House yesterday passed 284 to 143 legislation (H.R.842) to take the four transportation trust funds, including aviation, out of the federal budget. Two amendments offered by supporters of the bill were approved by voice vote, but several others aimed at undercutting the bill were defeated or withdrawn.
Schedule convenience is the single most important factor influencing business travelers' choice of airlines, according to the fourth Business Travel Lifestyle Survey, commissioned by The Official Airline Guide. The next most important factors are ontime performance, a modern aircraft fleet and an efficient check-in process. The business traveler appears to give little weight to executive lounges or the quality of food and drink.
TWA is offering a "Hot Three Day Summer Fare Sale" to 22 cities in the U.S., Canada, Mexico and the Caribbean. Off-peak fares range from $178 to $338 roundtrip. Travel on Trans World Express routes are $20 more. The fares require a seven-day advance purchase and a Saturday night stay. Travel must be completed by Sept. 9, and can begin April 24, except at Toronto, Syracuse and Richmond, where start dates vary. Tickets must be purchased by tomorrow.
Customers who purchase a "golfer's companion kit" from Pivot Rules, a golf clothing line, will receive a free companion ticket on Virgin Atlantic good for a roundtrip flight to London. The $55 kit includes a shirt, hat, golf balls and golf ball dispenser. Virgin Atlantic Chairman Richard Branson said, "With this promotion, someone can purchase their golfing wardrobe and then head off with a golfing chum to Britain to visit some of the world's most famous links."
Hilton Hotels Inc. reported a net income of $36.6 million for the first quarter, a 14% increase from the $32 million in first quarter 1995. The company said its results were driven by a strong quarter in the hotel division and at the Flamingo Hilton-Las Vegas. Earnings were adversely affected by a "significantly lower-than-normal" baccarat win percentage at the Las Vegas Hilton that, had they been normal, would have increased quarterly earnings by almost 30% from last year. The hotel division experienced a 41% increase in operating income to $55.2 million.
America West mechanics voted 587 to 135, or 82%, in favor of representation by the Teamsters union. Ballots were counted yesterday by the National Mediation Board. The union declared a victory over a company which it said has "become a 'poster child' for corporate greed and arrogance." Teamsters General President Ron Carey said, "America West Airlines workers had the last word on an insensitive and greedy management that fired nearly 400 mechanics."
DOT has assessed civil penalties of $12,000 against Southwest for violating the department's regulations concerning full-fare advertising. In March 1995, the carrier introduced a "Home Gate" site on the Internet's World Wide Web, containing service information, including fares. "However, the fares listed did not include the applicable passenger facility charges of up to $3 per departure charged by certain airports served by Southwest," said DOT.
ValuJet said yesterday it closed a private placement to institutional investors of $150 million of 10 l/4% senior unsecured notes due 2001. Proceeds will be used for aircraft deposits, working capital and other corporate purposes.
Passport to New Zealand, a seminar conducted by New Zealand travel officials for U.S. travel agents and tour operators, is making the rounds in Chicago, Seattle, San Francisco and Los Angeles. For information on the seminar, contact the New Zealand Tourism Board at 310-395-7480.
Alaska Airlines has received an unusual plaque - one made by a customer to show his appreciation for years of good service on Alaska and sister carrier Horizon. The customer, who has racked up thousands of miles on the airlines for his West Coast company, says he will fly Alaska for all his vacations, reports Alaska's World.
Atlantic City is changing its image, with the result that visitors to the New Jersey shore destination are increasing in record numbers. The city, long considered good only for one-day jaunts to casinos, is expanding its airport facilities, remodeling the downtown area and boosting the number of hotel rooms with the aim of turning "America's favorite playground" into a vacation destination. City officials say the number of conventions booked is up significantly, and hotel rooms are expected to increase from 9,000 to 20,000 in the next several years.
Jet Express, public charters flown by tour operator World Technology Systems, is transporting more passengers to Myrtle Beach than any scheduled airline. In 1995, USAir captured 50% of the market share and Jet Express 24%, but Jet Express so far this year has 37% to USAir's 35%. It operates daily service to Newark, New York, Chicago, Boston, Cleveland, Detroit and Philadelphia.
