Abu Dhabi Aviation will acquire two 37-passenger de Havilland Dash 8 Q Series 200 aircraft from Bombardier Regional Aircraft Division for about $25 million, with delivery slated in February and March 1997.
The emergence of powerful, antitrust-immunized alliances and increasingly open aviation regimes is fueling expectations of breakthroughs in U.S.-U.K. and U.S.-European Union relations. In a Senate floor speech Tuesday, Commerce Committee Chairman Larry Pressler (R-S.D.) said "a truly historic opportunity may be at hand to finally force the British to join us on the field of free and fair air service competition." The chief catalyst for this opportunity is the potential alliance between American and British Airways.
Eastwind Airlines is moving into the Atlanta market June 6, in time for the summer Olympics. It will operate from its Trenton, N.J., base with 737- 200s with stops in Greensboro, N.C., or Richmond, Va. It serves Greensboro/Winston Salem/High Point, Richmond, Providence, R.I., and Boston.
The city of Austin, Texas, has agreed to postpone until March 1997 the inauguration of cargo operations at Austin-Bergstrom Airport. The city had planned to open the new airport to cargo in late fall, but the cargo carriers asked that the opening be delayed to avoid possible service disruptions during the peak delivery season in November and December.
FAA said yesterday it probably will wind up its intense safety surveillance of ValuJet in mid-June, but the aftereffects of the carrier's fatal crash into the Florida Everglades will last much longer. ValuJet Chairman and Chief Executive Robert Priddy told the financial community yesterday in a telephone news conference that the carrier probably will not return to its previous level of flight operations until sometime in the fourth quarter.
FAA published in the May 22 Federal Register details of its Airport Capital Improvement Program (ACIP) National Priority System and asked for comments by July 22. The priority system uses numerical designations for types of projects and classes of airports to help evaluate requests for Airport Improvement Program funds according on an established formula. Comments are to be submitted to FAA, Airports Financial Assistance Division, Programming Branch, APP-520, Room 615, 800 Independence Ave. S.W., Washington, D.C. 20591.
Continental slashed fares yesterday for the Memorial Day weekend by as much as 65% throughout the U.S. The fares are good only for the weekend, to select destinations from the carrier's three major hubs - Houston, Newark and Cleveland - and from Greensboro, N.C. Fares range from $99 to $199 roundtrip. Travel must originate on Saturday or Sunday, and return flights must be on Sunday, Monday or Tuesday. Tickets must be purchased at least one day in advance.
House late Tuesday passed 301 to 108 legislation (H.R.3415) to repeal the 4.3 cents-per-gallon transportation fuels tax enacted in 1993. While passage was easy in the House, conditions are different in the Senate. The repeal, a Republican-led initiative, has been linked politically with a Democratic proposal to increase the minimum wage. Earlier this month, Senate Republicans dropped consideration of a fuel tax repeal bill because Democrats were trying to force a vote on minimum wage as a condition.
Boeing has awarded UPS Worldwide Logistics a three-year contract to manage part of the aircraft manufacturer's transportation business, beginning July 1. UPS will manage Boeing's domestic air freight and international door- to-airport and door-to-door data shipments, and it will coordinate domestic shipments of special products, exhibits and display material. Initially, the UPS unit will dedicate a multi-disciplinary, 11-person team to work with the Information&Support Services group at Boeing's Seattle headquarters.
DCX Inc. said it has signed a binding letter of intent of purchase the outstanding stock of Airtech International Corp. of Dallas in exchange for DCX common stock. A definitive agreement, including purchase terms for the proposed deal, still must be worked out. Airtech is a distributor of advanced commercial air-purification systems manufactured by Honeywell.
Northwest filed a complaint with the Minnesota News Council against WCCO- TV, a local television station that broadcast an investigative report on Northwest's maintenance and employment practices. The report portrayed the airline as having a questionable safety record and a poor attitude toward female employees. Northwest said it spent seven hours meeting on the record with the station, which ignored its statistics and safety record, and did not provide a context to interpret accident rates or the scope of Northwest's operations.
Sen. John McCain (R.-Ariz.) is expected to introduce a bill in the Senate today that would reauthorize the Airport Improvement Program (AIP) at $1.8 billion and address funding of FAA. The bill, the Omnibus Aviation Act of 1996, would expand restrictions on airport revenue diversion and provide a bottom-down reform of FAA. It also would require airlines to share employment performance records of pilots.
