TWA's creditors have accepted the struggling airline's proposed capital restructuring plan, all but guaranteeing its second Chapter 11 bankruptcy filing in less than three and a half years. TWA said yesterday that, subject to final tabulation, it received the votes needed from its creditors to implement its proposed restructuring through the filing of a prepackaged plan of reorganization.
After reviewing the Illinois Department of Transportation's (IDOT) roadway and airport access plan for the proposed Peotone Airport, the Air Transport Association has asked the state to answer a series of questions on the project, not all of them related to roadways and access. "How does the state plan to fund the proposed $1.9 million airport, in light of the position of 22 airlines that carry more than 95% of the nation's passengers and freight, that they do not intend to serve - or fund - the proposed Peotone Airport?" ATA asked.
DOT has tentatively approved the transfer of Evergreen International Airlines' U.S.-China all-cargo authority to Federal Express. Agreeing in February to acquire the authority, including scheduled service to Beijing, Shanghai and other points in China (DAILY, Feb. 27), FedEx plans service that maximizes all-cargo opportunities available under the U.S.-China aviation agreement, from small-package, door-to-door operations to general services for consolidated shipments using 747 freighter aircraft.
American yesterday offered - and other carriers were expected to follow its lead - to waive any reticketing service charge for passengers traveling to, from or within California who want to cancel or delay travel because of a threat attributed to the "Unabomber" targeting airlines flying from Los Angeles Airport. American said that because of security concerns, the waiver will be available to any passenger holding confirmed reservations until midnight July 7.
Korean Air Lines has asked DOT for authority to operate scheduled single- plane, one-stop service between Seoul and Washington Dulles Airport via New York. The application is submitted under DOT's "Cities Program" and is based on the principles of reciprocity and comity, said the carrier, adding that "no U.S. or foreign carrier provides single-plane service of any nature to Washington, D.C., from Seoul." If approved, KAL plans to operate twice-weekly service on the route as a continuation of two of its current New York flights, using a 747 aircraft. (Docket 50417)
Boeing 757 and 767 Systemwide Aircraft Utilization Per Day Fourth Quarter 1994 B757-200 America West American Continental Number of Aircraft Operated 12 81 8 Total Fleet Operations Departures 53 266 22 Block Hours 154 843 91
Vought Aircraft Co., Dallas, a subsidiary of Northrop Grumman, has begun testing a preliminary design for the next-generation engine nacelle fan cowl door. The testing is part of an effort to produce what Vought called an "affordable composite structure with increased strength and damage tolerance." The work is being performed under a $22 million contract from Pratt&Whitney.
House and Senate negotiators have agreed to a seven-year transportation budget of $244.8 billion in outlays from fiscal 1996 through fiscal 2002, a reduction of $34 billion from the outlays assumed by current law. Under the conference agreement on the budget resolution, transportation spending would drop from $38.9 billion in outlays for fiscal 1996 to $32 billion in fiscal 2002. The compromise level falls between the Senate proposal of $227.5 billion total transportation spending over the seven years and the House recommendation of $252.3 billion.
Harris Corp. said it is part of a consortium awarded a multi-million-dollar contract for the first two phases of a three-phase, eight-year program to develop and install a "total airport management system" for Kuala Lumpur Airport in Malaysia. Teamed with Harris are Malaysia-based Sapura, Holding Sdn Bhd and Tomen of Japan.
Teamsters General President Ron Carey has ordered a hearing into election results for 8,500 flight attendants at Northwest after a protest was filed by candidate Danny Campbell. The Nov. 18 election was won by Bruce Retrum, a union spokesman said yesterday. Carey said the hearing will review evidence filed by Campbell that observers were denied the right to observe the processing of ballots at the count, and to challenge mail-in ballots.
Reno Air has sold $4.8 million in newly issued common and preferred stock to accounts managed by Fidelity Management and Research and its affiliates. The airline also said it has hired Fieldstone Private Capital Group to raise additional capital to increase its liquidity further and position if for future development. The proceeds from the Fidelity private placement, which gives Fidelity a stake of less than 5% in Reno Air, have been added to the airline company's general working capital.
