DOT Secretary Federico Pena telephoned TWA President and Chief Executive Jeffrey Erickson last week to express his concerns about reports of poor treatment of victims's relatives following the crash of TWA Flight 800. House Transportation Committee Chairman Bud Shuster (R-Pa.) said Friday the committee will move legislation that "clearly defines the interaction between the victims' families with the involved airline and government agencies."
Air Lines has opened its second reservations center in Florida, this one in Cape Coral. The airline employs 60 agents there and plans to hire 100 more by the beginning of winter. It employs 250 agents at its center in Dania, Fla.
Apollo's LeisureShopper product has signed up Hamilton Miller Hudson&Fayne, which offers tour packages to Denver, Detroit and Flint, Mich., as its latest online tour vendor. Apollo sees "great revenue potential" in the leisure market, said Lynne Rosenbaum, Apollo senior VP of marketing and sales.
Senate Commerce Committee Chairman Larry Pressler (R-S.D.) said he was troubled that FAA did not "transport immediately" an emergency National Transportation Safety Board team to the site of the TWA Flight 800 crash last week. Pressler said he also was disturbed by the administration's "recent decision to de-post" the Athens airport, from which the TWA 747 had come to the U.S. immediately before its fatal flight out of New York Kennedy Airport, bound for Paris.
Sens. Ron Wyden (D-Ore.) and Wendell Ford (D-Ky.) told FAA last week that making airline safety information available to consumers would be "extremely helpful." DOT Secretary Federico Pena said such a requirement could have a chilling effect on the government's drive to persuade the industry to share safety information in an attempt to identify trends and prevent future accidents. The senators asked FAA for its recommendations within 120 days.
Airlines Reporting Corp. said total travel agents sales processed for June increased 7% from June 1995 to $6.384 billion. Domestic fares were up 12% and international fares 10% for the month, while domestic commissions rose 3% to $2.014 billion and international commissions 5% to $1.398 billion.
U.S. and U.K. officials agreed to meet again July 30 and 31 in Washington after making some progress during talks Thursday and Friday in London. The two countries are addressing a potential open skies agreement, which would advance the prospective alliance between American and British Airways.
Aviation Security Advisory Committee, meeting last Thursday, asked industry to review and analyze "current levels of security countermeasures with the expectation to increase the requirements," according to the National Air Transportation Association.NATA warned members that the ValuJet, Delta and TWA accidents may prompt FAA to "respond to perceived shortcomings in the safety of U.S. aviation."Rep. James Oberstar (D-Minn.) and DOT Assistant Secretary Mortimer Downey attended the meeting.
India's state-owned Directorate-General of Civil Aviation announced requirements for airlines operating in Indian airspace during the monsoon season, from July to October. DGCA acted following a study finding that 60% of aviation-related mishaps in India occurred in bad weather during the rainy months. The guidelines cover landing approaches and diversion criteria in bad weather; hazard markings for airport charts, and operating standards for aircraft brakes, windshield equipment and sensor systems.
National Air Transportation Association published its 1996 NATA Compensation Survey, which details wages, salaries and benefits for a variety of positions. Cost is $99 for members, $150 for non-members.
Jonathan Ornstein, the former president of Continental Express, is introducing Europe to his irrepressible ways. The new chief executive of Virgin Express, the Brussels-based low-cost 737 operator, is already expanding - Brussels-Copenhagen Sept. 5. with a $93 fare, half the current lowest fare. The company says some tickets may be as much as 80% cheaper, and repeats the motto of low-cost, low-fare U.S. carriers that it is not competing with other airlines but is generating a new group of air travelers that would have used alternative modes or not traveled at all.
United Express affiliate Atlantic Coast Airlines' second quarter income jumped 65.3% to a record $8.5 million, or 94 cents per share, from $5.1 million, or 52 cents per share, in the comparable 1995 quarter, the regional carrier announced. The airline's quarterly earnings accounted for more than 91% of the $9.3 million, or $1.04 per share, it posted in net earnings for the first six months of the year. Total revenue for the first quarter jumped 21.6% to 50.4 million from 41.4 million in second quarter 1995.
Mountain Air Express, the new regional feeder being launched by Colorado Springs-based Western Pacific, has not announced its aircraft selection. It is advertising in a Seattle newspaper, however, to fill air carrier positions, including directors of operations, maintenance, quality assurance and customer service as well as chief pilot, instructor pilots and check airmen. The ad said "Dornier 328 experience preferred." The DAILY understands the new carrier will order 12 plus 12 options with four deliveries this year and the remaining eight in 1997.
