Azerbaijan Airlines Company, which is responsible for the country's air traffic control system as well as its air service, may receive support from the European Bank for Reconstruction and Development as early as March for a $20 million rehabilitation of the ATC system. The ATC project is part of an overall plan to spend about $750 million on upgrades throughout the company's operations.
GE Capital Aviation Services yesterday placed what is likely to be one of the larger orders this year for transport aircraft - a $4 billion-plus for five Boeing 777s and up to 178 Boeing 737s. Earlier this year, Boeing captured a $4 billion order from Malaysia Airlines for 15 777s and 10 747s (DAILY, Jan. 10). GECAS said it ordered 20 current models of the 737 and 82 of the next generation, and it took options for 76 more next-generation 737-600/700/800 aircraft.
The Master Executive Council of the Air Line Pilots Association at Federal Express has elected three new officers in the midst of its protracted negotiations for a new contract with the company. Alan Samford, a DC-10 captain in Memphis, was elected chairman. Ronald Burson, a 747 captain based in Los Angeles, was elected vice chairman, and Tim Burson, a 727 pilot, was elected secretary/treasurer.
Northwest said yesterday it signed a code-sharing agreement with German carrier Eurowings that will put the Northwest code on Eurowings flights between Amsterdam and Nuremburg, Stuttgart, Dusseldorf, Leipzig, Hannover and Dresden, beginning Feb. 1. Those flights will link with joint service by Northwest and KLM between Amsterdam and points in the U.S. KLM also code shares with Eurowings on the routes. Under the agreement, Northwest frequent flyers can accrue and spend their miles on the German flights.
Hawaiian Airlines' December traffic increased 25.3% over that of December 1994, to 323.5 million revenue passenger miles. Available seat miles increased 14.6% to 437.1 million, and the load factor gained 6.3 percentage points to 67.7%. Traffic for the year was up 24.8% to 3.597 billion ASMs on 16.9% more capacity. Systemwide load factor for 1995 was 76.9%, up 4.8 points. Dec. 1995 Dec. 1994 12 Mths 1995 12 Mths 1994 RPMs 323,467,000 258,169,000 3,597,163,000 2,882,540,000
Southern Air Transport (SAT) has joined World Airways in urging DOT to reject the joint application of USAfrica Airways and Tower Air for renewal of USAfrica's allocation of six weekly frequencies for U.S.-South Africa service. The renewal application "amounts to an 'under the table' transfer of frequencies which have already been tentatively reallocated," SAT asserted, noting that DOT has tentatively reallocated USAfrica's six frequencies and a currently unallocated frequency in the U.S.-South Africa market to World Airways and SAT.
President Clinton took advantage of the recent congressional recess to name Charles Hunnicutt assistant secretary for aviation and international affairs. As a recess appointment, he does not have to be approved by the Senate, thereby escaping the hold put on the nomination by Sen. Kay Bailey Hutchison (R-Texas).
Snecma of France, reeling from several years of losses and hoping to spend its money on a new, 40,000-pounds-thrust-class CFM International engine, will not raise its 25% stake in partner General Electric's GE90 program, said Snecma chief Bernard Dufour. GE is looking for funds to increase the GE90's thrust into the 98,000 lbst.-105,000 lbst. range, to keep up with Boeing's plans for growth in its 777. Snecma's decision means its share in these derivatives might be lower than its stake in the basic engine.
Carnival Corp. is considering acquiring a stake of less than 30% in Airtours Plc, a British leisure travel group with bases in the U.K., Scandinavia and Canada. The investment would be made through a purchase of newly issued shares and a partial offer to all existing shareholders. Carnival said it can give no assurance that any agreement will be reached. Airtours operates a variety of travel businesses.
Sabre Computer Services, a division of AMR's Sabre Group, has signed a letter of intent to outsource management of Sabrenet to SITA under a seven- year agreement worth $400 million. Sabre said the terms of the pact will be completed in the next few months. SITA's frame relay technology, which adds speed and functionality, will be made available across the network. Sabrenet serves the Sabre Travel Information Network travel agencies, American, American Eagle, American Airlines Cargo and many Sabre airline customers.
