Mexico's economic crisis in the first half of 1995 caused far fewer Mexicans to travel than in past years, but the devalued peso did spur tourism to the country. According to data provided to the U.S. Travel and Tourism Administration by SECTUR, the Mexican tourism ministry, travel to Mexico was up 19% to 9.5 million people in the first six months of 1995, while travel out of the country dropped 34% to 3.4 million. As expected, spending by Mexican travelers decreased by 56% and spending by tourists to Mexico declined because of lower prices.
USAir will begin weekend flights to Cancun from Charlotte Saturday and add a flight from Baltimore tomorrow. The carrier also is adding daily nonstops today to Grand Cayman and Nassau from Baltimore.
A mileage-based net fare proposal being drafted by the Business Travel Contractors Corp. (BTCC) could potentially direct business away from one computer reservations system to another. BTCC President Kevin Mitchell told The DAILY that Albuquerque-based Prism Group will analyze computer reservations system fees generated by the contracts, estimated to be worth $2 billion. If a large portion of the business is being booked on Sabre, for example, BTCC is looking at how some bookings could be shifted, hypothetically, to Apollo.
The Los Angeles Department of Airports lost up to $32.7 million in revenues to inappropriate lease terms, overpayment for city services and other forms of revenue diversion from fiscal 1992 through fiscal 1994, the Office of the DOT Inspector General has concluded. In a report to FAA dated Oct. 30, the IG's office said the department will continue to lose about $8.8 million a year until corrective actions are taken. Responding to an earlier draft, FAA concurred with most of the IG's recommendations for corrective action.
American Society of Travel Agents handed out several awards recently at its 65th World Travel Congress in Philadelphia. Travel Agent of the Year is William Haeseler, owner of Certified Travel Tours in North Tonawanda, N.Y. Haeseler holds seminars for agents on selling animal and group destinations. The Allied Member Award went to James Murphy, president of Brendan Tours, which is a founding member of the U.S. Tour Operators Association. ASTA and The Smithsonian Magazine presented annual environmental awards to Enatur-Pousadas de Portugal and Paul Butler of St.
Reno Air has signed 18-year leases with McDonnell Douglas for two MD-90s for delivery in March and April. Reno currently operates 22 MD-80 twinjets. The MD-90s will be configured for 20 first-class and 128 coach seats.
Canadian Airlines International has extended its Getaway Fares promotion one week, to cover travel up to Dec. 19 instead of Dec. 12. The special fares, an average of 80% less than full economy class fares, can be booked only one day before departure. Customers must depart on a Saturday and return the following Monday or Tuesday.
Duff&Phelps Credit Rating Co. (DCR) has assigned an initial rating of BB- to Atlas Air's proposed issuance of approximately $15 million in pass- through certificates. Proceeds from the transaction will be used to purchase equipment notes in the acquisition of three Boeing 747-200s. DCR said Atlas Air's "unique" market position as a low-cost provider of cargo capacity to international carriers drives its credit strength.
Preliminary data show that the pilots of an American MD-80 appear to have descended below the minimum descent altitude Sunday before they made a crash landing at Bradley Airport, Hartford, Conn., a National Transportation Safety Board investigator said (DAILY, Nov. 15). If the information is correct, the crew may have narrowly avoided a controlled flight into terrain (CFIT) accident, a source said. There have been 17 CFIT accidents in the last five years.
Airborne Express said it won part of IBM's primary freight contract for South America. Airborne said it has leased additional warehouse space in Miami to process the IBM shipments. As part of the contract, subsidiary Sky Courier will transport urgent IBM shipments to South America, while its ocean freight division will handle ocean freight forwarding. The Seattle- based Airborne will celebrate its 50th anniversary in 1996.
Defense Department, acting on an Air Force recommendation, has made changes in its travel policy. Family members now can travel with the sponsor on military aircraft in the U.S. under certain conditions, and overseas without the sponsor. Travel is permitted when the sponsor is on emergency leave or for house-hunting trips when there is a permanent change-of- station. Travel overseas and within a country will be permitted regarding command-sponsored assignments.
United has applied at DOT for an exemption to operate code-sharing flights with ALM Antillean Airlines between Caracas, Venezuela, and Curaao, Netherlands Antilles. ALM's Caracas-Curaao flights connect at Caracas with United flights from Miami and New York. United already code shares with ALM on flights to Curaao, Bonaire, Aruba, Haiti and the Dominican Republic. United is seeking route integration authority between all of the Caribbean and Central/South American points.
