Senate Commerce Committee Chairman Larry Pressler (R-S.D.) asked DOT Secretary Federico Pena yesterday to work with him for reinstatement of the aviation excise taxes on a short-term basis, leaving the debate over FAA financing reform for another time. In a letter to Pena, Pressler faulted both sides of the user-fees-versus-excise-tax battle for hampering efforts to ensure FAA funding.
Lorraine Howerton has rejoined the Air Transport Association as VP-planning and executive director of programs. Howerton left ATA in 1994 to join Verner, Liipfert, Bernhard, McPherson and Hand as a legislative consultant on appropriations issues. Earlier, she was ATA's director of federal legislation.
Internet users are becoming a valuable source of revenue for airlines, according to an analysis of the Net Travel Survey, and many are interested in booking travel online. Forty-one percent of respondents said they are "very interested" in booking their travel via the Internet, and more than 75% said they are members of a frequent flyer program. CIC Research, San Diego, which analyzed the data for May 1995-April 1996, prepared a profile of the "high potential" travel customers.
DOT has approved Aerocer's application to operate combination charter service between Mexico and the U.S. Operating an eight-passenger Hawker HS-125-800A and a seven-passenger Falcon 10, the Mexican air taxi operator estimated that it will fly fewer than 75 roundtrips per year between Mexico and the U.S., with an average load between three and four passengers per flight. (Docket OST-96-1231)
A new Internet service provides information on the position of commercial aircraft and its arrival time at its destination. The service, provided by American Weather Concepts, Houston, and Flyte Comm of Florida, "is meant for anyone who travels or is responsible for those traveling," said Jack Thompson, marketing director for Flyte Comm. "You can rest easily knowing that all the information about their flight, whether it is early, late or re-routed, is at your fingertips."
Families of six passengers who died April 5 in the crash of a Formosa Airlines Dornier 228 at Matsu will receive the largest cash settlement ever agreed to by a Taiwanese carrier. A Formosa spokesman said the company has agreed to pay compensation of US$256,400 for each passenger killed in the crash. In addition, he said, two passengers who were seriously injured in the crash will be awarded compensation of US$36,600 and US$27,500.
Aero International has sold a 29-passenger Jetstream 41 to the KwaZulu- Natal government, for service between points in the South African province. Johannesburg-based SA Airlink will operate the aircraft on behalf of the KZN government through a profit-sharing deal. The jet will be used for flights among cities such as Durban, Pietermaritzburg and Ulundi.
The Reason Foundation, in a study issued yesterday, proposed restructuring the U.S. air traffic control system along the principle of "user pay means user say." Robert Poole, foundation president and co-author of the proposal, outlined a fee structure based on aircraft weight and distance flown that would apply solely to instrument flight rules operations, thus exempting smaller, private aircraft from most charges and taxes.
Cathay Pacific Airways will drop service between Hong Kong and Stockholm July 1 for lack of demand, said Christina Siaw, the carrier's manager of European routes. All of Cathay's other European services continue to perform to expectations, she said. The carrier will retain a sales office in Stockholm to serve the Scandinavian market.
Virgin Atlantic has opened its newly refurbished Clubhouse Lounge at London Heathrow Airport, offering a bar with 20% more seating than previously; a four-hole putting green with a sand trap and a mural based on the Pebble Beach golf course in California; an interactive electronic sporting game room, including an "Alpine Racer" ski simulator; a pre-flight grooming and relaxation area, a 5,000-book library; a soundproofed music room with a state-of-the-art sound system, and a business center. The music room can be booked in advance for business meetings.
United will operate 295 daily departures from Denver this summer, a modest increase over the 280 flown from the hub last year. The carrier's summer schedule includes new service to Vancouver and additional service to Calgary. The bulk of the new service this summer is to other United hub cities, such as Chicago, Los Angeles and Seattle, a United spokesman said.
Italy and Japan plan to resume negotiations in August after failing to reach an agreement during talks this month. In the May 16 talks in Tokyo, Italy threatened to revoke the bilateral pact with Japan unless service frequencies were increased. The current agreement provides for seven weekly flights for each country; however, because of the limited availability of slots at Tokyo Narita Airport, Alitalia is limited to operating five flights a week to the airport, while Japan Airlines serves Rome on a daily basis.
