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.
Continental Express pilots have ratified their first contract with the company. The Independent Association of Continental Pilots said 56% of the 600 pilots represented voted for the contract, which will become amendable Oct. 1, 1997. Last month, Continental pilots signed their first collective bargaining contract since 1983.
USAir will begin serving St. Croix from Baltimore/Washington Feb. 14 with a brief stop in St. Thomas. St. Croix brings to nine the number of island and resort destinations in the Caribbean served by USAir. USAir Express flies to five destinations in the Bahamas.
Federal Express packages can now be tracked on CompuServe. Members of the information service can obtain quick updates on the status of their shipment and proof of delivery, as well as download or order free FedEx software, check service availability to a specific destination, talk to FedEx via E-Mail and read about the latest FedEx services and locations.
Deciding it needs more time to study the issues, United has put off until mid-November a decision on whether to pursue the acquisition of USAir. When United first confirmed on Oct. 2 that it was in talks with USAir, it said it expected to take about a month to reach a decision, and many observers had been expecting news as early as tomorrow's UAL board meeting. Yesterday, however, UAL Chief Financial Officer Douglas Hacker said United decided it needs more time.
Taiwan's Yeu Tyan industrial group, parent of car maker Yeu Tyan Machinery Manufacturing Company, proposes to spend US$24 million to set up a facility to build six- to eight-passenger airplanes in Taiwan. Taipei's Commercial Times quoted a Yeu Tyan official as saying that Advanced Aerodynamics&Structures, a U.S. company founded by the group, will contribute one-third of the required capital.
Canadian Airlines International plans to suspend its Shanghai service with the implementation of its winter schedule on Oct. 29, only a year after the carrier re-entered the market after a five-year absence. Canadian attributed the decision to weak loads and "very high" crewing costs. "We reintroduced service a year ago thinking it would catch on faster," a spokeswoman said yesterday. Canadian, which flies to Shanghai via Beijing as a continuation of its twice-weekly Vancouver-Beijing service, will continue with the Beijing route.
DOT has given tentative approval to Custom Air Transport for a certificate to operate scheduled cargo service. The company, based in Boynton Beach, Fla., intends to operate flights between Detroit and two points, Kansas City and Cleveland, mainly carrying automotive parts. It will use a leased 727-200 freighter. It also intends to operate in domestic and foreign charter markets under contract to shippers. Custom has secured a $2 million loan from Trans-American Aeronautical Corp., provided that it raises at least $500,000 in additional startup capital.
Singapore-based Abacus Distribution System has signed a computer reservations system agreement with the Civil Aviation Administration of China (CAAC) that will enable Chinese travel agents to book on foreign carriers participating in Abacus. In addition to establishing a communications link between Abacus and the CAAC's Management Information System arm (MIS/CAAC), the agreement appoints Abacus to sign participating carrier agreements with international carriers on behalf of MIS/CAAC. The agreement was signed after two years of negotiations.
Canadian Airlines International has reached tentative concession agreements totaling C$18 million per year with three more of its union groups, bringing total proposed contract-related savings to C$59 million per year. The new tentative agreements, with the Canadian Auto Workers, Canadian Airline Simulator Technologists and Canadian Air Line Dispatchers Association, cover about 3,000 employees and are subject to rank-and-file ratification.
Southwest has unveiled its $500,000 Certified Emergency EvacuationTrainer to train flight attendants on evacuation commands and procedures. The cabin trainer, built by Safety Training Systems, Tulsa, is the only one used by a major domestic carrier that can closely simulate roll, pitch and yaw. The trainer is positioned on hydraulic lifts at actual aircraft height from the ground, and has a wing attached to a real 737 fuselage for practicing overwing evacuations.
JetTrain Corp., formerly known as AirTrain Corp., has asked DOT for another extension, until Dec. 31, to begin operations before its certificate is subject to dormancy rules. The would-be startup carrier, which intends to operate short-haul service on the East Coast, received an extension until Oct. 24 to start service but has encountered "unforeseeable delays" in submitting its operations manuals and training program documentation to FAA.
Excess production equipment at General Dynamics Corp.'s Convair facility in San Diego, Calif., which produced major structural portions of transport aircraft until the aerospace industry contraction, will be put on the auction block Nov.
CONFERENCE ANNOUNCEMENT Chicago '95 brings together leading experts from the financial community, top government management and labor safety experts, futurists and analysts prognosticating on airline operations in the 21st century, airport experts on who will build them and why, experts on the next century's international and domestic policy issues, and the senior managers of airline companies that are giving the majors a run for their money. All these and much more.
AOPA Expo '95 attracted a record of nearly 9,000 participants despite poor weather Friday night and Saturday that likely deterred one-day visitors over the weekend, the Aircraft Owners and Pilots Association said this week. "Despite horrendous East Coast weather on our big weekend day and the effects of an early hotel room sell-out, our first AOPA Expo in the Northeast since 1969 was an immense success," said AOPA President Phil Boyer. Attendance for the three-day event in Atlantic City reached 8,921.
Apollo Travel Services has deployed QuikTix and Best Buy Quote for use by its subscribers. QuikTix, for U.S.-based travel agencies, was developed jointly by Apollo and QuikTix Corp. The product, which builds on the Electronic Ticket Delivery Network (ETDN) concept, enables Apollo agents to deliver tickets anywhere in the U.S. via a variety of delivery options, including same-day courier, overnight express and airport pickup services. Best Buy Quote for both domestic and international itineraries will be available beginning Nov. 1.
Great Lakes Aviation, operating as the Midway Connection, will begin nonstop service to Charleston, S.C., from Raleigh/Durham Nov. 15, offering three daily roundtrips to Charleston, with one-stop service between Charleston and Norfolk. The carrier will operate 19-seat Beech 1900s in the markets.
Airborne Express promoted three executives at its Seattle headquarters. Tom Nelson was elevated to senior VP-field services, responsible for management of operations in the western U.S., Alaska and Hawaii. He was VP-field services. Mike Heilman was promoted to VP-quality and business analysis from director-quality and business analysis. Charlie Ogle was promoted to general manager-ocean services from director-ocean services.
