When EVA Airways inaugurates service on the Taipei-Hong Kong route in late July, there is a strong possibility that it will offer substantially lower prices than those now set by China Airlines and Cathay Pacific. EVA VP Chiu Hung-yi told Taiwan's Central News Agency that EVA could price a full- fare economy round-trip ticket at NT$6,000 (US$218.20), compared with the minimum NT$8,200 (US$298.20) now charged by CAL and Cathay Pacific.
As organizational changes at FAA were being announced yesterday, Continental Chief Executive Gordon Bethune was being asked by reporters if the FAA does a good job regulating safety. He responded that there is no better aviation regulatory body in the world, and David Hinson is the best administrator out of the last 10. "Could they improve? Sure, so could I."
Kiwi International Air Lines' May traffic increased 36% in May to 133.5 million revenue passenger miles from 98 million on 28% more capacity. Available seat miles totaled 234.5 million, up from 183 million. Kiwi carried 23% more passengers during the month, 179,500, and its load factor rose 4 percentage points to 57%. Kiwi President and Chief Executive Jerry Murphy said the carrier continues to see gains in business markets from New York, Chicago and Atlanta.
Atlas Air will lease a 747-200 freighter to Thai Airways under a three-year contract beginning in the fourth quarter of this year. In addition, Thai Airways has the option to lease a second and third aircraft for three years each, beginning in the first and third quarters of 1998, respectively. Thai has the option to lease the first aircraft for a fourth year. Atlas said if all options of the contract are exercised, the transaction will be worth $256 million.
ValuJet President Lewis Jordan declared yesterday that the carrier will recover from the grounding forced on it Monday by FAA and fly again. In a news conference, Jordan said he agreed to stop flying Monday at midnight so FAA would not force the carrier to cease its operations. He said he still believes ValuJet was safe, and he would have grounded the carrier himself if he thought otherwise. Jordan said he was bothered by the "intense inspection" FAA launched after the crash of Flight 592 in the Everglades May 11, killing all aboard.
Qantas has started all-jet service between Launceston and Melbourne and has increased flying between Launceston and Sydney. The flights will be operated by the carrier's Southern Australia Airlines regional subsidiary using BAe 146-200 aircraft, starting Oct. 27. Southern Australian will operate 30 BAe 146 flights each week between Launceston and Melbourne. The carrier currently flies the route with a mix of 737s and Southern Australia's de Havilland Dash 8s.
BWIA International Airways was named by the Trade Travel Gazette as having the best airline service in the Caribbean, according to the magazine's poll of travel agents. Separately, the carrier is offering students in the southern U.S. a summer discount of $517 roundtrip for travel to the Caribbean.
In-Flight Phone Corp. has chosen Rapp Collins Worldwide's Chicago office as its advertising agency of record. In-Flight's FlightLink system is installed on aircraft operated by America West, Continental and Carnival.
U.S. Major Carriers Traffic May, 5 Months 1996 (000) May May % 1996 1995 Change Alaska Revenue Passenger Miles 825,000 675,000 22.2 Available Seat Miles 1,270,000 1,130,000 12.4 Load Factor (%) 65.0 59.7 America West
United says its $51 million immigration/customs facility, to open June 24 at Los Angeles Airport, will cut the processing time for international passengers in half. The nine-gate facility will serve United's international flights and reduce congestion in the Tom Bradley International terminal.
FAA has extended until July 19 the comment period on its call for development of prototypes for a global analysis and information system (GAIN). The agency in the May 10 Federal Register proposed GAIN to facilitate the collection, analysis and dissemination of aviation safety information. FAA is asking that all submissions be made via the Internet by sending an e-mail message with comments (plain text preferred) to: [email protected]. Comments also must be mailed in hard copy to FAA, 800 Independence Ave.
Carnival Air Lines will begin operating two weekly flights to Aguadilla, Puerto Rico, from Orlando July 4 with 727s. The carrier will offer $119 one-way fares that do not require an advance purchase, Saturday night stay or roundtrip purchase.
SAS will be the main tenant of a new international cargo center being built at Newark Airport. The $42 million, 284,000-square-foot complex will increase cargo capacity at the airport by more than 33%. The facility will be constructed in two phases, beginning with a 192,000-square-foot building, to be started in August and finished by early 1998. Plans for Phase 2 will be announced at a later date, SAS said.