TWA has asked DOT for authority to operate scheduled combination service between St. Louis and Mexican points Cancun, Ixtapa/Zihuatanejo, Manzanillo and Puerto Vallarta, and Montego Bay, Jamaica. If approved, the carrier plans to offer four weekly frequencies to Cancun, two to Puerto Vallarta, one each to Zihuatanejo and Manzanillo and two to Montego Bay, beginning in December. The carrier plans to suspend during the off season - between May 11 and Dec. 14, 1996 - Zihuatanejo and Manzanillo service, while scaling back its other proposed services between July 11 and Dec.
Barbados-based Carib Express has signed an interline agreement with Air Martinique, bringing to six the number of pacts the startup airline has with regional and international carriers. The agreement enables each carrier to accept the tickets of the other on its services without endorsement. Other airlines that have signed interline deals with Carib Express are British Airways, which is a 20% owner of the new airline, BWIA International Airways, Air Canada, Air France and KLM.
Aerolineas Argentinas is modifying its logo and redesigning the exterior of its aircraft in an effort to produce a more modern, streamlined look, the carrier said. The new image, which retains the carrier's color scheme, is being implemented as part of the harmonization of the visual identity of all the airline members of the Iberia Group. Aerolineas Argentinas' flying condor, which has been its trademark insignia since 1950, will be displayed on the tail of the carrier's aircraft.
Northwest requested authority to operate scheduled combination service between the U.S. and Dhaka, Bangladesh, beginning Sept. 1. If approved, the service will be operated via Amsterdam under Northwest's code-sharing arrangement with KLM. (Docket 50421)
America West yesterday reduced its fares to Mazatlan, a port city in Western Mexico, on tickets purchased through June 30 for travel July 7 through Sept. 30. Fares range from $114 to $179 each way, based on a roundtrip purchase, with the lowest fares available for travel Monday through Thursday. The tickets are non-refundable and require a three-day minimum or 30-day maximum stay. Other restrictions may apply.
DOT Secretary Federico Pea, citing two incidents this week in which air turbulence caused passenger injuries, yesterday ordered FAA to determine whether seat belt rules need to be stronger.
DOT tentatively has selected United over American to provide scheduled combination service in the Los Angeles-Guadalajara market. United plans to operate three daily roundtrip flights with 737-300 aircraft on the route. American proposed the same level of service using MD-80 aircraft.
The chief executive officers of the 23 Air Transport Association member airlines yesterday told Los Angeles Mayor Richard Riordan in a letter that they oppose the city's attempts to channel revenue to non-airport projects and increase landing fees 32% (DAILY, June 23). "We are united as an industry in opposing city efforts to divert revenue off the airport and disappointed that an economic engine as important as LAX is languishing because of city policies and politics," ATA President Carol Hallett said.
Southwest will take another step toward the distribution system of the 21st century next month, when its skycaps begin testing hand-held, wireless personal computers in Houston, Dallas and Oakland. The units will enable the skycaps to verify that ticketless passengers are booked on a flight before accepting their bags at the curb. The testing begins July 15, and Southwest intends to expand use of the system gradually to its 13 busiest cities. The 39 units, made by Telxon, cost about $200,000.
SilkAir and Bouraq Airlines signed a joint services agreement recently and plan to launch nonstop service between Singapore and Ujung Pandang in Sulawesi, Indonesia, on Oct. 29. The joint service is in line with the memorandum of understanding on tourism cooperation signed recently by the governments of Singapore and Indonesia, SilkAir said. SilkAir and its parent company, Singapore Airlines, plan to promote the services extensively in the U.S., Europe, Japan and other North Asian countries.
United's Mileage Plus frequent flyer program won four 1995 Tempo Awards from the Chicago Association of Direct Marketing. One of the awards was given for a promotion in which a compact disk of United's theme song, "Rhapsody in Blue" by George Gershwin, was given to its 100,000 frequent flyers.
A USAir employee stock ownership plan likely will be announced by the end of July, according to Gruntal&Co. analyst Steve Lewins, who said the ESOP will win the necessary and numerous approvals by yearend and take effect in January.Lewins also expects Continental to announce its recapitalization plan within two weeks.
