Privately held Argentine carrier LAPA took delivery yesterday of a Boeing 757, the first to go into commercial service in Argentina. Buenos Aires- based LAPA (Lineas Aereas Privadas Argentinas) plans to use the aircraft on short-haul, high-frequency domestic service during the week and for inclusive tour operations to the Caribbean on weekends. LAPA President Andy Deutsch, who was to fly the new 757 to Argentina from Seattle, is building LAPA into a Southwest-like, low-fare, high-frequency carrier with one class of service and one fare.
FedEx said it will create a Latin American and Caribbean division headed by Joseph McCarty, former senior VP Asia-Pacific. Michael Ducker, formerly VP-South Pacific, was promoted to senior VP to succeed McCarty. FedEx said Latin American and Caribbean economies are projected to be the second- fastest-growing in the world through 2003. McCarty begins his new job Oct. 1. He will be headquartered in Miami.
Gruntal Investment Research analyst Steven Lewins has lowered his estimate of USAir third quarter earnings to 25 cents per share from $1.25 per share. Overall, Wall Street estimates for the company range from a loss of $2.40 per share to a profit of $1.65 per share. Lewins says this underscores analyst confusion in the wake of failed labor talks and CEO Seth Schofield's resignation.
Regional Airline Association was quick to respond this week to the first of a series of articles in a national publication, which implied that regional-airline pilot hiring and training standards are less than adequate. In a letter to the editor of USA Today, RAA President Walter Coleman said the series' first article, which appeared in Tuesday's edition, contained only a "perfunctory nod" to the regional segment's strong safety record.
The National Air Traffic Controllers Association this week disputed the conventional wisdom in the aviation community that reform is needed in FAA's personnel system, arguing instead that the agency's problems are attributable to mismanagement and funding shortfalls. In testimony Wednesday before the Senate Commerce aviation subcommittee and yesterday before the House Transportation aviation subcommittee, NATCA President Barry Krasner argued that both major FAA reform bills leave too many decisions on the new personnel system to FAA without giving controllers a voice.
Asian luxury hotel company Shangri-La Hotels will operate 40 hotels by 1998, up from its current 30, and will double in size over the next 10 years. The Hong Kong-based chain will open Traders Hotels to capture the mid-price niche. Business travelers paying the full rate at Shangri-La receive guaranteed upgrades and a number of gratis amenities - roundtrip limousine service, breakfast, dry cleaning and late check-out at 6 p.m. Most of the new rooms will be in China. Five hotels will open next year, two in 1997 and three in 1998.
Future Aviation Professionals of America will sponsor AVJOBS '95 Oct. 13-14 at the Georgia International Convention Center in Atlanta. FAPA has created a network of people looking for airline jobs and airlines wanting to hire. The association believes the system of airlines interviewing locally has outlived its usefulness. Registration for attendees is $35. For more information, call 1-800-538-5627, ext. 190.
Missouri is topping its yearlong strategic efforts to bring more tourists to the state with the creation of a planning group to forge a 10- year program. The Division of Tourism is seeking travel industry volunteers to serve on five committees - tourism industry infrastructure, tourism funding, international tourism, education and training, and marketing. The committee recommendations will not only drive marketing efforts, but also determine how the budget is allocated and the division administered.
American has dropped plans to retire 23 Boeing 727s this year and instead will use them in the Caribbean as it moves A300s to transatlantic markets in place of MD-11s it is selling to Federal Express. As the MD-11s leave American's fleet, the carrier will withdraw some of its A300-600Rs from the Caribbean and put them in relatively short-haul transatlantic markets, such as New York-London and Boston-London. It will then move 757s already in the Caribbean to the markets the A300s were serving, and the saved-from- retirement 727-200s will replace the 757s.
American Airlines Chairman Robert Crandall said yesterday management has heard unofficially that the fleet service workers represented by the Transport Workers Union have voted against contract ratification. The TWU represents 14,274 fleet service employees, and a total of 26,900 workers at the carrier. Crandall said "it is our understanding" that the seven other contracts were approved by the membership.
Chances for enactment of DOT appropriations before the end of the fiscal year Sept. 30 are becoming increasingly dim, so the department's funding likely will be included in the six-week continuing resolution expected to be approved this week.Controversy over National Highway System legislation in the funding bill remains unresolved, and the stopgap funding measure probably will relieve the pressure for quick conclusion of the appropriations conference.
As far as DOT knows, there is no interest among U.S. carriers to serve the Vietnam market immediately, says Patrick Murphy, DOT deputy assistant secretary for aviation and international affairs, and if there is, the department would like to hear about it. FAA officials are scheduled to be in Vietnam this month to evaluate the country's aviation infrastructure, and a passing grade would clear the way for service to the country.
FAA has issued an airworthiness directive requiring all Boeing 767 operators to inspect landing gear for stress fractures. Effective Sept. 29, the operators must perform visual inspections of the outer cylinder aft trunnion on the main landing gear to determine if the fillet seal is cracked or missing. The AD was prompted by reports of fractures of the outer cylinder of the aft trunnion of the main landing gear on three 767s.
