Standard&Poor's has assigned its B+ rating to Atlas Air Inc.'s $115 million pass-through certificates due in 2005. The agency said the corporate credit rating is B+, and the rating outlook is stable. The ratings reflect the company's low operating cost structure and profitable, multi-year contracts with several international airlines for dedicated air freight transportation, offset by contract renewal risk and a highly competitive industry environment. Proceeds from the rated issue will be used to purchase used Boeing 747 freighters to expand operations.
The Executive Committee of VNV, the KLM pilots' union, adopted a no- confidence-in-management motion last week, signaling that its feud with the company is flaring again. Earlier this year, strained relations between the two led to a number of pilot strikes.
Swissair and Sabena will launch joint sales operations next year and offer a shuttle service between Brussels and two Swiss cities for the 1996 summer season as part of their new strategic partnership. Collaboration reflecting Swissair's acquisition of 49% of Sabena is "progressing on schedule and in line with the strategy agreed with our partner," said Paul Reutlinger, head of marketing at Swissair. At the end of October, both airlines introduced a "Statthalter" governor/administrator management structure for their sales organizations.
Air Canada is now "busting curfew" on its heavily traveled Montreal- Toronto "Rapidair" service, thanks to its expanding fleet of 50-passenger Canadair Regional Jets. Because the airplane is so quiet, the carrier now dispatches two flights from Montreal before Dorval Airport's 7 a.m. noise curfew is lifted - one at 6:30 a.m. and the second 10 minutes later. The first big jet pushes back at 6:45 a.m. for a 7 a.m. takeoff. Competitor Canadian Airlines International offers a 6:40 departure, but likewise cannot take off before 7 a.m.
SatoTravel and Atlanta Federal have signed a one-year, $18 million contract for government travel management. Under the contract, SatoTravel will serve employees in the Russell Federal Building, the Environmental Protection Agency, 101 Marietta Tower, the FAA, the Peachtree Federal Summit Building, the Department of Veterans Affairs, the National Weather Service and, when completed, the Atlanta Federal Center.
Rosenbluth International has launched Travel Service Solutions, which it says will export its core services and products to other travel agencies and travel-related companies. The program initially will include a 24-hour emergency service to assist travelers around the world; the Executive Traveller Hotel Programme with discounts on lodging; a negotiated rate package for car rentals and business services; a low-fare search system, and technical and non-technical training.
Dollar Rent A Car has published a 45-page magazine called Great Drives, featuring a dozen driving vacations. Great Drives highlights excursions "off the beaten path to some exciting scenic locations." Radisson Hospitality Worldwide and Best Western International hotels are featured.
Delegates attending the American Society of Travel Agents 65th World Travel Congress this week heard a recurring theme throughout the conference - start to embrace change. Emerging technology and how it relates to the future of the airline and agent business, and how it will affect their relationship, was a central issue. Thomas Lagow, executive VP-marketing for USAir, said, "We are on the cusp of another era of change," brought on by marketing developments and emerging technology.
Delta and Tower Air filed separate complaints yesterday against the government of India, with which the U.S. is negotiating a new bilateral. Delta said it is being denied its right under the current accord to operate daily service to Bombay because of India's failure to provide usable slots for the service, beginning Dec. 1. "On four days of the week, the arrival slots...and departure slots...are acceptable," said Delta.
Colorado Springs-based Western Pacific Airlines and Thrifty Car Rental have entered a four-year marketing agreement by which Thrifty will be the only rental car company allied with the carrier and the sixth company to participate in its Air Logo Program. Thrifty's logo and caveman mascot will be painted on a WestPac 737-300, WestPac and Thrifty said at the American Society of Travel Agents World Travel Congress, and the companies will offer car rental and parking discounts and develop trip packages.
National Transportation Safety Board will reconvene a public hearing Nov. 15 as part of its continuing investigation into the September 1994 crash of USAir Flight 427 near Pittsburgh. The hearing will begin at 9 a.m. at the Springfield, Va., Hilton Hotel.
Sen. Byron Dorgan (D-N.D.) and four co-sponsors this week introduced legislation (S.1399) to fund the essential air service program through a 10-cent fee on each enplanement at commercial service airports. Dorgan is expected to offer the legislation or a similar measure today when the Senate Commerce Committee considers the FAA reform bill (S.1239). A possible alternate Dorgan amendment, sources said, would not add a new fee but set aside a certain amount of money for EAS from the new user fees that would be imposed by S.1239.
Cyprus is targeting the U.S. market with a $1 million campaign, launched this month, to attract travelers to the Mediterranean island republic. The Cyprus Tourism Organization said the promotion builds on the code-sharing service started in October 1994 by Cyprus Airways and Gulf Air between New York Kennedy and Cyprus. The two carriers added Houston as the originating gateway at the end of last month. Gulf Air operates two weekly flights with A340s from Houston to New York, continuing nonstop to Larnaca Airport.