Standards&Poor's yesterday put Northwest's airport revenue bonds and senior debt, as well as NWA's senior unsecured debt, on CreditWatch with positive implications. The action, which affects about $347 million of debt, was prompted by the airline's strong operating performance recently and Northwest Airlines Corp.'s announcement that it will prepay the $837 million outstanding under its 1989 leveraged buyout bank loan, and that it has restructured a $758 million real estate mortgage on land in Japan.
Airport and Airway Trust Fund Income Statement October 1, 1994 - August 31, 1995 Current Month RECEIPTS (Revenues) Revenues: Excise Taxes (Transferred from General Fund): Liquid Fuel other than Gas $11,958,000.00 Transportation by Air, Seats, Berths, etc. 437,226,000.00 Use of International Travel Facilities 19,902,000.00
Several carriers this week applied at DOT for 1996 U.S.-Montreal route opportunities and for U.S.-Toronto service. Northwest has asked for two additional daily frequencies between Minneapolis/St. Paul and Montreal, giving it four daily flights in the market. Northwest would operate the service with DC-9-30s. The carrier said its current service, begun in May, has exceeded traffic expectations.
Mohegan Sun Resort, a $250 million gaming and entertainment complex, owned by the Mohegan Tribe, is slated to open next October in Uncasville, Conn. Trading Cove Associations, a partner of resort operator Sun International, will handle the construction and marketing.
Rolls-Royce received an order for more than $30 million to supply engines for two Boeing 757s being acquired by the National Civil Aviation Authority of Turkmenistan for the national carrier, Turkmenistan Airlines. The aircraft will be delivered next year. The airline currently is operating one 757 acquired for presidential transport.
Air Transport Association Cargo Traffic September, 9 Months 1995 Revenue Ton-Miles (000) September September % 1995 1994 Change Domestic Freight 706,833 698,911 1.1 Mail 139,301 133,300 4.5 Total 846,134 832,211 1.7 International Freight 604,554 595,095 1.6
DHL Worldwide Express has begun operation of a new international gateway facility at New York Kennedy Airport that will serve as its largest U.S. transfer point for shipments between North America and Europe, Africa and the Middle East. The facility houses DHL's import and export departments, a bonded warehouse for on-site customs clearance, holding areas for high- value goods and a $2 million automated material handling system for sorting more than 25,000 daily shipments. A nine-acre air ramp is available for parking and maintaining up to six jet aircraft.
Air UK is implementing the PC-platform version of SBS International's SBS Maestro Crew Planning System for use by about 1,000 crew members. The system, made up of pairing and line building programs, is accessed via a full graphical user interface. It uses a relational database to maintain critical data. The system will be operational in the spring.
Virgin Atlantic Airways is offering 50% discounts to anyone 60 years old and a companion traveler regardless of age. The discount applies to specific economy fares for U.S.-originating travel from Virgin's Boston, Los Angeles, Miami, Newark, New York Kennedy and San Francisco gateways. Travel must be completed by March 31. Holiday blackouts and other restrictions apply.
Moody's Investors Service has assigned a first-time preferred stock rating of "caa" to Continental's proposed $255 million convertible trust originated preferred securities, offered by Continental Airlines Finance Trust. The trust exists to issue the preferred securities, from which proceeds will be invested in an equivalent amount of Continental convertible subordinated deferrable interest debentures due 2020. Each preferred security will be convertible at any time at the option of the holder into shares of Continental's Class B common stock.
U-Land Airlines, based in Taiwan, took delivery of its first MD-82 yesterday and will receive a second in December. It has firm orders for two more MD-82s and options on two.
Rudder action and wake turbulence still are being investigated as possible causes of the September 1994 crash of a USAir 737-300 near Pittsburgh, the National Transportation Safety Board's unusual second public hearing into the crash was told yesterday in Springfield, Va. Board investigator Thomas Haueter said the 737 experienced a yawing or change of direction just before it went into a roll and crashed, killing all 132 aboard. Possible causes of the yaw are malfunctioning of the rudder cable, wake turbulence, an electrical problem or pilot action, he said.
