Alamo Rent A Car and its airline partners are offering a Wheel Deals program that gives customers in the U.S. who fly on one of 11 airlines discounted car rental rates until Feb. 10. Rates vary by region of the country. Renters must present a return airline ticket at the counter. The eligible airlines are Alaska, American, British Airways, Delta, Hawaiian, Midwest Express, Southwest, Northwest, TWA, United and USAir. Renters receive double frequent flyer miles through Jan. 31 when renting for at least three days, and triple miles for five days or more.
DOT Inspector General Mary Schiavo said Arthur Stewart and his company, Gary Aerospace Corp. of Hondo, Texas, and Jose Mendiola and his company, JLM Aviation International of Naperville, Ill., were convicted of manufacturing and marketing counterfeit parts for Boeing 727 aircraft. Stewart and Gary Aerospace were convicted in San Antonio of conspiring to manufacture counterfeit Boeing slat track roller bolt assemblies, a part of the 727 wing that helps control the aircraft during takeoff and landing.
American Society of Travel Agents' conference updates: The venue of the 1996 Western Regional Conference has been changed to Kauai, Hawaii, May 2- 5. The Kauai Marriott in Lihue will be the primary conference hotel. ASTA's Cruisefest, Jan. 11-14 in Miami, has attracted a record number of travel agents. Participants can take part in ship inspections and hear from top cruise executives.
International Jet Engine Supply Inc., Air 21 Merger Corp., a newly formed wholly owned subsidiary of International Jet and Air 21, have executed a merger agreement in which Air 21 is the surviving corporation and a subsidiary of International Jet. Once the merger is consummated, each issued and outstanding share of common stock in Air 21 will be converted into one share of International Jet common stock. Air 21's stockholders will hold a special meeting tomorrow to vote on the merger.
American Society of Travel Agents (ASTA) is seeking the assistance of executives of airlines, hotels, car rental companies, cruise lines and tour operators in its fight against the "unscrupulous" practices of credential mills. ASTA recently asked the Federal Trade Commission to investigate the practices of card mills, which offer travel agent credentials to people who are not professionals, and it wants industry executives to do the same.
Nine airlines filed a Part 13 complaint at FAA last month alleging that the City and County of Denver is diverting revenues from Denver International Airport (DIA) to maintain the former Stapleton Airport in violation of federal law and Denver's grant assurances. The complaint - filed by American, American Trans Air, Continental, Delta, Federal Express, Northwest, TWA, United and USAir - contends that Denver has taken no steps to dispose of Stapleton at fair market value and to use the proceeds for development of the new airport, as required by Congress.
JetTrain Corp. has asked DOT for another extension of 30 days, to Jan. 31, to begin operations before its certificate is subject to dormancy rules. The would-be startup carrier, which intends to operate short-haul service on the East Coast, said it "has encountered unforeseeable delays which render it unable to commence air transportation" before the current Dec. 31 deadline. In November, DOT granted the carrier an extension from Oct. 24 to Dec. 31 to start service.
United Parcel Service said yesterday it will launch distance-based pricing for its air express services on Feb. 3. The company also announced rate increases for most of its services, including a 4.9% hike for air express. John Alden, senior VP-business development, said prices for UPS Next Day Air will drop as much as 40% in short-distance zones and increase as much as 28% in longer-distance zones. He said the rates will reflect actual costs more accurately. The rates will be based on ZIP code. Previously, express shipments were priced only by weight.
Cargo carried by U.S. airlines rose 11% to 15.2 billion ton miles, while mail shipments increased 4.5% from 1994 levels, according to the Air Transport Association's yearend report (DAILY, Jan. 2). ATA also noted two fatal crashes by U.S. carriers that resulted in 166 deaths. Average domestic air fares, excluding taxes, rose 3.8% to 13.5 cents per passenger per mile for the first 11 months of 1995. Revenue per passenger mile for the same period in 1994 was 13 cents.
