Sen. Larry Pressler (R-S.D.), chairman of the Senate Commerce Committee, says the U.S. should adopt a careful strategy in negotiations with Japan on passenger service. "Handled poorly, the adverse trade consequences could be colossal," he said Friday in a floor speech.
Granted orally an exemption to America West to renew its authority for scheduled service between Phoenix and Mazatlan, Mexico...Granted orally an exemption to Lineas Aereas Costarricenses for (1) scheduled service between San Jose, Costa Rica, and New York, and to co-terminalize New York operations with Lacsa's existing foreign air carrier permit to serve Miami/New Orleans via Guatemala City, San Pedro Sula and Cancun; (2) designation of Acapulco as an intermediate point on Lacsa's authority to serve Los Angeles; (3) scheduled service between San Jose and San Francisco
Douglas Aircraft will make the first delivery to Saudi Arabian Airlines, an MD-11 freighter in the summer of 1997, under the $7 billion-plus in fleet replacement contracts with U.S. manufacturers made final last week (DAILY, Oct. 27). Boeing will deliver the first of five 747s in September 1997, and the first of 23 777s will follow in October. Douglas said delivery of 29 MD-90s probably will begin in the fourth quarter of 1997. Much of the purchase money is believed to be coming from internal Saudi sources, thanks in part to a moderate oil price recovery.
Fleet service workers at American have ratified a six-year contract, the eighth approved by the carrier's Transport Workers Union employees. The eight contracts cover about 27,000 employees, 14,000 of them fleet service workers. The other contracts cover mechanics and related workers, stores, instructors, simulator technicians, dispatchers, meteorologists and guards. The employees rejected an earlier version of the contract this month (DAILY, Oct. 3).
British Airways Chairman Colin Marshall has been appointed deputy president of the Confederation of British Industry, succeeding Colin Southgate, chairman of Thorn EMI. Marshall is expected to ascend to the presidency of the confederation next May.
Baltia Air Lines has leased space at New York Kennedy Airport in anticipation of starting service to St. Petersburg, Russia, in spring 1996 - three years after DOT revoked its authority following Baltia's fifth request to delay startup (DAILY, April 5, 1993). Baltia was awarded rights in May 1991 for service to three Russian points but could not secure financing. This time, Baltia has signed a letter of intent with Patterson Travis Inc., of Englewood, Colo., to manage its initial public offering.
Delta's Air Line Pilots Association unit has endorsed the company's business plan to increase flying in the 100-seat market. At a confidential briefing last week by Delta personnel and operations executives, the union's economic team presented its financial analysis, which concluded that the plan appears to be viable. ALPA's leadership requested further talks with management on developing the concept and assessing its effect on overall contract negotiations.
House passed last week by a 227 to 203 vote its version of the budget reconciliation bill (H.R.2491), including legislation to extend for two years the exemption for commercial aviation from the 4.3 cents-per-gallon tax on transportation fuels. The bill also would extend the aviation trust fund taxes through Sept. 30, 1996. The taxes are scheduled to expire at yearend. The fuel tax exemption, until Sept. 30, 1997, is retroactive to Sept. 30, the expiration date of the previous two-year exemption.
Standard&Poor's assigned a B rating to $75 million in America West 10.75% senior unsecured notes due 2005. The issue is an exchange for $75 million of 11.25% senior unsecured notes due in 2001. The corporate credit rating is a below-investment-grade B+, which S&P said reflects strong competition in the carrier's major markets and a "substantial" operating lease burden, offsetting its low cost structure. S&P said America West's outlook is stable.
Canadian Airlines International's senior VP-finance and chief financial officer, Drew Fitch, has resigned for personal reasons after 14 years, the company said Friday in announcing his successor, Kevin Benson, formerly CFO and chief executive of Trizec Corp. His appointment is effective immediately. Fitch negotiated the services deal with AMR Corp. last year, when AMR invested C$246 million in Canadian in return for a 25% ownership stake and a 20-year, multi-billion services pact. He also was largely responsible for CAI's financial restructuring last year.
