Delta has reached agreement with Boeing to stop acquiring 737-332 aircraft and pick up 12 additional 767-332ER aircraft instead as replacements in transatlantic markets for its L-1011s, which it will eliminate eventually from its fleet. It already operates 16 of the 218-seat 767s and has five on order. Delta's original 737 contract with Boeing, signed in 1990, specified delivery of 52 aircraft over 10 years, and 22 of the aircraft were subject to reconfirmation by Delta. Delta also is dropping options to buy 56 more 737s.
Canadian Marconi said it has signed an agreement with Honeywell to cooperate in the development of airborne and ground-based Global Positioning System receivers for Honeywell's integrated Satellite Landing System. Receivers will meet that meets Special Category 1 (SCAT-1) standards. Canadian Marconi will provide airborne differential Global Navigation Satellite Sensor Units designed to Arinc 743 standards that are compatible with Honeywell's new differential landing system.
International Airlines Travel Agent Network will offer a new series of geography seminars for travel agents in the U.S., in March, April and May. The programs, developed by travel educator Marc Mancini, cover Europe, including the former Soviet Union, the Middle East and Africa. The registration fee for the three-hour seminars will be a nominal $19 per person because of contributions by Hilton Hotels Corp., Best Western International and Payless Car Rental.
DOT, saying it still is working on a negotiated solution, extended for another 30 days, through Feb. 24, the deadline for taking action on Fine Airlines' complaint against the government of Peru. "While not yet resolved, efforts are continuing through diplomatic channels to achieve a negotiated resolution to this matter," said DOT. Late last year, DOT extended the deadline through Jan. 25 for similar reasons. Progress in those efforts was slowed, however, by personnel changes in Peru's government, said an industry source.
Consolidated Freightways has reported a fourth quarter net loss of $6.7 million, compared with a net profit of $14.8 million in the same 1994 quarter. Revenues were $1.34 billion, up 4.7% and a record for the company. Operating income totaled $6.4 million, down from $40.4 million. The company previously reported that a $26 million cost to change operating systems at its long-haul motor carrier subsidiary would be included in fourth quarter results. For the year, CF reported record revenues of $5.3 billion, up 12.3%.
DOT has instituted the U.S.-Lima Combination Service Proceeding (1996) to allocate seven new weekly frequencies for scheduled service between a point in the U.S. - other than Miami or Fort Lauderdale - and Lima, Peru, effective Nov. 1, 1996. Under terms of the U.S.-Peru agreement signed May 5, 1995, the U.S. gained 14 additional frequencies to Peru - seven each in 1995 and 1996 - from cities other than Miami and Fort Lauderdale. American already has applied for the frequencies, proposing daily Dallas/Fort Worth-Lima service beginning Nov.
Western Pacific Airlines rang up a net loss of $3.01 million in the fourth quarter, a heavier deficit than the startup expected. Last quarter was the carrier's second in operation. In the third quarter, WestPac had a net profit of $372,000. For the year, it had a net loss of $10.5 million, or $1.12 per share, including pre-operating losses of $4.8 million. The fourth quarter loss, WestPac said, resulted from the delayed deliveries of two aircraft and the federal fuel tax. The carrier received four aircraft in the fourth quarter and now operates 12 jets.
Visitors to Hong Kong spent US$4.46 billion in the first half of 1995, a 15.2% increase from the same period in 1994. Visitors are up 6.7%, and they appear to be staying for longer periods, so real spending per person actually is decreasing. The biggest daily spenders were from Taiwan, US$429 a day, Japan, US$361, and Indonesia, US$290.
Hawaiian Airlines' shareholders approved the $20 million equity investment by Airlines Investors Partnership, giving AIP a controlling interest in the airline. The shareholders re-elected five board members and elected six new members. The new directors are John Adams, Richard Conway, Robert Coo, William Lum, Richard Matros and Edward Safady, and the holdovers are Todd Cole, Carol Fukunaga, Bruce Nobles, Samson Po' omaihealani and David Urrea.
Canadian Imperial Bank of Commerce (CIBC) will establish an airline and aerospace group, the bank said. The new unit, which will do business under the name CIBC Wood Gundy, will offer airline and aerospace clients asset- based finance, structured trade finance, private placements, corporate financial advisory services, derivatives, high-yield debt and merchant banking. The group will be led by Thomas Gallagher, who recently was managing director of Chase Manhattan Bank's airline and aerospace unit. Luca Bettini is joining the group as managing director.
Six helicopter tour operators in Hawaii have joined the United States Air Tour Association (USATA) and a number of other Hawaiian tour operators are lining up membership in the organization, which has vowed to press FAA on altitude and stand-off regulations. USATA President Dan Anderson said, "Helicopter operators in Hawaii are deeply concerned over aspects of SFAR 71, which place fixed-wing aircraft and rotorcraft at the same altitude, adversely impacting aviation safety." USATA has pledged to fight the regulations in Washington.