Rep. Toby Roth (R-Wis.) has introduced legislation (H.R.2579) to create a public/private National Tourism Organization, as envisioned by the recent White House Conference on Travel and Tourism. The organization, succeed to the U.S. Travel and Tourism Administration, will promote international travel to the U.S., whose market share has shrunk to less than 17%.
Los Angeles Board of Airport Commissioners issued a request for proposals and set specifications Tuesday for the purchase of 12 airfield buses powered by liquefied natural gas. The 130-seat buses, to be used at Los Angeles Airport, will carry passengers between the international terminal and remotely parked aircraft. The estimated cost for purchasing the buses is $6 million. "Forty or more carriers will be using them, depending on the flight, but they will be owned and operated by the Department of Airports," airport spokeswoman Diane Scully said.
Fuel Cost and Consumption U.S. Majors Nationals and Large Regionals October 1994 - September 1995 Total Total Cost Gallons (Dollars) 1994 October Domestic 1,055,773,412 583,067,003 International 379,729,742 234,590,562 System Total 1,435,503,154 817,657,565
Target Airways, operating as Great American Airways, has applied for a certificate to operate scheduled interstate and overseas service, proposing to serve Salt Lake City and Wendover, Utah. Initially, Great American plans to offer once-weekly flights using MD-87 aircraft. The proposal grows out an agreement between the carrier and Stateline Properties, Inc., which has hotel and casino interests in Wendover. The carrier operates charter flights to Wendover regularly, as part of a public charter program organized and marketed by Stateline.
Tower Air plans to add Rio de Janeiro to its route network Dec. 16 and change its scheduled service to Sao Paulo. The carrier will operate to Brazil five times per week - twice from New York Kennedy to Rio via Sao Paulo; once to Rio via Miami and Sao Paulo, and twice nonstop from Miami to Sao Paulo, with onward service to Rio. It will serve the routes with Boeing 747s configured for two classes of service.
KLM's consolidated October traffic - including passengers, freight and mail - increased 12% over the same month last year, to 721.3 million revenue ton kilometers, on 15% more capacity, causing the overall load factor to decline 2.2 percentage points to 75%. Passenger traffic gained 11% to 4.01 billion revenue passenger kilometers on 10% more capacity, boosting the passenger load factor 0.9 points to 76%. Passenger traffic increased 29% on routes to the Middle East and Southern Asia, 18% to the Asia/Pacific region and 17% to the Caribbean.
Radisson Hotels Worldwide says it will achieve its goal of enrolling 50% of the world's automated travel agents in its Look To Book promotion by the end of the year. Under the three-year-old program, agents who book Radisson earn points, which are exchanged for travel and merchandise awards, the total value of which to date is more than $3.8 million.
GETS Marketing Company has signed a partnership agreement with the Civil Aviation Administration of China that will provide for connectivity between the Unisys-based GETS system in Atlanta and the CAAC system in Beijing.
Northwest has received commitments for a new $300 million unsecured term loan it will use, with general corporate funds, to prepay the $837 million debt remaining from its $3.1 billion 1989 leveraged buyout bank loan, the airline company said yesterday. The new loan facility also includes a $200 million revolving line of credit. Northwest will prepay the LBO loan by applying $537 million of cash on hand - its total stood at $1.5 billion as of Oct. 31 - and the proceeds of the term loan. The LBO loan matures in June 1997.
American Society of Travel Agents World Congress this week in Philadelphia did not miss the opportunity to take a few jabs at airlines for doing away with the 10% commission, although speakers avoided a heavy-handed approach. Judson Green, president of Walt Disney Attractions, said that perhaps Paul Revere's message should have been "10 if by land, 10 if by sea, not that much if by air."
Volga-Dnepr J.S. Cargo Airline is challenging United's opposition to its application to operate new Russia-U.S. service. United asked DOT to turn down new service for Volga-Dnepr and limit renewal of its existing authority to 179 days, complaining that Russia is denying United's application to code share to Moscow with Lufthansa, "an operating right that is clearly available to United under the U.S.-Russia bilateral." Volga-Dnepr applied to provide scheduled all-cargo service between the co- terminal points Ulanovsk and Moscow, Russia, and New York.
Sabre Interactive, which markets easySABRE, is making it easier for customers to plan their own trips with FlightFinder, software that searches for the lowest fare available between multiple cities, and displays the three lowest-priced itineraries. The system is available only on easySABRE through Prodigy but will be picked up Dec. 15 by other online networks offering easySABRE.
