Sen. John McCain (R-Ariz.) plans today to introduce legislation intended to boost enforcement of the prohibition against illegal diversion of airport revenue. McCain, chairman of the Senate Commerce aviation subcommittee, also will introduce a one-year Airport Improvement Program reauthorization bill. Under the revenue diversion bill, DOT/FAA would be required to conduct annual audits, certified by the DOT inspector general, to review spending by airports and their sponsors.
Continental, which gives cash bonuses to its workers for keeping its flights on time, said yesterday it will no longer include the performances of Southwest, America West and Alaska Airlines in computing the rewards. The change in policy comes because those carriers file ontime reports manually while other airlines report electronically. Continental claims the manual filers have the opportunity to shave minutes from their time, thereby achieving a better record.
The SIA Group, parent of Singapore Airlines, reported an after-tax profit of S$1.025 billion (US$728 million), an 11.7% increase from last year's results. Singapore's financial year ended March 31. The group's operating profit grew 12.3% to S$1.045 billion (US$742 million), lifting earnings per share 11.7% to 79.9 cents. But the airline company's operating profit fell S$61 million (US$39 million), or 7.4%, to S$756 million (US$537 million).
Qantas has received approval from the Australian government to operate scheduled service to India. The International Air Services Commission will allow the airline to operate a 767-300 two times per week between Australia and Mumbai (formerly Bombay) via Singapore July 3. The carrier plans to add a third flight on the route later this year.
Russian carrier Transaero plans this week to put out to bid an order for $1.2 billion worth of aircraft, Gregory Gurtovoy, the carrier's deputy chairman, said yesterday at a news conference in Washington. The bidding, open to U.S., Russian and European aircraft manufacturers, will be for a mix of up to 40 narrow- and widebody jets, he said. Between 10 and 12 of those would be widebodies, while the remainder would be for use in Russia and the Commonwealth of Independent States. The jets will be used to replace aircraft on lease as well as for expansion through 2000.
Southwest announced yesterday an agreement with Salt Lake City to build its ninth and largest reservations center. The 47,000-square-foot facility will accommodate 800 agents when it is completed this fall. It will be built on a 13-acre parcel of land that is part of the Salt Lake City Airport complex and replace a center in Utah that currently employs about 560 agents. The carrier's other reservations centers are located in Dallas, Houston, Albuquerque, Phoenix, Oklahoma City, Little Rock, San Antonio and Chicago.
Colombia is urging DOT to throw out a complaint brought by American against its government and carriers. Also, awaiting an answer on its bid for U.S.- Colombia rights, Continental asked the department to defer action on the complaint. American's complaint, filed last month, charged Colombia with refusing to allow the carrier to exercise existing authority to operate nonstop New York-Bogota service (DAILY, April 30). American asked DOT to retaliate by holding up Avianca's authority to serve the New York-Bogota market.
Delta Connection carrier Comair plans to begin nonstop service June 1 between its Cincinnati hub and Huntsville, Ala., operating 30-passenger Embraer Brasilia aircraft.
USAir has tapped a new top executive to lead it through critical negotiations with its labor unions. The company said last week that John Long III, 48, will replace John Frestel Jr., 56, as executive VP-human resources. In addition to labor relations, Long will be responsible for other personnel matters and training. "With a new round of negotiations, he [Frestel] felt now was a good time to break off and move on," a USAir spokesman said. The carrier just started contract talks with its pilots, and discussions are under way with its unit of the Machinists union.
FAA is changing its regulations governing U.S. rotorcraft airworthiness standards to harmonize them with those of the European Joint Aviation Authorities. The new rule follows the findings of a working group of industry and government officials from the U.S. and Europe and recommendations of the Aviation Rulemaking Advisory Committee. It becomes final Aug. 8.
Delta is offering a $199 introductory fare for Montreal-Cincinnati service, which starts June 1. The fares are valid through July 15 and require a Saturday night stay.
In Federal Register dated May 3...Superseded an airworthiness directive on de Havilland Dash 3 aircraft concerning tailplane inspections...Issued an AD on Piaggio P180 aircraft requiring a shield on the front section of the engine cradle...Issued an AD on Robinson R22 helicopters requiring replacement of the upper V-belt sheave...Issued a correction on an AD on Jetstream HP137, Series 200 and 3101 and 3201 aircraft concerning aileron mounting spigot nut assemblies...Issued an AD on certain Piper series aircraft requiring modification of the flap lever assembly...Issue
Jobs of eight million Americans are tied directly to exports, Vice President Gore said last week at the annual conference of the Export-Import Bank. "Often your foreign competitors are supported, either directly or indirectly, by their governments," he told attendees in a defense of the bank against charges of corporate welfare and interference in the marketplace. Fred Bergsten, who heads the Institute for International Economics, said exporting firms expand jobs 20% faster than non-exporting firms. U.S.
Independent Russian carrier Transaero Airlines plans to launch scheduled service to the U.S. with flights to Los Angeles this summer and Orlando in the fall. The carrier will operate a DC-10-30 once a week to Los Angeles from Moscow, starting June 16. Service to Orlando is to begin in October. The airline hopes to establish Chicago-Moscow service in April 1997.
Transportation Department is preparing to drop the rule that requires airlines to perform pre-employment testing for alcohol use. The rule has not been enforced since April 5, 1995, when an appeals court vacated a similar Federal Highway Administration regulation and remanded it to the agency for further rulemaking. DOT is proposing to make testing voluntary for employers.
Western Pacific Airlines launched no-frills, low-cost service last week between Colorado Springs, Colo., and Portland, Ore. Fares for the daily nonstop start at $69 one way. The carrier has added a second daily flight from Colorado Springs to Newark.
Senate Commerce Committee Chairman Larry Pressler (R-S.D.) and a number of committee members introduced legislation (S.1735) last week to establish the U.S. Tourism Organization as a nongovernmental entity to promote tourism in the U.S. The legislation would fund the organization through development and sale of a tourism logo or emblem, much as is done by the U.S. Olympic Committee. U.S. businesses could become members by paying an annual fee.
International Lease Finance Corp. reported pretax income of $338.3 million for 1995, 8.4% more than the year before. Revenue was up 28.1% to $1.4 billion from $1.1 billion, and rental income increased 26.2% to $1.3 billion from $993.6 million. Assets rose 18.8% during the year, to $12.3 billion, and shareholders' equity was up 21.9% to $2 billion. Alan Lund, executive VP, reported "continued improvement in the overall marketplace as airlines have returned to profitability.
