Delta estimates it will save roughly $460 million in the next four years from the collective bargaining agreement with its pilots that went into effect May 1. The savings could go up or down depending on growth from its low-cost initiative or an underestimation of how many pilots will take early retirement.
Only 30 legislative days remain in the current session of Congress to resolve issues on how to finance FAA's fiscal 1997 budget request, the chairman and ranking minority member of the Senate Appropriations transportation subcommittee warned yesterday. Mark Hatfield (R-Ore.) and Frank Lautenberg (D-N.J.) told FAA Administrator David Hinson that the agency and industry groups had better get together on a budget, because money from the aviation trust fund, being spent at $500 million a month by FAA, will run out soon.
FAA yesterday issued regulations that require operators of more than 4,400 commuter turboprops to recognize and exit certain freezing rain or drizzle conditions, but did not prohibit dispatch into known icing conditions as feared by many commuter operators. RAA had hoped FAA would to drop its rulemaking effort, saying that the proposed restrictions were an operational rather than an airworthiness issue (DAILY, March 29).
With U.S. and Chinese officials on hand, Northwest launched its Detroit- Beijing service this week, operating three roundtrip flights per week using 747-400 aircraft. DOT Secretary Federico Pea, local Michigan officials and Huang Dongbi, the consul general of the People's Republic of China, attended the service inauguration. Also present were Northwest Co-Chairman Alfred Checchi and a delegation from Air China, led by Wang Jiwu, the carrier's executive VP.
Southern Air Transport, which recently received two all-cargo frequencies from DOT for new U.S.-South Africa service, was mistakenly identified as Southern Air Cargo April 29 in The DAILY.
Boeing plans to start a dividend reinvestment and stock purchase plan for shareholders in the third quarter. Owners of at least 50 shares who enroll in the plan can have dividends automatically invested in additional shares. Boeing said all shareholders can enroll in the stock purchase part of the plan by sending in a minimum of $100 for each purchase, up to a maximum of $100,000 a year. Purchases can be made twice a month. Cost for each reinvestment or cash purchase is $1 plus a proportionate share of the broker commission, expected to be five cents a share.
Hurt by stiff competition in Florida, Amtran, parent of American Trans Air, reported a $2.35 million net profit for the first quarter, a 50.9% decrease from the $5.4 million generated in the like 1995 period. The late delivery of two 727s and weaker fares for leisure travel dampened revenue, while bad weather and higher fuel prices drove up costs. Amtran predicted that during the second quarter and for the rest of the year, the company will derive a smaller portion of its revenues from Florida markets because of intense competition in that part of the country.
Tokyo Narita Airport authorities accomplished a breakthrough this week, winning agreement from a farmer, Kakichi Ogawa, to sell his land to make room for a second runway. Ogawa and seven other farmers have rejected offers for their properties for 30 years, and five of the seven remaining holdouts have begun discussions on a sale.
Aer Lingus restarted scheduled passenger service between Chicago and Ireland yesterday with an A330. It said it is the first carrier to operate an A330 in scheduled service from Chicago O'Hare Airport. It will fly the year-round service twice weekly to Dublin and Shannon, adding a third weekly flight June 2.
British Airways told aircraft manufacturers it has put on hold plans to purchase $1 billion worth of new regional jets, but it hinted the process could be restarted quickly. In January, the carrier asked five jet makers - Boeing, McDonnell Douglas, Airbus, Fokker and Avro - to bid on an order for up to 60 new aircraft seating 80 to 120 passengers (DAILY, Jan. 16). "Funding such a large project is a major decision and has significant implications for how the business will perform and how we will operate in the coming years," BA said in an internal memo.
SatoTravel has won a multimillion dollar contract to manage corporate group air service for IBM, effective Oct. 1. The seven-year contract is for planning travel for groups of 10 or more headed to the same location.
Tower Air Inc. reported yesterday a net first quarter loss of $8.13 million, or 53 cents a share, up from $3.58 million, or 23 cents per share, in the 1995 period.
Massachusetts Office of Travel and Tourism's 1995 summer campaign to attract tourists has won an EFFIE award from the American Marketing Association. The award is given for creativity and overall effectiveness of an advertising campaign. The Massachusetts campaign, with the slogan "We'd love to show you around," was credited with an 8% increase in visitors from the target markets - New York, Hartford/New Haven and Albany/Schenectady. The campaign was designed by Boston ad agency Houston Herstek Favat.
