Reducing F-15 fighter flights across the Pacific Ocean - as well as maintenance jobs in the U.S. - the U.S. Air Force issued a $36.8 million contract yesterday to Korean Airlines to provide programmed depot maintenance through November 2000, for McDonnell Douglas F-15 fighter aircraft assigned to the Pacific Air Force theater. KAL, which will do the work in Seoul, was the only company the Air Force solicited for bids. The contract was issued by the Warner Robins Air Logistics Center, Robins AFB, Ga., the F-15's U.S. depot.
Federal Express pilots represented by the Air Line Pilots Association yesterday moved up to Level 2 of self-help that they described as an aggressive advertising campaign to fully inform the public of the dispute. Relations have soured to the point where union and company statements offer contradictory assessments of how the job actions are affecting business. ALPA said the decision to refuse overtime flying is having a significant impact.
DOT's plan to expand reporting requirements for carriers in code-sharing arrangements, beginning Jan. 1, has raised industry concern. Carriers object to the timetable for the new requirements and want clarification of their execution. Responding to a congressional request to analyze more thoroughly the effects of code sharing, the department announced in October its intention to direct code-sharing carriers to identify both the ticketing and the operating partner in their quarterly Passenger Origin- Destination Survey reports.
British Airways is seeking renewal of its authority to operate scheduled combination service between London and Los Angeles and beyond to Auckland, New Zealand. The carrier operates the Los Angeles-Auckland service under a code-sharing agreement with Qantas. (Docket 49875&OST-95-876)
Southwest is offering free tickets to customers flying from Nashville to Austin, Cleveland, Las Vegas and San Antonio Dec. 1-14. Customers will pay only a $49 fare for travel in those markets, except to Las Vegas, which will be $99, and will receive gratis a one-way ticket good for any destination Southwest serves. The free ticket is good from Jan. 8 through April 5.
Air Transport Association President Carol Hallett's speech Tuesday calling on the airport community to condemn activities at Los Angeles "had the ring of an ultimatum," but "her call to arms was unnecessary," Airports Council International-North America President George Howard said yesterday (DAILY, Nov. 29). "ACI-NA policy is clearly and forcibly against revenue diversion. Los Angeles officials have stated publicly and frequently that they will abide by the law prohibiting revenue diversion.
U.S. Air Force Chief of Staff Gen. Ron Fogleman envisions a new Civil Reserve Air Fleet (CRAF) enhancement program that might go so far as to fund development work on a new cargo aircraft or major modification for sale to airline customers.
A new air cargo consortium of Emery Worldwide, World Airways and Northwest Airlines has received a $21 million contract from the U.S. Air Mobility Command. The contract calls for a daily airlift of express medical shipments along with general cargo from military bases in the U.S. to U.S. military installations in Germany, Korea and Japan.
Duty Free International net sales increased slightly in the fiscal third quarter ended Oct. 29 to $145.2 million from $144.9 million in the same 1994 quarter. Sales totaled $384.9 million for the first nine months, a 5% increase. Net earnings for the period were $11.7 million, up 10%. Inflight Division sales rose 14% to $48 million in the quarter and jumped 59% to $130.7 million for nine months. The increases were offset by a 23% drop in Southern Border Division sales due to the devaluation of the Mexican peso.
Number of IATA-accredited travel agencies in the Asia Pacific region leveled off this year after more than five years of double-digit growth. A total of 6,697 IATA agencies were in operation at the end of June, 7.3% more than last year. In 1990, 4,000 agencies were enrolled in the IATA Billing&Settlement Plan, initially operating in Australia, Japan, Korea, New Zealand and the Philippines. Since then, Hong Kong, Indonesia, Malaysia, Singapore, Taiwan and Thailand have joined the list.
USAir Chairman Seth Schofield told stockholders this week that the airline will stay with its strategy of focusing on the business traveler and is looking for ways to broaden the reach of its international service. USAir has taken steps toward improving its product and delivery by investing in technology, such as inventory management systems, and by boosting employee training in customer service. Schofield said USAir will "again make a significant investment" in training in 1996.
