The U.S. has put together a new proposal to offer Japan as it enters a crucial round of all-cargo talks Tuesday in Tokyo. A U.S. industry official declined to reveal details of the new offer but said it expands on the most recent U.S. proposal - additional U.S.-Japan frequencies and new beyond-Japan service for United Parcel Service and an additional U.S. all- cargo designee for the Japan market, in exchange for Japan Airlines rights mirroring those of U.S. all-cargo carriers and service to new U.S. points for Nippon Cargo Airlines.
Security threat to U.S. airlines, FAA security regulations and explosive detection systems will be explored during RAA's two-day seminar for regional airline security personnel and customer service managers. The seminar will be held April 1-2 near Dulles Airport in Herndon, Va. Seminar costs $155 for RAA members and $255 for non-members. For information, contact Debby McElroy at (202) 857-1170.
WorldCorp, parent of World Airways, said yesterday it is looking to sell the carrier to its employees, the public or a third party. "We do believe that appropriately structured employee ownership providing both union and non-union employees with a direct interest in the success of the airline would lead to substantial benefits for employees and shareholders alike," World Airways President Charles Pollard said.
Arizona Airways, a unit of Minneapolis-based Great Lakes Aviation, has been awarded the essential air service franchise at Page, Ariz., replacing St. George, Utah-based SkyWest Airlines. Great Lakes will be paid an annual subsidy rate of $129,560 to operate 10 roundtrips per week with 19- passenger Beech 1900 aircraft between Page, near the Utah border, and Phoenix. The service term will last two years and will begin early next month.
President Clinton, in a letter to the Association of Professional Flight Attendants, said his administration "remains committed to opening markets and ensuring new and exciting opportunities for the airline industry." APFA, which got a boost from the administration in its Thanksgiving 1993 strike against American, is endorsing Clinton for re-election.
...Saab Aircraft AB is the latest of several regional-aircraft manufacturers to examine the remains of Fokker for parts that might be worth acquiring. DAILY sources say it might be a means of getting into the turbofan business more rapidly with the 79-passenger F70, but any production would have to be taken out of The Netherlands with its high social and manufacturing costs. In addition, the F70 would have to be lightened considerably to make it scope-compatible since it weighs in at 88,000 pounds. Saab said, "There is nothing to substantiate any speculation."
TWA is offering up to 3.5 million shares of its 8% Cumulative Convertible Exchangeable Preferred Stock. Each share can be converted into common stock at a conversion price of $20.269 per share. The 8% Preferred stock can be redeemed after March 15, 1999. TWA said it will use proceeds of the offering to redeem its outstanding 12% Cumulative Preferred stock and for general corporate purposes.
Women in Aviation, International drew 86 exhibitors and about 1,400 people to this year's annual conference, held March 7-9 in Minneapolis. Exhibitor participation was up 60% over 1995, and the organization now has more than 1,000 members. WAI announced a partnership with Avemco to offer member discounts on aviation rental and owner insurance, and a new video on aviation careers is available. Northwest Airlines and the Minnesota DOT were conference sponsors.
Responding to a passenger hue-and-cry about exposed-ramp access to turboprops that have replaced jets on routes feeding into Dallas/Fort Worth, an American Eagle employee has come up with a solution for at least one aircraft type. Gordon Stewart, an Eagle ramp service clerk at Champaign, Ill., developed an "adapter" that enables passengers to enter and exit the carrier's ATR 42/72 aircraft directly from existing jetbridges with no exposure to the elements.
Northwest and Northwest Airlink will strengthen their Memphis operations by launching service to three new cities, increasing existing service and moving 150 flight attendants to the Tennessee city. By June, Northwest will have hired more than 900 flight attendants company-wide since January. As part of plans to make Memphis a major transportation center, Northwest will launch service to Colorado Springs and Columbus June 1 and Northwest Airlink will begin nonstops to Lexington May 15.
Mesa Air Group is asking stockholders to support the reincorporation of the company in Nevada, primarily because Nevada provides more favorable tax treatment for corporations than New Mexico and does not charge a corporate income tax. The reincorporation will not result in any material change in business, management or location of Mesa's principal facilities at Farmington, N.M. The company, at the urging of FAA to clarify lines of authority, also plans to transfer Mountain West, FloridaGulf and Liberty Express into a single subsidiary. Its annual meeting is April 8.
