U.S. National Carriers Traffic November, 11 Months 1995 November November % 1995 1994 Change Alaska Revenue Passenger Miles (000) 711,000 631,000 12.7 Available Seat Miles (000) 1,102,000 1,048,000 5.2 Load Factor (%) 64.5 60.2 Passengers 870,700 757,300 15.0 American Trans Air
Radisson Hotels Worldwide is joining American's AAdvantage program Jan. 1. Frequent flyers will earn 500 miles each time they stay at a Radisson hotel in 39 countries. A one-time, 5,000-mile bonus will be offered for stays between Feb. 1 and April 30.
USAir Group's yearend earnings probably will surpass analyst forecasts, the company said yesterday. The announcement came after USAir Chairman Seth Schofield told a meeting of airline analysts in New York that the carrier probably turned in its strongest-ever performance last month. "Yields were better than our earlier forecast, and our costs continue to be a pleasant surprise," Schofield said. The start of next year also looks promising.
America West has been named the official airline of Super Bowl XXX, to be held Jan. 28 in Tempe, Ariz. Leading up to the Super Bowl, the carrier will sponsor a football camp for about 5,000 boys and girls, a seven-day sports extravaganza near the stadium and the America West Super Bowl for Kids to benefit the Big Brothers/Big Sisters organization. Proceeds will be reinvested in local community programs, America West said.
According to the latest airport traffic report from Geneva-based Airports Council International, passenger traffic at the world's airports rose almost 5% for the first nine months of this year, compared with the same 1994 period. Cargo volume was up 8% and aircraft movements more than 2%. The Pacific region registered the highest passenger growth, up 7.6%, followed by Europe, 6.6% and Asia, nearly 4%. North American airports posted a 3.3% increase in passengers, followed by airports in Latin America and the Caribbean, up 1.3%.
Engineers and managers from Boeing, General Electric and British Airways met throughout the day yesterday in Seattle to decide whether to open up fan blade-tip clearances by 0.05 inches on GE90 engines powering some of the carrier's 777 widebody twins. The deliberations followed a "stall event" this month that has held up deliveries of BA's second and third aircraft.
Passenger traffic carried by the world's airlines increased 7% this year, according to preliminary estimates by the International Civil Aviation Organization (ICAO). The figures, for scheduled traffic carried by ICAO members, are based on incomplete data and in some instances cover only the first eight months of 1995, ICAO said. The increase came on a 5% jump in domestic passenger kilometers and an 8% rise in international traffic.
Boeing Commercial President Ron Woodard said yesterday the company plans to increase aircraft production rates in the fourth quarter of 1996, its first hike in three years, as it recovers from its recent 10-week strike by the Machinists union and satisfies increased demand for new aircraft. By the end of 1996, Boeing plans to be manufacturing 22.5 aircraft per month, and the rate will grow to 24 per month early in 1997, when 777 production reaches its full rate. "This is a positive sign to see the beginning of an upswing in production rates," he said.
Delta is submitting a new retirement proposal to its Air Line Pilots Association unit this week, plus definitive language on remaining sections of its contract proposal. Delta and ALPA negotiators met last week on the overall collective bargaining agreement, which must be ratified before the Delta-ALPA accord on 100-seat flying can be put in place to enable Delta to compete better against low-cost carriers. The union said Delta was adamant about the need to reach agreement quickly.
City of New York demanded last week arbitration of its claim against the Port Authority of New York and New Jersey seeking more than $400 million in "underpayments of rent" at New York Kennedy and LaGuardia airports. "For years the Port Authority has improperly computed the rent due to the city under the airports lease," New York Mayor Rudolph Giuliani said. "This has deprived the city of hundreds of millions of dollars of revenue which it was entitled to receive."
DHL Worldwide Express said yesterday it plans a three-year, $30 million expansion of its regional direct air network in Latin America. The investment in aircraft, equipment, facilities and technology will begin in the first quarter of 1996, said George Gonzalez, regional director of operations for Latin America and the Caribbean. The first phase will focus on DHL's hub in Panama City.
Northwest plans to increase service to Anchorage from Minneapolis this spring by adding a second daily nonstop flight April 7. On June 1, the airline will add a third daily flight for the summer only. It also plans to resume daily nonstop service between Anchorage and Detroit in the summer.
Air Mauritius has leased an Airbus A340-300 for four years from International Lease Finance Corp. The aircraft, the third A340 leased from ILFC, will be delivered next November and will replace a 747SP.
FAA, noting that the industry-wide random drug testing rate continues to be less than 1% positive, has decided to continue requiring random tests of 25% of covered employees through 1996. The agency used to require that 50% be tested, but the requirement still is far above the 10% test rate advocated by industry.
