Shares of Boeing and McDonnell Douglas ballooned yesterday on Wall Street after The Wall Street Journal reported that the two companies might merge. But the stocks fell slightly in the late afternoon as it became clear that the report was premature and traders began to think a less ambitious deal - or no deal at all - might instead be in the offing. Finance and industry sources told The DAILY yesterday that talks have occurred, but MDC also has talked with Northrop Grumman and Loral on a variety of topics and scenarios.
National Tour Association Executive VP Jim Host will chair the Traveler Safety Team envisioned by the recent White House Conference on Travel and Tourism. A 17-member board, to be chosen during the coming month, will represent all industry segments, law enforcement, mayors, national media and the public. Merrett Stierheim, Greater Miami Convention and Visitors Bureau president and CEO, will be a member, Commerce Under Secretary Greg Farmer said yesterday in Miami.
All Nippon Airways' international passenger volume rose 24.1% in September to 199,748 passengers. The carrier's domestic traffic was up 7.3% to 1.9 million for the month. The domestic load factor rose to 60% from 57.9% in September a year ago, but the international load factor declined to 73.8% from 79.3%
Reflectone Inc. reported operating income of $2.4 million for the third quarter, compared with an operating loss of $1.7 million during the same 1994 quarter. Net income was $1.3 million compared with a net loss of $2 million. Revenues jumped 64% to $25.3 million from $15.5 million.
Great Lakes Aviation's operating results for the quarter and nine months ended Sept. 30 contain some statistical oddities that could give new meaning to the term "model of consistency" as it might apply to Great Lakes. The rapidly expanding carrier's yield - revenue per revenue passenger mile - was identical, to the tenth of a penny, for the 1995 and 1994 nine-month periods (31.3 cents).
Transport Canada has certificated the Canadair Jet, which uses the Flight Dynamics HGS 2100 Head-Up Guidance System, for Cat IIIA flight operations, Bombardier announced. So equipped, the Canadair Jet can be hand-flown to Cat. IIIa limits of 50-foot decision height and 700-foot runway visual range, Bombardier said. Certification by the Joint Airworthiness Authorities in Europe and the U.S. FAA are expected to follow shortly, the manufacturer said.
Abacus Distribution Systems has opened a representative office in Beijing. The Singapore-based computer reservations system company recently signed a CRS cooperation agreement with the Civil Aviation Administration of China. The Abacus Beijing office is located at the Kunlun Hotel in the eastern part of the Chinese capital and will be responsible for local coordination, service support and business development.
Budget Rent A Car has upgraded its participation status in the Worldspan computer reservations system to AccessPlus. The upgrade will give Worldspan subscribers greater access to the rental car company's internal database for direct bookings and enable them to receive instant confirmation numbers through the CRS prior to ending a booking transaction. Budget went online in AccessPlus Nov. 6.
CODE-SHARING REGIONAL CARRIER SCHEDULES ANNOUNCED OR IMPLEMENTED OCTOBER 1995 Domestic City-Pairs ------------------------------------------------------- Carriers Added Dropped New Shared From Major To Major Alaska Alns Horizon Alns Boise-San Jose Portland-Sun Valley America West Desert Sun Phoenix-Montrose, Colo. Mesa Phoenix-Telluride, Colo. American Alns
America West's board of directors and Chairman and Chief Executive William Franke have signed a three-year extension of his employment contract, through Dec. 31, 1998. Richard Kraemer, chairman of the Compensation Committee, said, "The board believes that the agreement ensures stability and continuity during this critical period in the carrier's development." Franke became chairman in September 1992 and was elected chief executive in December 1993. By staying on, he will lead the company's strategic growth plan.
Federal Bar Association's Transportation Law Section will hold its annual counsel's reception from 6 to 8 p.m. Dec. 4 at the Rayburn House Office Building, Room 2167, in Washington, D.C. Rep. James Oberstar (D-Minn.), the House aviation subcommittee's ranking minority member, has been invited to present the section's Transportation Lawyer of the Year Award to David Heymsfeld, minority staff director, House Committee on Transportation and Infrastructure. DOT general counsel and agency chief counsels are expected to attend.
FAA's $475 million wide area augmentation system (WAAS) is in trouble again because the Defense Department has renewed its reservations about whether enhancements of Global Positioning System accuracy should be permitted and, if so, whether they should be encrypted. WAAS is to be a network of 24 to 36 ground stations that will offer GPS satellite signals the integrity to enable aircraft to use them for primary navigation.
American's Allied Pilots Association Furlough Committee plans to publish an anthology of jokes and true stories about airline flight crews, with all proceeds to go to the Furloughed Pilot Loan Fund. American has 534 pilots on furlough and has lent $465,000 to them, interest-free. Revenue from the book will be given pilots' families in the form of grants. APA Director of Communications Gregg Overman said the association welcomes contributions from anyone in the industry. Call 1-800-323-1470, ext. 255, to contribute a story.
Mexicargo has requested authority from DOT to operate charter all-cargo flights between the U.S. and Mexico. The new carrier asked for approval by Dec. 1 and said it intends to begin serving the U.S. as soon as it receives approval. It plans initially to operate a 727-225 freighter leased from Joda Partnership, and it hopes to lease more aircraft in the future. Mexicargo has entered into a maintenance agreement with Mexicana Airlines. (Docket OST-95-825)
Air Canada's systemwide passenger traffic increased 11.1% last month on 7.4% more capacity, pushing its load factor up 2.1 percentage points to 64.2%. Air Canada said its domestic traffic rose 11.1% on 7% more capacity, and its international traffic also rose 11.1%, but on 7.8% more capacity. Through the first 10 months of this year, systemwide passenger traffic was up 11.4% on 2% more capacity, boosting the load factor six points to 70.8%.
Travel to Jordan from the Americas increased significantly in the first nine months of this year over the same 1994 period. Arrivals are up 44% from the U.S., 46% from Canada, 87% from Mexico, 103% from Brazil and 148% from Argentina. Looking at Asia/Pacific markets, travel from Singapore and Hong Kong to Jordan has dropped 26% and 86%, respectively, said the Jordan Ministry of Tourism, while travel from Malaysia has leaped 105%.
Best Western International has chosen Digital AlphaServer 8400 TurboLaser systems to power its new worldwide central reservations system. The deal, including thousands of personal computers, is worth more than $12 million to Digital, and Best Western expects it to generate more than $50 million in incremental room revenue and reduced operating costs. The system, to be operational by March 15, will provide guest histories, group booking capabilities, revenue management, travel agent commission data and property information.
Air New Zealand is offering "Take A Mate" discounted companion fares for travel from Los Angeles to Australia and New Zealand. Fares to Sydney are priced at $1,198 for the first ticket and $599 for a companion, and similar discounts are available for travel to New Zealand and selected destinations within Australia. The fares must be ticketed by Dec. 31 for travel beginning between Feb. 1 and March 31. The minimum stay is seven days, and the maximum stay is 60 days.
Challenge Air Cargo said it has increased its winter schedule from 84 to 108 weekly flights between the U.S. and Latin America to meet the demands for additional capacity. It offers the service between Miami and 17 cities in 14 Latin American countries.
World Airways banned smoking on all New York-Tel Aviv scheduled flights, citing a steady decline in demand for smoking seats since it launched the service last July. Air Cargo
Budget Rent a Car has signed a franchise agreement with Italy's oldest domestic car rental company, Maggiore Rent-a-Car. The agreement will increase Budget locations and fleet size 300% by March. The Maggiore/Budget name will appear at sites that include all of Italy's 29 airports and 12 railway stations. Budget said Maggiore captures 23% of the car rental market in Italy.