Lufthansa is not engaged in talks to purchase a stake in British Midland, the German carrier said yesterday after reports surfaced in Germany that it might be doing so.Lufthansa has no plans for any sort of agreement or partnership with British Midland, a company representative said, and it has an unstated policy not to take equity in foreign carriers when it forms alliances with them.
U.S. National Carriers Operating and Net Profit Fourth Quarter 1995 Operating Net Profit/Loss Profit/Loss (000) (000) Fourth Quarter 1995 Alaska $ 7,246 $ 808 American Trans Air (7,964) (3,795) Carnival (1,165) (1,027) Hawaiian 329 (124)
USAir Chairman Stephen Wolf, addressing his first shareholders meeting yesterday since taking the carrier's helm, sketched out plans to reduce the company's costs and "substantially increase our size." In remarks that were long on vision and short on specifics, he said only one thing is certain for the airline at this point: nothing is being ruled out as the best way to improve customer service and reduce costs, and everything still is on the table, from employee concessions to airline partnerships.
U.S. National Carriers Operating and Net Profit The Year 1995 Operating Net Profit/Loss Profit/Los (000) (000) The Year 1995 Alaska $ 72,424 $ 24,784 American Trans Air 15,213 6,409 Carnival 7,008 4,474
The management of India's national carrier, Air-India, has signed a productivity-based wage agreement with its engineering labor union, Air- India Aircraft Engineers' Association, in an attempt to increase aircraft availability and dispatch reliability for improved fleet utilization. "It's definitely a step toward an era of industrial peace in the airline," an AI spokesman said. Air-India absorbed heavy costs to send aircraft abroad for maintenance checks after the engineers adopted go-slow protest tactics last year.
Lufthansa has acquired another A300-600R from Airbus, the manufacturer said yesterday. The jet will be delivered in early 1997 at the same time as a second A300-600R leased from International Lease Finance Corp.
The Airbus Industrie A319 powered by International Aero Engines V2524 turbofans completed a successful first flight Tuesday. The six-hour flight from Toulouse initiated a 200-hour test program for the aircraft-engine combination by the European Joint Aviation Authorities. The first customer for this A319 version is International Lease Finance Corp. The A319 powered by CFM International CFM56-5B engines was certificated by JAA on April 10, and Swissair is operating it on European routes.
Engine nacelle manufacturer Rohr Inc. reported sales of $203.7 million in its third fiscal quarter, down slightly from the company's $210.8 million volume in the third quarter of 1994-95. Production of nacelles for the MD- 90 helped boost the company's performance while overall sales fell because of changes in engine options selected on aircraft orders and delivery rate reductions in commercial programs, the manufacturer said.
Emirates has signed a $106.25 million financing agreement for the acquisition of the first of its seven 777-200s from Boeing. The carrier will take possession of its first 777 June 4 in Seattle. Financing for the deal was led by Citibank, Bank of Tokyo/Mitsubishi and Credit Lyonnais. Emirates also said it has lined up financing for the remaining six jets.
Aeroflot has signed an agreement with Airbus Industrie to take four A310- 300s powered by PW4000 engines. The jets will join six other European-made widebodies in the carrier's fleet.
Reno Air is urging DOT to deny Northwest's application to operate code- share service with Alaska Airlines on San Francisco-Puerto Vallarta/San Jose del Cabo routes. Noting that it has applied for San Jose-Puerto Vallarta/Los Cabos service, Reno said the code share "could practically foreclose actual competition in the Bay Area-Mexico markets," since the U.S.-Mexico markets are single designation.
Interactive Flight Technologies said yesterday it has raised $26 million in capital as 94% of the company's holders of its outstanding A warrants accepted its exercise offer. "These funds will enable us to continue to implement our expansion plans and sign up additional airlines for the installation of IFT's inflight entertainment system," said Michail Itkis, the company's chief executive. IFT claims it is the only inflight entertainment service provider that offers airlines and passenger true video on demand.
Oslo, Norway-based Braathens S.A.F.E. has leased a 737-500 from International Lease Finance Corp. The carrier will take delivery of the jet in March 1997 on an eight-year lease.
