New aircraft will continue to accommodate future passenger travel expansion, but worldwide used aircraft transactions have outpaced new deliveries in five of the past six years, according to Air Cargo Management Group. There were 5,154 used aircraft deals between 1990 and 1995, compared with 3,913 new deliveries, a "trend that is likely to continue into the 21st century."
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With one fraud case already before the courts, the DOT Inspector General is investigating 17 more potential violations of buyout pledges by former FAA employees who accepted as much as $25,000 to leave their jobs and agreed not to work for the government. FAA has identified some 300 more cases as possible violations, and the IG intends to review all of them.
June traffic grew at SAS to 1.94 billion revenue passenger kilometers, a 24% increase over the June 1995 level. The number of passengers increased to 1.89 million. The passenger load factor for the month was 71.8% while freight ton kilometers increased 29% to 38.89 million.
American plans to introduce service Sept. 4 from Austin to Los Angeles and Boston, using 139-seat Super 80s. American served the Austin-Los Angeles route in the past but discontinued it in 1994. "We're much more optimistic this time around," said Robert Harvin, regional sales manager for Texas. "We've studied the market closely and have timed our service to be more attractive to business travelers, who will be able to make day trips to the West Coast."
American Trans Air applied for authority to operate scheduled combination service between Orlando and Grand Cayman, Cayman Islands. Starting Sept. 14, the carrier plans to operate two weekly roundtrips using Boeing 727 aircraft configured for 173 passengers, and Boeing 757 aircraft configured for 216 passengers. Service patterns may vary seasonally, depending on passenger demand, the carrier added.
International Civil Aviation Organization's council has revised and updated its code of conduct for the regulation and operation of computer reservations systems. The new code will take effect Nov. 1, replacing one adopted in 1991. The new code extends to non-scheduled air services, and to emerging information systems, such as the Internet.
TWA and its pilots are discussing opening pilot domiciles in Boston and Kansas City and talking through other issues they want to resolve before contract talks next year. The Air Line Pilots Association says communications with the company have taken on a "more constructive tone" recently, after management agreed to stop contracting out flying because it was short of aircraft. TWA has agreed to give pilots who failed training prior to the 1994 contract a second chance to complete the training curriculum.
Taiwan's Ministry of Transportation and Communications has given official approval for private helicopter service to begin this year. Under terms announced last week, any general aviation company that has suffered no financial difficulties or management disputes over the last two years, has recorded 500 flight hours with no accidents, and has committed no irregularities in its most recent 250 flight hours may apply to operate helicopter passenger and cargo flights.
A large U.S. contingent, including representation from Capitol Hill and the Justice Department, will be in London this week for the resumption of U.S.- U.K. negotiations. Scheduled to begin Thursday, the talks will be the first since the American-BA tandem endorsed open skies. U.S.-Japan negotiations remain on hold. There has been "a contact or two but no movement," said a U.S. official.
Lufthansa's communications subsidiary, Lufthansa Systems, has set itself the lofty goal of deriving half of its revenues from third-party customers within four to six years. In 1995, its first year of business as an independent entity, outside business accounted for just 5% of its revenues.
FAA has begun a crackdown on airline contract maintenance programs, widely anticipated following the ValuJet crash on May 11, and top agency officials have sent out orders to its principal inspectors of airlines and notices to the airlines themselves.
Canada's Department of Public Works and Government Services plans to contract for an architecture study to see whether Canada should develop its own Wide Area Augmentation System (WAAS) for Global Positioning System signals. Open issues include whether Canada should have its own master station, independent of FAA's.
Cathay Pacific recently finished installing economy-class personal television systems in a 747-300, the first aircraft in a two-year upgrade estimated at $150 million fleetwide. On a lesser scale, Cathay is installing cappuccino/espresso machines on its A340-300s and 747-400s this month for business- and first-class passengers.
Delta, which has been setting boarding records throughout its system this spring, set another July 7 in Cincinnati with 24,173 passengers and broke it the following day with 24,300.
