Venezuela's cabinet has adopted a regulation that will facilitate Iberia's plans to become the major shareholder of Viasa. The regulation allows a foreign airline to become a major shareholder of a Venezuelan airline without affecting that airline's status as a Venezuelan flag carrier. Iberia already holds a stake in Viasa and reportedly plans to buy all the government's remaining shares.
Frontier is increasing to 72 hours the maximum time allowed to purchase a discounted ticket after reserving it. Some airlines, including Frontier until last week, require that tickets be purchased within 24 hours. Frontier, which also is raising the charge for making a flight change from $35 to $50, says it is lengthening the purchase deadline on the advice of travel agents.
Economic Strategy Institute study of Asian aviation is expected to affirm that beyond services have the most value in the market. ESI is wrapping up the study and probably will issue it early in February, following peer review, said Don Hilty, ESI senior fellow. The institute has worked to find middle ground between the U.S and Japan, and between incumbent and MOU carriers.
Startup Vanguard Airlines, which says it lost $2 million in the last half of 1995, traded in its simple peak/off-peak fare structure last week for a yield management system it hopes will ring up profits. The carrier, which started service recently between Kansas City and San Francisco, is securing eight aircraft it plans to fly later this year between Kansas City and Los Angeles.
The City of Houston and the Greater Houston Partnership are urging DOT to approve the application by Continental and Czech Airlines (CSA) to operate code-share service between the Czech Republic and the U.S. Houston allowed that the proposed service "would not, at the outset, be as seamless as certain other code-share service," but it added that it expects "a fuller integration of the Continental-CSA services" as traffic increases.
Control Centers Ltd., a Tel Aviv-based development company, has taken delivery of a Raytheon Hawker 800XP. The latest variant of the mid-size business jet is capable of carrying up to eight passengers.
America West will contract with American for modification work on 14 757 aircraft. The contract covers airframe and engine thrust reverser work, which will begin this spring at American's Alliance maintenance base in Fort Worth. Modifications will begin in May or June, and take about five days per aircraft.
United and Air-India are seeking authority to operate code-share service between Washington, D.C., and Delhi. In their application, United asked for authorization to block space and code share with Air-India on flights between Washington and Delhi. The service will be operated in conjunction with United's round-the-world flights, inaugurated in December 1995, with connections at London Heathrow. The two carriers entered into a blocked-space/code-share agreement on Oct.
James Tarrant, deputy assistant secretary of state for transportation affairs, will leave his post at the end of the week, to be succeeded by special negotiator Joel Spiro. John Byerly, director of aviation policy, will replace Spiro. Tarrant will teach at the National Defense University in Washington.
U.S. National Carriers Traffic December 1995, 12 Months December December 1995 1994 Alaska Revenue Passenger Miles (000) 726,000 697,000 Available Seat Miles (000) 1,152,000 1,108,000 Load Factor (%) 63.0 62.9 Passengers 876,300 817,100 American Trans Air
Oxfam America, a charitable organization formed to alleviate world hunger and poverty, is a new partner in Northwest's AirCares program. The airline will promote Oxfam on flights through March, encouraging passengers to donate money or travel certificates.
The Dallas/Fort Worth parties are urging DOT to grant American's request for seven U.S.-Peru frequencies that will become available late this year, or promptly institute a selection proceeding for the frequencies. Under terms of the U.S.-Peru agreement signed May 5, the U.S. gained 14 additional frequencies to Peru - seven in 1995 and seven in 1996 - from cities other than Miami and Fort Lauderdale. So far, only American and Continental have applied for the new frequencies.
Cardkey promoted John Sumpter to director-national accounts and assigned Phil Black director-government services. Derek Trimble was named VP-international, Jorge Young director-engineering, Mark Boliaris general sales manager-direct sales offices in the western U.S. and Brian Mathieu general sales manager-direct sales offices in the Northeast and Mid- Atlantic states.
- H.R.2459 - introduced Oct. 11 by Rep. John Kasich (R-Ohio) - a bill to amend the Congressional Budget Act of 1974 to extend and reduce the discretionary spending limits and to extend the pay-as-you-go requirements set forth in the Balanced Budget and Emergency Deficit Control Act of 1985. Referred to the Budget and Rules committees.
Sterling, Va.-based United Express affiliate Atlantic Coast Airlines reported a load factor of 43.1% for December, 3.4 percentage points higher than in the same month in 1994. While revenue passenger miles were up only slightly for the month - 0.3% to 25.9 million from 25.8 million - capacity fell 7.7% to about 60 million available seat miles from nearly 65 million in the prior period. The carrier reported a similar load factor improvement for the full year - 3.3 percentage points to 47.7% from 44.4% in 1994.
Two instrumented General Electric CT7-9B turboprop engines should be delivered to Russia's Sukhoi design bureau during the second quarter to power the first prototype of Sukhoi's S-80 multi-purpose STOL aircraft during flight tests, GE reported (DAILY, March 3, 1995). Sukhoi just completed the aircraft, and static tests are under way. Production of the GE-powered Russian transport is slated to begin in late 1997, and Sukhoi managers hope to sell as many as 650 S-80s by 2006.
French aircraft manufacturer Aerospatiale needs a partner willing to increase the company's capital, and finding one is "a task on which decisive progress must be made this year," according to Louis Gallois, president of the French aerospace group. Although the value of orders last year increased to 39 billion francs - about US$7.76 billion - compared with 29.6 billion in 1994, revenues increased during the year only slightly - to 49 billion francs from 48.6 billion in the previous year.
Rolls-Royce's Allison Engine Co. unit has won International Standards Organization (ISO) 9001 certification, the company reports. The third- party assessor, BVQi, recommended certification of the company after an evaluation. BVQi President Greg Swan said, "ISO 9001 is considered the most comprehensive and challenging quality standard because it evaluates quality systems of the entire design, product and service life cycle." Swan said that "with ISO 9001 registration, Allison joins a distinct group of quality manufacturing leaders worldwide."
Northwest Airlines Corp. reported its second consecutive largest-ever annual profit and its 10th consecutive profitable quarter yesterday, and officials said the results would have looked even better if not for the high stock price the company had to apply to stock distributions to employees. Net income for the year was $392 million, or $6.13 per share, up from the record of $295.5 million set in 1994. The company netted $53.5 million, or $1.34 per share, in the fourth quarter, versus the 1994 quarter's $35.9 million.
An accounting change to recognize a sluggish MD-11 trijet market wiped out record performances by McDonnell Douglas's military aircraft segment in 1995, turning what would have been $707 million in net profits - an 18% gain - into a $436 million loss, the company reported yesterday.
Continental Express flew 59.4 million revenue passenger miles last month, a 9.4% increase from the same 1994 month. Capacity grew more slowly - 6.3% to 123.9 million available seat miles from 116.5 million. As a result, the load factor increased more than a percentage points to 47.9% from 46.6%. The number of passenger enplanements rose 7.1% to 283,546 from 26,715. December 1995 December 1994 Rev. Passenger Miles 59,361,859 54,248,805
