The U.S. and Germany said yesterday they have reached a framework for an open skies aviation agreement. DOT Secretary Federico Pena, terming Germany "a critically important aviation partner, the second largest market in Europe for U.S. carriers," said the framework "can lead to an agreement that will represent a major step forward and dramatically expand service for consumers in both nations." The two countries are scheduled to begin formal negotiations Feb. 22 in Washington to work out the specifics on the agreement, said a U.S. official.
FAA has granted full certification to Saab's 340BPlus extended wing tip program, the Swedish manufacturer reported. Transport Canada certified the extended wings late last year and they were installed on two 340BPlusses operated by Canadian Regional affiliate Calm Air (DAILY, Dec. 15).
KLM and partner Northwest will add frequencies this summer between Amsterdam and three U.S. destinations - Minneapolis/St. Paul, San Francisco and Memphis. San Francisco will receive daily service, up from three flights per week, operated by KLM. The carrier will offer two flights per day from Minneapolis, up from eight per week, and it will increase service to Memphis in June from four times a week to daily. Northwest will use one of its aircraft to operate New York flights this summer, replacing a KLM jet.
Airborne Freight Corp., operating as Airborne Express, said fourth quarter revenues increased 13.8% to $602.9 million from $529.9 million during the 1994 quarter, while net earnings rose to $12 million from $10.6 million. For the year, revenues increased to $2.2 billion from $2 billion but net earnings fell to $23.8 million from $38.8 million. Roy Liljebeck, chief financial officer, said the company is looking for better results this year, but first quarter performance will be hurt by severe weather in the northeast and central U.S. in mid-January.
Southwest is reducing fares from Salt Lake City to 12 western destinations, starting at $19 one way to Reno/Tahoe, Las Vegas and Boise. Fares from $29 to $49 apply to flights to Phoenix, Sacramento, Spokane, Oakland, Los Angeles, San Diego, Seattle, Portland and Albuquerque. Tickets must be purchased by Feb. 8 for travel through Feb. 29.
Embraer will make a "big push" for its EMB-145 regional jet transport at the Singapore Air Show, company president Sam Hill said yesterday. "Five Australian carriers hold about 12 options on the 145-seat jet, and Embraer is "working diligently on U.S. customers," Hill told The DAILY. "We are talking to five really good names in the States right now," he said. Certification is on schedule for October. Hill said "there is a market" for the EMB-145 in Asia.
Daewoo Heavy Industries of South Korea is considered a prime candidate to acquire a majority stake in Daimler-Benz Aerospace's (DASA) Dornier unit. DASA Chairman Manfred Bischoff reconfirmed this week that a controlling interest in Dornier is for sale and that DASA wants to move with the same intensity applied to Fokker, which has drawn interest from South Korea's Samsung Group (DAILY, Jan. 30). Daewoo is a natural because it is a risk-sharing partner in the Dornier 328, building fuselage panels for subassembly in Italy and final assembly in Germany.
DHL Worldwide Express said it has begun a $2 million expansion of its operations in Hong Kong in response to growing air express demand in the region. The expansion, including a new 25,000-square-foot site adjacent to its operations center in Tokwawan, was spurred by 1995 growth "in the face of Hong Kong's overall economic downturn," the company said.
The new six-gate passenger terminal at Kaohsiung's Hsiaokang Airport is 81% complete, will be ready for use in June, and will be inaugurated in July, according to Taiwan's Civil Aviation Administration. This is six months late - completion was scheduled originally by the end of 1995 - and the facility's capacity of 6.4 million passengers per year will not meet market needs as long as had been believed. When work began in 1987, designers said the terminal would accommodate projected passenger volume at least until 2010.
Successful implementation of a deal with BAA USA to privatize the management and operation of Indian-apolis Airport could result in the upgrade of the airport authority's 'A' special revenue bond rating, Standard&Poor's said. "If the airport authority meets the proposed goals to reduce costs, increase non-airline revenues and achieve a higher degree of customer satisfaction, an upgrade would be possible," analyst Emete Hassan said.
While some airlines have banned smoking on all their flights, British Airways has opted for the middle ground. The carrier said yesterday it will prohibit smoking on at least one flight per day from Europe to 21 U.S. destinations and 12 points in the Caribbean, beginning May 1. The ban covers more than 60 flights but does not apply to Concorde service or London-Barbados flights. The carrier still will offer smoking service in 20 of the 21 U.S. markets.