Aeromexico has applied for renewal of its exemption to operate scheduled combination service between Cancun, Mexico, on the one hand, and Atlanta and Los Angeles, on the other. The carrier operates weekly Cancun- Los Angeles nonstops but currently serves the Cancun-Atlanta market via Mexico City. It said, however, it wants "to continue to have the flexibility to institute direct service when market conditions warrant." (Docket OST-95-263)
European Regional Airlines Association appointed Andrew Clarke manager-air transport policy. Helicopter Association International elected Rod Kvamme, Heli-Jet Corp., chairman.
The proposed British Airways-American alliance may reduce competition and spur higher prices, according to a TWA-sponsored study conducted by GRA Inc. TWA sent the study last week to the U.K. Office of Fair Trading with a letter from Jeffrey Erickson, president and CEO, urging the British government to postpone its investigation of the alliance until competition is restored in the U.S.-U.K. market (DAILY, July 12). "A key question is the extent to which there will be economic costs due to the market power created by the alliance," according to the study.
Vanguard Airlines, one and a half years old, said its traffic more than tripled in June, to 72.8 million revenue passenger miles from June 1995's 22.7 million. The load factor was Vanguard's highest ever, 72.6%. Although passenger revenues totaled $7.1 million, up from $2.9 million, Chairman Bob McAdoo said the carrier discounted fares more than it would have liked. "Our business continues to suffer from the public reaction to the press coverage related to the tragic ValuJet accident," he said.
Adoption of proposed aviation whistleblower legislation (H.R.3187) would help a budget-constrained FAA enforce safety regulations on increasing airline operations, particularly those of low-cost new entrants, unions told Congress last week. Although witnesses at a House Transportation aviation subcommittee addressed elements of the bill in their prepared remarks, discussion centered more on conflicts within the flight attendant work force at ValuJet than on the merits of the bill itself.
AAR Corp. selected David Storch to succeed Ira Eichner as chief executive officer. Atlantic Aviation appointed Fred Escheu manager-aircraft support service sales, Aircraft Services Division. CIT Group/Capital Equipment Financing promoted Kathleen Park to VP- aerospace. FlightSafety International named Don Roney manager-Learning Center in San Antonio and Tim Fallon regional marketing manager-maintenance training on the West Coast, a new position. ITS named Hovav Frenkel chief security officer.
Aeroperu appointed Magda Granda assistant to the regional sales manager-Southeast AirWays Chairman and Chief Executive Robert Swenson was named to the additional positions of president and chief executive of its AirTran Airways unit. American Airlines Cargo named Wayne Zimmerman mana-ger-cargo operations in Miami and Steve Brno manager-cargo operations in Los Angeles. China Airlines named H.H. Sun president of Formosa Airlines. Frontier named Gary Benham district sales manager.
Temporary waivers of Russia's 50% import tariff on four U.S. aircraft being operated by three Russian airlines will be made permanent this week during Moscow meetings of U.S. Vice President Gore and Russian Prime Minister Viktor Chernomyrdin. The aircraft are two McDonnell Douglas DC- 10-30s operated by KrasAir, a Boeing 737 operated by Sakhalin Air and a Boeing 757 operated by Baikal Airlines. How many U.S. aircraft will be allowed to enter the Russian market in 1997 without being subject to the tariff has not been decided.
Southwest reduced fares to $25 one way for all nonstop routes in its system for travel Aug. 19 through Oct. 31, and it made $50 one-way fares available to any destination with published direct or connecting service. Tickets must be purchased by July 23. Most of the majors matched in markets where they compete. Southwest's tickets do not require a stayover but must be purchased within one day of making reservations.
U.S. Major and National Carriers Rental Expenses First Quarter 1996 % Of Total Operating Systemwide Expenses Alaska $ 42,099,000 14.64 America West 65,834,603 17.24 American 275,460,000 8.09 Continental 159,143,000 13.48
