ValuJet boarded 428,586 passengers in September and its load factor grew to 62.8%, 3.9 percentage points higher than September 1994's fare-sale- inflated 58.9%. "The September results are even more impressive when you consider that we increased our load factor by nearly four points over the same month last year without the month-long, two-for-one promotion we ran in September 1994," said ValuJet Chairman Robert Priddy. Through the first nine months of 1995, its load factor was 70.8%, a 6.6-point increase over the first three quarters of last year.
British Airways' systemwide passenger traffic rose 8.9% on 4.9% more capacity, boosting its load factor 2.9 percentage points to 79.4%. The number of passengers was up 3.2% to 2.94 million. Its intercontinental passenger traffic grew 10.3% on 5.8% more capacity, and U.K.\Europe traffic rose 3.4% on 1.4% more capacity. BA described its September traffic performance as "buoyant" and said seat factor gains were particularly good on long-haul routes. It said demand for its premium brands remains strong.
Rep. James Oberstar (D-Minn.), the new ranking Democrat on the House Transportation Committee, this week named David Heymsfeld Democratic chief of staff for the committee, replacing Paul Shoellhamer. Heymsfeld is Democratic staff director of the aviation subcommittee and has worked for the subcommittee since 1975. He will be replaced in that post by David Traynham, who served on the subcommittee staff for 16 years until moving this year to the Coast Guard subcommittee. Like Rep. Norman Mineta (D- Calif.), the previous ranking Democrat on the committee (DAILY, Sept.
TWA's systemwide traffic declined 1.6% last month on 2.3% less capacity, pushing its load factor up 0.5 percentage points to 63.2%. The number of passengers rose 3.4%. Domestic passenger traffic dropped 0.3% on 0.6% more capacity, and international traffic fell 3.9% on 8.5% less capacity. Through the first nine months of this year, TWA's systemwide traffic slipped 0.3% on 3.6% less capacity, boosting its load factor 2.1 points to 66.5%. Sept 95 Sept 94 9 Mths 95 9 Mths 94
The 1994 Survey of Business Travelers, sponsored by the Official Airline Guides, will be issued at the Travel Industry Association of America's national conference Oct. 17 at the Radisson Plaza Hotel at Mark Center in Alexandria, Va. It is the first one to be released since 1991. The association will give out the results in a session covering female business travelers, frequent travelers and the demographics of business travelers.
Carlson Wagonlit Travel is purchasing Tokyo-based travel agency Dodwell Travel, its second acquisition this year in the Asia-Pacific market. In January, it acquired Dodwell Travel of Hong Kong. Dodwell's main business is corporate travel management, and it will focus on serving its current clients as well as U.S. and European multinational companies from Carlson's client base. Dodwell's 1994 sales totaled $12 million.
Hotel companies are expected to seek out strategic alliances worldwide as serving customers on a local level is complicated by expanding global travel opportunities, Arthur Andersen predicts. In its just-issued Hospitality Executive Report, published quarterly, the company said, "Foreign hotel groups, for example, have long found it difficult to establish a U.S. presence and distribution system, and now see the need to enter into alliances rather than establish a new product from the group up."
Air service to Pensacola, Fla., and several other airports in the South was disrupted yesterday and is expected to be erratic today due to Hurricane Opal. Before reaching the Florida Gulf Coast, the Category 4 hurricane was tracked with 150 mile per hour winds, and officials at Pensacola, Panama City, Fla., and Mobile, Ala., closed their airports. Delta said yesterday that, based on Opal's strength and expected course, the storm might impact Atlanta operations severely today.
National Transportation Safety Board said yesterday it has completed five days of wake vortex flight tests at FAA's Technical Center in Atlantic City, N.J. The board is expected to present the test results Nov. 15 at a second public hearing on the September 1994 crash of a USAir 737 near Pittsburgh. A Delta 727 was 4.2 miles and 70 seconds ahead of the 737 as the USAir crew lost control of the aircraft, and the safety board's tests in New Jersey were aimed at determining whether a 727 wake vortex is strong enough under those conditions to cause the crash.
Moody's Investors Service said yesterday it has placed the Aa3 senior debt rating of Airbus Industrie under review for possible downgrade. The ratings service expressed "concerns about possible changes in Airbus's legal structure and in the way benefits of Airbus are allocated to its members, and about the weakening credit quality of certain key partners of Airbus." An Airbus Industrie spokesman said Moody's announcement "results from a number of fiscal issues that have developed independently but in a fairly common time frame.
United's third quarter financial results will top last year's September quarter earnings of $6.86 as well as Wall Street's consensus of $8.39 per fully distributed share, the airline said yesterday. "We are extremely pleased with both the current domestic fare environment and the continuing strong traffic observed throughout United's system," said John Edwardson, president of United. S.G. Warburg&Co.
