The combined financial results of Orient Airlines Association (OAA) members rose sharply in fiscal 1994-95, as nine of the 16 carriers posted profits for the year. The group's operating profit increased more than 60%, to $2.09 billion from just under $1.3 billion in 1993-94, and net earnings more than tripled to $1.31 billion from $319.9 million. Operating revenues grew 16.2% to $45.12 billion, and operating expenses was up 14.7% to $43.03 billion.
Correction: The Air Line Pilots Association originally said it would accept arbitration with FedEx if the company accepted by 5 p.m. Monday and agreed to arbitration parameters within five working days. The conditions were stated incorrectly in The DAILY of Oct. 25.
Canadian Airlines International reported record net earnings of C$96.3 million (US$70.3 million) for the third quarter, but it failed to meet earnings projections because of higher-than-anticipated fuel costs and foreign exchange losses. As a result, Canadian is likely to suffer a full- year net loss larger than its previously forecast C$35 million, according to Senior VP-Finance Drew Fitch.
The House Transportation aviation subcommittee yesterday approved by voice vote legislation (H.R.2276) to reestablish FAA as an independent agency and reform its personnel, procurement and funding systems. The subcommittee adopted the bill basically as introduced but adopted a package of amendments, including language to protect employees' rights to organize and bargain collectively, and to require FAA to negotiate with its unions on a new personnel management system.
Cathay Pacific Airways plans to launch service between Hong Kong and New York via Vancouver on July 1. The carrier's expansion beyond the U.S. West Coast is a result of an air services memorandum of understanding signed Sept. 29 by Hong Kong and the U.S. several weeks ago, giving Cathay access to 14 points in the U.S. (DAILY, Oct. 2). Cathay plans to operate five flights a week to New York initially, using Boeing 747-400s, and expand to daily service on Sept. 1. Cathay said it will have traffic rights between Vancouver and New York.
Burlington Air Express, continuing its expansion of perishables service, has acquired Miami-based Perishables Refrigeration Inc. Terms of the acquisition were not released. "The transportation of perishables is an important market segment for Burlington as the exports of these products from Latin America continues to grow," said Greg Montgomery, VP and managing director of Canada, Latin America and the Caribbean. "Having our own refrigeration facility is a key step in offering a quality service that can grow with the market," he said.
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.
