Domestic pleasure travelers who use the Internet accounted for an estimated travel value of $40.8 billion in the past 12 months, according to CIC Research's Net Traveler Survey. Calculating value according to how many people traveled, how frequently they flew and how much they spent, CIC found that domestic business travelers were worth $30.9 billion, international pleasure travelers $29 billion and international business travelers $14.25 billion.
Reports have resurfaced in Europe about a KLM-British Airways alliance that could include American and Iberia. The Dutch press said last week that KLM and BA were holding discussions, but KLM dismissed the reports as "pure speculation." BA and American stuck with their policy of not commenting on alliance negotiations.
U.S. and South Africa begin talks today in Washington amid expectations that they will be able to wrap up an agreement in one or two rounds. The key issue is third-country code sharing.
Western Pacific and American Eagle celebrated milestones last week, WestPac boarding its millionth passenger and Eagle its 80 millionth. WestPac described its customer as "a vivacious, blonde, 30-year-old woman born in The Netherlands" and showered her with free airline tickets each month for a year and free stays at two resort hotels in Colorado and Opryland. Eagle's winners, a retiree and his nine-year-old grandson, got two free tickets, a travel bag and Eagle trinkets.
- In Federal Register dated March 15...Proposed to supersede an airworthiness directive on JanAero B series combustion heaters concerning retention of pressure decay tests. - In FR dated March 19...Superseded an AD on Enstrom F-28/280 series helicopters concerning inspections of a certain main rotor transmission clutch assembly. - In FR dated March 20...Proposed to supersede an AD on certain McDonnell Douglas MD-11 and DC-10 aircraft requiring testing of electrical connectors to the engine generator and fire bell shutoff switches.
DOT Secretary Federico Pena notified air travelers to Greece Friday that Athens Hellenikon Airport does not meet the security standards established by the International Civil Aviation Organization. The Greek government disputed the statement. Pena based his action on an FAA assessment of security measures, but a spokesman for the Greek Embassy in Washington said, "We are surprised by this statement.
DOT's study of the impact of new entrants in the U.S. market is likely to be released in about two weeks. It is expected to document the effect of startups on fares and identify points where competitive conditions may favor new entry.
France told U.S. carriers Friday to scale back planned summer service to France in the wake of DOT's rejection of Air France's request for additional U.S. summer service. TWA, Tower, American, Delta, Continental and United all were informed that they would have to curtail some of their summer service, which was approved in February and set to begin April 1, according to industry sources. The affected markets are New York, Washington and Houston.
British Airways on Friday awarded General Electric Aircraft Engine Services of Nantgarw, Wales, a 10-year repair and overhaul contract valued at $2.3 billion. BA's first such contract to GE came in 1991, "but this new agreement provides significant benefits" for the airline, said Brian Philpott, BA engineering acting managing director. George Duncanson, GE managing director, said the 10-year contract "besides securing long-term employment in Wales, will also serve as a springboard for GE engine services global growth strategy."
Established carriers and startups alike are rallying around the industry position, stated by Air Transport Association, that DOT should avoid over- regulation of electronic ticketing procedures. In comments on potential regulations, ATA said carriers need flexibility in deciding when, where and how to provide customers with required consumer notices (DAILY, March 21).
British Airways and America West will announce soon a marketing agreement that will feed BA at Phoenix when it starts daily London-Phoenix service July 1. The marketing alliance between the two carriers, being finalized, will include code sharing and participation in each other's frequent flyer programs.
Boosting open skies, the Economic Strategy Institute study of the U.S.- Japan standoff, "Turbulence over the Pacific," favors extension of the 1952 agreement over proposals to limit fifth freedoms while expanding direct U.S.-Japan service. The study, released last week, explores four scenarios offered in recent rounds of negotiations: an open skies agreement; extending the current 1952 agreement; and two formulas for capping U.S. beyond service while increasing direct U.S.-Japan flights.
White House policy on the satellite-based Global Positioning System is expected tomorrow from Vice President Gore or later in the week from President Clinton. The policy will come in the form of a Presidential Decision Document (PDD). Sources say the civil aviation community will endorse the policy.
Air Canada and Lufthansa, as anticipated, have unveiled a cooperative pact that includes code-sharing and blocked-space agreements and could go further. The accord breaks up partnerships between Lufthansa and Canadian International and between Air Canada and Air France (DAILY, March 19). As of June 15, Air Canada and Lufthansa will operate joint nonstop service from Vancouver and Calgary to Frankfurt. Lufthansa will fly daily 747 nonstops between Frankfurt and Vancouver, while Air Canada will sell seats and put its code on the flights.