Textron said yesterday its first quarter net income rose 15% to $125 million, while revenues increased 9% to $2.6 billion. Chairman James Hardymon said that "double-digit revenue and income growth in our aircraft and industrial segments were the drivers behind our strong first quarter results." The aircraft segment benefited from strong sales of helicopters and business jets both domestically and internationally, he said. Solid gains in this segment are expected to continue, Hardymon said.
Correction: FAA's International Icing Conference will be held May 6-8. Incorrect dates were published in the Regional Aviation pages (DAILY, April 12).
Precision Standard said yesterday it lost $3.8 million on sales of $154.7 million in 1995, compared with a profit of $11.2 million on sales of $148.5 million the preceding year. In the fourth quarter, the company lost $2.3 million on sales of $42.2 million, versus a profit of $9.8 million on sales of $40.8 million in the like 1994 period.
Federico Bloch, chairman of the TACA group, said he believes more liberal aviation agreements will develop in Latin America and could foster closer ties between Latin carriers and U.S. airlines. "This is a trend that is gaining steam," he told the International Aviation Club of Washington yesterday. "We'll start seeing a lot more liberal [aviation] agreements, not just within the region, but into the U.S.," he said.
Namibia entrepreneurs are seeking joint-ventures to establish tourism facilities in northern Namibia, which is suited for safaris and hunting expeditions. The locals want modest lodging and dining facilities. Parties interested in seeing a business plan for a guest lodge near Rundu, which includes a camp site, swimming pool and souvenir shop, should contact Mr. N.J. Nel, Mororani Guest Lodge&Tearoom, P.O. Box 372, Tsumeb, Namibia. Telephone 26-46-712-0087, fax 26-46-712-1105.
Talks are under way to co-produce the Collins traffic alert and collision avoidance system with China, a company official said yesterday. Clay Jones, VP and general manager of the air transport division, said, "We are talking on the when and how and where, and we think we could have a product in about two years." This would be Collins's first co-production program, Jones said. Collins has about 35% of the TCAS market, most of which is in the U.S., where TCAS is mandatory for air transport aircraft, and in Europe.
Air Cara`95bes Exploitation has asked DOT to renew its authority to conduct charter service between the French West Indies and the co-terminal points Puerto Rico and the U.S. Virgin Islands. The carrier has a fleet of small aircraft, including Dornier 228-201s, de Havilland Twin Otters and Cessna Citations. (Docket OST-96-1256)
Washington Chapter of the Travel&Tourism Research Council will hold a luncheon April 24 in Washington, D.C., to answer questions on how the new USA National Tourism Organization will operate. The scheduled speaker is the president of USA NTO, Edward Book. Lunch is from noon until 2 p.m. at Blackie's, 1217 22nd St. Cost is $25. For reservations, call John Packer at 703-506-4224.
Shipments of small, piston-powered aircraft are continuing to increase, climbing 10.1% in the first quarter to 122 units from 109 the same period last year. The General Aviation Manufacturers Association (GAMA) said that shipments were up overall for the quarter by 9.1% to 227 units, although billings showed a 5.3% decline. Turboprop shipments rose 15.4% for the quarter, but jet shipments fell by two to 45 from 47.
Budget Rent a Car has signed a licensee agreement to open four Budget locations in Malaysia with Kopesma Car Rental, and has concluded a joint- venture agreement with Worldclass Rent a Car Limited of Thailand. The agreement with Worldclass gives Budget its first location in Thailand.
U.S. business travelers spent an average $456 on a roundtrip domestic airline ticket in 1995 and $1,610 on an international ticket, which is similar to 1994 spending, according to Runzheimer International. In its yearend analysis of business travel, Runzheimer also found that the business traveler spent an average $96 a night on a hotel room and $38 a day to rent a car. The survey of travel managers found that 78% of air travel expenses incurred by their companies are for domestic flights and 22% for international trips.
CFM International said yesterday that the design work is nearly 70% complete on its new CFM56-9 (Lite) powerplant for the proposed new Asian 100-passenger aircraft. CFMI said it plans to certify the engine within three years of aircraft launch, a schedule matched to planned aircraft certification in 2001. The CFM56-9 will meet thrust requirements of 18,500 to 23,000 pounds. CFMI said it sees a potential market for 1,200 aircraft of this size over the next 20 years.
