Rep. Barbara Kennelly (D-Conn.), a member of the Ways and Means Committee, introduced legislation (H.R.3111) to clarify that frequent flyer mileage is not taxable.
Olympic Airways reported a 1995 net profit of 6.5 billion drachmas ($26.97 million at the current exchange rate of 241 drachmas per dollar), a result the company called "highly satisfactory" and its "first real profit" since 1977. The amount compares with a 73.69 billion drachma loss ($305.77 million) last year before a capital injection of 444 billion drachmas ($1.84 billion). Operating profit increased to 17.4 billion drachmas ($72.2 million) from 5 billion drachmas ($20.75 million) in 1994.
The realistic capital development needs of U.S. airports are far less than the airport community's estimate, the Air Transport Association said yesterday. Last week, the Airports Council International-North America and the American Association of Airport Executives told the House Transportation aviation subcommittee that an ongoing member survey shows at least $60 billion in "necessary and essential" projects at airports of all sizes between 1997 and 2002.
World applied for renewal of its authority to operate scheduled all-cargo service between Los Angeles and Bogota, Colombia. The carrier will serve the route with DC-10-30 and MD-11 aircraft configured for payload capacities of 141,000 and 180,000 pounds, respectively. "Due to the commitment of its freighter aircraft to other services for the months of January through June 1996," World said it is not currently conducting scheduled all-cargo operations on the route, but it added that it is marketing the service "aggressively." (Docket OST-96-1159)
Congressional and industry pressure is building for a breakthrough in U.S.- Japan aviation relations in advance of President Clinton's April 17 visit to Japan and next week's round of all-cargo talks. "We believe it is important to liberalize our airline passenger services agreement with Japan, and we urge you to put this critical item on your agenda," House leaders Newt Gingrich (R-Ga.), Dick Armey (R.-Tex.) and Richard Gephardt (D.-Mo.) wrote President Clinton Tuesday.
United parent UAL Corp. will issue a redemption notice for its 6 3/8% convertible subordinated debentures with a redemption date of May 1. Debenture holders will receive $1,043.75 plus accrued interest of $15.9375 in cash for every $1,000 investment. Before April 30, holders may convert their debentures for $541.90 in cash and about 3.192 shares of UAL common stock per $1,000.
American Society of Travel Agents said 53% of agents responding to an automation survey conducted last summer said they are booking ticketless travel, and 21% use the Internet. The average cost to generate a domestic ticket is $22.70, ASTA said, and $26.10 for an inter-national ticket. Of the 1,250 agencies surveyed, 83% said they have productivity pricing agreements with computer reservations systems, and 47% said they receive a discount for exceeding the required monthly booking level per terminal.
Tarom petitioned DOT to extend its authority to operate three Bucharest- Chicago roundtrip flights per week, and to add New York as a co-terminal point, for the periods April 1-May 15 and Sept. 15, 1996-March 31, 1997. The carrier would have no local traffic rights between New York and Chicago. It intends to use 209-seat A310-300 aircraft for the service. (Docket OST-95-550)
Delta has reduced spring fares in more than 16,000 markets in the U.S., Canada, Bermuda, Europe, India and Russia. Tickets must be purchased by April 1. The fares are available in more than 11,000 markets in the U.S., including Alaska, Hawaii, Puerto Rico and the Virgin Islands, and in Bermuda and Canada. They are not available on Delta Shuttle flights, in markets operated solely by Delta Connection carriers and in some domestic markets. Fares are good for travel beginning April 7 through May 31 and completed by June 5.
American Airlines and ServiceMaster launched the AAdvantage Home Program, giving members one frequent flyer mile for every dollar spent on home maintenance, repair, security and other services. For an annual membership fee of $79, the AAdvantage Home staff helps select and pre-screen service providers and guarantees the service. Participating home service companies include TruGreen-Chemlawn, Terminix, Merry Maids, Brinks Home Security, ServiceMaster Residential Services and American Home Shield.
American Society of Travel Agents' board of directors has endorsed a new alliance with the CNN Airport Network as part of a major consumer awareness campaign. The travel industry is in competition with every major manufacturer for consumer dollars, said Dick Knodt, executive VP and chief operating officer of ASTA, and the association must find ways to make travel appealing. The campaign will attempt to get across the idea that consumers benefit from and should rely on the professionalism of ASTA agents.
Carnival Air Lines intends to operate four weekly flights to San Juan from New York Kennedy between June 28 and Sept. 2. Fares begin at $139 each way and do not require an advance purchase or a Saturday night stay. Carnival will serve the route with A300 aircraft configured for 254 seats.
A new CompuServe online service, WOW!, will offer the interactive travel service - Travelocity Highlights! - developed by Sabre and Worldview Systems as its exclusive reservations system. No surcharges will apply to users. WOW! will debut March 25 and add a database containing destination information in the near future. The online service, designed specifically for home use, offers access to destination information, entertainment and communication, including the Internet, combined with the ability to customize the online experience.
