Canadian Airlines International suffered a setback as one group of its Machinists voted down a concessionary contract proposal. The carrier said it will continue to press for concessions to cut its labor costs by 17.1%. A second, smaller group of Machinists accepted a 38-month concessionary agreement.
Frontier Airlines said yesterday it will redeem 2.67 million outstanding warrants, paying a redemption price of $0.05 per warrant to holders who do not exercise their warrants on or before June 28. Each warrant allows the holder to purchase a share of Frontier common stock for $5. Frontier President Sam Addoms said proceeds will be used for general corporate purposes, mainly to lease additional jet aircraft for expansion. If all warrants were exercised, the redemption would generate $13.5 million for the carrier.
U.S. Major Carriers Atlantic Share of Service Fourth Quarter 1995 Total Revenue Departures American 5,981 Continental 1,264 Delta 7,305 Northwest 1,636 TWA 2,315 United 3,691 USAir 556 Total 22,748 Average Number of
Thomson Training&Simulation said that Southwest, the launch customer for Boeing's next-generation 737-700, has ordered a full-flight simulator for the aircraft. The simulator, certified to FAA Level C standards, and an order of 737-300 desktop trainers will be installed at Southwest's training center at Dallas Love Field by the end of 1997, when the carrier plans to put the aircraft in service. Southwest has 63 737-700s on order and holds options for 63 more.
India's privately owned domestic carrier Jet Airways has signed an agreement with Seattle-based Hanway Corp. for dry-leasing two Boeing 737- 400 aircraft, airline officials said Wednesday. The first is scheduled to arrive in India this month and the second in May. The two aircraft, which have undergone D checks in Malaysia, are powered with CFM-56 engines, officials said. Jet Airways operates eight aircraft - four 737-400s and four 737-300s, none more than four years old.
National Air Transportation Association is accusing the Clinton administration of harming the air tour business with its proposal to place strict limits on sightseeing tours, announced on Earth Day, which pleased environmentalists. Claiming the move is election year politics, NATA is threatening to fight back.
Failure to reauthorize the aviation excise taxes would prohibit funding for the Airport Improvement Program and essential air service during fiscal 1997 and could lead FAA to defer capital spending in the current fiscal year, the chairman of the House Appropriations transportation subcommittee said. In a May 14 letter to House colleagues, Rep. Frank Wolf (R-Va.) said that "two serious aviation problems could occur" if the aviation trust fund taxes are not reinstated quickly.
Association of Flight Attendants asked DOT Secretary Federico Pena to endorse legislation to protect the jobs of aviation workers who report safety concerns to FAA. International President Patricia Friend said the absence of whistleblower protection "remains a critical missing link in today's aviation safety net." Rep. James Clyburn (D-S.C.) introduced a bill (H.R.3187) in March to protect informants' jobs. The legislation also attempts to protect airlines from frivolous charges by imposing a fine if a complaint is found to be baseless.
Passenger traffic at 448 airports worldwide totaled 174.78 million during February, an increase of 11.5% from the February 1995 total, according to the Airport Council International in Geneva. Cargo traffic was up 6.9% to 3.61 million metric tons, and aircraft movements increased 4.5% to 3.58 million. "Although the leap year did cause some minor anomalies, the significant rise in passenger traffic could point to 1996 being a bumper year for the world's airlines and airports," said Maria Hinayon, ACI's manager of statistics and data processing.
St. Louis business leaders are supporting the X Prize Foundation - an organization seeking advancement of commercial space travel. They will announce details Saturday in St. Louis on an international competition. Those who will help launch the X Prize include Buzz Aldrin, Apollo 11 astronaut; Burt Rutan, Collier Award winner and creator of Voyager; Byron Lichtenberg, first non-astronaut to fly the Shuttle Columbia, and Peter Diamandis, X Prize Foundation chairman.
National Aircraft Resale Association said its members accounted for 18% of worldwide sales of used jet aircraft and 12% of the turnover in used turboprops during the first quarter of 1996. The members sold 56 of 317 jets and 38 of 319 turboprops, bringing in $136 million and $35 million, respectively.
Travel Industry Association (TIA) has determined that gamblers spend more on trips and stay longer than the average traveler. In 1994, Americans took 66 million person-trips that involved gambling, spending an average $652 on the entire trip, compared with $404 for non-gambling travelers. Gamblers averaged 4.1 nights away from home, while non-gambling travelers averaged 3.4. Twenty-six percent of gamblers flew to their destination, compared with 17% of non-gamblers. TIA's profile of gambling travelers is available for $100 to members and $150 to non-members.
