Taiwan's Civil Aeronautics Administration has extended for the seventh time Cathay Pacific Airways' temporary right to conduct service between Hong Kong and Taiwan. The latest extension will permit Cathay to continue service on the route until June 29. The bilateral agreement between Taiwan and Hong Kong expired April 29, 1995. A new five-year agreement was finalized more than four months ago but has not yet been signed because Hong Kong and mainland China have been unable to agree on all the conditions of the pact.
DOT has approved plans by Delta and Korean Air to expand their code-share service. Beginning June 1, Delta will purchase seats on KAL's four weekly Washington Dulles-New York Kennedy-Seoul Boeing 747 flights and KAL's daily 747 Honolulu-Seoul service, while KAL will acquire seats on Delta's daily L-1011 service between Honolulu and Los Angeles. Delta currently acquires seats on KAL's three weekly Atlanta-Chicago-Seoul flights.
Continental Express plans to begin service to Memphis from Houston Intercontinental Airport July 1, offering three daily nonstops with 48-seat ATR 42-500 aircraft.
Discussions that began Monday in Washington on United's proposed increase in frequencies in the Los Angeles-Tokyo market beginning May 2 continued yesterday, and a senior DOT official pledged a "proportional" response in the same city-pair market if the Japanese government does not allow the scheduled service increase. Japan is prohibiting the service expansion in retaliation for U.S. inaction on Japan Airlines' Tokyo-Kona, Hawaii, proposal, which itself was a reaction to Japanese delay on several other requests, including United's Osaka-Seoul beyond rights.
Air Transport Association President Carol Hallett has thanked Sen. Robert Dole (R-Kan.) for his commitment to the repeal of the 4.3 cent-per-gallon fuel tax. Dole's staff said the Senator wants quick action on the repeal of the tax, which affects more than aviation. The association is not certain at this point of what form the legislation will take, but word is something could be done by Memorial Day (DAILY, April 30).
U.S. Major and National Carriers Labor Expenses Fourth Quarter 1995 % Of Total Operating Systemwide Expenses America West $ 91,915,820 24.38 American 1,529,891,000 37.54 Continental 260,227,000 22.50 Delta 940,849,000 32.85
Lufthansa will split its stock 10 for one and convert its outstanding preferred shares into common bearer stock, the carrier said yesterday. Both moves are subject to shareholder approval at the carrier's Annual General Meeting July 3 in Frankfurt. The stock split would reduce the face value of the carrier's shares to 5 Deutschmarks from DM50. Lufthansa said the move is designed to bring its share price in line with that of other German companies and make the stock "more attractive to an even broader range of investors."
FAA has asked OMB to identify former employees who accepted incentive payments in exchange for voluntarily separating from government employment and then may have returned to work as employees of FAA contractors. Those who did could be forced to return the buyouts and could face other penalties. The agency has about 350 support contractors.
Mesa Air Group reported net earnings of $11.87 million on revenues of $120.97 million for the March quarter, the second in the company's fiscal year. Earnings compare with a second quarter 1995 net profit of $63,000. Revenues were up 13.7% from $106.44 million in the second quarter of 1995. Per-share earnings were 39 cents, compared with zero earnings for the March quarter last year. Operating expenses increased 8.1% to $112.65 million, while operating income shot up 267.7% to $8.32 million.
GE Aircraft Engines said yesterday it has launched development of the CF34- 8C turbofan, a 13,000- to 15,000-pounds-thrust engine selected last February to power Canadair's proposed 70-passenger Canadair CRJ-X airliner. The engine will provide about 40% more thrust and a thrust-to-weight ratio 10% higher than the CF34 engines now powering Canadair's 50-passenger Regional Jet. GEAC also signed an collaboration agreement with Japan Aero Engines Corp. (JAEC), Ishikawajima-Harima Heavy Industries and Kawasaki Heavy Industries.
Air Marshall Islands (AMI) has applied for renewal of its authority to operate scheduled combination service between Majuro and Kwajalein, Marshall Islands, and Honolulu, and to conduct charter service between the Marshall Islands and the U.S. AMI said its board "is currently evaluating the longer-term prospects for profitability of the company and, pending a determination by the board, AMI's DC-8 combination scheduled service to and from Honolulu has been temporarily suspended." (Docket OST-96-1320)
Germany and the U.K. may not be able to persuade France to support restructuring Airbus Industrie in time for the next round of big program decisions, but the consortium's current structure will not prevent it from making and carrying out those decisions, Daimler-Benz Aerospace (DASA) Chief Executive Manfred Bischoff said yesterday in Washington.
