Airlines Reporting Corp. said travel agent sales processed through September were up 5% over the same period in 1994, to $47.434 billion, and September's sales were up 8%. Domestic fares for the year-to-date were up 6% and international fares up 3%. Domestic commissions were down 2% for the first nine months while international commissions were up 4%.
Delta has signed an agreement with Air Jamaica to provide maintenance support and crew training for six A310-300s returned by Delta to Airbus and then leased to Air Jamaica. The pact, which enables Air Jamaica to begin A310 service in time for the winter season to New York Kennedy from Kingston and Montego Bay, is the most comprehensive accord of this type Delta has ever signed with another airline, a Delta spokesman said.
Fearing the death of Europe's Future Large Airlifter project, Aerospatiale chief Louis Gallois wants a budget-cutting French government to commit funds to FLA before the end of the year. Of the eight nations involved in the program, only Germany has so far put up its money - 4.3 billion Deutschmarks, or US$3 billion, through 2009. "It is time, and even urgent, to become involved in the pre-development phase," Gallois said.
Swissair Group President and Chief Executive Otto Loepfe will give up operational control of the company on Jan. 1 and spend his last year at the helm focusing on its partnerships with Delta, Austrian Airlines, Sabena and Singapore Airlines. Day-to-day control of the group will pass to Philippe Bruggisser, currently president and CEO of Swissair Associated Cos. and a member of Swissair Group Executive Management, who will become chief operating officer and deputy president of the group on Jan. 1.
DOT Secretary Federico Pena will travel to Japan, Vietnam, Hong Kong, Indonesia, Malaysia, Thailand and the Philippines Nov. 6-21 on a mission to "advocate American interests in aviation, aerospace and other transportation sectors." The trip is intended to create opportunities for American businesses through airport, mass transit and highway developments and promotion of U.S. goods and services. Pena said he will press for open aviation markets with the Asian governments.
House last week appointed conferees for the Commerce-Justice-State appropriations bill (H.R.2076), setting up an eventual conference with the Senate on the measure. The House version of the bill provides funding for the U.S. Travel and Tourism Administration only through December, while the Senate bill provides $12 million to continue the agency for another year as it makes the transition to a public-private partnership.
Rep. William Lipinski (D-Ill.) yesterday was named ranking Democrat on the House Transportation aviation subcommittee, replacing Rep. James Oberstar (D-Minn.), who now is ranking on the full Transportation Committee. As a result of the retirement of former ranking member Norman Mineta (D-Calif.), the committee yesterday reorganized its subcommittee leadership and membership. On aviation, Reps. Bob Wise (D-W.Va.) and Bob Clement (D- Tenn.) left the subcommittee for other panels, while Reps.
Lufthansa Group carriers - Lufthansa, Condor and Lufthansa CityLine - carried 30.9 million passengers in the first nine months of this year, an increase of 8.9% from the first three quarters of 1994. The cargo volume rose 11.7% to 1.15 million tonnes. Overall capacity was up 11.7% to 14.9 billion tonne kilometers, and overall traffic gained 10.3% to 10.5 billion tonne kilometers, producing a load factor increase of 0.1 percentage points to 70.5%.
Northwest is offering weekend fares as low as $59 roundtrip from Minneapolis/St. Paul to any domestic nonstop point. Tickets are available for purchase until Dec. 8. Travelers must leave the Twin Cities on a Saturday and return on Monday afternoon or Tuesday. Fares are good for travel Oct. 28-Dec. 12. On the high end, flights to Seattle, San Francisco or Miami will be $169 roundtrip, and on the low end, Eau Claire and Rochester, Minn., are $59.
Westin Hotels&Resorts has added four deluxe Prince hotels in Hawaii and one in Alaska to its list of affiliate properties through a marketing agreement with Prince Resorts Hawaii. The Hawaiian properties will join the Westin family Nov. 1 and the Alyeska Prince Hotel near Anchorage on Jan. 1. George Ariyoshi, president of Prince Resorts Hawaii, said he was attracted to Westin because of its frequent guest program, the strength of its airline partnerships with seven carriers, its central reservations system and extensive sales network.
International Association of Convention and Visitor Bureaus (IACVB) shuffled staff positions at its recent board meeting in Portland, as proposed by Jeter Walker, a former executive director of the Winston-Salem CVB who is acting as interim president and chief executive. IACVB eliminated the positions of VP-marketing and manager-administration and personnel. Personnel subordinate to those positions now will report directly to the president or other managers.
