Overall cost of travel dropped 1.7% in September from August due to falling lodging, fuel and airline ticket prices. For the year-to-date, however, lodging prices are up 3.8%, says the Travel Industry Association of America, compared with an increase in the travel price index of 2.8%.
Midwest Express Holdings' third quarter earnings more than tripled from a year ago to $6.3 million, and its operating profit more than quadrupled to nearly $11.1 million. Formerly a wholly owned subsidiary of Kimberly- Clark, Midwest Express Holdings completed an initial public offering Sept. 22, and the former parent's stake is down to 20%-30% (DAILY, Sept. 25). The airline company's results include the effects of $1.6 million in one- time charges related to the grant of shares to employees through the company's 401(k) plan and costs related to the IPO.
Celebrating 50 years of transatlantic flight by a landplane, American participated in two ceremonies this week in England and Ireland. American Overseas Airlines (AOA) flew the first scheduled, commercial transatlantic flight Oct. 23, 1945, transporting 32 passengers and a crew of 10 on the nearly 24-hour trip. The DC-4 "Flagship London" departed New York LaGuardia to London Hurn Airport via Boston, Gander and Shannon. A plaque was hung by local officials this week at Hurn Airport, and Shannon Airport officials dedicated a monument.
Exit Information Guide Inc. has published a Florida Travelers Discount Guide, promising to save vacationers money. The 175-page booklet has exit- by-exit information on restaurants, hotels and attractions along Florida's highways, and includes $6,000 in discount coupons. To receive the guide by mail, send $3 to Exit Information Guide, Dept. LF1095, 4205 N.W. 6th St., Gainesville, Fla. 32609.
Air Canada yesterday unveiled The Pumpkin Fare for travel on all its U.S.- bound flights. The fares represent savings of up to 40% off the price of the lowest year-round roundtrip fares on all Air Canada flights to the U.S. and on selected Air Canada Connector carrier routes. The special fare is valid for travel between Nov. 1 and Feb. 29 (Feb. 16 for Florida destinations). It requires a Saturday night stay and a seven-day advance booking. Air Canada flies 45 nonstop routes between Canada and the U.S.
Saudi defense and aviation minister Prince Sultan bin Abdul Aziz is expected to sign the long-awaited $7.5 billion Saudi Arabian Airlines jetliner deal with Boeing and McDonnell Douglas this morning at a White House ceremony. Particulars are unchanged - 61 aircraft, with 33 for Douglas and 28 for Boeing. The first aircraft, a 747, probably will be delivered in September 1997, followed a month later by the first of 23 777- 200s. General Electric engines will power the 747s and 777s and four MD- 11s.
Direct economic impact of the group tour industry in the U.S. in 1994 was $7.8 billion, up 7% from 1993, according to a Tourism Works For America Council special report. The document, which provides data on an array of issues, is designed to give a complete picture of the industry. Copies are available for $15 from The Tourism Works For America Council, Attn.: Fulfillment, 1100 New York Ave. N.W., Suite 450, Washington, D.C. 20005- 3934.
National Consumer League statistics show that one in every five cases of fraudulent activity in the U.S. involves travel, attendees were told at the American Society of Travel Agents' annual conference on travel scams in Miami. The league reports that more than $100 billion is lost to fraud every year, and travel fraud ranks second. ASTA holds the conference to educate consumer groups on avoiding scams, and President Jeanne Epping said, "We advise consumers that if something sounds too good to be true, it probably is."
Canadian Airlines International's September traffic rose 12.8% from the same month last year on 14.6% more capacity, causing its load factor to decline 1.1 percentage points to 72.8%. "Canadian's September traffic stats show the strongest growth this year," said Don Casey, the airline's VP-capacity planning. "This is a very encouraging trend," he said. Through the first nine months of 1995, Canadian's traffic gained 3.7% on 11.5% more capacity, causing its load factor to drop five points to 66.5%.
The 30-day cooling-off period between FedEx and the Air Line Pilots Association will expire at 12:01 a.m. EST, Nov. 25. ALPA rejected arbitration Tuesday after the company did not accept conditions the union wanted to place on entering into arbitration (DAILY, Oct. 25).
American has objected to DOT's tentative selection of Continental to operate new Newark-Bogota-Lima service over American's application to operate to Lima from Dallas/Fort Worth. American and United already operate in the Newark-Lima market (DAILY, Oct. 18), and American argues that DOT has ignored the significance of selecting a new gateway to Peru, as well as its nonstop proposal versus Continental's one-stop flights.