Matsushita Avionics Corp. has designed an interactive in-flight entertainment system, the 2777E, for the Boeing 777, the company said. The system has been installed on a Cathay Pacific 777 in preparation for certification testing, scheduled to begin in February.
Onur Air, Istanbul-based charter carrier, has ordered an Airbus A321 for delivery at midyear. The IAE-powered aircraft will be configured to seat 220 passengers. Airbus said Onur Air plans to lease two more A321s this year. It now operates five leased A320s.
KLM will increase its flight attendant staff by 2,500, nearly 42%, during the next three years as it expands in Europe and abroad. The carrier said it intends to hire 1,000 of the 2,500 this month. To lure candidates, KLM will relax recruiting standards - including an increase in the maximum hiring age to 34 years from the current 28 - and launch a recruiting campaign across The Netherlands this month. KLM currently employs 6,000 flight attendants, its largest worker group.
Air traffic control delays for flights departing the U.K. have decreased from an average of 14 minutes in 1992 to four minutes currently, the Department of Transport says. The reduction, achieved despite a 5% annual increase in traffic, is attributed to airspace capacity efforts by the U.K.'s National Air Traffic Services and European initiatives, particularly the European Air Traffic Control Harmonization and Integration Program.
Interactive Entertainment Limited will roll out new software for use with in-flight entertainment systems in June, the company announced. IEL, a joint venture between Harrah's and Sky Games International, has a contract to provide gambling software to a major international carrier, believed to be Singapore Airlines.
British Aerospace is bringing together its Asset Management Organization (AMO, BAe 146 sales and leasing) and JSX Capital (pre-owned turboprop sales and leasing) businesses together under a newly formed umbrella unit, BAe Asset Management (BAe AM) division.
Air Canada is expected to narrow its net loss for 1995 compared with 1994 before one-time gains, Chief Executive Hollis Harris said recently. In 1994 the carrier reported a $129 million net profit, including one-time gains from the sale of assets. This year, the company will realize one- time gains from selling shares of Continental stock. Announcement of the results is expected this month.
American Airlines Magazine Publications and Orbis Broadcast Group, a television broadcast and media company, will join forces to produce integrated, multi-media inflight packages. Print and video advertising "will be marketed under a common brand and sold through a common sales force, which will allow sponsors and advertisers to create synergy and added value from both video and print advertising," said Henry Joyner, VP- marketing planning for American. Orbis Broadcast Group of Chicago will produce inflight video entertainment for American, effective May 1.
DOT has approved World Airways' bid to operate scheduled combination service between points in the U.S. and Belfast, Glasgow and Manchester, U.K. The carrier plans to operate beginning May 15, 1996, six flights a week - New York Kennedy-Belfast; Philadelphia- and Newark-Belfast; Los Angeles-Belfast with beyond service to Shannon; Los Angeles-Glasgow, and San Juan, P.R.-Manchester (DAILY, Dec. 12, 1995). World plans to operate 347-seat DC-10-30 aircraft from New York, Philadelphia and San Juan and 409-seat MD-11s from Los Angeles. (Docket OST-95-915)
KLM has placed a $300 million order for two Boeing 747-400 Combi aircraft powered by General Electric engines, the carrier said yesterday. Deliveries are slated for May 1997 and January 1998. The carrier also said it plans to convert two 747-300s Combis to a full freighter configuration.
Boeing said yesterday its objections to burdening the U.S. taxpayer with financing improvements of the Russian fleet have been satisfied by the Clinton administration, but the Air Transport Association protested the approval of a $1 billion loan to Russia, announced Tuesday by the Export- Import Bank. The loan will be used to buy engines from Pratt&Whitney, as well as equipment for 20 Ilyushin 96M/T aircraft Aeroflot plans to lease. Boeing last year objected to such a deal on grounds that the Russian market is closed to U.S. airframers.
Hotel Roundup: Best Western International now has facilities in 63 countries, the most recent being the Best Western Castle Hrankov in Sofia, Bulgaria. The hotel, located at the foot of Vitosha Mountain, boasts handmade oak furniture in every room, squash courts, tennis courts, an indoor pool, Viennese cafe and a business and conference center...Radisson Hotels Worldwide is expanding its Business Class program today to include seven Radisson Edwardian Hotels in London.
U.S. Major Carriers Operating and Net Profit 9 Months 1995 Operating Net Profit/Loss Profit/Loss (000) (000) 9 Months 1995 America West $ 132,012 $ 47,798 American 1,185,909 459,922 Continental 163,604 182,517 Delta 869,839 440,073