KLM, embroiled in litigation against Northwest challenging its U.S. partner's attempts to limit its ownership rights, is considering breaking up the strategic alliance between the carriers. A "high-level official" of KLM told a counterpart at Northwest that ending the partnership is one of three options it is evaluating, according to Northwest spokesman Doug Killian. Keeping the alliance unchanged and expanding it are the other possibilities.
Dragonair is offering Beijing weekend vacation packages through Aug. 31 for HK$4,280 that include air fare and three nights at the Holiday Inn Crowne Plaza. Two days of sightseeing tours with lunch also are provided, as well as daily breakfast and roundtrip hotel transfers.
After reaching agreement on key outstanding service issues, U.S. and Japanese officials have agreed to meet June 3 and 4 in Tokyo to discuss other outstanding passenger questions, including formal negotiations on an aviation agreement. Under a deal hammered out Monday and Tuesday in Washington, United will be permitted to operate Osaka-Seoul service during the summer season and increase its Los Angeles-Tokyo capacity for five weeks, beginning May 2.
TWA inaugurated nonstop daily service yesterday to Toronto from St. Louis. Operating two flights a day with MD-80s, the carrier is offering its Y- First program on the flights, enabling passengers connecting through St. Louis who purchase a full-fare coach ticket to be upgraded automatically to first class.
The Metropolitan Nashville Airport Authority is urging DOT to "carefully scrutinize" Laker Airways' certificate application and its plans for service in the U.S.-London market. If DOT grants the application, it should "utilize the London designations that have lain dormant the longest," the authority said, and "make such a designation temporary." Laker Airways is seeking to operate scheduled combination service between Fort Lauderdale and Miami, on the one hand, and London Gatwick, on the other (DAILY, April 4).
David Tate of Virgin Atlantic is being sued for sexual discrimination, not for sexual harassment as reported April 26 by The DAILY. Richard Branson was charged in the suit for sexual harassment.
Casino Magic Corp. has received approval from the Louisiana State Police's Riverboat Gaming Enforcement Division to acquire Crescent City Capital Development Corp., which holds a Louisiana gaming license. Crescent City is in bankruptcy court, and its reorganization plan, approved Monday, includes the sale, valued at $56.5 million. On Friday, Casino Magic received Louisiana Riverboat Gaming Commission approval for the transfer of ownership and relocation of the gaming license to Bossier City, La.
Ski resort equipment in the High Tatras Mountains of Northern Slovakia, a popular tourist destination for skiers, hikers and sightseers, is being renovated and brought up to western standards, but planners are seeking investments from abroad to finish projects. The most basic upgrades of equipment are expected to cost $2.5 million, but officials are expecting necessary longer-term refurbishment costs to total up to $10 million.
Aviall reported a first quarter net loss of $3.7 million compared with a net profit of $1.7 million in the same quarter a year earlier. Sales rose to $92.2 million from $86.9 million. The company took a $3.9 million charge in the latest quarter in connection with the planned sale of its aerospace fastener business to a company to be formed by Quentin Bourjeaurd, currently Aviall Aerospace's VP and general manager. Terms were not disclosed.
Air Canada has moved to year-round daily service in the Toronto-Zurich market. It is operating the 747-200 flights in conjunction with Swissair under a code-sharing agreement signed in December. Swissair offers up to six nonstop flights per week between Montreal and Zurich with Air Canada.
FAA has commissioned the first of 44 air route surveillance radars (ARSR- 4), at Tamiami, Fla. Under a contract with an FAA-Air Force joint program office, the Northrop Grumman system is the only long-range, three- dimensional radar that meets air defense and air traffic control needs, according to the company.
DOT cited prospects for increased competition among carriers and gateways in its tentative selection of Continental over American to operate new service to Lima, Peru (DAILY, May 1). In the hotly contested proceeding, both carriers proposed scheduled daily Boeing 757 service to Lima - American from Dallas/Fort Worth and Continental from Houston - with single- plane, one-stop service to Los Angeles. Pending final approval, Continental can operate daily Houston-Lima service beginning as early as Nov. 1.
