Oracle Corp. announced that TransQuest, the AT&T-Delta Air Lines joint venture company, has chosen Oracle7 software in an attempt to make Delta more efficient, cut costs and aid in electronic ticketing capabilities. Under a multi-year, multi-million-dollar contract, Oracle7 will be the database for Delta's standard information architecture.
Nancy McFadden was sworn in as DOT general counsel yesterday. Formerly the deputy associate attorney general at the Department of Justice, McFadden takes over a position left vacant when Stephen Kaplan left in July.
The financial results of Great Lakes Aviation for the December quarter will be well below the Wall Street estimates of 10 cents per share, the company said last week. Great Lakes did not provide its own estimate but said it expects a loss for the quarter, excluding a gain of $3.8 million for the sale of slots, which it had already reported. The company blamed the loss on operating problems with 30-seat Brasilias caused by an industry-wide shortage of propeller blades.
Continental and CSA have filed for authority to operated code-share service between the Czech Republic and the U.S. Under the arrangement, Continental will display its code on four weekly flights between Prague and Newark, and the Czech flag carrier will put its code on Continental and Continental Express service between Newark and Cleveland, Chicago and Washington, beginning March 31.
China Southern Airlines has received its first Boeing 777, becoming the 11th customer for the aircraft. Other Asian airlines that have ordered the 777 include All Nippon Airways, Thai Airways, Japan Airlines, Cathay Pacific, Japan Air System, Korean Air Lines and Singapore Airlines. Boeing said orders and commitments for the 777 now total 230. China Southern is based in Guangzhou.
America West has changed its stock repurchase program so that it will be able to buy back warrants as well as common shares. The original plan, announced in September, allowed the carrier to repurchase up to 2.5 million shares of class B common stock over a two-year period. The amendment allows the airline to purchase all of its 10.3 million outstanding warrants. Each warrant lets a holder buy a share of Class B common stock before Aug. 25, 1999, for $12.74.
Yemen Airways ordered two A310-300s and took options on two more. The two aircraft will be delivered in March 1997 and will be used on nonstop services to Europe, southeast Asia and the U.S. as well as on regional routes. The carrier has not yet selected which type of engines will power the aircraft, which will seat 191 in a three-class layout.
Workers at British Airways think highly of the company but believe they do not get enough respect, according to a recent survey by an independent research firm. Only 38% of the 1,000 employees polled think they are treated with respect and 39% believe the company is open and honest when dealing with employees, the survey found.
United netted $10 million to $13 million in savings through a program launched last year to get workers to show up for work consistently. From March to August, the airline experienced a 16.8% increase in employee dependability and 30,000 workers turned in perfect attendance records.
Most airlines have decided to reduce the overall price of a ticket by 10% as long as the federal domestic airline ticket tax remains a casualty of the White House-Congressional federal budget impasse. American and Delta were the only carriers to benefit during the weekend from national television network coverage as airlines that were passing savings on to the consumer. The only major airline that pointed out it has increased the price of the fare by an amount equal to the tax is Southwest.
TWA will pay interest on some notes and preferred stock with more stock rather than cash. The carrier said the decision applies to its 12% senior secured reset notes, due in 1998. The interest will be paid Feb. 1 to holders of record as of Jan. 17. The carrier also will pay dividends in common stock on its 12% cumulative preferred stock for the three-month period ending Jan. 31. That payment also will be made Feb. 1, to holders of record as of Jan. 15.
FAA said it erred in approving modifications by GATX Airlog, which turned 10 747s into freighters, and ordered restrictions on the payloads they can carry until "unsafe" conditions are corrected. American International Airways operates two of the aircraft, Evergreen three, Polar Air Cargo three and Tower Air two. FAA approved several supplemental type certificates (STCs), beginning in 1988, concerning the conversions of 747- 100/200 aircraft into freighters.
Air Express International said it acquired a 40% interest in AEI Emirates, its exclusive agent in Dubai. AEI Emirates last year established a warehousing and distribution center in Dubai's free zone. AEI said it also forged an alliance with Hekla, one of Iceland's largest domestic distribution companies. The resulting new company, AEI Iceland, will offer air, ocean and express freight services to companies trading with Iceland.
Virgin Atlantic Airways is close to a $3 billion order with Boeing for 10 777s. Taking its first aircraft in 1998, Virgin would use the twinjets for expansion and fleet replacement.
Airborne Freight Corp., operating as Airborne Express, said that it has entered an agreement to acquire nine used 767-200s from Itochu Air Lease Corp. and three from Marubeni Corp., and it will pursue acquisition of another 10 to 15 used 767-200s in 2000 through 2004. Cost of acquiring and modifying the first 12 aircraft into freighters will be about $290 million, the company said. The additional aircraft will cost about $310 million for a projected total of $600 million over an eight-year period.
Air Line Pilots Association's Executive Council is expected to ratify tentatively today the proposal to merge with the Independent Association of Continental Pilots. If it approves, the acceptance is contingent on a vote by Continental's pilots to join ALPA, and on agreement later by ALPA's executive board. ALPA expects the board to have the final word by May.
Kenneth Copeland has been named Nav Canada's first president and chief executive, effective Jan. 8. Nav Canada is the new organization that will operate the nation's air traffic control system. Copeland is acting president and chief executive of the Ontario Workers Compensation Board and previously was president and CEO of Digital Equipment of Canada Ltd. for 10 years.
Airline management will negotiate for employee concessions in 1996 in the wake of a year of record profits rather than the low-fare competition and deep cost-cutting that paved the way toward the tough concessions of 1995.
U.S. airlines were mulling Friday whether to change ticket prices if the 10% ticket tax expired yesterday in the absence of a federal budget agreement. Expecting a lapse in the ticket tax to last only a short time, airlines believe it would create more hassles to change fares in computer reservations systems, only to restore them when the tax is reinstated. It was unclear whether passengers who purchased tickets in 1995 for travel in 1996 would be eligible for a refund.
Although DOT Secretary Federico Pena has agreed to continue staff- level aviation talks with the U.K., a U.S. official says there is "no particular basis for any hope right now" for a breakthrough in the lengthening impasse. "We see no evidence at the moment that the British are going to afford us the flexibility that we need, especially with respect to Heathrow access."
Canadair Business Aircraft Division of Bombardier appointed Matthew Hartnett VP-used aircraft sales and Richard Beine sales director for its U.S. subsidiary, Canadair Challenger.
DOT has issued a show cause order tentatively granting Laker Airways a certificate to operate scheduled domestic and international service. The department said it also will allow the carrier to enter into agreements with charter operators and receive contract deposits after issuance of a final order on the certification proceeding. Laker plans to operate scheduled combination service initially between New Orleans and Fort Lauderdale, using Boeing 727-200 aircraft, and transatlantic charter passenger service using three DC-10-30 aircraft (DAILY, Oct. 30).
Airport Group International Executive VP and General Manager Robert Aaronson will become interim president and chief executive following the resignation of Viggo Butler.
Sabre Decision Technologies and China Southern Airlines have signed a contract to plan and design a state-of-the-art multimillion dollar airline systems operations control center in Guangzhou, China. Sabre will provide the computer systems and software, American will assist with training China Southern employees to operate the center, and Sabre Computer Services will help develop air/ground communications systems. The project will begin this spring. AMR China, based in Beijing, helped secure the contract.
