American is retrofitting its fleet of MD-80, 727 and DC-10 aircraft with GPS-based navigation systems from Honeywell/Trimble. The carrier will start installing the equipment next summer.
The new U.S.-India air agreement secures United's round-the-world service while allowing Air India fifth-freedom service to Chicago and Washington. Reached late Friday, the accord expands service opportunities for carriers from both countries (DAILY, Dec. 4). "It will increase access for U.S. carriers to the expanding India market, which is poised for unprecedented growth," said DOT Secretary Federico Pena.
Correction: U.S. equivalents of investment in debis AirFinance, the new company formed to lease Fokker aircraft, and of the value of aircraft Fokker has contracted to transfer to the new company, were reported incorrectly in the Dec. 4 issue of The DAILY. The correct amounts are about $300 million and $600 million, respectively.
Northwest will begin daily nonstop service to Fairbanks next summer from Minneapolis. It began nonstop service in the market with four weekly flights last summers 757 aircraft. The service provides the only nonstop flights offered from Fairbanks to the Midwest. Northwest said that without a stop in Anchorage or a change of plane in Seattle, its Minneapolis service reduces the typical traveling time from Fairbanks to the Midwest by four to five hours.
With 87% on-time service in October, Southwest maintained its No. 1 on-time position among the major airlines for the fifth month in a row. Overall, the nation's 10 largest carriers posted an 82.1% on-time arrival rate in October, down from September's 85.6%, according to DOT's Air Travel Consumer Report, issued yesterday. Northwest came in second at 86% while Continental slipped from second to third with 85.3%. For the second consecutive month, Delta placed last with 75.2%.
America West has decided to contract out its heavy aircraft maintenance to Tramco, a BFGoodrich company, in a move it estimates will save it $35 million during the five-year contract. The outsourcing will enable the carrier to shed one-half of its maintenance personnel, plus others in support roles such as human resources and payroll, for a total of about 500 employees. It will retain about 470 to perform and supervise line maintenance.
Jetall Airways is seeking authority to operate non-scheduled all-cargo charter service between a point or points in Canada and a point or points in the U.S. The Canadian carrier currently operates transborder charter cargo service on an ad hoc basis, using a fleet of two Boeing 737-210s, two Metros and a Convair 580. (Docket OST-95-891)
Air Berlin has ordered two 737-400s valued at $86 million. The German inclusive-tour charter carrier will use the new aircraft to replace airplanes whose operating leases end next year. Last year, Air Berlin ordered six 737-800s for delivery beginning in 1998.
USAfrica signed agreements yesterday with Smith Management and Tower Air, which will provide an infusion of new funding into the carrier now that the Delaware bankruptcy court has approved the letters of commitment from the two investors. Next, the carrier will work on the definition of transaction documents, which it expects to conclude this month, USAfrica President Gregory Lewis told The DAILY yesterday. When combined with assets remaining in the carrier's estate, the new funds are expected to enable USAfrica to resume service early next year (DAILY, Dec. 4).
TWA broke ground on its East Coast reservations center in Norfolk, Va., which eventually will employ 500 people. The facility, TWA's fourth reservations center, results from financial incentives to TWA from state and local officials. Completion of the building is scheduled for May.
DOT has granted Alaska Airlines' application for authority to operate combination service between San Francisco, on the one hand, and Mazatlan and Puerto Vallarta, Mexico, on the other, and between Los Angeles and Los Cabos, Mexico. The carrier plans to operate five weekly roundtrips between San Francisco and Mazatlan, using MD-80 aircraft; daily San Francisco- Puerto Vallarta roundtrips, using Boeing 737s, and three weekly roundtrips plus two weekend flights between Los Angeles and Los Cabos, using MD-80 and Boeing 737 aircraft (DAILY, Nov. 26).
A multi-function landing receiver compatible with microwave landing system and satellite-based Global Positioning System data received high marks in six weeks of tests by the U.S. Air Force's Electronic Systems Center (ESC) and GEC-Marconi. The Precision Landing System Receiver (PLSR), a prototype of the Military Microwave Landing System Avionics receiver with a Differential Global Positioning System capability, was installed in a C- 135C transport and an S-76 helicopter and flown on 130 approaches between Sept. 21 and Nov.