Hawaiian Airlines' revenue passenger miles for the first five months of the year shot up 20.6% to 1.579 billion revenue passenger miles, compared with the 1995 level, and available seat miles rose 19.7% to 2.083 billion. The load factor moved up 0.5 percentage to 75.8%. In May, its RPMS rose 8.9% to 319.5 million on 8.9% more capacity than in May 1995, while the load factor remained unchanged at 74.8%. ASMs totaled 426.9 million, up from 392.1 million. Hawaiian carried 421,765 passengers, a 3.9% increase.
Continental has applied for 20 slots at London Heathrow Airport for service from Newark, Houston and Cleveland. Although it does not have authority to serve Heathrow, the carrier said it is positioning itself for access if the proposed American-British Airways alliance is approved and existing restrictions on Heathrow are lifted. "Continental needs those slots now and the route authority to fly there or we can kiss goodbye any real competition with the AA-BA alliance," said Continental Chief Executive Gordon Bethune.
Rafael Arias Salgado, Spain's new transport minister, says his government will "set up a strategy in accordance with Iberia's policy to seek a U.S. partner." Translation: Spain will be ready to talk open skies with the U.S. as soon as its flag carrier finds an ally across the Atlantic.
Tom Begley, commercial director of Hong Kong Aircraft Engineering Company Ltd., was appointed director and general manager of Hong Kong Aero Engine Services Ltd., the 50-50 joint venture of HAECO and Rolls-Royce scheduled to launch operations in January. Steve Jones of HAECO was named general manager-operations of HAESL.
United Parcel Service and Taiwan's Civil Aeronautics Administration (CAA) have signed a formal agreement that commits UPS to spend as much as US$400 million to set up an integrated regional air transshipment hub at Taiwan's Chiang Kai-shek Airport. The project will be the largest to date by a foreign company in Taiwan's aviation industry.
Mexico and Canada have signed a memorandum of understanding that is expected to yield more technical cooperation between the two countries in the commercial aviation sector. A second pact, an "agreed minute," will lead to the inclusion of aviation security provisions in the bilateral air agreement of the two countries, Transport Canada said.
DOT called yesterday for a fundamental change in FAA's charter as the agency continues to revamp its safety oversight policies in the aftermath of the ValuJet crash and Monday's grounding of the startup carrier. Saying the dual mission of promoting air commerce as well as safety "has caused some to believe that the FAA had to make choices between safety and promoting the industry it regulates," DOT Secretary Federico Pena urged Congress to "change the FAA charter to give it a single primary mission: safety." ALPA applauded the move immediately.
British Airways will begin testing electronic ticketing in the U.K., starting next month. The new system, which the carrier calls E-Ticket, will be available for booking as of July 17 for travel Aug. 1 on flights between London Gatwick and Aberdeen. Passengers without baggage make a reservation through the carrier by telephone and check in using a machine at the airport. The machine uses a credit card for identification and issues a boarding pass.
American has asked DOT for renewal of its authority to operate to Toronto from Tampa, which expires Aug. 17. The carrier began the service Nov. 1 and operates one daily nonstop with 150-seat 727-200s. (Docket OST-95-367)
Emery Worldwide opened a branch office and service center in Buenos Aires, its second major expansion in the region. In March, Emery opened its first South American operation, in Santiago, Chile. Emery had been represented in Argentina through local agents.
American said yesterday it has signed a letter of intent to code share with Russian carrier Transaero on flights between Moscow and the U.S. Under the accord, set to begin in April 1997, Transaero will participate in American's AAdvantage frequent flyer program and American will put its AA designator code on Transaero's flights between Chicago and Moscow. Transaero will place its code, UN, on American flights between Chicago and Dallas/Fort Worth, Los Angeles, Orlando, Seattle and Washington.
European startup Debonair plans to begin flying tomorrow, flying the first two of its planned five BAe 146s from London's Luton Airport to Munich, the new Dusseldorf Express Airport and Barcelona. Debonair will use its third 146 for service to Madrid on July 10, plus flights to Newcastle Airport. It will add Copenhagen and a second trip to Barcelona Aug. 7. The carrier will launch its service by offering free flights during its first day of operation. It plans to fly two to three roundtrips per week in each market.
