Atlas Air said it has entered a long-term contract with Swissair Cargo for use of a 747-200 freighter, to be delivered this month. It said the contract is the first of a series related to delivery of five 747-200s from FedEx this year.
Shareholders of Aerovias de Mexico (Aeromexico) voted down an option to take a further stake in Corporacion Mexicana de Aviacion. The move came at the carrier's recent annual general shareholders meeting. Aeromexico had written down its stake in Mexicana but had the option to purchase additional shares. Shareholders also approved a decrease in Aeromexico's paid-in capital by 1.089 billion pesos ($144.24 million) to 1.150 billion pesos ($199.31 million), to cover Aeromexico's 1995 losses.
Delta has named W.E. (Skip) Barnette the managing director of its planned low-fare, lower-wage short-haul initiative, contingent on a new pilot contract. If Delta's pilots, represented by the Air Line Pilots Association, vote in favor of the collective bargaining agreement, a new contract should be in effect by May 1. Robert Coggin, Delta's executive VP-marketing, said Delta is at a critical stage and must create an action plan, and nail down routes and other details.
Air France has purchased crew management equipment from SBS International. The carrier is acquiring PC-based pairing and line building modules that enable it to generate crew schedules faster and more accurately.
Crossair reported net income of 17.5 million Swiss francs - about U.S.$14.7 million - in 1995, an 8.7% increase from SF16.1 million in 1994. The Swiss regional's total revenue rose 18% to SF465 million from SF394 million and its gross profit before depreciation was SF59.6 million compared with SF54.9 million. The airline's board is recommending a dividend of 5% of profits in 1996.
Air Transport Association will hold its 1996 engineering, maintenance and materiel forum May 5-7 at the Aston Wailea Resort in Maui, Hawaii. This year's theme is "Pushing the Boundaries to Meet Aviation Challenges." To register contact Marqui Lyons at 202-626-4101 or fax 202-626-4081.
Moody's Investors Service endorsed a move by United parent UAL to redeem its 6 3/8% convertible subordinated debentures, and it predicted other U.S. airlines may follow suit with their debt. The action will eliminate $596 million in long-term United debt, reducing its interest expense by $38 million annually. Moody's noted that AMR and Delta are eligible for debt redemptions in 1996, and that additional conversions could be possible if common stock prices continue at current or higher levels.
The days when the independent regional airline can plan its own course as part of a separate and distinct industry are over, said Michael Boyd of Aviation Systems Research Corp., Golden, Colo., recalling a statement he made in a white paper 10 years ago. In a speech Thursday in McLean, Va., to a Commercial Aviation Report-sponsored seminar on the changing role of regional aviation, Boyd also recalled saying that once a code-sharing agreement was signed, the regional's main asset - its route system - was transferred to the major carrier.
AT&T will launch a new True Rewards loyalty program, its largest, on May 1 offering exclusive deals on entertainment, travel, food and merchandise. A True Rewards Vacation Hotline will give members toll-free access to "late- breaking" discounted travel packages from airlines, hotels and cruise lines. Travel partners are Alamo, Amtrak, Choice Hotels, Marriott Hotels, Marriott Vacation Clubs, United Airlines and Club Med.
London-based FlightLine, an affiliate of the U.K.'s Alpine Aviation, this month introduces BAe advanced turboprops on its services based at London Stansted Airport, leased by British Aerospace Asset Management unit JSX Capital. JSX said the two ATPs "will complement FlightLine's established jet [BAe 146] operations, operating from London Stansted to Zurich and Geneva on behalf of Swiss tour operator, Falcon Travel."
Cargolux Airlines International said it has added a stop in Prestwick, Scotland, to its Monday flight from Seattle to Luxembourg, "providing, for the first time, a direct air service from the U.S. Northwest To Scotland. It said the 747-400 freighter it uses is "ideally suited for outsize cargo," and forwarders and computer companies "expressed strong interest in a direct link from the Pacific Northwest to Scotland."
Clinton administration's proposed Airport Improvement Program funding level of $1.35 billion is inadequate and should be $1.6 billion for fiscal year 1997, airport and airline representatives said yesterday in a joint letter to House Transportation appropriations subcommittee Chairman Frank Wolf (DAILY, March 21).
Carnival Air Lines, in observance of the Academy Awards ceremony, is offering a free flight March 25 to or from Los Angeles to anyone named Oscar. The offer is for standby travel that is completed March 25.