The Association of Flight Attendants (AFA) and the Air Line Pilots Association (ALPA) were the victors yesterday in representation elections at the four American Eagle carriers. The National Mediation Board determined in August that the Eagle carriers - Simmons, Flagship, Executive and Wings West - should be considered a single employer for the purpose of collective bargaining (DAILY, Aug. 15). Three flight attendant unions and three pilot unions have represented employees at the carriers.
The main challenge facing airlines in the Asia/Pacific region is managing competition, Malaysia-based aerospace specialist Charles Tyler said last week at IATA's first Asia/Pacific regional public relations meeting, held in Phuket, Thailand. "Asian aviation is at a crossroads," Tyler said in a regional overview. "The lights are at green, and it's go for growth." Southeast Asia will grow fast, he said, in particular Vietnam, with predicted growth of 19% per year, China at nearly 17% and Taiwan at more than 11%.
The state of Hawaii strongly supports All Nippon Airways' application for a one-year renewal of its authority to operate combination service between Nagoya, Japan, and Honolulu. The state said the authority was "clearly contemplated" by the 1989 Memorandum of Understanding between the U.S. and Japan.
National Transportation Safety Board, citing difficulties it encountered investigating the fatal crash of a Simmons Airlines ATR-72 on Oct. 31, 1994, has recommended that FAA's Air Traffic Control System Command Center retain some information for at least 15 days. The American Eagle aircraft crashed on a flight from Indianapolis to Chicago, killing all 68 aboard. The board has not yet determined the cause of the crash and said its investigation was hampered because the command center did not retain documents on ground delays.
Western Pacific Airlines and the Stardust Resort and Casino are offering mini-vacation packages to Las Vegas. The program, which runs through Dec. 29, is for three-night stays at Stardust with roundtrip air fare as low as $85. Stardust recently joined WestPac's air logo program. Its spokeswoman, showgirl Aki, clad in feathers and sequins, appears on the side of a WestPac airplane.
Gulfstream V powered by two BMW Rolls-Royce BR710 engines completed its first flight yesterday. Certification of the engine is scheduled next August. The BR710 also has been selected for the Bombardier Global Express, and the larger BR715 will power the new Douglas MD-95, ordered by ValuJet Airlines, in June 1999.
Fokker management board member R.F. Hendriksen will resign Jan. 1 concurrent with his appointment as management board member of Price Waterhouse in The Netherlands. His successor at Fokker has not been named.
Douglas Aircraft said yesterday it has begun producing MD-11 fuselages at its Long Beach, Calif., facility. The 60-feet sections had been produced by the Convair division of General Dynamics in San Diego, but the company decided last year to withdraw from the business. Douglas managers, United Aerospace Workers union leaders and representatives of state and local governments and local utilities devised a cost-reduction plan that made Long Beach competitive with other potential subcontract sources to produce the fuselages.
The Air Transport Association said yesterday it will ask the Internal Revenue Service to rescind a recently expressed policy that frequent flyer mileage accumulated in business travel can be taxed unless the traveler returns the mileage to the company. In a "technical advice memorandum" issued recently to an unidentified company, the IRS said that mileage accrued toward awards "constitutes a rebate in consideration of flying on a particular airline."
JetTrain has requested DOT permission to accept reservations and payment and begin issuing tickets before receiving its certificate. The carrier said it has completed all major preconditions for receipt of effective authority, except some requirements of the FAA certification process, which it expects to finish on or about Dec. 11, so it can begin operations Dec. 15.
Lufthansa Technik will provide technical support for all of Transbrasil's PW4000 engines under an agreement the two companies signed on Monday at the FEBRAL trade fair in Sao Paulo, Brazil. Under the pact, Lufthansa Technik will service the engines on Transbrasil's long-haul fleet of Boeing 767s.
Hong Kong's new airport is due to open in 1998 with capacity for 35 million passengers, according to officials. Current forecasts show traffic at 30 million by that date, about 4 million more than projected. Independent analysts estimate the new airport will reach capacity three years after opening, and sooner if China lifts restrictions on access.