Delta has lined up political support throughout the Southeast for its bid for Atlanta-Rome authority. During the last month, the airline has garnered letters of support to DOT Secretary Federico Pena from the entire congressional delegations of Alabama, Arkansas, Georgia, Louisiana and Mississippi, and almost all members of Congress from Florida and Tennessee. The legislators note that Delta's proposal would provide the first nonstop service to Italy from the South by a U.S. carrier.
Taiwan and Hong Kong reportedly have reached a consensus on the terms of a new bilateral aviation agreement. Each party will be able to designate two airlines to operate between Hong Kong and two points in Taiwan, Taipei and Kaohsiung. Each party's carriers will be allowed to conduct a total of 121 passenger flights and six cargo flights per week. Dragonair will be allowed to operate flights between Taiwan and mainland China, with a change in flight number during a stop in Hong Kong.
Efforts to improve U.S.-India aviation relations are moving forward on two fronts this week. Officials of both countries begin three days of negotiations in Delhi tomorrow, and United and Air India are continuing talks they began last week. In both, key issues are India's bid to operate fifth-freedom flights between London and Chicago, and United's plan to serve Delhi as part of its proposed round-the-world service, due to begin Dec. 14.
United Parcel Service's average daily volume of express packages and documents increased 12.8% in the third quarter to nearly 1.47 million. Domestic volume, (UPS Next Day Air, 2nd Day Air and 3 Day Select services) grew 11.2% and international volume (UPS Worldwide Express, Worldwide Expedited, Euro Express and Euro Expedited services) grew 32% over the third quarter last year. UPS said its strong express services performance was aided by the continuing expansion of the company's product offerings.
SimuFlite Training International selected Mark Malkosky manager- maintenance training and named William Wilhelmi senior manager-marketing and business development.
The board of GATX Corp. Friday declared a quarterly dividend of 40 cents per common share, payable Dec. 31 to shareholders of record Dec. 15. The board also declared a quarterly dividend of 62.5 cents per share on the $2.50 preferred stock, payable Dec. 1 to shareholders of record Nov. 15, and a quarterly dividend of 96.875 cents per share on the $3.875 cumulative convertible preferred stock, payable Feb. 1, 1996, to shareholders of record Jan. 15, 1996. The common and preferred dividends are unchanged from the previous quarter.
Asiana Airlines is seeking authority to operate expanded intermodal service and a one-year renewal of its exemption to operate Los Angeles-Houston and New York-Boston/Chicago intermodal cargo services. The expansion would enable the carrier to operate intermodal cargo service to 15 additional U.S. cities from Los Angeles, New York and San Francisco. Asiana said the intermodal authority it seeks is "comparable to rights currently granted or allowed by the Korean government to U.S. carriers operating in Korea." (Dockets 48727, OST-95-768&OST-95-769)
Laker Airways has applied for a certificate to operate scheduled and charter combination service, starting with New Orleans-Fort Lauderdale flights on Dec. 15, using 727-200 aircraft. It also intends to operate transatlantic charter passenger service, using three DC-10-30 aircraft (DAILY, Sept. 27). In the first year, the carrier plans to provide charter flights from Orlando and Fort Lauderdale to London Gatwick, Manchester, Glasgow and Berlin.
Mesaba Holdings' board has elected Robert Pohlad and Bryan Bedford, president of Mesaba, as new Class Three and Class One directors, respectively, and re-elected Donald Washburn and Raymond Zehr as Class One directors. Class One director's terms expire in 1998, Class Two terms in 1996 and Class Three terms in 1997. Mesaba Holdings is parent of Mesaba Airlines, a regional carrier operating as Northwest Airlink. As of today, its stock is traded on the Nasdaq National Market under the symbol MAIR instead of ATCC.
Despite predictions in some quarters that the role of travel agents will fade with the rise of ticketless travel and other technological innovations, corporate travel managers expect the reverse. According to a recent Worldspan survey, two-thirds of the managers think travel agents will retain their current role or become more important to the travel process over the next three years.
