Summary of U.S. Major Carriers International Traffic July 1995 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) American 1,470 11.31 2,188 3,215,939 Atlantic 389 7.39 4,079 1,588,329
Recent successes by USAir in gaining new international access have caused considerable discontent in the industry. In its effort to spur competition, DOT seems to want not only to boost new entry but also to bolster struggling carriers, such as USAir. In selecting USAir for new Rome service, DOT cited competition as a key criterion. USAir also recently received at least tentative clearance for new service to Munich, Madrid and Toronto. Selection of USAir for Rome and Toronto sparked sharp criticism from competing carriers.
Internet has a new World Wide Web site, Jets on the Web, that lists turbine-powered business aircraft by make and model. A buyer locating an aircraft of interest immediately can receive detailed specifications, photographs and contract information. The Web page includes JetBoard - an interactive conference feature. Aircraft will be listed free of charge for a limited time. The address is http://www.jetweb.com.
Summary of U.S. Major Carriers International Traffic July 1995 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) Alaska 1,014 11.24 869 881,309 Aloha 498 12.31 136 67,642
Cancun, Mexico, was the most frequently booked destination during the past few months when the U.S. was in the throes of winter weather, according to the American Society of Travel Agents. A new ASTA Hot Spots Survey found bookings to warm getaway destinations increased significantly during the winter months. Cancun also was the most popular with value-conscious travelers. The survey found that 75.2% of agents said bookings were up this winter and 22% said they were even.
Northwest will offer a series of 20 video presentations of golf tips by PGA Tour pro Tom Lehman on the carriers's international flights. Passengers in First and World Business classes will be able to access the features on personal video systems, and passengers in the main cabin will be able to view the videos through the WorldUpdate program.
European transport ministers sparred once again over the question of European Union-U.S. aviation talks at their meeting in Brussels this week. France and the U.K. maintained steadfast opposition to air traffic negotiations with the U.S. "We rule out the possibility of discussing traffic rights in a community framework," said French State Secretary for Transport Anne-Marie Idrac, adding, "France does not have an air agreement with the United States and is not any worse off for it." France renounced its bilateral with the U.S. in 1992. The U.K.
Cathay Pacific made a net profit of US$385 million in 1995, a 24.7% increase over 1994 levels. The profit came on revenues of US$3.94 billion, which was 11.9% higher than in 1994. The company estimated its profit margin at 9.8%, up from 8.8% in the previous year. Cathay Chairman Peter Sutch attributed the improved performance to higher revenues and better cost control but acknowledged that 5% of the profit resulted from an accounting change at the beginning of the year, which brought aircraft depreciation in line with the rest of the industry.
Lanyon and Worldspan have signed a multi-year contract to make Marketing Information Data Tapes available on a selected basis to airlines, under the carriers' agreement with Worldspan, subject to government regulations. The data will come from bookings made since January 1994.
ValuJet will begin its previously announced service from Atlanta to Mobile, Ala., and Fort Walton Beach, Fla., on May 1. It will operate three daily nonstop flights to Mobile and two to Fort Walton Beach, offering fares that start at $39 one way. For travel completed by May 22, the 21-day advance purchase requirement will be waived, and every seat will be sold for $39. After May 22, prices will range up to $89.
Midwest Express Airlines' February traffic rose 5.6% to 95.9 million revenue passenger miles from 90.8 million in February 1995. Available seat miles were up slightly to 150.3 million from 149.7 million, and the load factor improved to 63.8% from 60.7%. The carrier boarded 112,633 passengers during the month, up 3.4% from the comparable period last year.
ValuJet is likely to reveal March 19 the last new city in its summer schedule, followed March 21 by beefed-up Olympic schedules. Although some of its newly started services will be adjusted or terminated in the fall, the carrier is beginning to play "connect the dots" with its markets - linking points like Philadelphia and Tampa without going through a focus city, such as Atlanta.
