Taiwan's Civil Aeronautics Administration, as expected, has granted authority to provide service between Taiwan and Macau to EVA Airways and TransAsia Airways (DAILY, Oct. 23). Both carriers have said they are prepared to begin service as early as the second week of December, with EVA expected to begin flying the route on Dec. 8, using new Boeing 767-200 aircraft.
Certification testing begins next month on McDonnell Douglas Helicopters' first production MD 600N helicopter. The flight tests are expected to be completed in the third quarter of 1996. The first of the eight-place aircraft will go to AirStar, a Grand Canyon operator that specializes in tourist flights. The helicopter has an Allison turbine engine and a six- blade main rotor.
CS First Boston analyst Paul Karos has reinstated coverage of Northwest Airlines with a "buy" rating. Karos estimated that the carrier's fourth quarter earnings will come in at 70 cents per share on a fully distributed basis, and he set a 12-month price-per-share target of $50.
Early successes in DOT Secretary Federico Pena's Asian trip include an agreement with officials in Bangkok to resume U.S.-Thailand aviation negotiations and discussions in Jakarta on expanding U.S.-Indonesia air services, Pena said in a speech last week to the American Chamber of Commerce in Kuala Lumpur. Pena said he advanced a number of pending transportation contracts in Thailand, and that officials in Jakarta agreed to "elevate these discussions to a senior level in the near future."
Reno Air said Friday it has made a non-cash adjustment of nearly $1.4 million to non-operating expenses for the second quarter of 1995. The adjustment reflects an accounting charge related to Reno's conversion of 7.25% convertible subordinated notes due on July 15, 1996. Originally, the notes were convertible into shares of common stock at about $7.03 per share. On May 8, holders of $4.55 million principal amount of notes accepted the company's offer to convert the notes into common stock at a ratio of one share of stock for each $5 principal amount of notes.
Southwest is about 55% through its program to equip its 737 fleet with head-up displays and has trained a like percentage of its pilots in their use. The carrier expects to get a "tremendous leg up on competition" in completing its schedule at fogged-in airports, particularly on the West Coast. "This is going to be a schedule saver," Southwest says.
Laser beams from light shows around hotels and amusement parks have struck 52 aircraft pilots, according to a National Transportation Safety Board official. The issue is of growing concern to the aviation industry, and FAA met last week with the Food and Drug Administration, which controls laser devices. NTSB is investigating a laser incident in which a Southwest pilot had to turn over control of his aircraft.
Western Pacific Airlines intends to begin service to Atlanta Jan. 8 with daily nonstops from Colorado Springs. Introductory one-way fares for travel Jan. 8-Jan. 24 will be $79. The regular fare rates will be announced Dec. 6. Atlanta is WestPac's 17th destination since it started service April 28.
DOT announced Friday program-wide reductions in essential air service subsidies, effective Nov. 27, to accommodate the reduction in EAS funding for fiscal 1996 to $22.6 million from the $33.4 million that was appropriated in fiscal 1995. DOT said it is delaying the effective date until Nov. 27 to avoid disruptions during the Thanksgiving holiday weekend. The department is accepting comments on the order through Nov. 30. In the same order, DOT tentatively selected GP Express d/b/a Continental Connection, to provide EAS at five Nebraska communities, beginning Nov.
Air Canada may petition the Canadian government to rescind its 1993 approval of AMR Corp.'s C$246 million investment in Canadian Airlines International, an Air Canada spokeswoman confirmed. She said that if the U.S. DOT approves the Canadian/American request for antitrust immunity for their alliance, then Air Canada would consider asking Canada's National Transportation Agency to review its decision on the investment. Air Canada may seek antitrust immunity for its alliances with United and Continental if the Canadian/American partnership gets the coverage.
- In Federal Register dated Nov. 9...Issued an airworthiness directive on certain Airbus A320 aircraft requiring reinforcement of the fuselage frame. - In FR dated Nov. 13...Issued an AD on Boeing 737 aircraft concerning procedures for shutting down the auxiliary power unit when an APU fire is indicated...Issued an AD on British Aerospace 111-400 aircraft requiring inspection of the rod ends of the lift dumper...Issued an AD on certain Teledyne Continental Motors reciprocating engines concerning damage due to use of the wrong octane avgas.
Lufthansa and United have added Colorado Springs, Madison, Rochester, Boise, Oklahoma City and Kahului/Maui to their list of code-sharing cities. Kiev was added recently to the international schedule, which now includes more than 400 daily flights to 87 destinations in North America, Europe, the Middle East and Africa. The airlines currently offer code-share service from a total of 52 cities in the U.S. The most popular destinations for European travelers on code-share flights to the U.S. are Denver, San Diego, Orlando and Tampa, Lufthansa said.
Air New Zealand is entering the Indian market with the appointment this week of New Delhi-based Inter Globe Air Transport as its marketing representative for the country. "A number of favorable factors in India give us the confidence that the timing is right to introduce the product we have to offer," said Air New Zealand Managing Director Jim McCrea. "Initially, we plan to work with a number of partner airlines to carry passengers to connect to Air New Zealand flights, principally in Bangkok, Singapore and Hong Kong," he said.
U.S. National Carriers Productivity, In Revenues and Expenses Per Employee Second Quarter 1995, In Dollars 20 Total Total Operating Operating Revenues Expenses Airline (000) (000) Alaska 298,588 275,049 Aloha 53,707 57,782 American Trans Air 165,560 159,907
Senate FAA reform legislation (S.1239) approved this month by the Commerce Committee is "out of the mainstream" and poses a safety concern because "it's not unreasonable to assume that some pilots may avoid using the air traffic control system to minimize charges," according to Phil Boyer, president of the Aircraft Owners and Pilots Association. Although the bill would exempt sport and recreation aircraft from new user fees, more than 60% of AOPA members use general aviation aircraft for business purposes, Boyer said.
Spirit Airlines will inaugurate service from Detroit Metropolitan Airport to Philadelphia Dec. 15, offering fares that range from $49 to $89 one way and can be purchased until the day of travel. Spirit will operate one flight a day in the market. It currently flies from Detroit to four Florida points and Atlantic City.
U.S. Major Carriers Productivity, In RPMs And ASMs Per Employee Second Quarter 1995 Revenue Available Passenger Seat Miles Miles Airline (000) (000) America West 3,497,605 4,858,108 American 25,971,787 38,702,515 Continental 9,263,083 13,498,120 Delta 21,873,173 33,028,158
Northwest Airlines Corp.'s board yesterday adopted an anti-takeover "poison pill" over the objection of shareholder KLM, prompting the Dutch carrier's chief executive, Pieter Bouw, to suggest that his company may consider other U.S. partners.
Delta reported yesterday a $77 million operating profit on its transatlantic operations for the September quarter and a $7 million profit for the 12-month period that ended Sept. 30 - the first time Delta has made money on a full-year basis since it bought Pan Am's money-losing operation in 1991.
AMR Eagle has named Lance McDonald VP of flight operations. VP of flight operations for Simmons Airlines for seven years, McDonald replaces Robert Zoller, who is retiring from AMR Corp. He will direct development of "standardized, cost-effective flight operations policies and procedures," oversee revision of fleet-specific operations manuals, coordinate operational and regulatory issues with FAA, direct operations of Eagle's Emergency Management Center and supervise Systems Operations Control.
