The new Pan Am has reached a tentative agreement to acquire Carnival Air Lines in a deal that achieves goals of both companies - for Pan Am, to start flying in markets it has already targeted, and for Carnival, to merge with another airline, go public and change its name, distancing itself from Carnival Corp.
Group of travel agencies that want to control their own computer reservations system has protested a planned linkup between Microsoft and Worldspan, in which the CRS would serve as a booking engine for Microsoft's online travel service. United States Travel Agent Registry (USTAR) President Bruce Bishins said, "The alliance between these two companies typifies the lack of support and partnership that Worldspan and other similarly situated CRSs have for their agency subscribers and the travel agency distribution channel in general.
American parent AMR Corp. turned in the best quarterly financial performance in its history yesterday - $293 million for the second quarter, topping $231 million in the third quarter of 1995 - and all signs point to a strong third quarter 1996 as well. The carrier announced the purchase of 12 767-300s it had been operating under a lease with Boeing, but it made few details available. The move to pre-purchase the aircraft in advance of 2008, when it was required to do so, will extinguish about $600 million in debt.
Air Canada's traffic jumped 21.1% last month on a capacity increase of 16.4%. The carrier flew 1.83 billion revenue passenger miles on capacity of 2.62 billion available seat miles. The load factor for the month increased 2.7 percentage points over that of June 1995, to 70.1%. Most of the traffic increase came in international markets. For the first half of the year, Air Canada's traffic was up 20% on a 13.6% increase in capacity. The load factor for the period was 64%, 3.4 percentage points higher than in the first half of 1995.
The House Government Reform and Oversight Committee soon will consider legislation that could save the federal government $320 million annually in travel expenses and $50 million annually in incorrect transportation disbursements. The Travel Reform and Savings Act of 1996 (H.R.3637) would give federal employees more flexibility in their transportation choices and promote prepayment audits for transportation expenses. The government also would save money by receiving rebates and other savings if employees used a travel credit card.
Travelers headed for Atlanta for the Olympics aboard Kiwi International Air Lines can try out EarPlanes - an ear discomfort reduction device - developed by Cirrus Air Technologies. The earplug-type devices will be available on Kiwi for 10 days.
Continental stock as of Tuesday was being quoted on a post-split basis. On June 26, the carrier announced a two-for-one split of its Class A and Class B common stock. Holders of common stock on July 2 will receive an additional share for each share held.
The U.K. Civil Aviation Authority, after a six-month investigation by the Monopolies and Mergers Commission, has proposed a rates and charges formula for April 1997 through 2002 for BAA's Heathrow, Gatwick and Stansted airports. Under the U.K.'s Airports Act of 1986, certain larger airports - BAA's three London airports and Manchester Airport Plc - are subject every five years to a detailed review by CAA and MMC as well as control of the amount by which rates and charges may be raised each year.
Morris Travel Services will convert its eight newest locations to the Worldspan computer reservations system this summer. The Salt Lake City- based company said the conversion will streamline all 53 locations through the same travel distribution and booking system. Morris then will work with Worldspan to upgrade locations systemwide to the new AT&T InterSpan Frame Relay Service. "Our plans are to acquire $50 million in new business every year, a goal we have already exceeded in 1996," said Mark Slack, chief executive.
DOT made final late Monday its tentative approval the application of American and Canadian Airlines International for immunity from U.S. antitrust laws (DAILY, July 17). "With today's action, we continue to reap the benefits of the Clinton administration's open-market aviation agreement with Canada, which already has generated over $2 billion for the economies of our countries," said DOT Secretary Federico Pena.
Westin Hotels&Resorts has signed an agreement with Signature Resorts to enter the vacation ownership market, under which the two will share an exclusive right for five years jointly to acquire, develop and market vacation ownership resorts in North America and the Caribbean. Westin Vacation Club Resorts will be Signature's newest and most upscale vacation ownership product. Vacation stays will sell for $12,000 to $20,000.
Why Can't the Federal Aviation Administration Learn?, a newly published study of FAA reform by Darryl Jenkins of the Aviation Foundation and Kingsley Haynes and Roger Stough of the Institute of Public Policy at George Mason University, advocates user fees as "the most direct and fastest method to bring accountability to the FAA." It recommends separating FAA's infrastructure and regulatory roles. For information, call Mary Clark, 703-993-2280.