USAir Chairman and Chief Executive Seth Schofield has agreed to delay his retirement until the carrier concludes discussions with American and United on potential strategic relationships or, depending on the results of the talks, his successor has been elected and takes over officially. The USAir board asked Schofield to remain, Mathias DeVito, chairman of the search committee seeking his successor, said yesterday, and the committee is suspending its work pending the outcome of the discussions with American and United.
All Nippon Airways took delivery of its first 777 yesterday. A launch customer for the 777-200, ANA will use the aircraft on domestic routes, beginning Dec. 23 with a flight between Tokyo and Osaka, Boeing said. ANA has ordered 18 777s powered by Pratt&Whitney engines.
Delta's San Jose station found a way to turn lost luggage into savings in September. It offered passengers a $25 travel voucher if they picked up the lost bags themselves, saving 17% on delivery costs.
American Society of Travel Agents and Value Rent-A-Car have launched their third annual Value of ASTA campaign to recruit new ASTA members. The first 500 non-ASTA agencies accredited by the Airlines Reporting Corp. that join the travel agent association will receive $197.50 off the $395 first-year membership dues. Value splits the membership dues with the new agents. Dan McNamara, chief operating officer of Value, said, "If we can help them tap into the many resources of ASTA, they will be more successful, and if they succeed, we succeed." The campaign ends Dec.
Air France Chairman Christian Blanc today is expected to convey to subsidiary Air Inter's board his plans to create a new European airline with Air Inter at its core. The new airline, to be launched Jan. 1, will be based on Air Inter but will have a new name, conduct no-frills, low-cost operations, and fly on European routes. Air France will continue to operate its own European services. The plan is expected to draw more protests from angry Air Inter employees.
1994 A Banner Year For Travel In The U.S., TIA Reports Americans traveled in record numbers last year, according to the Travel Industry Association of America. In its annual report on the travel habits of Americans, TIA traced the increase to a rise in the consumer confidence index riding on overall positive economic developments. The 1994 Travel Market Report found U.S. residents took 1.13 billion person trips, up 7% from 1993. (A person-trip is defined as one person traveling 100 miles or more one way.)
Seventeen airlines, plus Airbus Industrie and Boeing, are participating in FAA's Advanced Qualification Program, which the agency extended this week for five more years, through Oct. 2, 2000. Two training centers, FlightSafety International and NATCO, also are taking part in AQP, which FAA says has "become an important means for meeting the requirements for air carrier training programs." AQP is being offered under a special federal aviation regulation, SFAR 58, which FAA will rescind if it issues a final rule adopting the program.
Startup Western Pacific's September load factor was 55.1% and the airline boarded 84,287 passengers during the month. The Colorado Springs-based carrier flew 63.5 million revenue passenger miles on 115.3 million available seat miles during the month. "We are very pleased with the September load factor," said Tom DeNardin, VP-sales and marketing.
Air cargo increased 2.7% and domestic air freight grew 4.2% in August after declining the previous month, according to an Air Transport Association report. Carol Hallett, president of the association, said ATA hopes for "a steady increase in growth for the remainder of the year. With recent projections anticipating continued air cargo growth for the industry, we need improving results to live up to those expectations."
KLM said yesterday it plans to launch service to Ethiopia this winter, increase overall capacity from last winter and introduce non-smoking service on a number of routes. KLM's winter schedule, effective Oct. 29- March 31, includes 28,500 roundtrips, an increase of 691 from the 1994/95 winter season on a route network serving 148 cities in 81 countries. Effective Oct. 29, all KLM European flights and services between Amsterdam and the U.S., Canada and Australia will be smoke-free.
American's inflight magazine, American Way, can now be found on the Internet. It was the only non-technical magazine to rate in the top 10 for readers who subscribe to an online service. Publisher Rick Morrison said, "Because the majority of our readers are affluent business travelers, the probability that they are computer users and familiar with the Internet is very high."
An international aviation art contest for children ages six to 17 years is being conducted by the Minnesota DOT in cooperation with the FAA, National Association of State Aviation Officials, National Aeronautic Association and the Federation Aeronautique Internationale. The idea is to encourage young people around the world to share their impressions of their local airport, or to draw one if they do not live near an airport. Entries are due by Feb. 16. For information, call Pamela Krueger, 612-296-3582.
Trenton-based Eastwind Airlines is taking off for Florida Oct. 18, injecting more low-fare flights into the West Palm Beach and Jacksonville markets. The young airline currently flies from Trenton to Boston and Piedmont Triad Airport in Greensboro, N.C.
Prospect of strong third quarter operating results and the likely continuation of the airline fuel tax exemption bode well for the trading environment for bonds of all the major airlines, at least until the end of the year, according to Citicorp analyst Reno Bianchi.
