To spur progress in the U.S.-U.K. talks, beginning today in London, the U.S. is beefing up its negotiating team by adding Mark Gerchik, acting assistant secretary for aviation and international affairs.Deputy Assistant Secretary of State for Transportation James Tarrant still will chair the talks, but the U.S. believes that participation by a political- level person will stress the importance of the negotiations, Gerchick told The DAILY, adding that U.S.-U.K. ministerial contact is likely this week.
DOT has assessed a $65,000 civil penalty settlement against Philippine Airlines for violating laws prohibiting cabotage. The airline carried employees of other carriers on supposedly free flights between Honolulu and San Francisco but charged them up to $150 one way, which it said covered the cost of meals and beverages it provided.
Section 1 is the short title Section 2 states that the amendments are to Title 49 Section 3 adds a new Chapter 13 to Title 49 creating the new FAA. Section 1301 defines terms. Section 1311 establishes the FAA as an independent agency. Section 1312 describes the new Federal Aviation Board. Subsection (a) establishes the Board. Subsection (b) describes the functions of the Board. Paragraph (1) lists the functions of the Board as follows:
American's systemwide traffic rose 3.2% in August from the same month last year on 1.5% more capacity, producing a load factor increase of 1.2 percentage points to 71%. The airline's international traffic, fueled by strong growth in Latin American markets, jumped 10.9%, while its domestic traffic declined 0.1%. Domestic capacity fell 1.7% and international capacity grew 9.5%.
AAR Corp. appointed Ran Ronen senior consultant. AAR Oklahoma named Russell Beahm director-quality assurance. Airport Group International appointed Adrian Bellamy chairman. Cooper Aviation Industries named Dave Davis sales representative-Midwest and Mike Fisher a member of the inside sales support staff, both for the Cooper Express sales organization. Dowty appointed Rick Berg president of Dowty Aerospace, Los Angeles. Stan Garst&Associates named Paul Wade VP-training and business development.
Last week's U.S.-India negotiations "ended on a sour note," according to industry officials. One veteran industry representative said the talks featured "one of the nastiest exchanges across the table," the official had ever witnessed. Indian officials were seeking new route rights, capacity restraints and the right to carry passengers between London and Chicago. The U.S. also wanted new service, while trying to secure proposed Northwest and United service. There will be more talks, but no date has been set, a DOT spokesman said.
USAir last month flew 5.4% fewer revenue passenger miles than in August a year ago on 8.5% less capacity, boosting the load factor 2.2 percentage points to 69.2% - the airline's fifth straight monthly rise. The length of the average passenger journey increased 5.7% to 692.8 miles. The increases in load factor and the length of the average passenger journey reflect USAir's measures to cut excess capacity and realign its route system, the carrier said. August 1995 August 1994 Months 1995 8 Months 1994
Sabre told travel agents meeting in Dallas last week that it will make electronic ticketing available in December. The first carriers to use the Sabre Electronic Ticketing product will be United and Shuttle by United.
MasterCard International is opening a new global acceptance category - inflight commerce (IFC) - on commercial airlines, which will enable cardholders to perform, and merchants to accept, credit card transactions at in-seat video monitors. MasterCard said its research shows that by the year 2000 an estimated 600 long-haul, widebody aircraft will be equipped with in-seat video monitors, enabling travelers to use credit cards for entertainment and purchasing, and IFC sales could total more than $1 billion annually by 2000.
American last week opened a new 3,500-square-foot Admirals Club at London Gatwick. The new facility includes the airline's first European conference center, and features four work areas with desks, a photocopier, fax machine, computer modem points and credit card telephones. The new club is one-third larger than American's former facility.
Delta has created a SkyRewards program that enables companies to purchase SkyMiles as employee rewards or for customer incentive promotions. Mileage vouchers can be purchased in books of 500, 1,000 or 5,000 miles. The 500- and 1,000-mile book costs $600 and the 5,000-mile booklet $1,500. A minimum purchase of $1,200 is required, and a $75 administrative fee applies.
Continental transported 35 Bosnian teenagers to Newark last week under a cooperative effort with the Bosnia and Herzegovina Education Fund. The youths, many of whom were separated from their families when fighting broke out in Bosnia, will be placed with U.S. host families and resume their education.