Telecommunications company SITA has signed a contract with Club Mediterranee to provide managed data network services. The network connects Club Med's sales booking offices and handles all reservations in the U.S., Europe, Africa and Asia. SITA said the dedicated service enables the club to process international reservations 24 hours a day, seven days a week. George Vialle, telecommunications director at Club Med, said, "With two million bookings a year passing through our offices, data security is obviously a key issue.
The chairmen of the House Appropriations Committee and its transportation subcommittee yesterday criticized the travel practices of senior DOT officials and called on the department to review official travel and submit detailed reports on a monthly basis. A recent DOT inspector general investigation reported many cases in which officials traveled excessively, traveled with questionable justification or exceeded per diem expenses inappropriately, Reps. Bob Livingston (R-La.) and Frank Wolf (R-Va.) said in a letter to DOT Secretary Federico Pena.
U.S. outbound travel to overseas destinations was up 5% to 11.1 million for the first seven months of 1995, according to preliminary data from the U.S. Travel and Tourism Administration. All regions of the world reported increases. Travel to Africa jumped 55.4%, more than any other region, but represents the smallest portion of travelers, about 79,000. Europe is the most popular overseas destination, attracting more than 5 million U.S. residents, 45% of the outbound market. But it showed the slowest growth during the period, increasing only 3%.
FlightSafety International posted record fourth quarter earnings of $24.1 million, up from $23.5 million, and revenues of $91.1 million, up from $83.6 million, a record for the company. For the year, FSI reported two more records - net income of $84.5 million, up from $74.5 million, and revenues of $325.8 million, up from $301.3 million.
DOT has issued an order canceling the operating certificate of Sunbird Airways. Sunbird surrendered its certificate authority Jan. 10, saying it was unable to begin operations and likely will not do so in the future, according to the department. The carrier planned to operate low-fare scheduled flights from Orlando to East Coast markets, including Atlanta, Detroit, Washington Dulles and Newark (DAILY, Nov. 23, 1993). Since being found fit to operate scheduled service in July 1994, however, the carrier underwent management changes and delays in aircraft acquisition.
DOT has renewed for two years Kiwi International Airlines' authority to operate scheduled combination service between Newark, N.J., and Bermuda. Kiwi plans to resume operations on the route on or about April 1 for the peak summer travel season after discontinuing service during the winter months last year (DAILY, Dec. 6). The carrier will offer seven weekly roundtrips on the route, using 162-seat Boeing 727-200 aircraft. (Docket OST-95-897)
Lufthansa saves about $69 million per year through its strategic alliance with United and believes much more can be had. Chairman Jurgen Weber estimated in a recent interview that only half of the partnership's potential has been explored.
U.S. National Carriers Operating and Net Profit Third Quarter 1995 Operating Net Profit/Loss Profit/Loss (000) (000) Third Quarter 1995 Alaska $ 55,840 $ 28,348 Aloha (476) (477) American Trans Air 7,930 3,367 Carnival 3,773 2,314
FAA officials will meet next week with the presidents of unions representing agency personnel to "talk about reform initiatives" the agency is developing to satisfy an April 1 congressional reorganization deadline, Monte Belger, associate administrator for air traffic services, said yesterday. Belger confirmed that FAA will not be able to come up with enough funds in its new budget to offer incentives for air traffic controllers to work at its busiest facilities.
Legislation (H.R.1907) to allow the sale of federally supported infrastructure, including airports, to the private sector "will drive up the costs of doing business on airports," Air Transport Association President Carol Hallett said. The bill, sponsored by Rep. David McIntosh (R-Ind.), would enable state and local governments to transfer federal-aid facilities without having to repay federal grants provided that, as a condition of transfer, the facility continues to be used for its original purpose. Sen.
British Airways has begun testing an in-house television network for its employees, broadcasting twice daily from the carrier's Business Fair, currently running at London Heathrow Airport. BA is beaming the show to eight locations in the U.K. and to New York, Paris, Sydney and Cairo. Programming includes news about the carrier and a question-and-answer session with BA Chief Executive Bob Ayling. The corporate arm of ITN is producing the trial broadcasts, which are being transmitted by BT (British Telecom).
Air Canada employees have begun wearing new uniforms, completing a corporate makeover launched in 1989. Flight attendants, ticket agents, baggage handlers and mechanics at Air Canada and regional partners AirBC, Air Ontario, Air Alliance and Air Nova were issued the new outfits.
The new Pan Am has signed a letter of intent with Frost Hanna Mergers Group of Boca Raton, Fla., to form Pan American World Airways Inc., a publicly traded company that will rely on international feed traffic in long-haul domestic markets. Frost Hanna will make $10 million available to the new airline, to be headed by Martin Shugrue, president and chief executive (DAILY, Jan. 26). "We designed Pan Am-The New Airline from the bottom up to make it a formidable domestic airline operation unrivaled in today's low-cost/low-fare competitive environment," Shugrue said.
