AirWays Corp. reported net income of $737,000 or $0.08 per share in its fourth fiscal quarter, which ended March 31. The company had net income of $1.2 million for fiscal 1996, or $0.13 per share. The results include funds from the carrier's Orlando-based jet subsidiary - AirTran Airways - as well as its fixed-based operation in Grand Rapids, Minn. Operating revenues for the fourth quarter increased 50.5% from the third quarter, to $27.4 million from $18.2 million.
Allied Pilots Association and American went through another week of mediated negotiations with no meeting of minds on the big issues - scope, pay, pension and work rules - but did reach a tentative agreement on new grievance and arbitration procedures. The union's leaders meet this week to vote on whether to authorize sending strike ballots to members if and when it is deemed necessary. The APA expects the authorization to be granted.
- In Federal Register dated May 17...Superseded an airworthiness directive on certain Piper PA31, PA31P and PA31T aircraft requiring the replacement of main landing gear forward sidebraces as a terminating action for currently required repetitive inspections for cracks and replacement as necessary...Superseded an AD on Piper PA31, PA31-300, PA31-325 and PA31-350 aircraft requiring modification of both wings in the area of Wing Station 147.5 as a terminating action for currently required repetitive inspections for cracks of the outboard flap tracks, wing rib flanges and
Air China has applied for an exemption to operate four additional flights between Beijing and Shanghai, on the one hand, and San Francisco and Atlanta, on the other, during the 1996 Summer Olympic Games. The carrier also asked for permission to operate two charter flights from Beijing to Atlanta, via Anchorage, during the Olympics. The carrier proposes operating the flights sometime in July and August, using 400-seat Boeing 747-400 aircraft.
LOT Polish Airlines has developed a frequent flyer plan that it hopes will attract more passengers to the carrier. The program, LOT Voyager, is similar to frequent flyer offerings at other airlines. LOT previously issued its passenger mileage credits, which could be used for travel on other international airlines. The new program will be in place as of June 3. Passengers traveling on LOT from North America will become program members after one flight. Awards on New York routings will allow passengers to earn between 4,000 and 16,000 miles.
United has signed a one-year contract with Clark Refining&Marketing in St. Louis for 100 million gallons of jet fuel, to be used at Chicago O'Hare Airport. Clark said at today's prices, the contract is worth $55 million. Clark owns a refinery in Port Arthur, Texas, that ships fuel north via the Texas Eastern Products Pipeline.
Boeing has started offering a modification for 747-300s, allowing them to be reconfigured from combis or passenger jets to pure freighters, the company's Wichita division said. The first 747-300 combi-to-freighter modification position is available in November, while the first 747-300 passenger-to-freighter position is available in the second quarter of 1997, Boeing said.
Viscount Air Services named John Caravan, former FAA maintenance inspector, director-maintenance, and Michael Predmest, formerly of Air Margarita and Liberty Airlines, VP-marketing.
Dassault Falcon Jet appointed Kenneth Root director-Little Rock Jet Center, replacing Earl Philpott, who has resumed his duties as director- production engineering.
Abacus Distribution Systems has signed a contract with IBM to purchase and license IBM's advanced communications systems access product, which provides the graphical user interface emulation to computer reservations systems. Abacus said the agreement with IBM signals the first step of a partnership to develop more advanced applications for the travel industry. The partnership will result in software programs that Abacus expects will enhance its PC/Windows-based work station product that will be launched next month in all Abacus markets.
DOT has assessed civil penalties of $8,000 against CaribAir for violations of the department's accounting and reporting requirements. After becoming delinquent in filing reports in late 1994 and again in 1995, the carrier "was sent warning letters," said DOT's Office of Aviation Enforcement and Proceedings. However, "as of April 8, 1996, CaribAir had not yet filed three reports...with an average delinquency of 55 days," said the Enforcement Office, adding, "This amounts to a serious violation of our reporting requirements that justifies enforcement action."
