USAfrica has withdrawn a motion requesting more time to make its case against DOT's show cause order reallocating the carrier's U.S.-South Africa frequencies. It is continuing its quest for financing to restart service, however. The carrier said it retracted the motion in compliance with an order from the U.S. Bankruptcy Court in Delaware, precluding further action by DOT and all the parties involved until the court issues an order.
Frontier Airlines said yesterday the underwriters of its recently completed public offering have exercised their option to purchase another 240,000 shares of common stock at $4.625 per share. The offering brings to 1.84 million the number of shares sold by the carrier, netting $7.3 million. Net proceeds from the additional shares are $976,800, which will be added to Frontier's working capital.
Midwest Express Airlines and Elan Financial Services of Illinois have introduced the Midwest Express MasterCard, with which cardholders can earn frequent flyer miles on Midwest Express for each dollar charged. The Midwest Express MasterCard program will offer a regular MasterCard, a Gold Card and a business card. The annual fee will be $40 for the regular card and $65 for the Gold or business card.
FAA is extending for five years a special regulation that allows airlines to establish voluntarily Advanced Qualification Programs to train and certify crewmembers, aircraft dispatchers and other personnel. The agency says AQP has "become an important means for some operators to comply" with training requirements.
Officials from the U.S. and Thailand will meet this week to explore the potential for improved aviation relations. The two countries have been without a bilateral since Thailand renounced the then-current agreement in 1990.
FAA has scheduled a second public meeting Oct. 17 on the proposed revision to the airport rates and charges policy. The meeting will begin at 9 a.m. in Room 2230 of DOT headquarters, 400 7th St. S.W., Washington. To participate in the meeting, call Kevin Hehir, FAA Office of Airport Safety and Compliance, at 202-267-8224. Written comments on the proposed revision of the policy are due Oct. 23. (FAA Docket 27782)
Aero California has applied for authority to operate between Hermosillo, Mexico, and Tucson, Ariz. The carrier said it plans to begin service on the route Nov. 1 and has asked DOT to process its application on an emergency basis, granting the authority no later than Oct. 10. Headquartered at La Paz, Baja California Sur Airport, Aero California operates nine DC-9 aircraft. (Docket OST-95-696)
Aviation agreement between U.S. and Hong Kong has resolved one potential problem for United's round-the-world service, set for a Dec. 14 launch, but access to Delhi still may become a stumbling block. The carrier said it has the right to serve Delhi and already has been granted an operating permit, but India continues to hold back, seeking to gain additional rights to the U.S. Industry officials hope U.S.-India talks late this month or early next will resolve the issue.
TWA yesterday began nonstop jet service between Jackson, Miss., and St. Louis with continuing service to Chicago Midway. The Jackson route, to be flown three times each weekday and twice daily on the weekend, brings TWA departures from its St. Louis hub to 349 per day. Combined with Trans States Airlines' 177 departures, the total is 526.
Mercury Air Group said yesterday it has acquired Montreal-based Excel Cargo Inc., which provides cargo handling services at the Toronto and Montreal airports. The acquisition is the "latest step in our strategy to increase the geographic scope of our cargo operations," said Mercury Chairman Seymour Kahn. Mercury recently leased 45,000 square feet of space at Los Angles Airport, increasing its capacity there to 105,000 square feet.
Representatives of business and general aviation warned Congress last week of decreased aviation activity and lost jobs if user fees contained in the Senate FAA reform bill (H.R.1239) are adopted. In testimony before the Senate Commerce aviation subcommittee, National Business Aircraft Association President John Olcott argued that the fees would have three unintended consequences. Use of business jets would be reduced significantly - on the order of one-third, hurting manufacturers and other companies.
America West will field test an airline maintenance and operations support system (AMOSS) under development by Honeywell and Computing Devices International in a program designed to demonstrate the system's functionality and validate its performance. Honeywell described AMOSS as ground-based software that provides fault isolation and diagnostic capability, integrating aircraft and ground support services.
