Offering expanded opportunities for non-incumbent carriers, Japan will continue to dispute the U.S. position on existing fifth-freedom rights when U.S.-Japan talks begin today in Washington. "The major objectives of the consultation are to equalize the opportunities between Japanese and U.S. airlines, and to expand the opportunities for the airlines of both sides on the basis of equality," according to a Japanese government outline of its basic position, dated today and made available to The DAILY.
The City of Atlanta's $300 million sale of airport facilities revenue bonds received an "A" rating from Moody's Investors Service based on the airport's niche as a "key hubbing facility" in the southeastern U.S. Since the rating is based on the airport's fundamental strengths, it said, ValuJet's recent suspension from operations does not pose a long-term credit concern. "Airport officials project that the elimination of ValuJet service at Atlanta will result in only a minor decline in debt service coverage in fiscal 1996," Moody's said.
American and St. Louis are boosting TWA's bid for services to London Heathrow, but the rest of the industry is urging DOT to reject the application. Acting on the possibility that the proposed American-British Airways agreement will open up slots at Heathrow, TWA requested authority to begin operating a daily 747 roundtrip between Heathrow and New York Kennedy Sept. 4, with the option of adding two daily 767 flights Oct. 27 (DAILY, June 12).
Fresno-based Air 21 and Reno Air signed an interline and marketing agreement for connections through Reno/Tahoe Airport, beginning yesterday. The agreement will enable Air 21, a wholly owned subsidiary of International Jet Engine Supply, to market service to eight new cities - Chicago, Anchorage, Fairbanks, Vancouver, Seattle, Portland, Denver and Colorado Springs. Reno will provide the ground-handling.
Summary of U.S. Major Carriers International Traffic The Year 1995 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) American 14,606 8.90 2,160 31,541,845 Atlantic 3,651 7.13 4,119 15,038,573
Continental's board approved a two-for-one stock split yesterday, payable July 16 to holders of record of Class B and Class A common stock July 2. The split is intended to "make our stock more affordable to retail investors" and "bring additional liquidity to the market for our shares," Lawrence Kellner, chief financial officer, said. At the carrier's annual meeting, shareholders re-elected all of the directors and approved a new one, George Parker, professor of management at the Graduate School of Business of Stanford University.
SabreTech President Steven Townes, stung by congressional testimony Tuesday by ValuJet President Lewis Jordan that SabreTech errors caused the fatal crash May 11 of one of the carrier's DC-9s, said yesterday the crash was a "shared responsibility" of his company, the airline and FAA. Jordan told Congress that if boxes containing oxygen generators had been properly marked as hazardous materials, they would never had been loaded onto the aircraft and the crash would never have occurred (DAILY, June 26).
LatinPass is offering travel agents the opportunity to rack up their own frequent flyer miles when their clients purchase a full-fare ticket on any LatinPass carrier to Mexico, Central and South America and the Dominican Republic from the U.S. and Canada. The promotion, Miles&Miles, also gives agents 10,000 bonus miles whenever they sign up a client in LatinPass. Agents must book clients on at least three different LatinPass carriers. The agent accumulates mileage based on the type of fare their clients purchase, and mileage flown.
Canadian Airlines International said it will resume nonstop service between Montreal Mirabel Airport and Rome, offering two 767 flights per week beginning July 30 and continuing through the summer, and cutting back to one per week during the fall and winter, all in cooperation with code-share partner Alitalia. The carrier currently offers daily flights between Toronto and Rome.
American Automobile Association predicts travel for the July 4 holiday will be at its highest level in eight years, and up 2% from 1995. AAA said 35.7 million Americans plan to take a trip for Independence Day. The association estimates 30.3 million will travel by auto, truck or recreational vehicle, up 1% from last year, and 5.4 million will travel by airplane, train or bus, up 8%. AAA's predictions are based on a telephone survey of 1,500 adults conducted by the Travel Industry Association.
Kenmore Air Harbor, a seaplane operation in Kenmore, Wash., celebrates this year its 50th anniversary of offering adventure getaways in the northwestern U.S. and flying to fishing and boating destinations along Canada's Inside Passage to Alaska. Kenmore operates a fleet of 22 seaplanes, departing from Lake Union in downtown Seattle and the northern tip of Lake Washington in Kenmore.