Frontier Airlines intends to begin service between Denver and Seattle May 1, operating one daily nonstop with 136-seat 737-300s. It will offer fares as low as $89 each way for travel through May 21, and the $89 fare will be available after that date with a 21-day advance purchase. Frontier will add a second daily flight in the market and announce new destinations later this year, after it takes delivery of more aircraft.
American and Canadian Airlines International and their regional affiliates are seeking renewal of their authority to offer code-share services, with an amendment to make it explicit that the American designator may be displayed on all transborder flights operated by Canadian and its affiliates, and that the Canadian code may be displayed on services provided by American and its affiliates.
Travel Groups To Unveil Blueprint For U.S. Tourism Efforts U.S. Travel and Tourism Administration, the Travel Industry Association (TIA) and the White House Conference on Travel and Tourism implementation team will issue a 44-point plan March 27 to boost public/private sector tourism efforts. The implementation team, formed to address all 44 recommendations made by the White House conference in October, will reveal models to be used to generate tourism jobs, accelerate international travel into the U.S. and create a new national tourism organization.
New Jersey Gov. Christine Todd Whitman will address the 1996 Governor's Conference on Tourism March 25. The conference will be held March 24-26 at the Seasons Resort at Great Gorge, McAffee, N.J. Topics to be covered include the state's marketing strategy and 1995 tourism research. For information, call the New Jersey Division of Travel and Tourism at 609-633- 7287.
Reno Air asked DOT for authority to operate scheduled combination service between San Jose, Calif., on the one hand, and Puerto Vallarta and Cabo San Lucas (Los Cabos), Mexico, on the other. Reno plans to operate two roundtrips a week to each destination initially, increasing service later in response to market demand, using MD-82, -83, -87 or -90 series aircraft. The carrier asked DOT to expedite treatment of its application, saying it has "firm plans" to begin operations to Puerto Vallarta June 19 and Cabo San Lucas the next day. (Docket OST-96-1163)
Air Transport Association asked DOT to allow airlines using electronic ticketing to decide when, where and how to provide customers with required consumer notices. As electronic ticketing develops rapidly, DOT is considering whether it should propose regulations governing disclosures on its use, and AIA made its bid for flexibility in comments filed with the department. Requiring carriers to mail consumer notices to passengers would defeat the efficiencies inherent in electronic ticketing, the association said.
USAir, having rebutted objections to its tentative award of new Italy service, is now responding to complaints from competing carriers - Continental, Midway and Northwest - about the recent show cause order giving it and TWA new Toronto service in the second year of the U.S.-Canada bilateral (DAILY, March 14). "In its show cause order, the department decided that the most important policy factor in this proceeding is achieving the strongest response to new Canadian carrier competition in key U.S.-Toronto markets," said USAir.
Approval of the tentative contract agreement reached by United and its Association of Flight Attendants in February, one month before the amendable date, now appears questionable.Sources say some members still are not satisfied that the foreign domiciles issue has been resolved, and distrust of management has been apparent at road shows. An AFA member said ratification is "too close to call" at this point. About one-third of the 18,000 eligible voters have returned ballots, which must be postmarked by March 30. The votes will be counted April 9.
American Automobile Association (AAA) is creating a home page for its members on America Online that will have reservations capabilities at the outset. The site will offer travel information and provide insurance and financial services. It will be tested in four states for three to four months and will be rolled out nationwide by the end of the year, said AAA President Robert Darbelnet. In a roundtable discussion with the travel media, Darbelnet said the association found America Online has a greater growth potential than Prodigy or CompuServe.
British Airways Chairman Colin Marshall said the U.S. and the U.K. should work together in a spirit of cooperation, not confrontation, to reach a bilateral agreement that allows for open skies. "I remain convinced that, one day, the USA and Britain will have a truly open aviation market," he told the International Aviation Club of Washington Tuesday in a luncheon speech. In order for this to happen, however, Marshall said myths regarding the aviation relationship between the two countries must be put aside. Marshall said that contrary to conventional wisdom, U.S.
DOT issued last night an order disapproving French requests for more flights this summer between Paris and Houston, Los Angeles, New York and Washington following unsuccessful talks with France to obtain additional U.S.-France service in return. France requested an additional 500 flights to the U.S., a senior U.S. official told The DAILY (DAILY, March 13).
Vacation Break U.S.A. Inc. reported vacation ownership interest (VOI) sales at premier resort properties rose to $11.5 million in the fourth quarter ended Dec. 31, compared with $7.7 million in the fourth quarter of 1994. Vacation Break markets, operates, develops and finances VOIs at resorts. Its fourth quarter results show a net loss of $972,000, which includes a one-time, non-recurring charge of $3.1 million in tax conversion charges to a C corporation status.