Travel agent sales totaled $4.826 billion last month, 2% more than in February 1995, according to the Airlines Reporting Corp. Data for 1996 do not include the 10% ticket tax or the $6 international departure tax, which expired Dec. 31. Domestic commissions for February were down 4% to $602 million while international commissions were up 9% to $354 million.
Atlas Air said it has entered a long-term contract with Swissair Cargo for use of a 747-200 freighter, to be delivered this month. It said the contract is the first of a series related to delivery of five 747-200s from FedEx this year.
Shareholders of Aerovias de Mexico (Aeromexico) voted down an option to take a further stake in Corporacion Mexicana de Aviacion. The move came at the carrier's recent annual general shareholders meeting. Aeromexico had written down its stake in Mexicana but had the option to purchase additional shares. Shareholders also approved a decrease in Aeromexico's paid-in capital by 1.089 billion pesos ($144.24 million) to 1.150 billion pesos ($199.31 million), to cover Aeromexico's 1995 losses.
Delta has named W.E. (Skip) Barnette the managing director of its planned low-fare, lower-wage short-haul initiative, contingent on a new pilot contract. If Delta's pilots, represented by the Air Line Pilots Association, vote in favor of the collective bargaining agreement, a new contract should be in effect by May 1. Robert Coggin, Delta's executive VP-marketing, said Delta is at a critical stage and must create an action plan, and nail down routes and other details.
Air France has purchased crew management equipment from SBS International. The carrier is acquiring PC-based pairing and line building modules that enable it to generate crew schedules faster and more accurately.
Crossair reported net income of 17.5 million Swiss francs - about U.S.$14.7 million - in 1995, an 8.7% increase from SF16.1 million in 1994. The Swiss regional's total revenue rose 18% to SF465 million from SF394 million and its gross profit before depreciation was SF59.6 million compared with SF54.9 million. The airline's board is recommending a dividend of 5% of profits in 1996.
Air Transport Association will hold its 1996 engineering, maintenance and materiel forum May 5-7 at the Aston Wailea Resort in Maui, Hawaii. This year's theme is "Pushing the Boundaries to Meet Aviation Challenges." To register contact Marqui Lyons at 202-626-4101 or fax 202-626-4081.
Moody's Investors Service endorsed a move by United parent UAL to redeem its 6 3/8% convertible subordinated debentures, and it predicted other U.S. airlines may follow suit with their debt. The action will eliminate $596 million in long-term United debt, reducing its interest expense by $38 million annually. Moody's noted that AMR and Delta are eligible for debt redemptions in 1996, and that additional conversions could be possible if common stock prices continue at current or higher levels.
The days when the independent regional airline can plan its own course as part of a separate and distinct industry are over, said Michael Boyd of Aviation Systems Research Corp., Golden, Colo., recalling a statement he made in a white paper 10 years ago. In a speech Thursday in McLean, Va., to a Commercial Aviation Report-sponsored seminar on the changing role of regional aviation, Boyd also recalled saying that once a code-sharing agreement was signed, the regional's main asset - its route system - was transferred to the major carrier.
AT&T will launch a new True Rewards loyalty program, its largest, on May 1 offering exclusive deals on entertainment, travel, food and merchandise. A True Rewards Vacation Hotline will give members toll-free access to "late- breaking" discounted travel packages from airlines, hotels and cruise lines. Travel partners are Alamo, Amtrak, Choice Hotels, Marriott Hotels, Marriott Vacation Clubs, United Airlines and Club Med.
London-based FlightLine, an affiliate of the U.K.'s Alpine Aviation, this month introduces BAe advanced turboprops on its services based at London Stansted Airport, leased by British Aerospace Asset Management unit JSX Capital. JSX said the two ATPs "will complement FlightLine's established jet [BAe 146] operations, operating from London Stansted to Zurich and Geneva on behalf of Swiss tour operator, Falcon Travel."
Cargolux Airlines International said it has added a stop in Prestwick, Scotland, to its Monday flight from Seattle to Luxembourg, "providing, for the first time, a direct air service from the U.S. Northwest To Scotland. It said the 747-400 freighter it uses is "ideally suited for outsize cargo," and forwarders and computer companies "expressed strong interest in a direct link from the Pacific Northwest to Scotland."
Clinton administration's proposed Airport Improvement Program funding level of $1.35 billion is inadequate and should be $1.6 billion for fiscal year 1997, airport and airline representatives said yesterday in a joint letter to House Transportation appropriations subcommittee Chairman Frank Wolf (DAILY, March 21).
