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.
American will establish 500 jobs for maintenance personnel in Tulsa as part of an Oklahoma state program that provides incentives for companies to create high-quality jobs. A decision to keep 16 727s it planned to retire, plus the need to maintain its maturing fleet of 650 aircraft, led the carrier to recall 400 furloughed mechanics last month, and it thinks an early-out provision in its Transport Workers Union contract will require it to hire yet another 450 over the next two years. American stresses that its fleet is not growing.
Tower Air has withdrawn its complaint against the government of India, saying it has received slots at Bombay, enabling it to operate two weekly flights. Tower had filed the complaint last month asserting that India was prohibiting it from operating a second weekly flight to Bombay (DAILY, Nov. 9). (Docket OST-95-803)
Continental Micronesia has asked for a five-year renewal of its Route 171 certificate authority to provide scheduled combination service between Guam and Tokyo. The carrier currently operates daily nonstop service on the route, supplemented by 10 weekly one-stop roundtrips via Saipan. All service is operated with DC-10 aircraft. (Docket 48238&OST-95-869)
Compagnie Nationale Air France, parent of the French flag carrier and Air Inter, posted a pre-tax profit of 176 million francs (US$36.08 million, at current exchange rates of about 4.8 francs per U.S. dollar) for the first six months of its 1995-96 fiscal year, compared with a loss of 857 million francs (US$175.7 million) a year ago. Chairman Christian Blanc nevertheless expects a loss of 1.7 billion-1.8 billion francs for the full year, partly because of the weak U.S. dollar. Results also will suffer from current labor unrest.
Delta Shuttle will begin offering $49 Saturday-only fares Dec. 2 on its New York-Boston and New York-Washington National shuttle flights. The prices are good through Jan. 27. Currently, the lowest shuttle fare is $77.
Air Canada launched yesterday a sales promotion offering reduced fares to more than 100 worldwide destinations. Under the promotion, the carrier is offering five "affordable fares," ranging from $199 to $999, on more than 38,000 flights to destinations across Canada, the U.S., the Caribbean, Europe, the Middle East and Asia. The sale tickets can be acquired through Friday for travel between Jan. 15 and March 3 to most destinations. The sale ends Feb. 18, however, for flights to Antigua, Barbados, Nassau, St. Lucia, Florida, Honolulu, New Delhi and Tel Aviv.
Federal Express will receive special treatment from Taiwan authorities to facilitate its plan to develop an air cargo transshipment center at Chiang Kai-shek Airport, according to an official of the island's Ministry of Transportation as quoted by Taiwan's Central News Agency. According to the report, the ministry will coordinate with government aviation, customs, road and postal and telecommunications authorities to assist FedEx in negotiations over technical issues.
Delta is seeking renewal of its authority to operate scheduled combination service between the terminal points Atlanta and Manchester, England. The carrier operates seven roundtrips per week on the route, using L-1011 or other suitable aircraft depending on market conditions. (Docket OST-95- 866)
Continental has completed private placement of $225 million of 8.5% convertible trust originated preferred securities of a special purpose finance trust that are convertible into Class B common stock at an initial price of $48.36 per share. Proceeds will be used to redeem or repurchase $165 million in convertible secured debentures before Aug. 1, when they would have been convertible into Class B common stock at $26 per share. Continental also will prepay a $42 million note issued to Air Canada.
