Brian Rowe, former chairman of General Electric Aircraft Engines, is now co-chairman of the Indonesian IPTN U.S. subsidiary American Regional Aircraft Industry (AMRAI). AMRAI plans to assemble the 70-passenger N-250 at Mobile, Ala., with first units off the assembly line in late 1997 or early 1998. Rowe is putting the AMRAI management together, but will not be the day-to-day chief executive, The DAILY is told. It is understood that there is a lot of GE involvement in the project and that a "capital injection" by GE has been "frequently discussed."
DOT has extended the obligation of Gulfstream International Airlines to provide essential air service at Anniston, Ala., through March 28 or until a new carrier is selected for the service. Gulfstream filed its 90- day notice of intent to suspend the service Nov. 27, 1995, saying it planned to halt service at the community Feb. 27. However, suspension of the service would leave the community without any service, said DOT.
It's official! The American Airlines American Eagle hub at Nashville is history. "Big Bird" already dropped its service from the hub; Eagle will shut down its operations to 20 cities by Sept. 4. Eagle used the excuse that it is shutting down its fleet of 19-passenger BAe Jetstream 31 aircraft. But with the pull-down of American's jet operation at Nashville, there was nothing left to feed. Some suggest that former hubs would support business-traveler connections anchored by jets or high-speed turboprops in the 50- to 70-passenger class.
America West debuts a new look today, putting into scheduled service the first 737-300 painted in its new livery of pearl white and turquoise, with an oversized red signature and logo. The carrier says that the new look is just an outward sign of significant changes in its product, and that it complements its new image - "unique, bold and impossible to ignore." America West plans to repaint the fleet in two years as aircraft are taken out of service for regular maintenance. It also is refurbishing aircraft interiors.
DOT is soliciting comments from the industry on whether or how airlines should provide consumer information available to ticketed passengers to those who purchase tickets electronically. DOT said it is concerned that notices now required to be issued by the airlines might not be provided in a timely or useful manner under the ticketless system. The consumer information includes oversales, baggage liability, contract of carriage and refund penalties. The notice will be published in the Federal Register today, and comments are due in 60 days. (Docket OST-96-993)
Southend, U.K.-based British World Airlines has placed an order for two ATR 72-210 aircraft, Aero International (Regional) reported. The aircraft, which will be delivered in March and May this year, replace two Viscount aircraft. They will be used by British World on behalf of Shell U.K. Exploration and Promotion, Aberdeen, Scotland, to transport Shell employees to petroleum platforms along the Scottish coastline.
Delta's relationship with its Air Line Pilots Association unit, which looked rosy only a few weeks ago with agreement on low-cost flying, went into a skid yesterday after management called ALPA's response to the company's pre-Christmas contract proposal predictable, inappropriate and embarrassing. According to Delta, the union reversed its negotiating course, retreated from a compromise and rejected any form of pay reduction. The comments came as the union began telling pilots what to expect if, for the first time in Delta's history, they go on strike.
BFGoodrich Aerospace's maintenance, repair and overhaul business turned in a record in 1995, the company said. The company's Transport Repair&Maintenance Division delivered 374 aircraft to 29 maintenance, modification and paint customers - a 35% increase from the 1994 total of 274 aircraft. The Component Repair&Overhaul Division repaired or overhauled more than 13,200 components, 15% more than last year.
Air Canada is offering up to eight nights of free accommodations for two at 300 countryside hotels in the U.K., France and Belgium to travelers who buy tickets for transatlantic travel between Feb. 17 and April 30. Travelers must agree to pay for breakfast and dinner at the hotel, however.
As airline operations got back to normal following last week's snowstorms in the Northeast, a blizzard blew through the Dakotas, Nebraska, Minnesota and Wisconsin yesterday, and dense fog caused cancellations and delays in Chicago.Airlines continue to tally costs of delays.Yesterday, American estimated $20 million-$25 million, assuming year-ago yields and no recapture. Delta reported that only one domestic hub, Orlando, has an on- time departure rate of over 60% so far this month.
Corporate Travel Coordinators of America has published the 1996 Corporate Rate Hotel Directory, which includes e-mail addresses for 2,000 hotels worldwide. The company teamed with IDT Internet Services to establish the e-mail accounts for all hotels listed in the directory. For a free copy, fax a request to 212-977-4545 or call 212-977-3600. The directory also is available on the Internet at http://www.ios.com/corp-hotels.
Annapolis, Md.-based UNC said yesterday it was acquiring Garrett Aviation Services for about $150 million. Expected to be completed March 31, 1996, the deal would make UNC the world's largest independent aviation services company, with annual revenues approaching $1 billion, according to Dan Colussy, chairman, president and chief executive of UNC Inc.