American Bar Association Forum on Air and Space Law's annual update conference, to be held Thursday at the Ritz Carlton Hotel in Washington, will include two special educational breakout sessions on the fundamentals of how the government negotiates a bilateral pact, and on airport privatization. Rep. William Lipinski (D-Ill.), ranking minority members of the House aviation subcommittee, will give the keynote address at 9 a.m. Anne Bingaman, assistant attorney general of the Antitrust Division at the Justice Department, will speak at the lunch at 12:30 p.m.
Delta will award Olympic packages to its top 10 SkyMiles members who fly on the Delta Shuttle between Feb. 1 and March 31. The package consists of air fare for two to Atlanta, a five-night stay at the Perimeter Marriott Hotel, tickets to the opening or closing ceremonies and two athletic events each day and all ground transportation.
DOT issued a consent order assessing American Eagle compromise civil penalties of $20,000 for violating price advertising rules. The infractions occurred in fare advertisements published last May 16 and 30 in The New York Times and Long Island Newsday, the department's office of Aviation Enforcement and Proceedings said.
USAir Group reported an after-tax profit of $119.8 million for 1995 yesterday as newly appointed Chairman Stephen Wolf took control of the carrier. The profit, which turned around a loss of $684.9 million in 1994, was in line with Wall Street expectations. The year's profit, 55 cents per share, was USAir's first since 1988, as revenues increased 6.8% to $7.5 billion and operating expenses dropped 4.5% to $7.2 billion. Without one- time items and profit-sharing payments, the carrier would have earned $164.9 million or $1.28 per share.
Golden, Colo.-based cargo carrier Atlas Air reported its flying level increased by 63% in the fourth quarter over the same quarter in 1994. Block hours flown during the quarter rose to 10,809 from 6,619 as the carrier added three aircraft to its fleet, for a total of nine.
Southwest launched its new service to Florida yesterday, beginning with operations to Tampa and Fort Lauderdale (DAILY, Jan. 17). Inaugural celebrations at gates included Caribbean/Calypso bands, oranges and limbo contests promising free tickets.
Swissair won the top spot in the 1996 OAG/Executive Travel's Airline of the Year Awards. The carrier also garnered five other awards - best first, economy and short-haul business classes, best short-haul airline and best ground and check-in staff. Crossair, part of the Swissair group, was named best regional airline. United captured the highest U.S. domestic carrier award, ousting American from the spot for the first time since 1982. American dropped to third behind Delta.
Passengers who fly business class on one of Canadian Airlines' refurbished 737s may find something familiar about the roomier seats, manufactured by U.K.-based Contour Seats - they were used previously by British Airways for its Club World business-class service on 747s.
IRI, the state holding company Alitalia is depending on for much of a prospective cash injection, said last week the latest breakdown in talks between the flag carrier and its unions will prevent it from going forward with recapitalization. While Alitalia was negotiating for jobs cuts, a pay freeze and a no-strike agreement, the unions pressed for a 3.5% pay increase and a guarantee that IRI, Alitalia's parent, would invest at least 1.5 trillion lire (US$955 million).
City and County of Denver received, over airline objections, an extension until Feb. 12 to respond to the revenue diversion complaint nine airlines lodged last month. Denver's Washington counsel told FAA that recent bad weather prevented meetings with Denver officials to prepare a response. An attorney for the airlines, noting that Denver officials received the complaint about 40 days earlier, argued that an extension is not justified. Attorneys for the airlines and Denver also disagree on the original deadline for Denver's response.
ValuJet plans to reveal this month several destinations to which it will launch service. After that, the carrier says it will focus on plans for the Olympics, to be held this summer in hometown Atlanta. Other new destinations will not be made public until expansion plans for the Games are in place.
Except for Delta and TWA, major airlines are not predicting further cost savings next year, securities analysts noted last week at a financial conference in San Francisco. One reason may be that new-entrant carriers are having less impact on the majors. PaineWebber analyst Sam Buttrick commented that ValuJet was the only new entrant that made a substantial profit in 1995. "It turns out that the only thing lower than [startups'] costs is their revenues," he said.
