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.
Philippine Airlines ordered a 747-400 Combi valued at about $170 million, Boeing said. The aircraft will be powered by General Electric engines. The combi can transport six to seven cargo pallets on the main deck, plus 266 passengers in a three-class layout.
Air Canada is looking to boost its service at Edmonton, according to the carrier's chairman, president and chief executive, Hollis Harris. Speaking at the Edmonton Chamber of Commerce last week, Harris said 1996 will be a "watershed year for Edmonton in terms of airline services," setting the stage for a closer relationship between the carrier and the Alberta city. Harris said he met with the city's mayor, Bill Smith, and business leaders, and discussed potential routes and services.
British Airways will not exercise rights to subscribe for additional preference shares in USAir that would have injected a further investment of $450 million into the U.S. carrier. The rights called for BA to invest $200 million in USAir by yesterday and $250 million by Jan. 21, 1998. The impasse in U.S.-U.K. bilateral negotiations - with no plans to resume talks - shut out any chance DOT would allow the British carrier to increase control over USAir. BA said simply that, subject to DOT approval, it would have "benefited from improved governance provisions.
A blue-ribbon panel of outside experts FAA put together last year to examine its efforts to replace power condition systems at the 21 air route traffic control centers (ARTCCs) has endorsed the agency's approach, FAA Administrator David Hinson said Friday in Washington. The panel, which also looked into air traffic service interruptions, found problems and made 77 recommendations but pronounced the agency's old power equipment "sufficient until replaced, if we stay on schedule," Monte Belger, associate administrator for air traffic services, said.
Granted orally an exemption to Rio Air Express, operating as SkyJet Brasil, amending its existing exemption to conduct charter all-cargo service between a point or points in Brazil and a point or points in the U.S.
Alaska Airlines has reached a tentative agreement with the Transport Workers Union on an amended contract for its 16 dispatchers. Union members will hold a ratification vote in the next few weeks. Alaska would not comment on the agreement, pending ratification.