Nearly 100 Choice International properties have become allied corporate associate members of the American Society of Travel Agents under an ASTA campaign to recruit Choice hotels. ASTA is giving the properties a corporate membership discount of $85 annually, instead of the normal $395 supplier cost for the first year and $365 for each renewal year.
U.S. Major and National Carriers Advertising Expenses First Quarter 1996 % of Total Passenger Systemwide Revenue Alaska $ 3,376,000 1.43 Domestic 3,093,000 1.43 Latin 283,000 1.43 America West 9,090,761 2.35
Virgin Atlantic Airways has launched a fare sale to promote service to Washington Dulles, the carrier's newest gateway. Fares start at $369 roundtrip for travel during the middle of the week in November.
Japan's Minister of Transport Yoshiyuki Kamei yesterday threatened retaliation if the U.S. imposes sanctions against Japan Airlines. "It is totally unacceptable to Japan that the U.S. government is attempting to resort to unilateral actions, discarding an essential part of the [U.S.- Japan] Agreement," he said in a statement. "Such an attempt inevitably forces the Japanese government to seriously consider an appropriate response." In a memorandum of understanding signed April 16 by Kamei and DOT Secretary Federico Pena, Japan and the U.S.
Several U.S. airlines are circulating a draft letter for President Clinton asking the administration to settle access to London Heathrow Airport before it focuses on other U.K. bilateral issues. The first round of new negotiations between the U.S. and the U.K. begins today in London.
Delta will shake down its new low-fare operation over the next four to six weeks before launching it this fall with 25 737-200s. The carrier recently began testing operational and customer service procedures on certain weekend flights under a program it internally calls "Project Sunshine," the low-cost service operating mostly in Florida markets. "The tests include time-and-motion studies on servicing the aircraft, the boarding, the deplaning.
Fine Airlines is seeking renewal of its exemption to operate scheduled all- cargo service between Miami and co-terminal points Kingston and Montego Bay, Jamaica; and between Miami and co-terminal points San Salvador, El Salvador and Guatemala City, Guatemala. (Docket OST-96-1539)
United and Southwest have sold out their $25 one-way tickets through Labor Day in the sale Southwest started last Friday. Seats still are available from Sept. 3 through the end of the sale, Oct. 31. United said it sold more than 175,000 tickets from Friday through yesterday. Southwest said travel to Las Vegas and all of its Florida cities is sold out. In a separate move, USAir reduced fares for domestic travel through Oct. 31 on tickets that must be purchased 14 days in advance and by July 30. Slightly higher fares are available for seven-day advance tickets.
DOT has assessed Sun Jet International $20,000 in civil penalties for failing on several occasions to file required reports on time. "In 1994 and 1995, Sun Jet became delinquent in filing reports and was sent warning letters," said the DOT Enforcement Office. "Since that time, Sun Jet has become delinquent in filing other reports. As of April 21, 1996, Sun Jet had not filed five [required] reports...with an average delinquency of 41 days," the office added.
America West, following the launch of one of the deepest fare cuts of the year by Southwest last week, announced yesterday it is cutting fares on travel as early as July 22. While Southwest, and other carriers that matched its discount, are offering $25 one-way fares in nonstop markets for travel Aug. 19 through Oct. 31, the America West sale is on the seven-day advance-purchase ticket for travel through Oct. 31. Tickets must be purchased by July 30.
Hawaiian Airlines reported a 0.6% increase in June traffic to 334.3 million revenue passenger miles from 332.3 million in June 1995. Available seat miles rose 4.5% to 425.1 million, causing the load factor to fall 3.1 percentage points to 78.6%. Cargo ton miles rose 13.2% to 4.3 million, and the airline carried 442,476 passengers. For the first six months of the year, Hawaiian's RPMs were up 16.6% to 1.9 billion, while ASMs increased 16.8% to 2.5 billion. The systemwide load factor fell slightly to 76.3%. Hawaiian carried 2,611,287 passengers during the period.