Service levels and fares at small U.S. communities appear to have stabilized in the years since deregulation, according to DOT's Study of Air Service At Small Communities: 1978-1995. But the effects of deregulation vary "considerably from one community to another," said the study, issued last week.
Vertex Corp., specializing in air cargo transportation with special emphasis on Eastern Europe, Russia and the former Soviet Union, has opened offices in Kansas City, Mo. Vertex also works in aircraft sales and leasing.
DOT yesterday granted Laker Airways approval to operate scheduled service between Fort Lauderdale and London Gatwick Airport. In granting the service, the department withdrew U.S. gateway designations from Nashville and Denver and designated Fort Lauderdale as a new gateway to London.
Taiwan's Council for Economic Planning and Development, which formulates the island's financial policies, has recommended that the tax on passengers departing Chiang Kai-shek Airport be increased from the current US$10.90 to US$18.20. The council also wants to introduce a US$36.40 exit/entry fee. The new taxes, subject to approval by Taiwan's Legislative Yuan, are to be implemented July 1, 1997.
Swissair has appointed Mark Ellinger general manger for its Eastern Region USA. He previously was director of public relations and market communications in New York. He replaces Markus Albrecht, who was named general manager of Singapore, Malaysia, Indonesia, Brunei and Sri Lanka.
American will offer Texas-based members of its frequent flyer program double mileage when they fly American or American Eagle out of Dallas/Fort Worth Airport this summer. The offer is in response to a marketing initiative launched by Delta late last week. The Delta offer, which also applies to its connection carriers, is for travel through July 31.
The China Aviation Development Foundation (CADF), the stock shareholder of China Airlines (CAL), said it will offer 210 million shares - 15% of outstanding CAL majority - for sale to large local investors. CADF currently controls 82% of CAL's outstanding shares. The placement is expected to raise about US$256 million. A CADF official said revenues generated by the placement will be used to purchase new aircraft. The official added that CADF has retained six advisers to find local investors who are willing to purchase the stock as a long-term investment.
Taiwan's Civil Aeronautics Administration said it plans to double the number of air traffic controllers employed at the island's airports within the next two years. The CAA currently employs 200 controllers, a number far short of what is needed to meet the demands of Taiwan's rapidly expanding civil aviation industry, a CAA official said. Meanwhile, citing safety concerns, Taiwan's CAA has asked the island's domestic airlines to scale back the number of flights they operate between Taipei and Kaohsiung.
An FAA reauthorization bill to be introduced today by the bipartisan leadership of the House Transportation Committee and its aviation subcommittee would reinstate the aviation excise taxes through Dec. 31, 1999. The tax measure will be considered by the subcommittee Thursday during the panel's markup of the reauthorization bill, which closely resembles draft legislation floated earlier this month (DAILY, May 8).
The great power of United's shuttle is its ability to create loyal passengers on the West Coast who then fly throughout the carrier's network, according to Lehman Brothers analyst Brian Harris, who recently launched coverage of United with a buy rating on its stock. Harris found that 80% of shuttle users are United frequent flyer members, far above the systemwide average, and that this helps generate a "halo effect" of at least $320 million in incremental revenue.
Pemco Engineers, a unit of Precision Standard Inc., has obtained a patent for its Fly-A-Way Door Sill, designed for 727 and DC-8 freighters as a substitute for conventional lift-and-stow door sills. The Pemco unit is attached permanently to the aircraft and folds into a stowed position. The company said it offers convenience, durability and operating cost savings.
The Justice Department is urging DOT to modify its tentative order granting antitrust immunity to the alliance of Delta, Swissair, Sabena and Austrian. In detailed comments reinforcing concerns DOT acknowledged in its show cause order (DAILY, May 28), DOJ asked DOT to withhold unlimited antitrust immunity for four New York city-pairs: New York-Zurich, New York-Geneva, New York-Brussels and New York-Vienna.
