UNC Inc. said yesterday its first quarter net earnings increased to $474,000 from $49,000 while sales increased 13% to $141.5 million. Operating income was up 12% to $5.9 million. Chairman Dan Colussy said results in the company's manufacturing, engine services and aviation services divisions offset weaker performance in its accessory services division.
American launched its Boston-Paris service yesterday, on schedule, after gaining the necessary slots for service at Paris Orly Airport. It had trouble in its original attempts to secure the slots (DAILY, April 29) but worked out a deal this week with help from U.S. Ambassador to France Pamela Harriman and DOT Assistant Secretary for Aviation and International Affairs Charles Hunnicutt. American is operating daily 767 nonstops on the route.
Cathay Pacific Airways is auctioning 387 seats, the equivalent of a 747- 400, for getaways to Hong Kong from New York or Los Angeles in its third cybertraveler auction. Internet users can bid on 313 seats in economy, 56 in business and 18 in first class. Travel agents are entitled to commissions on the bid amount.
U.S. and Brazil ended two days of negotiations in Washington Tuesday without reaching a new agreement. A U.S. official said the two sides will meet again late in November or early in December and hope for significant advances then. The U.S. is looking for designations for Continental and Delta - United, American and Tower Air currently are designated for the market - plus more frequencies and code-sharing authority. Brazil was not in a position to make significant changes at this time, a U.S. official said.
Promus Hotel Corp. expects its hotel properties in the U.S., Canada, Latin America and Asia to grow from 690 to 800 by yearend. Promus brands are Embassy Suites, Hampton Inn, Hampton Inn&Suites and Homewood Suites. The company said it continues to see improvements in its operating margin at the corporate level, which increased from 40% in the first quarter 1995 to 43.8% in first quarter 1996.
Continental is seeking five-year renewal of its Route 645 certificate authority to operate scheduled combination service between Houston and co- terminal points Barranquilla, Bogota and Cali, Colombia, via intermediate point San Jose, Costa Rica. The carrier also asked for continued authority to combine these services with its other authorized services. Currently providing daily nonstop Boeing 757 service between Houston and Bogota, Continental said it needs the flexibility to operate via San Jose.
Vietnam's national tourism organization says 145 hotel projects are under way throughout the country, involving 21,000 new and renovated rooms. Vietnam has 42,000 rooms available now, and expects to have 70,000 meeting international standards by 2010.
Three more airlines have signed up for inflight gambling on their jets in a trend that is starting to sweep the business. Swissair and two smaller European carriers - Spanish charter carrier Oasis Airlines and British carrier Debonair Airways - contracted this week for gambling technology from New York-based Interactive Flight Technologies Inc. (IFT). The Swissair contract covers all 21 of the airline's long-haul jets, which will start flying with the systems in November. That contract is valued at $70 million to $80 million, said IFT.
Continental loaded code-share partner World Airways' flights into the System One/Amadeus computer reservation system last weekend, just in time for the make-or-break phase of World's troubled Newark-Tel Aviv service.The route must perform well during the generally strong summer season or World will stop flying it, President Charles Pollard warned investors.
Aggressive expansion and stiff competition in the domestic market left Air Canada with a C$96 million (US$70.46 million) loss for the first quarter, a 9.09% increase from the C$88 million (US$64.59 million) the carrier suffered in the first quarter 1995. On a per-share basis, Air Canada lost C$0.62, down from C$0.74 lost in the 1995 period. The carrier posted an operating loss of C$40 million, sharply higher than the C$7 million deficit last year.
Daimler-Benz Aerospace (DASA) said it has subcontracted with Lufthansa Technik to standardize the cockpits of Airbus aircraft for FedEx. The package carrier, which has 37 A310s and A300-600s, has contracted with DASA to convert all of them into freighters. DASA said it subcontracted with Lufthansa Technik because it is an approved design organization certified to make such modifications. The third phase of the conversion program, which involves 17 aircraft bought from Martinair, KLM and Swissair, is scheduled to be completed in the fall of 1997.
