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Amadeus has called "illegal" Northwest's declaration that it will downgrade or possibly terminate its participation in System One because of fee increases that go into effect this month. Amadeus said Northwest's notice violates the participation agreement with System One and applicable law. The computer reservations system also said the 3.5% increase is the first raise in fees since transaction-based pricing was introduced in September 1994. Northwest, a parent of Worldspan, did not oppose another CRS's increase of 6.2% to 7.1% in June 1995, Amadeus said.
Alaska Airlines, in what it called an industry first, began last week to offer customers the ability to book tickets on the Internet. "We surveyed our frequent flyers, and nearly half said they wanted the convenience of making travel plans on their home or office computer," said Bill Ayer, VP-marketing and planning. Travelers also can book flights on Alaska's sister carrier, Horizon Air.
U.S. scheduled airlines likely will earn a net profit of $2 billion for 1995, the Air Transport Association said in its yearend report. Carriers earned $2.2 billion in the first three quarters of the year, and ATA expects a break-even fourth quarter. The association, which is trying to regain an exemption from the fuel tax, played down the record-breaking profits, which surpass all previous annual profits posted by the industry. The second best year for U.S. carriers was 1988, when profits totaled $1.69 billion.
Rolls-Royce promoted John Rose, currently managing director-Rolls- Royce Aerospace Group, chief executive following the retirement of Terrence Harrison; named Lord Moore non-executive deputy chairman, and promoted Colin Green to managing director-Aerospace Group. Ralph Robins continues as executive chairman of the company, and Kenneth Bushell was named VP-St. Louis office.
KLM filed a lawsuit against international partner Northwest and its directors over the U.S. carrier's move to put a poison pill provision in place (DAILY, Nov. 17). The suit, filed Dec. 27 in the Chancery Court of Delaware, claims Northwest's action was "not to protect the Northwest stockholders from hostile acquisition but to restrict KLM's ability to exercise" an option to increase its holdings in Northwest from 19% to 24%.
Expect TWA to hire more top executives in 1996 and sign as many as four new transatlantic code-share agreements, says S.G. Warburg. The finance house thinks the airline will employ new management and technology in a financial turnaround that will pick up steam later in the year.
Aircraft Owners and Pilots Association has asked FAA to approve VFR or IFR en route and terminal-approved Loran and GPS receivers for distance measuring purposes on instrument approaches. The association said it also is asking the agency to permit IFR use of panel-mount VFR Loran or GPS and hand-held GPS receivers. FAA wants to withdraw from a commitment to install DME at 87 locations in the U.S.
United offered employment to about 2,440 flight attendants during 1995, more than 1,000 more than any other carrier, according to the Future Aviation Professionals of America. National carrier World Airways hired 1,131 during the first 11 months. ValuJet hired 750 through November, was expected to hire 100 in December, and plans to add 50 a month through March.
DOT extended through Jan. 25 its deadline to act on Fine Airlines' complaint against Peru, citing "indications through diplomatic channels" that negotiations to resolve the dispute are under way. Fine complained that Peru barred it from operating to, from or over the country. Peru said Fine transported weapons to Ecuador when Ecuador and Peru were engaged in hostilities. (Docket OST-95-691)
Raytheon Aircraft named Doug Mahin VP-strategic planning&new business development; Keith Nadolski VP-sales and marketing, and Scott Kalister VP-marketing.
Winter fare reductions started last week, led by Delta's offer of up to 50% discounts, which was matched by other major carriers. The reduced fares apply to travel in the U.S. and to Canada and Mexico with a seven-day advance purchase. Tickets must be bought by Jan. 10 for travel Jan. 2-Feb. 29. USAir announced a new spring and summer fare schedule for east-west flights in more than 850 markets for travel March 8-Sept. 15. The prices are as much as 44% lower than regular tariffs.
After much feedback from customers, Continental has brought back the snack of choice, peanuts. Coach passengers can choose between dry roasted or honey roasted, as well as pretzels and goldfish. First-class, business- first and long-haul passengers have more of a selection. They get mixed nuts and ramekins.
FAA's most important safety goal for the new year is the sharing of safety information by airlines and the agency. Other safety objectives for 1996 are improvements in crew training, air traffic control equipment and procedures, weather observation and reporting, aircraft maintenance procedures and inspections, and flight operations procedures.
American Airlines pilots have been involved in two accidents little more than a month apart involving or coming close to controlled flight into terrain (CFIT). On Nov. 20, an American MD-80 apparently dropped below the minimum descent altitude before making a crash landing at Bradley Airport, Hartford, Conn., according to NTSB. The later accident was the CFIT Dec. 20 in Colombia.
Teamsters union and former America West employees not represented by the union have filed a federal class-action lawsuit against the airline claiming the employees who were engaged in a union organizing drive were wrongfully fired. America West recently decided to outsource its heavy maintenance to Tramco and save an estimated $35 million over five years by cutting positions of about 500 mechanics and related workers (DAILY, Dec. 5). The suit, filed Wednesday in U.S.
Morten Beyer&Associates forecasts only 771 aircraft retirements during the 1995-1999 period, an average of 154 a year, compared with the average of 268 a year forecast by "ever hopeful" Airbus Industrie, Boeing and Douglas. MBA says it is "obvious" that, barring a major regulatory or economic change, older aircraft will continue in service "another decade or two." Most will be refurbished and hushkitted, "many by major operators."
U.S.-Canada open skies bilateral agreement, signed last February, has spurred a 40% increase in scheduled jet aircraft frequencies and a 15% increase in passenger traffic. Those totals will grow again early this year, when carriers designated for new Montreal, Toronto and Vancouver service begin operations.
American Trans Air applied for authority to operate scheduled combination service between New York and two points in Ireland, Shannon and Dublin. The carrier said it plans to begin operating one weekly New York- Shannon roundtrip May 3, a weekly New York-Dublin roundtrip May 5 and two weekly New York-Shannon-Dublin roundtrips in June, using 362-passenger Lockheed L-1011s and 216-passenger Boeing 757s.
Philippine Airlines ordered four A340-300, eight A330-300 and 12 A320 aircraft last week from Airbus Industrie. The carrier reportedly is ordering eight 747-400s from Boeing as well, but a Boeing spokesman was unavailable for comment on Friday. The Airbus deliveries will begin in the second quarter of 1997 with the arrival of the first A340 and A330, followed in the third quarter by an A320.
Japan Airlines asked DOT to amend its permit and authorize scheduled combination service between Tokyo and Kailua-Kona, Hawaii, and between Sendai and Honolulu. In April, JAL plans to begin operating seven Tokyo- Kona roundtrips per week, nonstop or via Honolulu, in place of its currently authorized nonstops to Washington and one-stops to Boston via an authorized gateway. Proposing an amendment of its current exemption to serve Sendai-Honolulu, JAL seeks seven weekly nonstops on the route. (Dockets OST-95-973, OST-95-972, OST-95-844, OST-95-841&OST-95-464)
Changing its acquisition strategy, FAA intends to fund all three of its would-be Standard Terminal Automation Replacement System contractor teams - Boeing, Loral and Raytheon - to begin software development for the system at the same time it receives and evaluates their proposals to carry out the full program. According to DAILY affiliate ATC Market Report, the agency intends to issue its often-slipped request for STARS proposals March 1, passing up the most recent target of Dec. 20, and allow the companies 30 days to respond.