LEP Profit International, one of the largest U.S. air freight forwarders and logistics companies, announced what it called the first nonstop, overnight cargo service in both directions between San Juan, Puerto Rico, and Columbus, Ohio. The flights will provide next-day delivery of primarily heavy-weight shipments. The company also offers daytime service between the two points. Peter Brown, president, said traffic between the two cities has been "increasing at a rapid rate, particularly for the pharmaceutical and hi-tech industries."
Customers in Norway and Thailand have placed firm orders for three new Dornier 328s, Daimler-Benz Aerospace (DASA) said. Regional airline Air Stord of Norway ordered two 328s, intended to replace its 19-seat Jetstream 31 and one of the carrier's two 10-seat Beech King Air B200s. Air Stord's aircraft will be delivered this spring. Air Stord is based on the island of Stord, off Norway's Atlantic Coast. The carrier will offer shuttle flights between Stord and Oslo, Norway's capital, and between Skien and Bergen.
Rep. Barbara Kennelly (D-Conn.), a member of the Ways and Means Committee, introduced legislation (H.R.3111) to clarify that frequent flyer mileage is not taxable.
Olympic Airways reported a 1995 net profit of 6.5 billion drachmas ($26.97 million at the current exchange rate of 241 drachmas per dollar), a result the company called "highly satisfactory" and its "first real profit" since 1977. The amount compares with a 73.69 billion drachma loss ($305.77 million) last year before a capital injection of 444 billion drachmas ($1.84 billion). Operating profit increased to 17.4 billion drachmas ($72.2 million) from 5 billion drachmas ($20.75 million) in 1994.
The realistic capital development needs of U.S. airports are far less than the airport community's estimate, the Air Transport Association said yesterday. Last week, the Airports Council International-North America and the American Association of Airport Executives told the House Transportation aviation subcommittee that an ongoing member survey shows at least $60 billion in "necessary and essential" projects at airports of all sizes between 1997 and 2002.
World applied for renewal of its authority to operate scheduled all-cargo service between Los Angeles and Bogota, Colombia. The carrier will serve the route with DC-10-30 and MD-11 aircraft configured for payload capacities of 141,000 and 180,000 pounds, respectively. "Due to the commitment of its freighter aircraft to other services for the months of January through June 1996," World said it is not currently conducting scheduled all-cargo operations on the route, but it added that it is marketing the service "aggressively." (Docket OST-96-1159)
Congressional and industry pressure is building for a breakthrough in U.S.- Japan aviation relations in advance of President Clinton's April 17 visit to Japan and next week's round of all-cargo talks. "We believe it is important to liberalize our airline passenger services agreement with Japan, and we urge you to put this critical item on your agenda," House leaders Newt Gingrich (R-Ga.), Dick Armey (R.-Tex.) and Richard Gephardt (D.-Mo.) wrote President Clinton Tuesday.
United parent UAL Corp. will issue a redemption notice for its 6 3/8% convertible subordinated debentures with a redemption date of May 1. Debenture holders will receive $1,043.75 plus accrued interest of $15.9375 in cash for every $1,000 investment. Before April 30, holders may convert their debentures for $541.90 in cash and about 3.192 shares of UAL common stock per $1,000.
American Society of Travel Agents said 53% of agents responding to an automation survey conducted last summer said they are booking ticketless travel, and 21% use the Internet. The average cost to generate a domestic ticket is $22.70, ASTA said, and $26.10 for an inter-national ticket. Of the 1,250 agencies surveyed, 83% said they have productivity pricing agreements with computer reservations systems, and 47% said they receive a discount for exceeding the required monthly booking level per terminal.
Tarom petitioned DOT to extend its authority to operate three Bucharest- Chicago roundtrip flights per week, and to add New York as a co-terminal point, for the periods April 1-May 15 and Sept. 15, 1996-March 31, 1997. The carrier would have no local traffic rights between New York and Chicago. It intends to use 209-seat A310-300 aircraft for the service. (Docket OST-95-550)
Delta has reduced spring fares in more than 16,000 markets in the U.S., Canada, Bermuda, Europe, India and Russia. Tickets must be purchased by April 1. The fares are available in more than 11,000 markets in the U.S., including Alaska, Hawaii, Puerto Rico and the Virgin Islands, and in Bermuda and Canada. They are not available on Delta Shuttle flights, in markets operated solely by Delta Connection carriers and in some domestic markets. Fares are good for travel beginning April 7 through May 31 and completed by June 5.