Airbus Industrie said yesterday that revenues in 1995 increased by $1.1 billion to a record $9.6 billion from the delivery of 124 aircraft to 30 customers. Airbus attributed the results to the delivery of 15 more widebody aircraft, including 49 A330/A340 series, than in 1994. Deliveries also included 19 widebody A300/A310s and 56 single-aisle A320/A321 aircraft. The number of Airbus operators rose to 131 from 123.
UPS aircraft maintenance workers, represented by the Teamsters union, recently rejected a five-year contract proposal. UPS and the union have been in federally mediated talks since November. UPS said the rejected offer would have increased wages $3 an hour over five years for senior mechanics, raised the company's contribution to employee pension plans and made cost-of-living adjustments. Employees also would have received a $1,000 bonus, or back pay at the higher contract rates, whichever was higher.
Kintetsu World Express Latin America has begun providing services in Chile, Colombia, Panama and Peru, said Manzur Falah, VP of the Kintetsu World Express subsidiary. He said the company "plans to become a major presence in this region," and KWE Latin America will be "engaged in true door-to-door transportation, including air freight forwarding, warehousing and distribution, inventory control, pick and pack" and other services.
With an 81.7% on-time record in November, Southwest maintained its position as the on-time leader among the majors for the sixth month in a row. Overall, the nation's 10 largest carriers posted a 77.9% on-time arrival record in November, down from 82.1% in October, according to DOT's Air Travel Consumer Report, issued yesterday. Northwest came in second at 81.5% and American placed third at 81.3%. For the third month in a row, Delta was last with 72.5%.
SAS, after a period of trimming capacity and reining in costs, will grow 9% this year as part of a strategy to pick up more leisure traffic. The airline does not expect the move to hurt yields, but it harbors no illusions, either, that it will experience the strong yield increases of 1995, Vagn Sorensen, senior VP-business systems, said in an interview published in a company newsletter.
Summary of U.S. Major Carriers International Traffic May 1995 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) American 1,127 9.93 2,200 2,480,088 Atlantic 300 8.07 4,157 1,247,001 Latin 797 11.23 1,337 1,065,862
The increase in traffic when low-cost carriers invade settled markets varies with the response of the established carriers as well as the prices and service levels of the newcomers, according to Linda Perry of Leigh Fisher and Associates. Depending on how the incumbents respond, they can capture a substantial portion of the overall gain, Perry said in McGraw- Hill Aviation Week Group's newly published Handbook of Airline Economics.
Airmax President Kenneth Ryan said the company is introducing a "One- Hour Customer Power" program to ensure that its airline and other shipping customers receive the "most responsive service available anywhere." Under the program, Airmax employees promise to respond to customer telephone calls immediately and follow up on their requests within one hour, Ryan said. Employees also will answer telex, fax and SITA messages immediately, provide proof of deliveries and give freight status updates at least daily.
Evergreen International Airlines said it is the first carrier to circle the globe with a 747 navigating completely by the Global Positioning System. President Larry Lane said the aircraft, equipped with three Trimble TNL-8100 GPS receivers, took off Dec. 22 from New York Kennedy Airport on a positioning flight to Norfolk Naval Air Station, Va. There it originated a cargo flight to Rota Naval Air Station, Spain. After a crew change, it continued on a military trip to Italy and Bahrain.
Atlanta-based Independence Air named former CCAir chairman and president Roy Hagerty president and chief executive. Hagerty most recently was president of Airline Development Group Inc. He replaces Barry Harris, who resigned after seven weeks as chief executive to devote himself to his government affairs consultancy in Washington, D.C. Independence Air has yet to receive its operating certificates but expects to start service in the second quarter of 1996, initially between Atlanta, New York and Los Angeles using A300s.
Oracle Corp. announced that TransQuest, the AT&T-Delta Air Lines joint venture company, has chosen Oracle7 software in an attempt to make Delta more efficient, cut costs and aid in electronic ticketing capabilities. Under a multi-year, multi-million-dollar contract, Oracle7 will be the database for Delta's standard information architecture.
Nancy McFadden was sworn in as DOT general counsel yesterday. Formerly the deputy associate attorney general at the Department of Justice, McFadden takes over a position left vacant when Stephen Kaplan left in July.