The board of Emery parent Consolidated Freightways has ordered the redemption of all outstanding preferred stock purchase rights on Nov. 7. Under the company's shareholder rights plan, one right is attached to each share of the outstanding common stock and is evidenced by the same stock certificate. The redemption price of one cent per right is payable to shareholders of record on Nov. 6.
FAA's display system replacement (DSR) program - the principal successor to the former Advanced Automation System program - is on track in both schedule and costs, the agency said yesterday. A critical design review of the program was completed on Sept. 13, two days ahead of schedule, FAA said. The finding "is a clear indication that our decision to go forward with the DSR was the correct one, and that the contractor, Loral, is performing up to our expectations," said FAA Administrator David Hinson.
Federal Express Corp. asked DOT to defer action on requests for renewal of authority by two Taiwanese carriers as leverage in FedEx's attempt to win Taiwan government approval to expand its facilities at Chiang Kai Shek Airport. EVA Airways seeks renewal and expansion of its exemption to conduct intermodal cargo operations in the U.S. in connection with its scheduled cargo service between Taipei and its U.S. gateways, and China Airlines wants renewal of its exemption to fly property and mail between Taipei and Chicago.
Randolph Babbitt, president of the Air Line Pilots Association since 1991, yesterday was elected to the Executive Council of the AFL-CIO. He also is VP of the Transportatation Trades Department of the AFL-CIO.
MarkAir, facing more aircraft repossession, filed for Chapter 7 liquidation late Tuesday as its unsecured creditors committee scrambled to stop the liquidation and retain a proposal to sell the airline to B&T Flyer Holdings. The bankruptcy court in Anchorage was scheduled to hold a hearing late yesterday on the Chapter 7 filing.
Swissair has joined Midwest Express's frequent flyer program. Members can earn miles, effective Nov. 1, for flights on Swissair between a North American gateway and any destination in Europe. Those flying in business class will receive 125% of actual miles flown, and passengers in first class will receive 150%. Midwest Express already participates with Virgin Atlantic, SAS and Air New Zealand. Midwest Express grants a free roundtrip companion ticket to members with 15,000 miles, and a roundtrip on commuter partner Skyway Airlines after 10,000 miles.
Citing the high priority the Clinton administration has placed on FAA operations funding, the final fiscal 1996 DOT appropriations bill (H.R.2002) not only provides funding for FAA operations above the level in either bill, but it also gives the DOT secretary authority to transfer up to $60 million from Coast Guard operating expenses to increase funding for air traffic control operations and maintenance activities that enhance safety and security. While total operations funding is going up, so is the aviation trust fund share of operations.
Tower Air yesterday posted third quarter net earnings of $11.1 million, or 73 cents per share, and an operating profit of $21.1 million. The net earnings are up more than 75% over the third quarter of last year, and the operating profit is nearly 62% greater. Tower Air's operating revenues for the period increased 30.8%, while its operating expenses rose 27.4%. "We are encouraged by our third quarter results," said Chairman Morris Nachtomi, noting that all the company's business segments performed well.
United parent UAL Corp. yesterday posted a record operating profit of $467 million and net earnings of $243 million, or $12.87 per share on a fully distributed basis, for the third quarter 1995. The September quarter was one of the best in company history and its sixth consecutive quarter in the black, and Chief Financial Officer Douglas Hacker said total revenue, passenger revenue and unit revenues all set records.
Preferred Holidays has signed an agreement with Galileo International to make its tour products and services available to Apollo computer reservations system subscribers through LeisureShopper. Preferred Holidays, which already started interfacing its tour system to LeisureShopper, plans to cut over to LeisureShopper in the first half of 1996.
Federal Express pilots said yesterday they are rejecting arbitration offered by the National Mediation Board in contract talks that have stretched for 17 months. A 30-day cooling-off period likely will go into effect today. ALPA had demanded the company accept arbitration by 5 p.m. Monday and agree to reach a settlement within five days. FedEx did not meet those demands.
Sabre Interactive and Worldview Systems Corp. have signed an agreement creating a strategic alliance to build and manage an electronic travel service targeted at the do-it-yourself travel planner. The new product, to be called "Travelocity," is scheduled for launch in March 1996 and will enable consumers to access from the Internet and online services a selection of travel supplies and a proprietary online travel and entertainment database of events and attractions.