Virgin Atlantic Airways is offering travel agents up to $400 in bonuses for every roundtrip Upper Class ticket they sell for flights from Miami or San Francisco to London. The carrier is paying agents a $200 bonus and their agencies a matching $200, in addition to regular commissions. For one-way tickets, Virgin will pay a total of $200 per sector flown ($100 for the agent, $100 for the agency). The offer is effective for full-fare J-class bookings made by Feb. 15. Travel must be U.S.-originating and must be completed by Feb. 29.
Dr. Russell Rosenberg, a sleep expert, will speak about jet lag and other travel-related sleep problems Nov. 5 at the ASTA World Travel Congress. Rosenberg will offer tips on how to beat jet lag, discuss whether melatonin really works and give advice on adjusting to new time zones. Travelers also can call 1-800-shuteye for advice.
ValuJet Inc., whose adjusted stock price has soared over the past year from less than $10 to more than $40 per share, yesterday announced another two- for-one stock split, its second in little more than six months. The split will be accomplished by a 100% stock dividend payable Nov. 21 to shareholders of record as of the close of business Nov. 6. "This stock split is intended to make the stock price more attractive to retail investors," said ValuJet Chairman Robert Priddy. ValuJet Inc.
Unisys has introduced the Virtual Integrator Suite, a set of services designed to help airlines and freight forwarders meet the changing demands of shippers. Under the new product, Unisys will audit and standardize the freight-handling processes common to forwarders and carriers, create a basic operations rule book and establish monitoring and control systems to enable users to deliver products consistently and reliably.
Million Air Dallas received FAA certification to provide worldwide service through its charter operation. The carrier, headquartered at Addison Airport in Dallas, has three 12- and 13-seat Gulfstream aircraft available for charter to international destinations. It has nine aircraft overall.
Cathay Pacific Airways plans to move all Hong Kong-based operations and staff - now spread among 19 locations - to Chek Lap Kok when the airport opens in 1998. The airline will move into new headquarters, expected to cost HK$3.5 billion (US$448 million), that will comprise a 775,000-square- foot office building with up to 10 floors, a stores center and a 250,000- square-foot, 20-story staff hotel. The complex will be on 3.3 hectares of land on the southeast portion of the island.
Daimler-Benz Aerospace will cut nearly 9,000 jobs and sell several factories under its Dolores - DOllar LOw REScue - survival program. The Daimler-Benz aerospace unit, which lost money in the first half of this year, aims to break even in 1997 and start turning a steady profit by the end of 1998, even if the dollar remains weak. The weak dollar, worth 1.39 Deutschmarks yesterday, has hurt DASA's bottom line badly - generally, the company prices its products in dollars but pays for labor and many materials in Deutschmarks.
America West has reduced fares to as little as $19 one way in markets where it competes with Southwest, and other airlines have matched the $19 fares. Tickets must be purchased by Nov. 7 for travel through Jan. 15.
American Trans Air parent Amtran Inc. yesterday posted third quarter net earnings of $3.6 million, or 31 cents per share, and an operating profit of nearly $7.6 million. In the third quarter last year, Amtran had net earnings of $2.7 million, or 24 cents per share, and an operating profit of $4.1 million. The company's net earnings improvement would have been significantly greater than 31.2% had it not been for a substantially larger income tax liability produced by a higher effective tax rate, among other factors.
Travel agents may begin reporting sales on Siberian carrier Krasnoyarsk Airlines d/b/a KrasAir, through the Airlines Reporting Corp. beginning Oct. 30. KrasAir starts scheduled service to Los Angeles from Moscow Nov. 14, and Moscow-New York service Nov. 16 with DC-10 aircraft.
DOT Secretary Federico Pena is scheduled to make "a major address on international aviation" on the eve of his trip to Asia at a noon luncheon Oct. 31 in the Capital Hilton Hotel. The event is sponsored by the American Bar Association's Forum on Air&Space Law, the Washington, D.C., Bar's International Law Section, and the Federal Bar Association's Transportation Law Section. To register, call Sarah Lynn at 202-626-3463.
The National Transportation Safety Board's next round of hearings on USAir Flight 427 will begin Nov. 15 at 9 a.m. at the Springfield Hilton Hotel, Springfield, Va., and last two or three days, the board said yesterday. The board will receive results of flight tests on the effect of 727 wake vortices on a trailing 737, conducted last month at the FAA Technical Center, near Atlantic City, N.J.