Southwest, in an effort to show it is "The California airline," has lowered its seven-day advance-purchase fare for intra-California travel to $39. The fares are good from the Los Angeles basin - Los Angeles, Burbank and Ontario - or San Diego to Sacramento or the Bay Area cities of Oakland and San Jose. They also apply to San Diego-San Francisco. Southwest also has cut the price of travel from Portland or Seattle to California. Portland-Oakland, for example, is now $59, down from $89, and San Diego- Seattle has dropped to $89 from $164.
Arrow Air appointed Gerald Hulsizer Northeast district manager. Emery Worldwide appointed Richard Friedl director-sales and business development for Asia/Pacific and Robert Hilburn director-sales and business development for Europe and Latin America.
USAir unions must be watching the situation with anxiety. Labor was unable to reach concession deals with Schofield, considered a workers' chairman, and now faces the prospect of a less labor-friendly chairman. With Schofield's resignation, "the unions lost their last best chance for a relatively amicable negotiating process," according to NatWest analyst Vivian Lee. Tipping the balance further is shareholder British Airways' previously stated opposition to union representation on USAir's board.
ValuJet and the Association of Flight Attendants are meeting today to set the stage for negotiating a collective bargaining agreement. The flight attendants, who voted for AFA representation in June, are the only unionized employees at the carrier (DAILY, June 2). AFA statements Friday indicated the talks could start on an acrimonious note. The union says it will propose the same contract terms as those governing attendants at Southwest, which it called a strong contract, yet one that will give the company work rule flexibility to help it remain competitive.
House Transportation Committee Friday approved the highway bill (H.R.2274), which includes legislation taking the transportation trust funds off budget.
Air Canada Chairman Hollis Harris was one of several longtime airline executives mentioned last week as possible candidates to succeed outgoing USAir Chairman Seth Schofield. Harris, who has less than 18 months left on his five-year contract with Air Canada and maintains a home in Atlanta, was quoted by the Charlotte Observer as saying through his secretary that he "might be interested" in the USAir job, if contacted.
DOT Friday granted, on an interim basis, a stay of its determination that the City of Los Angeles may not charge a landing fee at Los Angeles Airport based in part on the fair market value rather than the historic cost of the airfield and apron land. The department said it is granting the temporary stay because an escrow agreement negotiated with the airlines will protect the airlines' rights pending resolution by the federal appeals court of the city's challenge to DOT's earlier decision. (Docket 50176, OST-95-474).
Airports are generally pleased with DOT and FAA's proposal to limit the mandated use of historic-cost valuation to airfield assets and to lift the historic-cost cap on aeronautical facilities, but airlines promised a fight over the issue (DAILY, Sept. 8). ACI-NA President George Howard, who called the modifications "very sensible," said the new language "goes a long way towards alleviating the serious concerns raised by the airport community regarding the Feb. 3 policy.
Delta's systemwide passenger traffic fell 2.8% last month from August a year ago on 0.4% less capacity, resulting in a load factor decline of 1.7 percentage points to 70.5%. The number of passengers boarded declined 4.7%. Domestic traffic fell 1.9% despite a 1.3% increase in capacity, and international traffic was off 5% on 5.5% less capacity. Delta said August traffic last year was buoyed by lower fares in many markets.
Federal Express has started direct flights between Kaohsiung and Taipei, using a widebody Airbus A310. The all-cargo service is offered five times a week. The new route was inaugurated Sept. 4 at ceremonies presided over by Kaohsiung Deputy Mayor Huang Juin-yin and Timothy Neely of the economic section of the American Institute in Taiwan.
Air Transport Association has been "incapable of paying a meaningful role" in drafting FAA reform legislation despite repeated requests for input, said Rep. Jim Lightfoot (R-Iowa), co-sponsor of FAA reform legislation (H.R.2276). Responding to comments by ATA President Carol Hallett that the bill "only tinkers on the edges of reform," he questioned whether ATA still "harbors a misguided belief" that Congress will turn control of the air traffic control system over to the airline industry (DAILY, Sept. 8).
Hawaiian carrier Mahalo Air has appointed Michael Yocum president. He will retain his title of chief operating officer. Although he is not the first president - an investor held the position in name only when the carrier applied for a certificate - he is the first to be responsible for day-to- day operations, accounting, finance, marketing and administration, which have been Chief Executive Mike Nekoba's duties.