Awaiting authority to begin scheduled U.S.-U.K. service, Laker Airways has taken steps to distance itself from Laker-Bahamas, the foreign carrier owned by Freddy Laker.Laker-Bahamas is dropping the name "Laker" from its name and has painted over it on its aircraft, Laker Airways told DOT yesterday. No new name has been adopted. With Freddy Laker's ownership limited to 49% of voting and non-voting stock, Laker Airways qualifies as a U.S. carrier.
DOT has granted Federal Express authority to operate all-cargo service between Miami and Panama City, Panama, and Bogota, Colombia, in conjunction with its existing all-cargo service between the U.S. and South and Central America. With the new rights, the carrier will operate Boeing 727-200 freighter aircraft over a Memphis-Miami-Caracas-Bogota routing southbound and a Bogota-Panama City-Memphis routing northbound (DAILY, March 29). FedEx plans to operate five weekly flights in each direction. (Docket OST- 96-1186)
Northwest will inaugurate service to Beijing from Detroit today. DOT Secretary Federico Pea will participate in gate ceremonies. Northwest will operate the daily flights with 747-400 aircraft.
DOT has issued an order inviting interested parties to answer Federal Express's complaint against the government of Taiwan. FedEx is seeking redress for Taiwan's refusal to allow the carrier to self-handle inbound and outbound air express and air freight shipments at Taipei Chiang Kai- shek Airport (DAILY, April 25). The carrier maintains the U.S.-Taiwan Air Transportation Agreement, signed in 1980, gives it the right to exercise self-handling. Answers are due within 10 days of the order and replies five days later. (Docket OST-96-1297)
McDonnell Douglas has received from Ayers Corp. its first production fuselage for the new MD 600N helicopter. Launch customer is AirStar Helicopters, an aerial tour operator at the Grand Canyon. The MD 600N is a larger version of the MD 520N. Two of the airplanes are in the test-flight stage.
Aerolitoral is seeking renewal of its authority to operate scheduled combination service between Hermosillo, Mexico, and Phoenix. A wholly owned subsidiary of Aeromexico, Aerolitoral operates the service between Mexico and the U.S., using the Aeromexico code. (Docket OST-96-1316)
Swissair has taken delivery of the first A319, leased from International Lease Finance Corp. The carrier is the launch customer with an order for 18 aircraft, configured to seat 116 passengers and powered by CFM56 engines.
World Airways Inc. suffered a first quarter net loss of $7.9 million, or 66 cents per share, compared with a first quarter 1995 net loss of $3.8 million, or 38 cents per share. Revenue climbed 77% to $71.5 million, up from $40.5 million, thanks to a 54% jump in block hours to 10,634. "Although we are disappointed with first quarter results, our core business performed well and we expect significant improvements in the quarter ahead as we manage factors that negatively impacted results," said Charles Pollard, president and chief executive.
Following a recent bid-rigging scandal, Taiwan's Ministry of Transportation and Communications announced award of a contract to a partnership of state- run Ret-Ser Engineering Agency and Kai Li Engineering Co. for interior construction of the second terminal at Taipei Chiang Kai-shek Airport. The reported winning bid was NT$5.96 billion, about US$218.3 million. Government planners had estimated the cost at NT$7 billion, or approximately US$256.4 million.
National Transportation Safety Board Chairman Jim Hall criticized FAA yesterday for not requiring airlines to install improved flight data recorders on their 737 aircraft, saying the installations could be accomplished without interfering with revenue service. The board issued an urgent recommendation Feb.
U.S. Major and National Carriers Maintenance Expenses Fourth Quarter 1995 % Of Total Operating Systemwide Expenses America West $ 34,884,667 9.25 American 339,322,000 8.33 Continental 134,191,000 11.60 Delta 248,125,000 8.66
DOT has granted Iberia an exemption to operate combination service between a point or points in Spain and Atlanta and to co-terminalize operation at Atlanta with its existing authority to serve Miami between July 13 and Aug. 27. The carrier plans to operate 23 scheduled roundtrips from Madrid, via Miami during the period. (Docket OST-96-1221)