Transportation companies chosen as the best in their category in an Internet World Wide Web survey will soon receive a new award - the Webbie. CIC Research, San Diego, which conducts Internet surveys, will award a Webbie to the most popular airline, airport, destination, lodging chain for business travelers, lodging chain for pleasure travelers, rental car company for business travelers and rental car company for pleasure travelers. The first winners will be announced May 13.
Trump Hotels&Casino Resorts Inc. is well positioned for growth after the sale of 13.3 million shares of newly issued common stock and the issuance of $1.2 billion in new first mortgage notes, the company said, and planned growth opportunities are on track. Trump World Fair, which is scheduled to open in Atlantic City in mid-May, will add 500 rooms and casino space to Trump Plaza Hotel and Casino, making it the largest casino hotel in Atlantic City. Trump's Taj Mahal in the city received approval last month for a new wing that will add 802 rooms.
The 1996 Toronto Tourism Awards program, launched recently, will honor frontline employees in six tourism sectors - accommodations, arts/attractions, restaurants, retail, transportation and services - for exceptional service. The awards, sponsored by Diners Club/enRoute and WHERE Toronto magazine, include a top prize package worth $5,000. Nominations will be accepted until the end of October and an awards ceremony will be held in November. For more information, call 416-955- 4969.
Pennsylvania State Travel Director Mark Hoy joins the Travel Industry Association today as director of international marketing. He also will become executive director of the USA National Tourism Organization with responsibility for establishing an overseas network of government contacts to promote tourism to the U.S. and formulating an international marketing strategy.
Tourism company Evrasia, which has established tours to Western Europe and Asia and is engaged in retail trade, wants to become a distributor for U.S. producers of consumer goods and find an American travel agency to establish tours to Ukraine from the U.S. For more information, contact Mykola Zhura in Kiev, 380-44-227-71-68 or fax 380-44-243-03-05.
Pilots at Delta and American wanting decisions about their jobs made locally instead of nationally are organizing independent unions. The Professional Pilots Alliance (PPA) at Delta, started in November 1993, waited until contract negotiations with the company were completed before trying to organize pilots so as not to weaken pilot unity. Now that Delta's pilots, represented by the Air Line Pilots Association, have ratified a new contract, the PPA is on the move again.
American Automobile Association has re-elected Van Smith chairman of the board at its 93rd annual convention in San Francisco. Also re-elected were Terry Baker as vice chairman and Dwight Sutherland as secretary.
Airport privatization would get a tryout under an FAA reauthorization bill being drafted by the House Transportation aviation subcommittee. The draft, which will call for a limited demonstration of privatization, also would modify distribution formulas for the Airport Improvement Program.
Delta, Malev and Austrian Airlines begin code-sharing service today on Delta's flights from Atlanta to Vienna and Budapest. Delta offers daily 767ER service.
USAir and American have some of the highest long-haul costs in the U.S. airline industry, according to a new study by Roberts, Roach&Associates. While earlier studies by the group have focused on the short-haul carriers, its latest survey of the industry investigates the cost of operating narrowbodies and widebodies in long-haul markets. Unfortunately for USAir, it tops the chart in both categories. The carrier pays 6.72 cents per available seat mile to operate a 757 on a 1,400-mile flight. American is not far behind at 6.70 cents per ASM.
Southwest will hold a "president for a day" contest June 12, when Chairman Herb Kelleher will "share the helm" of the carrier with the winner. Contestants can submit their most innovative ideas on management until May 8. All entries must be 100 words or fewer. The airline notes that since the idea for Southwest originally was written down on a cocktail napkin, entries that do the same will be considered for their "creative" inspirations.
DOT issued a show cause order yesterday tentatively selecting Continental over American to operate new service to Lima, Peru. Pending final approval, Continental can operate daily Houston-Lima service beginning as early as Nov. 1.