Delta has changed its policy requiring ticket purchase 24 hours after a reservation is made in a limited number of markets, effective yesterday, giving customers 72 hours instead. Delta is testing the system on flights from most cities to Phoenix and Los Angeles, which receive a large number of leisure bookings. Delta spokeswoman Jackie Pate said the airline will consider the change in other cities if savings are realized in computer reservations system fees. Extending the purchase deadline should reduce cancellation and rebooking fees charged by travel agents.
Air South set traffic records in November, including the highest load factor in its history - 56.35%, an increase of 15.9 percentage points from November 1994. The airline also carried its most-ever passengers in a single day on Nov. 11, 6,209, and Nov. 22, the day before Thanksgiving, was its highest revenue day, at $340,000. Revenue passenger miles were up 282% in November, from 11.5 million to 32.3 million. Available seat miles rose 103%, to 57.4 million from 28.3 million. Air South carried 89,961 passengers during the month, up 183% from November 1994.
Onur Air has ordered an Airbus A321 powered by IAE V2500 engines for delivery in mid-1996. The Istanbul-based charter carrier operates five leased A320s and will lease two more A321s for delivery next year.
United Express carrier Atlantic Coast Airlines' boardings rose in November for the first time this year. ACA carried 121,008 passengers during the month, 3.2% more than in November 1994. Its revenue passenger miles declined 3% to 29 million and available seat miles fell 8.8% to 62 million, resulting in a 2.8-point load factor increase to 46.8%. As a result of increased demand and strong yields, Chief Executive Kerry Skeen said he believes ACA will exceed analysts' projections for fourth quarter earnings.
Air France expects to operate all of its long-haul and most medium-haul flights Thursday in spite of its flight attendants' planned 24-hour strike. The carrier will cancel some medium-haul flying to cities in Europe, such as Copenhagen and Berlin. Cancellations will be in markets it serves more than once per day, a spokesman said, so travelers still will be able to reach the points on the state-owned carrier's flights.
Enginemaker Pratt&Whitney will give its 6,100-strong unionized work force a 9% pay raise over the next three years, along with a first-year bonus and relatively small increases in health-care premiums, in a package ratified during the weekend by P&W's Machinists. General wage increases through 1998 total 9.3%, with 3.5% and a $1,500 bonus paid immediately. The wage hike will be 3% in 1996 and 2.5% in 1997. P&W workers also will pay the current amounts for health care until 1998, when the basic charge will rise from $6 a week to $8.
Kiwi International Air Lines has appointed Keith Mackey VP-flight operations. He has 16 years' experience with National Airlines and Pan Am as captain of 747, A300, DC-10 and 727 aircraft.
Delta is offering some of its Marketing Division staff voluntary early-out and leave-of-absence programs to reduce its marketing employees further and cut costs under the Leadership 7.5 initiative. The incentives will be offered during the next two and one-half months to all U.S.-based and expatriate non-contract personnel. Employees can opt for the flexible voluntary severance program and the three/five-year leave of absence program until Dec. 29. Between Jan. 1 and Feb.
Air Transport Association predicts that 32 million passengers will travel between Dec. 15, 1995, and Jan. 4, 1996, for the Christmas-New Year's holidays. It expects the Friday before Christmas, Dec. 22, to be the busiest travel day of the year, with nearly 1.8 million passengers and an average load factor of 87%.
Thirty-four carriers, 19 of them Chinese and 15 foreign, have entered the Shanghai transport market, opening up nearly 300 air routes to 88 cities inside and outside China.
Portugal, which controls Macau, and China, which will control it beginning in 1999, have approved the five-year aviation agreement signed recently by Macau and Taiwan, opening the way for what amounts to direct flights between Taiwan and the Chinese mainland. Air Macau will launch service Dec. 8 between Taipei and Beijing, via Macau. On Jan. 12 it will begin daily flights between Kaohsiung and Xiamen, also via Macau. In each case, the carrier will have to change flight numbers while the aircraft is on the ground at Macau.
