DOT's proposal to reduce the confidentiality period to six months, from the current three years, for all airlines' international nonstop segment and on-flight market, or T-100, data and collect capacity data from foreign airlines has received generally favorable reviews. American, TWA, USAir, the Air Line Pilots Association and Airports Council International-North America (ACI-NA) voiced support for the changes. American said it believes "prompt discosure of T-100 data will be procompetitive and in the public interest.
Twenty-three members of the United States Airports for Better International Air Service (USA-BIAS) are urging the Clinton administration to open passenger talks with Japan as soon as possible with the strategic goal of creating a true "open skies" air service agreement between the two nations.
The U.S. airline industry will fragment in the next few years, shrinking to four major network carriers plus Southwest and a few niche carriers, predicts Ray Neidl, VP of Furman, Selz. Speaking at the fifth annual Phoenix International Aviation Symposium last week in Phoenix, Neidl predicted a 90% failure rate for startup carriers. The industry will shake out to American, United, Delta, "maybe Northwest" and Southwest, he said. At USAir, Chairman Stephen Wolf will "turn that carrier around" and probably sell it to another airline, mostly likely United.
TWA, Delta, United and Continental are urging DOT to reject Air Liberte's bid to operate combination service between Bordeaux, France, and Newark. "In view of the current state of aviation relations between the U.S. and France, the new application can only be called astounding," said TWA. "There is no indication that reciprocity exists for the grant of new access to the U.S. by the applicant," Delta said, noting that U.S.-France relations are governed by principles of reciprocity and comity. "The U.S.
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American's latest offer to its pilots, made last week, is a 2% pay cut for all members and a 30% cut for up to 20% of the work force, according to the Allied Pilots Association, the carrier's pilots union.James Sovich, APA president, called the offer a blend of the worst concessions Delta's pilots made plus the best productivity increases APA offered, all for the recall of pilots American needs anyway.
With U.S. airline consolidation on hold for the time being, Continental's pilots union has cooled to the idea of rushing to join ALPA. Randolph Babbitt, president of the union, says the process has slowed considerably and "is on a very back burner."
Airmax said it will offer May 1 an immediate response - within one hour - to all requests for shipment tracking, rate quotes and other information or donate $100 to a customer's favorite charity. The "One-Hour Customer Power" program is an "unprecedented guarantee in the air cargo industry," said Airmax President Kenneth Ryan. He said the program will ensure that Airmax's international airline and other shipping customers receive the most responsive service available.
German carrier Eurowings has ordered three A319s and taken options on another three. The first aircraft will be delivered in January and February. Airbus said Eurowings is a new customer.
AMR Corp.'s decision to separate Sabre from American will enable the computer reservations system to change its compensation structure internally and grow abroad without answering to managers and labor groups on where it is spending money, says Jeffrey Katz, president of Sabre Travel Information Network. AMR Chairman Robert Crandall will remain in control, but if two sets of shareholders emerge with their own agendas, the management hierarchy could change. "But quite honestly, I don't see that changing in the near future," he said.
Senate Budget and Appropriation committee leaders are wasting no time in fighting the House-passed bill (H.R.842) to take the transportation trust funds off budget. In an April 18 letter to Senate colleagues, Budget Chairman Pete Domenici (R-N.M.), Appropriations Chairman Mark Hatfield (R- Ore.) and Sens.
India's Civil Aviation Ministry has rejected a request from its Malaysian counterpart for expanding passenger capacity between the two countries, ministry officials said last week. Instead, India said national carrier Malaysian Airlines could enter into a commercial agreement with Indian carriers - Air-India and Indian Airlines - to exploit unused capacity of about 440 seats in the India-Malaysia sector. The decision was conveyed by India's Civil Aviation Minister Ghulam Nabi Azad to Malaysian Transport Minister Ling Liong Sik at a meeting this month in New Delhi.
TWA named Jody Ruth VP and corporate comptroller. Ruth succeeds Dan Holmes, who has been with the carrier 26 years and will retire later this month. Ruth comes to TWA from KPMG Peat Marwick LLP, where she oversaw services for America West, USAir and Piedmont, Pacific Southwest Airlines and World Airways.