U.S. officials hope open skies will be addressed during this week's European Transport Ministers Conference in Budapest. The U.S. is expected to hold informal bilateral talks with about six countries. Likely candidates are France and Hungary. Among U.S. attendees are DOT Deputy Secretary Mortimer Downey and Deputy Assistant Secretary for Aviation and International Affairs Mark Gerchick.
The cost of travel in April, compared with April 1995, grew at a faster pace than the cost of other goods and services, the Travel Industry Association said. Travel prices rose 3.5%, while the Consumer Price Index (CPI) increased 2.9%. The cost of travel for the first four months of the year increased 3.4%, compared with 2.8% for the CPI. For the year to date, the cost of airline fares was up only 0.4%, while intracity public transportation jumped 9.7%, motor fuel 3.3% and lodging 5.6%.
All Nippon Airways (ANA) has applied to the Japanese Ministry of Transport for authority to fly from Osaka Kansai Airport to Milan, Frankfurt and Yangon (Rangoon) and to increase its service to Rome. The carrier will operate Osaka-Frankfurt twice per week and Osaka-Milan once per week. It will increase its flying between Osaka and Rome to five flights per week from two. Service to Europe will be operated with two-class, 360-seat 747- 200s. Frankfurt flights will begin Sept. 8 and service to Milan, a new destination for ANA, Sept. 9.
Fuel prices have spiked and are starting to ebb, Alaska Airlines Chairman John Kelly said last week. The carrier, which paid as much as 77 cents for a gallon of jet fuel earlier this year, paid a little more than 63 cents last week.
Maverick Airways is once again seeking a certificate to operate scheduled service in Colorado. The carrier initially applied Sept. 12, 1995, but DOT dismissed the application at the request of the airline, which said it was implementing a restructured financing plan (DAILY, Feb. 1). The carrier now proposes beginning operations in the fall, using one 48-seat de Havilland Dash 7 aircraft to provide daily service between Denver, Grand Junction, Steamboat Springs, Colorado Springs and Salt Lake City.
Federal district court in Brooklyn, N.Y., last week sentenced Scot Spencer, former president of the now-defunct Braniff, to 51 months in jail for illegal activities at the carrier in 1991 and 1992. Jeffrey Chodorow, former chairman and part owner, received four months in jail and four years of supervised release for comparable offenses. Spencer also must pay $115,000 to the Braniff estate for accepting illegal kickbacks from the airline's advertising agency and concealing company assets from creditors.
Sun Country Airlines has applied for an exemption to operate scheduled cargo service between co-terminal points New York and Columbus, Ohio, on the one hand, and Hong Kong, on the other. The carrier proposes operating charter service, using DC-10-30F aircraft, eastward from New York via various intermediate points to Hong Kong, where it would continue the flight as scheduled service to Columbus and New York. (Docket OST-96-1392)
American is seeking renewal of its exemptions to serve several international routes. The carrier has asked for continued authority to operate daily nonstop Dallas/Fort Worth-Tokyo service and twice-daily Miami-Toronto service. American also asked for renewal of its authority to operate combination service between co-terminal points Dallas and Miami, intermediate points the Azores and Lisbon, Portugal, and terminal points Madrid, Barcelona, Malaga and Palma de Mallorca, Spain. American currently provides daily nonstop service between Miami and Madrid.
DOT and the Justice Department, at odds on the need for antitrust immunity restrictions on Delta and its European partners in major city-pairs, will reconsider in 18 months the limitations DOT imposed in three markets and rejected in four. Preserving competition in the seven city-pairs turned out to be the big issue as Justice reviewed the antitrust immunity application of Delta and its European partners, Swissair, Sabena and Austrian.
Express One agreed to pay passenger facility charges in a timely manner in a joint consent order issued by DOT Friday. Between October 1994 and June 1995, the department said the carrier collected about $1.4 million in PFCs from enplaning passengers but failed to remit it to the airports. The carrier entered bankruptcy on June 15 still owing that amount. Express One also failed to file quarterly PFC accounting reports with the airports, beginning January 1995.