Amtrak has chosen Novus to design its Internet booking and payment system, to be completed by December. Initially, the system will involve a World Wide Web page and booking engine, but the booking and payment functions for travel agents, and an enhanced pricing and rating system, will come later. Tickets can be picked up at the station or travel agency or can be delivered to homes. The Novus solution is based on the same core technology as the system used by VIA Rail, Lufthansa and British Midland.
U.S. District Judge Joan Lenard has postponed until Oct. 15 the July 8 trial on a lawsuit filed by five tenant airlines over American's planned Super A expansion at Miami Airport. A different judge in March gave Dade County and American the green light to issue bonds and move ahead with planning for the Super A Terminal; that judge dismissed part of the plaintiffs' suit which sought to stop the co-defendants from entering into the agreement for the terminal and issuing bonds and assessing fees associated with the Super A plan.
Runzheimer International predicts business travel costs will rise 4.7% in 1997, attributable in large part to increased spending on rental cars. Spending on air travel will go up 4%, lodging 7.5%, car rentals 8.5%, meals 5% and ground transportation 4%, the company predicts. But by the end of 1997, competition among new services such as automation of reservations, ticketless travel and hotel productivity improvements will spark an overall decline in costs, Runzheimer said.
Virgin Atlantic Airways Chairman Richard Branson, who used his airline's inaugural London-Washinton Dulles flight yesterday to highlight his opposition to the proposed American/British Airways alliance, is taking his message to congressional leaders, DOT and the Justice Department today.
Citing lack of reciprocity from Russia, Federal Express asked DOT to reject applications filed last week by Heavylift-VolgaDnepr to operate one-way fifth-freedom An-124 cargo charter flights tomorrow and July 3 between Houston and El Yopal, Colombia, to carry outsized cargo shipments of drilling cranes and related equipment.
Russian President Boris Yeltsin has ordered major changes in his nation's civil aviation affairs, including development of a code of aviation regulations and performance standards for airlines, airports and civil aviation personnel. The code is to be submitted to the legislature by Nov. 1, according to a June 13 decree signed by Yeltsin.
Garuda Indonesia announced yesterday a $1.6 billion order for six 777-200s and 17 737-300s/500s. It also reserved the right to acquire six 747-400 options, Boeing said. The 737s will be delivered between 1997 and 1999 and the 777s between 2000 and 2002. The 737s will be powered by CFM56 engines. Garuda has not yet selected powerplants for the 777s. Boeing President Ron Woodard said Garuda is the 10th Asian airline to order the 777 and the 21st worldwide. This brings total 777 orders to 274, he said.
Swissair has named Bernhard Mueggler general manager-northeast region, U.S. Mueggler, to be based in Boston, will be responsible for Swissair's sales, marketing, administrative and operational activities throughout the New England states. Mueggler joined Swissair in 1979.
Summary of U.S. Major Carriers International Traffic Fourth Quarter 1995 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) American 3,564 5.40 2,184 7,782,436 Atlantic 889 8.57 4,130 3,671,361
The U.S. hopes to clear immediate issues when it meets with Japan Thursday and Friday in Washington. Those issues are securing Los Angeles-Tokyo services for United, which is operating on short term now; beyond-Japan services to Jakarta for Northwest and United, and several cargo routes for Federal Express. Once these issues are cleared away, the U.S. is "anxious" to begin broader talks looking to liberalize the U.S.-Japan regime, said a DOT official.
American International Airways has asked DOT to amend its existing exemption by adding Guam as a co-terminal point on its Honolulu-Melbourne- Jakarta all-cargo service. Initially, AIA proposes operating once-weekly Boeing 747 service on a Honolulu-Guam-Melbourne-Jakarta-Honolulu routing, with service starting June 29. Pointing to the proposed June 29 startup date, the carrier requested expeditious treatment of its application. (Docket OST-96-1378)
LIAT ordered three 50-passenger Dash 8s from Bombardier valued at US$43 million. The aircraft will be used mainly in the southern part of its network. The aircraft are to be delivered this summer, giving LIAT an all- Bombardier fleet of 18 de Havillands of various sizes.