The U.S. government must proceed with a strategic and pragmatic approach to opening the U.S.-Asia market, and progress is being made, says Mark Gerchick, DOT deputy assistant secretary for aviation and International affairs. Speaking at the 5th Annual Phoenix International Aviation Symposium last week, Gerchick said five or six Asian nations, such as Malaysia and Korea, are moving toward opening their markets. It will not come close to open skies, but is a move in the right direction, he said. Gerchick was not keen on the idea of moving toward a multilateral system.
Midwest Express Holdings Inc. reported strong first quarter earnings, while its former parent, Kimberly-Clark Corp., said it will divest itself of its 20% stake in the carrier. Kimberly-Clark's remaining 1.29 million shares will be offered through a public offering that will be completed in the second quarter of this year. Kimberly-Clark took its airline subsidiary public in an initial offering in September. At the time, the company said it was shedding some operations to focus on its core business.
El Al reported a net profit of $15 million for fiscal 1995, the carrier's 10th consecutive year of profitability. Revenue grew 17.5% to $1.22 billion from 1994 levels. The number of passengers carried rose 18% to 2.93 million, while cargo went up 6%, or 210,000 tons. Aircraft utilization increased 2% for the year and employee productivity 14%. The overall load factor was 73.8%. During the year, the carrier launched service from Tel Aviv to Milan, Newark and Los Angeles. It also linked its Carmel computer reservations system with American's Sabre CRS.
Air Line Pilots Association is holding talks with representatives of Canadian pilot groups about a merger, ALPA President Randolph Babbitt said. Such a move, although difficult because of labor laws and a number of other practical issues, would enable ALPA to widen its representation net while giving Canadian pilots greater resources in dealings with their airlines.
El Al appointed Michael Gat general manager-North and Central America. American International Freight named Debra Yates regional marketing director-central region.
U.S. will hold talks in Washington with Singapore and Colombia this week. Negotiations with the former are expected to be positive, addressing the possibility for open skies, while the latter talks may be more difficult, said a U.S. official, pointing out that Colombia's aviation system has been rated Category 2 by FAA and U.S. carriers are doing well in the market.
Granted orally to American, Executive, Flagship, Simmons, Wings West, Canadian Airlines International, Ontario Express, Time Air and Inter Canadien renewal of the joint applicants' authority to operate code-share services in various transborder markets, as well as behind U.S. gateways to interior U.S.
New equipment, including a power conditioning unit and a standby engine generator, will be installed by May 15 at St. Louis Lambert Field to eliminate recent equipment outages, FAA said last week following a meeting of FAA Administrator David Hinson, DOT Secretary Federico Pena and House Democratic Leader Richard Gephardt of Missouri. The power conditioning unit will "condition" raw commercial power, removing the fluctuations that can cause air traffic control systems to experience problems, and the generator will provide an added measure of safety, FAA said.
AMR Corp. said it will redeem all outstanding 6 1/8% Subordinated Quarterly Income Capital Securities due 2024. The carrier set the call for redemption for May 20. The company, which has $1.02 billion in debentures outstanding, will pay $1,045.23 for each $1,000 in principal. Holders of the debentures have the option before May 17 to convert their holdings into AMR Common Stock at a price of $79 or 12.658 common shares. AMR also announced the call for redemption May 20 of all outstanding $500 Series A Cumulative Convertible Preferred Stock.
One problem with the failure of United's interactive entertainment systems installed on its 777s is that it also leaves the in-seat telephone system inoperable, says Gordon McKinzie, project manager for the 777.As a result, United has had to mount phones on the bulkheads of its jets, which makes the service a lot less convenient.
The Taipei Tax Bureau has demanded that air express companies serving Taiwan pay millions of dollars in value-added import taxes that, bureau officials say, have remained unpaid since Taiwan's value-added tax went into effect seven years ago. A bureau official said taxes owed by DHL, Federal Express, United Parcel Service and Airborne Express total more than NT$1.6 billion, or US$59 million. Express companies have argued that as they only assist in bringing goods into Taiwan and do not sell the imports, they should not be required to pay the value-added tax.
Earnings rose 11% to $1.5 billion on 13% stronger sales of $17 billion at General Electric, the company reported yesterday, propelled by acquisitions and "the growth of after-sale services." Revenues rose at 10 out of 12 GE businesses, and profits rose at seven. Together, GE's operating units generated $1.2 billion in free cash flow during the quarter, more than double the year-ago performance. Overall operating margins now approach 14%.