American, trying to fill empty seats during the low season for transatlantic travel, is offering bonus frequent flyer miles and discount fares to passengers who fly this fall. The carrier will give 25,000 bonus miles to AAdvantage members who fly roundtrip in first or business class, paying full fare, on its nonstop flights from Boston, Chicago and New York Kennedy to London Heathrow. Roundtrips must be completed by Dec. 31, and members can earn only one bonus during the qualifying period. Separately, American extended for one week, until Oct.
In a unanimous voice vote, the Senate approved Friday night the Bryan-Burns amendment to the Commerce, Justice, State Appropriations bill, giving $12 million to the U.S. Travel and Tourism Administration for fiscal year 1996. The funding would enable the agency to move forward with recommendations of the White House Conference on Travel and Tourism and promote the 1996 Olympic Games in Atlanta as it transitions into a public-private partnership. The bill must now be reconciled with the House bill, which includes $2 million for USTTA.
AlliedSignal's annual business aviation forecast projects healthy growth, with delivery of 3,500 new business jets valued at $42 billion during the next decade. North America dominates the market, accounting for more than 70% of the fleet and about two-thirds of expected new deliveries worldwide between 1995 and 1999. The European market is beginning to recover, but rising user fees, air traffic control delays, airport access restrictions and other structural problems continue to hinder operators.
Local Georgia and Atlanta parties are supporting Delta's bid to DOT for Atlanta-Rome/Milan service. The hometown carrier Delta is competing against Northwest and USAir for the six new weekly U.S.-Italy frequencies that become available April 1. Northwest and USAir propose service to Rome from Detroit and Philadelphia, respectively. "Given the relative concentration of U.S.
Duff&Phelps Credit Rating Co. (DCR), acting as Shuttle by United celebrated its first birthday, removed United yesterday from Rating Watch- Down and reaffirmed the company's senior secured rating, at least in part because of improved operating results from the Shuttle. DCR, which placed United on Rating Watch in May 1994, said Shuttle operations have had a positive effect on feed traffic for United's routes, and scheduling adjustments should continue to bolster incremental feed traffic at San Francisco and Los Angeles.
Delta Connection carrier Comair upgraded Sunday to jet service from turboprop flights on existing service between its Cincinnati hub and Dayton, South Bend, Evansville and Columbia. The jet flights are operated with the Canadair Regional Jet.
American and its fleet service clerks and baggage handlers represented by the Transport Workers Union (TWU) have reached a new tentative contract agreement, replacing one rejected recently by the employees (DAILY, Sept. 28). The new agreement will be put to a membership vote, and results are expected by the end of the month, a union spokesman told The DAILY yesterday.
In a stunning announcement that caught Wall Street and much of the airline industry by surprise, USAir confirmed late yesterday that it has had preliminary discussions with American and United about possible strategic relationships, "up to and including acquisition of USAir." United confirmed that it is conducting an evaluation of USAir to determine whether United should submit a bid to acquire USAir's business and operations. American parent AMR Corp.
Japanese carriers are pressing Japan's Ministry of Transport to gain a stand-alone agreement with Hong Kong before the Crown colony reverts to Chinese control in 1997. The Japanese airlines that serve Hong Kong - Japan Airlines, All Nippon Airways, Japan Asia Airways and Nippon Cargo Airlines - have petitioned the MOT to accelerate bilateral negotiations with the Hong Kong government, expected to begin this month, to fix their future programs.
Pemco World Air Services has received FAA certification to modify a 727-200 to a fully convertible combi configuration for First Air of Ottawa. A company official said Pemco is the first to accomplish a conversion that incorporates both a multi-position, Class C combi/cargo compartment and a variable smoke detection and fire suppression system.
Summary of U.S. National Carriers Systemwide Traffic February 1995 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) Alaska 636 12.47 858 545,920 Aloha 376 (5.89) 136 51,253
Research and development investment, which averages between 3% and 4% of sales among aerospace companies, is running "two to three times that amount" in the once-languishing general aviation industry, according to Edward Stimpson, president of the General Aviation Manufacturers Association.
U.S. airlines pledged yesterday to cooperate with FAA as the agency ratchets airport security measures ever tighter, but they asked for more of a role in the federal government's anti-terrorism planning and policymaking.