ValuJet generated $110 million worth of revenues in the fourth quarter of 1995 and will have earnings of 30 to 32 cents per share, the company's preliminary estimates show. The airline released the news yesterday after a report understated its earnings. ValuJet expects to issue fourth quarter and yearend results Feb. 7 after they are audited.
The American Society of Travel Agents is asking the Internal Revenue Service not to give a tax break to nonprofit organizations on tour sales. "We are very much opposed to any attempts to give tax-exempt entities an unfair advantage in selling clearly commercial and profit-making travel and tour packages when they aren't required to pay corresponding taxes," said ASTA President Jeanne Epping.
Continental is supporting American's petition that DOT institute immediately a proceeding to award new Peru frequencies to become available Nov. 1, 1996 (DAILY, Dec. 22).
Canadian Airlines flew 969 million revenue passenger miles in November 1995, 8.2% more than in November 1994. Capacity was up 9.8%, to 1.7 million available seat miles. The load factor fell 0.8 percentage points to 57%. For 11 months, traffic was up 4.3% to 13.9 million RPMs on an 11.3% capacity gain, depressing the load factor 4.4 points to 65.7%.
Continuing its love affair with the cruise lines in light of airline commission caps, the American Society of Travel Agents is praising Celebrity Cruises for a new agent commission program. Celebrity is offering commissions to agents who book on-board spas in advance. Most cruise add-ons are not only unavailable for advanced booking but also are not commissionable.
Holiday Inn Worldwide is now a member of America West's FlightFund frequent flyer program. FlightFund members will earn 2.5 miles for every dollar spent on qualifying stays at any of 2,000 Holiday Inn or Crowne Plaza Hotels and Resorts worldwide. FlightFund members who enroll in Holiday Inn's frequent guest program are eligible for complimentary upgrades when available, coffee or tea in the morning, express reservations and check-in, a guaranteed single corporate room rate, extended check-out and check cashing services.
Top 25 Domestic City-Pair Markets Under 750 Miles O&D Passengers Second Quarter 1995 Short 1995 Average Haul Markets Non-Stop Passengers Rank Rank City-Pair Mileage Per Day 1 1 Chicago - New York 723 8,766
Lone Star Airlines is extending its $250 roundtrip fare sale between Dallas and Aspen, Colo. Tickets must be purchased by Jan. 31. The fare is available for flights departing Dallas on Sunday, Monday, Tuesday and Wednesday, and for flights departing Aspen Tuesday, Wednesday, Thursday and Friday. Philip Trenary, chairman of Lone Star, said, "The influx of calls proved there are customers who want to travel on off-peak days and take advantage of this exceptional fare."
Transport Canada announced yesterday new flight and duty time regulations governing commercial pilots and flight crews, to be implemented this spring. The strenghtened regulations exceed International Civil Aviation Organization recommendations and are "comparable" to new standards recently proposed by FAA, Transport Canada said. The new regulations reduce the maximum number of hours a pilot may fly in a given period of time, increase the number of days off, and stipulate that a minimum number of hours be made available for rest between flights.
The Hong Kong Airport Authority last week signed an agreement with Asia Airfreight Terminal Company Ltd. (AAT) to operate one of the two air cargo terminals at Chek Lap Kok Airport when it opens in April 1998. AAT is an international consortium led by Singapore Airport Terminal Services (SATS) and Changi International Airport Services (CIAS). Other members are China Merchants Shipping and Enterprises Co. Ltd., Kerry Holdings Ltd., Steamers Maritime Holding Ltd. and Federal Express.
American Eagle this week began eliminating flights to Nashville as it prepares to drop 58 daily departures to 20 destinations by September. Eagle carrier Flagship will continue to maintain its headquarters in Nashville "for now" and operate hubs in Miami and New York. The decision to close the Nashville operation affects 740 American Eagle employees, including personnel from the other 20 cities.
Delta is adding 2,000 seats - 12 extra flights - to its normal schedule from Phoenix for the Super Bowl weekend. It also is placing larger aircraft in some markets to accommodate the extra travelers. Delta said it will fly its new MD-90 to Phoenix from Dallas/Fort Worth.
Cynthia Rich, FAA associate administrator for airports, will leave the agency at the end of January to pursue career opportunities outside the Washington, D.C., area, Administrator David Hinson said yesterday. James Washington, deputy director for FAA's Office of Air Traffic, has been named to replace Rich in an acting capacity. Rich was appointed to head FAA's Office of Airports in March 1994. Previously, she was director of the Cleveland Department of Port Control.