Airlines flying the new Macau-Taiwan routes are reporting lower-than- expected traffic. Air Macau, TransAsia Airways and EVA Airways say that except for inaugural flights conducted Dec. 8, flights on the newly authorized routes have been only 30% to 50% booked. Because of the weak demand, Air Macau has cut back service from three flights per day to two on the Macau-Taipei route. Competing in the market, TransAsia also has lopped off one flight per day, from two to one. Analysts in Taipei expected traffic to increase during the Christmas season.
DOT has granted Atlant-Soyuz Airlines authority to operate charter combination service between Russia and the U.S. Atlant-Soyuz, a private joint stock company, and Atlant/Jove, which manages the carrier's interests in the U.S., have entered into a joint venture as Cargo Aircraft Leasing Corp. to acquire Boeing 737 aircraft for Atlant-Soyuz's fleet. The Moscow- based carrier operates an Il-66M passenger aircraft and relies mainly on Il-76s for cargo service. The carrier also holds authority to operate charter all-cargo service between Russia and the U.S.
Citing continuing delays in the delivery of new aircraft due to the just- settled Boeing strike, United asked DOT to allow it an extra 30 days, until Jan. 30, to begin its second daily Miami-Sao Paulo service. (Docket OST-95- 247)
Japan Airlines (JAL) and All Nippon Airways (ANA) plan to establish service to India next year to capitalize on increasing passenger traffic in the market and economic growth in India. JAL abandoned New Delhi and Bombay routes several years ago for lack of traffic. One new service option for JAL is nonstop flights from Kansai Airport. Another is to extend an existing Kansai-Bangkok flight and offer joint service with Thai Airways. ANA plans to extend a Kansai-Singapore service to Bombay.
FAA's proposed rule on flight/duty times and rest requirements "is expected to impose unquantifiable costs on unscheduled Part 135 operators," the agency says. The maximum allowable flight times for pilots operating two- pilot aircraft would increase from eight to 10 hours, however. "This provision should create the potential for substantial cost savings for both Part 121 and Part 135 operators." FAA estimates the proposed rule will save airlines money by obviating the need to hire almost 3,500 pilots.
America West's recent decision to outsource 500 machinist jobs has drawn the wrath of AFL-CIO President John Sweeney, who said in a National Press Club speech last week that the move underscores the "short-sighted and ultimately self-destructive behavior" of U.S. companies. The "illegal" action was taken after the Teamsters tried to organize mechanics at the airline and in spite of a promise by America West not to contract out mechanics' jobs, he said.
DOT has approved Arrow Air's request for authority to operate all-cargo service between Miami and two points in Ecuador - Quito and Guayaquil - and to integrate this authority with its authority to serve Caribbean and Central and South American points. In its application, the carrier said it planned to operate three-times-weekly service, using DC-8-62 aircraft. (Docket 50409&OST-95-2299)
Standard and Poor's has revised its outlook for Boeing Co. to "stable" from "negative" and affirmed the company's double -'A' senior and 'A-1'-plus short-term ratings. The move affects about $2.5 billion in debt. "The outlook revision reflects the beginning of a long-awaited recovery in aircraft orders, the company's relatively good performance during the deep and prolonged aviation downturn, and the end of the labor strike," S&P said.
The contest for U.S.-Germany frequencies for the 1996 summer season is sparking a spirited battle among U.S. carriers. Eight airlines are bidding for 316 third- and fourth-freedom weekly frequencies, 40 more than the 276 available (DAILY, Dec. 12). Of the 276, 260 are subject to automatic reallocation under DOT's grandfather policy, leaving 16 up for bid. Applying for the most frequencies, Delta called on DOT to grant 119 of the 121 frequencies it seeks under the grandfather policy.
American Society of Travel Agents, as planned, last week asked the Federal Trade Commission to launch an investigation into operators of credential mills, or "card" mills (DAILY, Dec. 14). In the complaint, sent to Joan Bernstein, director of the Bureau of Consumer Protection, ASTA said the card mills sell bogus identification cards to the general public along with "worthless" training materials that claim to teach the purchaser how to be a travel agent.
Continental said it will begin daily nonstop service March 14 between Newark and Lima, Peru, having received final authority from DOT Friday to operate on the route. The carrier plans Boeing 757-200 service with an introductory roundtrip fare of about $558. Continental also received authority to serve Bogota, Colombia, and said it will do so soon after the Lima launch. Issuing final authority to Continental, DOT rejected objections from American and Dallas/Fort Worth Parties to its earlier show cause order (DAILY, Dec. 18).