World Airways asked DOT for authority to operate scheduled all-cargo service between the U.S. and Japan. The carrier plans to fly via the North Pacific to Tokyo, Osaka and Naha, and beyond, beginning when it takes delivery of an additional MD-11 freighter aircraft, currently scheduled in November 1996.
American Airlines Cargo and Alitalia Cargo have forged an alliance that will take effect Oct. 1. AA Cargo will be the general sales agent for Alitalia in most countries in Latin America, the Caribbean and parts of Canada, while Alitalia will be the GSA for AA Cargo in Italy and parts of Africa and the Eastern Mediterranean. The companies will exchange freight between the Americas and Europe on each other's flights, and AA Cargo will feed Alitalia's cargo operation in Miami for flights to and from Europe.
Worldspan is sponsoring an online sweepstakes to teach travel agents how to reduce time on the telephone and make full use of its computer reservations system. Worldspan will award $500 to a randomly selected agent - from those who enter the contest - every week until Dec. 4. Another $500 will go to the agent's employer. The "Hang Up, Sine In and Win" promotion includes lessons for 12 weeks on system functionality, and industry and system information on Worldspan Car Select, Hotel Select, Tour Source and Worldspan Travel Suppliers booking systems.
Caribbean Tourism Organization (CTO) reports that damage from Hurricane Marilyn, which followed on the heels of Hurricane Luis two weeks before, is mostly confined to a few islands in the northeastern section of the region. The Caribbean Hotel Association and the Florida Caribbean Cruise Association have accompanied the CTO on trips to assess damage and determine what needs to be done to return the major tourist destinations to normal operations.
Challenge Air Cargo, Miami, has doubled its flights to the Dominican Republic from Miami Airport to four per week after beginning the service two months ago. The airline currently provides scheduled all-cargo service to Bolivia, Brazil, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Nicaragua, Panama, Peru and Venezuela and holds route authorities to serve most major cities in Central and South America.
Miami edged out New York Kennedy as the top port-of-entry for foreign visitors to the U.S. in 1994, although arrivals at Miami were down 5% from 1993 and Kennedy's arrivals grew 6%. Miami received 3.159 million visitors vs. New York's 3.142 million. Third was Los Angeles, followed by Honolulu, San Francisco and Agana, Guam, which was the fastest growing airport in the top 10, receiving 41% more traffic in 1994, due in large part to increases from Japanese travelers, the U.S. Travel and Tourism Administration reports.
Boeing Defense&Space Group will lead an industry team to compete for an air traffic control program with a potential value of $1 billion. The company yesterday confirmed an earlier report (DAILY, Sept. 25) that it will lead four other companies in a competition for the Standard Terminal Automation Replacement System (STARS) program. STARS, run by FAA and the Defense Department, will improve the Terminal Radar Approach Control (Tracon) systems at more than 200 sites across the country.
United and Northwest will have to cut back U.S.-Japan service by about one- third and will be hamstrung in their attempts to develop markets in Asia if Japan succeeds in its effort to restrict their fifth-freedom rights beyond Tokyo and Osaka, Booz Allen&Hamilton said in its study of beyond-Japan rights and their value (DAILY, Sept. 27). The consultant conducted the study for United, which is fighting Japan's refusal to permit it to operate beyond Osaka to Seoul. United and Northwest currently account for about 51% of passenger capacity between the U.S.
International Association of Convention&Visitor Bureaus has named Howard Mills, founder of the National Coalition of Black Meeting Planners, the recipient of the 1996 IACVB Foundation Spirit of Hospitality. The honor will be presented Feb. 7 at the IACVB's third annual Foundation Dinner, Loews L'Enfant Plaza Hotel, Washington, D.C.
Asiana and Northwest assailed United's arguments against the renewal of their code-share operations as "neither credible nor logical." Urging DOT to deny renewal, United cited its difficulties in operating new service to Seoul via Tokyo (DAILY, Sept. 19). Specifically, United disputed Korea's refusal to approve a schedule for the service because of a lack of overnight parking for aircraft at Seoul Kimpo Airport.
British Airways plans to launch daily nonstop service between Phoenix and London Gatwick next spring, making Sky Harbor Airport its 21st U.S. gateway. The service, which still is subject to government approval, will begin in April. "Through our code-share connections with USAir, we were able to test the water, and the strong results indicated that a direct service would be to our mutual benefit," said BA Chairman Colin Marshall. BA plans to use a DC-10-30 flight originating in San Diego, which it has not served in five years.
ValuJet will retain a considerable unit cost advantage over Delta even if the larger Atlanta-based airline achieves its 1997 unit cost goal of 7.5 cents per available seat mile. According to ValuJet CFO Stephen Nevin, Delta's 7.5 cents would translate to about 9.2 cents per ASM when adjusted for ValuJet's average stage length of 491 miles.