Eastwind Airlines will inaugurate service between Richmond, Va., and Providence, R.I., April 16. The carrier currently operates from its Trenton, N.J., base to six destinations. Its service to West Palm Beach and Jacksonville, Fla., will be temporarily suspended on April 16, however. A spokeswoman said those flights are seasonal and will resume in the fall. Eastwind operates 737-200s.
United is proposing to set aside 1.1 million shares of additional common stock as part of a program it claims will create more incentives for top officers to boost the value of the company's stock. The set-aside is part of a new compensation policy under which the carrier's top two officers, Chairman Gerald Greenwald and President John Edwardson, each will be required to hold stock worth five times their annual salaries, a United spokesman said.
Carnival Air Lines plans to launch daily nonstop scheduled service between San Juan and Orlando June 28, offering $119 one-way fares. It will not require advance purchase, a Saturday night stay or a roundtrip purchase. Carnival will operate 173-seat 727s in the market.
European Union transport ministers, reacting to the death of German tourists last month in the crash of a chartered 757 off the coast of the Dominican Republic, are considering barring some foreign aircraft from their airspace much as FAA does now in the U.S. Matthias Wissmann, German transport minister, said after a ministers' meeting in Brussels that his plan for a "black list" of countries and a European safety certificate for airlines was met with support.
France, which renounced its aviation agreement with the U.S. in 1992 and has said as recently as this week that it is none the worse off for it, is asking for an additional 500 flights to the U.S. this summer and expressing interest in opening up talks about the U.S.-French aviation relationship, according to a senior U.S. official.The U.S. has signaled France that it will not approve the 500 flights.
Latin American airline officials struggled this week with a response to American's efforts to partner with carriers in the region. Some Latin American chief executives attending the 4th Annual International Airline CEO Conference in Chile on Monday indicated they are open to possible partnerships with U.S. megacarriers, mainly because the region's airlines cannot reach alliances among themselves. However, Ernesto Rocha, the head of the region's airline association, AITAL, said efforts by American are potentially devastating to Latin carriers.
Despite renewed objections from DOT, the House passed by voice vote yesterday a bill (H.R.2276) that would make FAA an independent entity and establish a board to oversee it. The bill also would require FAA to implement new personnel and procurement management systems, but the agency already is developing those systems as required by the fiscal 1996 DOT appropriations act. H.R.2276 would restore the guarantee of FAA employees' collective bargaining rights, as does the latest fiscal 1996 continuing resolution (DAILY, March 7).
Master Executive Council of Delta's Air Line Pilots Association has been studying the tentative contract reached with Delta for a full seven days today, which is required before a vote, and will meet with negotiators to clear up questions. An MEC vote is likely to take place Friday, an ALPA spokeswoman said, which would be followed by road shows for a couple of weeks before the pilots vote on the contract.
World Airways flew 3,193 block hours last month, a 40% increase from the 2,275 block hours flown in February 1995. This year's statistics are slightly higher because of the extra leap-year day in February. The carrier used its aircraft an average 9.8 hours per day, down from 10.1 hours per day in February 1995.
DOT has issued a consent order assessing Western Pacific Airlines compromise civil penalties of $25,000 for several violations of accounting and reporting rules. The department said that despite advance notice, the carrier was delinquent in filing third quarter 1995 Origin and Destination Survey and was tardy last year with Form 251 reports on denied boarding data.
First it was United's 777 growing pains (DAILY, March 8), now this. A 777 showed up a day late for demonstration flights at the FIDAE Air Show in Chile because a loading bridge operator tore a passenger door off its hinges when Boeing stopped in Bogota, Columbia, to show off the aircraft. When it arrived late in Chile with a borrowed, mismatched door, Boeing explained that the 777 door is designed to break away, to prevent damage to the fuselage.
Sen. John McCain (R-Ariz.), chairman of the Commerce Committee aviation subcommittee, will hold a hearing on U.S. aviation relations with the U.K., Germany and Japan at 10 a.m. tomorrow in Room 253, Russell Building.