Officials from the White House and several cabinet agencies reacted yesterday to the fatal crash of a TWA 747-100 late Wednesday in the Atlantic Ocean off Long Island, reflecting concerns that it might have been caused by a bomb. The disaster, in which all 228 people aboard were killed, still was being termed an accident yesterday, but the aircraft experienced what witnesses described as a massive explosion and fell in pieces into the ocean.
Atlantic Southeast flew nearly 80 million revenue passenger miles last month, a 13% increase from June 1995. Capacity grew more slowly - 4.9% to 149.9 million available seat miles from 142.9 million in the comparable month one year ago. Load factor rose 4.9 points to 53.4% from 49.5%. Enplanements rose 16.9% to 331,947 from 283,966.
Fourteen of the nation's largest regional airlines averaged an increase in traffic of 16.3%, as measured by revenue passenger miles. Capacity for the same carriers, as measured in available seat miles, increased an average of 12.5%. Rapidly expanding Gulfstream International Airlines continued to lead all carriers in terms of percentage growth. RPMs were up 99.2% in June, but that figure fell short of a 111.8% jump in ASMs. At the other end of the spectrum was Skyway Airlines, the Midwest Express subsidiary. Its traffic was down 6.2% while capacity dipped 13%.
MD-95 development costs ate into McDonnell Douglas's profits and a buildup of its jetliner inventory hurt its cash flow, but improvements in its military business enabled the company to turn in an 11% improvement in second quarter net earnings yesterday. McDonnell Douglas earned $188 million during the quarter even though sales slumped 17% to $3.26 billion. Overall sales were off by 11% - and commercial sales by more than 50% - for the first half.
U.S. Major Carriers Unit Revenues and Expenses By Region, First Quarter 1996 Operating Operating Operating Revenues Expenses Profit/Loss Yield per ASM per ASM per ASM per RPM (cents) (cents) (cents) (cents) Alaska 8.12 8.22 -0.1 11.08
Northwest and KLM have developed guidelines for online ticket distribution that include a 5% commission structure for "intermediaries" who make online bookings. Northwest is the first U.S. airline to issue a policy on commissions for bookings on the Internet and other online services. The announcement angered the American Society of Travel Agents, which said the policy raises more questions than it answers on how travel providers are to be compensated. ASTA and Northwest have scheduled a meeting Aug. 20 to discuss the implications of the Internet policies.
Transportation Secretary Federico Pena ran into criticism in Congress this week over the administration's plan to use an aviation tax to aid college students, his visits to aviation accident sites and his extemporaneous comments on airline safety. Sens. Ted Stevens (R-Alaska) and John McCain (R-Ariz.) put Pena on the defensive over the Clinton administration's plan to raise the international departure tax to $16 from $10 and use $6 of the increase to help offset finance aid to college students (DAILY, June 5). Sen.
Public and private aviation interests intend to establish a helicopter flight training center in Taiwan, according to an official of Taiwan's government-backed Committee for Aviation and Space Industry Development. CASID's deputy office director, Tang Feng, said the committee will coordinate sources from the Taiwanese military, the Civil Aeronautics Administration and private industry in setting up the center, which also will provide training in helicopter maintenance.
Reno Air posted record second quarter results yesterday with a net profit of $3.27 million, or $0.28 per share on a fully diluted basis. That compares with a profit of $331,775 for second quarter 1995, or $0.03 per share. Operating revenues jumped 48% to $90.92 million compared with $61.43 million in second quarter 1995. The carrier's operating income rose to $3.63 million for the quarter, up from $1.68 million in second quarter 1995.
DOT Secretary Federico Pena, FAA Administrator David Hinson and former DOT Inspector General Mary Schiavo will be featured on Aviation News Today this week, in highlights of the Senate Commerce Committee hearing on the ValuJet crash. This week's edition of Aviation News Today will air Sunday from 12:30 to 1 a.m. and from 1:30 to 2 p.m. on NewsChannel 8 in Washington.
Atlas Air applied to DOT for renewal of its authority to wet-lease an aircraft on a long-term basis to Lufthansa Cargo Airlines. Under the terms of the agreement, Atlas has been providing wet-lease Boeing 747 freighter service for LCA between Germany and Atlanta, Chicago, Dallas/Fort Worth and/or Miami, and beyond.
A National Research Council panel has recommended that FAA undertake programs to alleviate concerns the traveling public may have over new technologies for passenger security systems. A recent NRC report funded by FAA examines various issues surrounding new technologies, including chemical trace-detection and imaging. It said FAA needs to consider necessity, health, privacy, legal implications and costs as it moves toward implementing new screening methods.
