cents, reflecting a total of $17.3 million - before taking a $3 million charge for returning two Fokker 70 aircraft to the bankrupt Dutch manufacturer. The quarter, the third in Mesa's fiscal year, brought $8.4 million in net earnings, up from $3.6 million during the year-earlier period, on the strength of $130.2 million in operating revenues, up 10.5%, and operating expenses of $113 million, up 2%. The 1996 quarter earnings and expense data exclude the Fokker charge.
Air Transport Association is advocating DOT approval of an agreement among member carriers to ensure that passengers "will be fairly and fully compensated for losses." ATA President Carol Hallett said ATA has worked for years to modernize and reform the international air travel liability system. Both ATA and the International Air Transport Association filed documents asking DOT to increase liability caps (DAILY, July 31).
Delta Connection carrier Comair will expand service from Birmingham, Ala., to Cincinnati, Ohio, and Orlando, Fla., Sept. 9 by adding a daily flight to Orlando and upgrading another to jet service, and operating the Cincinnati flights with jets. In all, Comair will offer nine daily flights from Birmingham - four to Cincinnati and five to Orlando. Delta will continue its one daily flight in the Birmingham-Cincinnati market. The new jet flights will be operated with the Canadair Regional Jet.
Spurred by economic improvement, structural changes and cost cutting, airlines - especially U.S. airlines - are on target for record returns this year and continued financial improvement in the near term, Standard&Poor's said this week in a preview of its annual Global Sector Review: Transportation.
Senior officials in the U.K. Department of Transport see the current negotiations with the U.S., spurred on by the proposed British Airways -American alliance, as the best chance to hammer out a new bilateral between the two countries. Sources in the U.K. DOT concede, however, that the deadline of Nov. 5, set by the U.S., is very tight. U.K. officials are pleased with the progress so far.
Air tour operators urged the administration to abandon what they call FAA's "ill-advised" proposal to nearly double the amount of restricted airspace over the Grand Canyon available for sightseeing flights, saying the plan "spells air disaster." FAA, in a joint effort with the National Park Service, issued a notice of proposed rulemaking (NPRM) last week to further restrict operations over the Grand Canyon in an effort to restore the park's "natural quiet" (DAILY, July 29).
Senate passed the DOT appropriations bill (H.R.3675) Wednesday night, sending it to a House-Senate conference (DAILY, Aug. 1). The Senate version provides $8.337 million for FAA, $152 million more than the House approved. The principal difference is the Airport Improvement Program funding level - $1.46 billion in the Senate, $1.3 billion in the House.
CityFlyer Express, the Gatwick-based British Airways Express franchisee, has placed an order for two 100-passenger RJ100 quadjets, built by British Aerospace. The aircraft will be delivered in March and April 1997. The carrier currently operates a fleet of seven ATR 42 and four ATR 72 turboprops on a variety of routes throughout the U.K. and to Ireland, Germany and The Netherlands. Managing Director Brad Burgess said the carrier has been "experiencing consistent growth on some of our routes and needs to increase the capacity to match the market demand.
Hwa-Hsia Leading Ltd. of Taiwan has ordered three MD-90 aircraft and plans to order as many as seven more, Douglas Aircraft said yesterday. The three aircraft are to be delivered in August, September and October of 1998, and Hwa-Hsia, a subsidiary of China Development Corp., will lease them to airlines operating in the Asia/Pacific region. MD-90 operators now include Delta, Reno Air, Japan Air Systems and China Northern Airlines. SAS will take its first delivery later this summer.
Firm orders for the ATR 42/72 reached 500 recently with orders for six aircraft from three customers. The ATR program was launched in 1981 by Aerospatiale of France and Alenia of Italy, joining British Aerospace in January to form Aero International (Regional). The orders comprise 321 46- passenger ATR 42s and 179 64-passenger ATR 72s. Air Mauritius, the first ATR customer in Africa and the Indian Ocean in 1986, ordered two ATR 42- 500s to be delivered in April and June 1997.
The perception in Japan of the flight attendant as a glamour job has not worn off. A survey of female university students who will graduate next year chose the Japan Travel Bureau, followed by cosmetic company Shiseido, as the top two places to work. Working for Japan Airlines ranked fifth, up three from last year, according to JAL Newsletter.
Lufthansa Technik Chairman Wolfgang Mayrhuber criticized this week "attempts by manufacturers to elbow their way into the maintenance and overhaul market and attempt to restrict current suppliers." Speaking in Hamburg, Mayrhuber said that when original equipment manufacturers (OEMs) market their aircraft and engines with "seductive terms that include promises of servicing," the offer "carries with it the seeds of monopoly." He asked airlines to join with "technically qualified partners in the maintenance and overhaul industry" to "resist the rise of such monopolies.
International Lease Finance Corp. has leased two new 737-400s to Asiana Airlines for delivery in February and October 1997, on six-year terms. At that time, the carrier will be leasing five 737-400s and two 767-300s from ILFC.
AlliedSignal Aerospace said it has received FAA certification - and has begun deliveries - of the Bendix/King KLN 900, its new Global Positioning System receiver for business turboprop and light jet aircraft.
DOT has once again extended American Eagle operator Flagship Airlines' service obligation at Tuscaloosa, Ala., 30 days or through Sept. 3, as it continues to seek replacement service in the market. The carrier filed on June 2, 1995, its 90-day notice of intent to suspend service at Tuscaloosa, as of Sept. 5, 1995. Lacking replacement service, DOT repeatedly extended American Eagle's hold-in obligation in 30-day increments, the most recent through Aug. 2, (Docket OST-95-371)
New Regional Aircraft Deliveries, May 1996 Last 12 Months Carrier No. Type Engines Delivery ------------------------------------------------------------------------ Air Canada 1 Canadair RJ CF34-3A1 13 Air Stord 1 Do 328 PW119B - AMR Eagle * 4 Saab 340B Plus CT7B-9A 16
Frederick Smith, founder and chairman of Federal Express, was selected by the National Aeronautic Association as the 1996 recipient of the Wright Brothers Memorial Trophy. The former Marine captain revolutionized the package delivery industry when he founded FedEx in 1973. The trophy will be presented at a Dec. 13 dinner in Washington sponsored by the Aero Club.
Airline Industry Stock Trends Closed Closed Exchange 7/31/96 6/28/96 Majors Alaska Air Group NYSE $ 24.000 $ 27.370 AMR NYSE 78.875 91.000 America West (Class B) NYSE 16.000 22.000 Continental (Class B) NYSE 25.500 61.750
American, faced with crew shortages and unable to cover its schedule, is offering recall to all 376 of its furloughed pilots. Factors in the shortage include a high number of early retirements, an increase in sick time and a decrease in the number of pilots accepting increased flying assignments. The Allied Pilots Association, whose negotiations with American have stalled, asked members to fly no more than required by contract. Furloughed pilots who return immediately will be back on the payroll by Aug. 22.
Air UK is offering an introductory return fare of 49 pounds to highlight the launch of a new route between London City Airport and Edinburgh on Aug. 19. The fare, which can be booked until Aug. 19 for travel between that date and Sept. 8, carries no minimum-stay restrictions.