Hawaiian Airlines and Mahalo Air have agreed on a marketing and services partnership that will include code sharing and airport services agreements. The carriers also are considering allowing passengers on the interisland commuter carrier to accrue miles in Hawaiian's frequent flyer program. Hawaiian will place its code on Mahalo's five daily Oahu-Molokai flights beginning July 1.
Air 21 will expand into the Pacific Northwest June 17, offering single- plane through service from San Francisco to Seattle, Wash.; Eugene, Ore., and Redmond/Bend, Ore., targeting the latter two points because they "represent additional medium-density cities lacking low-fare jet service." Introductory fares will begin at $49 one way. The Fokker F28 operator currently serves San Francisco, Los Angeles, Salt Lake City, Colorado Springs, Fresno, Grand Junction, Las Vegas and Palm Springs.
The Palestinian National Authority, created to govern areas given up by Israel as part of the Middle East peace process, has ordered two used Fokker 50 transports from Fokker Aviation, one of the surviving elements of the bankrupt Dutch aircraft manufacturer. The airplanes will be delivered in June and July for operations from Gaza Airport, scheduled to be opened next month, by the newly established Palestinian Airlines, formation of which was among the top priorities of the Palestinian government, according to Fokker.
Pemco World Air Services announced a contract from Viva Air of Spain for maintenance of a Boeing 737-300 aircraft, including a 7C maintenance check, overhaul of the main landing gear, and stripping and painting. The company will carry out the work at its facility in Dothan, Ala.
Professional Pilots Federation, which opposes mandatory retirement of pilots at age 60, hopes DOT Secretary Federico Pena's call this week for airlines to hire more seasoned pilots means he will rethink the Age 60 Rule. "If the secretary wants to achieve his goal of 'zero accidents,' he cannot continue to ignore the experience and expertise of our senior pilots merely because of an unsubstantiated and artificially government-imposed age limit." Pena decided in December to continue the forced retirement of pilots who reach 60.
Internet World Wide Web users participating in a travel survey over the past year have chosen Delta as their favorite airline. The survey, sponsored by CIC Research, the Association of Business Travel of Hong Kong, the Pacific Asia Travel Association and TEN-IO, also ranks the favorite airport, destination, hotel and rental car company. The "Webbie" awards are given to the travel companies ranked first in their categories by more than 17,500 opinions from 81 countries. The purpose of the survey is to monitor the travel choices and demographics of Web users.
Fortis Aviation said it has sold two Fokker F28 aircraft, currently owned by Ghana Airways, to East West Helicopter, Harrison, Ohio. The F28s, the last in Ghana Airways' fleet, were manufactured in 1974 and delivered new to the carrier. One has been flown for 15,000 hours and the other for 12,500 hours. East West Helicopter, and aircraft trading and helicopter management company, has no immediate plans for the aircraft, Fortis said. Fortis still has an International Capital Equipment F28-4000 for sale.
Seattle-based Corporate VAT Management has launched a refund assistance program for travel agencies. The program is designed to help agencies find clients with the greatest potential to receive refunds of the European value added tax and set up processes to deliver refund assistance. The company has developed Auto VAT, a Windows-based software product that automates the preparation of VAT refund applications and the tracking of expenses. CVM estimates U.S. companies can reduce European travel expenses by as much as $800 million a year.
Virgin Atlantic says it might use the new A340s it is acquiring for services in the Caribbean, where it "is exploring some exciting opportunities." The carrier, which does not currently serve the region, is in talks about an alliance with BWIA International Airways and Air Jamaica.
Courtyard by Marriott was voted the nation's favorite hotel chain by Frequent Flyer magazine readers. Courtyard, Marriott's moderately priced product, was designed to accommodate the business traveler.
DOT officials said yesterday that ValuJet was not authorized to transport oxygen generators that National Transportation Safety Board investigators say were on Flight 592 last Saturday and may have played a role in the crash. The carrier is not authorized to transport hazardous materials of any kind, and the oxygen generators are classified as hazardous, government officials said in a background briefing for reporters. While FAA was unwilling to confirm that the canisters were on the flight, NTSB said they were in the cargo hold.
International Airlines Travel Agent Network (IATAN) will expand its accreditation, endorsement and other programs to agencies that sell only cruises. IATAN President Mike Maino said cruise-only agencies constitute a growing segment of the travel market. IATAN will begin processing requests for applications by June 15. The accreditation requirements for cruise- oriented agencies include a minimum of two years in business, a business bank account, annual sales of at least $250,000 and proof of a valid errors and omissions policy with at least $1 million coverage.
MCI and the American Society of Travel Agents are offering ASTA members a prepaid calling card showing their agency's logos to sell or give away to clients. MCI is sponsoring a sweepstakes for travel agents who accept the cards. Prizes include roundtrip airfare, hotel accommodations and registration at ASTA's 1996 World Travel Congress in Bangkok.
