Representatives of business and general aviation warned Congress last week of decreased aviation activity and lost jobs if user fees contained in the Senate FAA reform bill (H.R.1239) are adopted. In testimony before the Senate Commerce aviation subcommittee, National Business Aircraft Association President John Olcott argued that the fees would have three unintended consequences. Use of business jets would be reduced significantly - on the order of one-third, hurting manufacturers and other companies.
America West will field test an airline maintenance and operations support system (AMOSS) under development by Honeywell and Computing Devices International in a program designed to demonstrate the system's functionality and validate its performance. Honeywell described AMOSS as ground-based software that provides fault isolation and diagnostic capability, integrating aircraft and ground support services.
American, trying to fill empty seats during the low season for transatlantic travel, is offering bonus frequent flyer miles and discount fares to passengers who fly this fall. The carrier will give 25,000 bonus miles to AAdvantage members who fly roundtrip in first or business class, paying full fare, on its nonstop flights from Boston, Chicago and New York Kennedy to London Heathrow. Roundtrips must be completed by Dec. 31, and members can earn only one bonus during the qualifying period. Separately, American extended for one week, until Oct.
In a unanimous voice vote, the Senate approved Friday night the Bryan-Burns amendment to the Commerce, Justice, State Appropriations bill, giving $12 million to the U.S. Travel and Tourism Administration for fiscal year 1996. The funding would enable the agency to move forward with recommendations of the White House Conference on Travel and Tourism and promote the 1996 Olympic Games in Atlanta as it transitions into a public-private partnership. The bill must now be reconciled with the House bill, which includes $2 million for USTTA.
AlliedSignal's annual business aviation forecast projects healthy growth, with delivery of 3,500 new business jets valued at $42 billion during the next decade. North America dominates the market, accounting for more than 70% of the fleet and about two-thirds of expected new deliveries worldwide between 1995 and 1999. The European market is beginning to recover, but rising user fees, air traffic control delays, airport access restrictions and other structural problems continue to hinder operators.
Local Georgia and Atlanta parties are supporting Delta's bid to DOT for Atlanta-Rome/Milan service. The hometown carrier Delta is competing against Northwest and USAir for the six new weekly U.S.-Italy frequencies that become available April 1. Northwest and USAir propose service to Rome from Detroit and Philadelphia, respectively. "Given the relative concentration of U.S.
Duff&Phelps Credit Rating Co. (DCR), acting as Shuttle by United celebrated its first birthday, removed United yesterday from Rating Watch- Down and reaffirmed the company's senior secured rating, at least in part because of improved operating results from the Shuttle. DCR, which placed United on Rating Watch in May 1994, said Shuttle operations have had a positive effect on feed traffic for United's routes, and scheduling adjustments should continue to bolster incremental feed traffic at San Francisco and Los Angeles.
Delta Connection carrier Comair upgraded Sunday to jet service from turboprop flights on existing service between its Cincinnati hub and Dayton, South Bend, Evansville and Columbia. The jet flights are operated with the Canadair Regional Jet.
American and its fleet service clerks and baggage handlers represented by the Transport Workers Union (TWU) have reached a new tentative contract agreement, replacing one rejected recently by the employees (DAILY, Sept. 28). The new agreement will be put to a membership vote, and results are expected by the end of the month, a union spokesman told The DAILY yesterday.
In a stunning announcement that caught Wall Street and much of the airline industry by surprise, USAir confirmed late yesterday that it has had preliminary discussions with American and United about possible strategic relationships, "up to and including acquisition of USAir." United confirmed that it is conducting an evaluation of USAir to determine whether United should submit a bid to acquire USAir's business and operations. American parent AMR Corp.
Japanese carriers are pressing Japan's Ministry of Transport to gain a stand-alone agreement with Hong Kong before the Crown colony reverts to Chinese control in 1997. The Japanese airlines that serve Hong Kong - Japan Airlines, All Nippon Airways, Japan Asia Airways and Nippon Cargo Airlines - have petitioned the MOT to accelerate bilateral negotiations with the Hong Kong government, expected to begin this month, to fix their future programs.
Pemco World Air Services has received FAA certification to modify a 727-200 to a fully convertible combi configuration for First Air of Ottawa. A company official said Pemco is the first to accomplish a conversion that incorporates both a multi-position, Class C combi/cargo compartment and a variable smoke detection and fire suppression system.
Summary of U.S. National Carriers Systemwide Traffic February 1995 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) Alaska 636 12.47 858 545,920 Aloha 376 (5.89) 136 51,253
Research and development investment, which averages between 3% and 4% of sales among aerospace companies, is running "two to three times that amount" in the once-languishing general aviation industry, according to Edward Stimpson, president of the General Aviation Manufacturers Association.
U.S. airlines pledged yesterday to cooperate with FAA as the agency ratchets airport security measures ever tighter, but they asked for more of a role in the federal government's anti-terrorism planning and policymaking.
About the only market larger than that of the 100-seat jetliner market is the 150-seat category, according to Aaron Hollander, managing director and co-founder of First Equity Development Inc. But the 100-seat market "needs a whole new aircraft," he said. "It needs something more efficient than using more modern manufacturing techniques." Boeing is "probably the most logical player in this market," he said, adding that there has been a "great deal of interest by a lot of people" in it.
USAir reduced fares yesterday in nearly 650 markets for travel through Nov. 12. Sales prices vary by market, offering as much as $50 off current, roundtrip, advance-purchase excursion fares. Buyers can save $10 more by traveling on specific night flights. Passengers must travel on Tuesday, Wednesday or Saturday, purchase tickets at least seven days prior to departure and stay over at least one Saturday night.
First round of talks between the U.S. and Japan last week was an "amicable" meeting, but "nobody got very specific," said a U.S. government official. No date has been set for the next talks, but it is conceivable they will take place next month, the official said.
Summary of U.S. Major Carriers International Traffic February 1995 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) American 994 8.28 1,975 1,961,918 Atlantic 181 5.50 4,165 754,600 Latin 789 9.48 1,369 1,080,716
Alitalia has begun installing totally digital video-on-demand inflight entertainment system on one of its MD-11s for a 90-day test, according to system developer Interactive Flight Technologies Inc. Installation of the system will take seven to 10 days, and the system is expected to be fully operational next week. If the test successful, the system will be installed on seven more Alitalia airplanes during a period of three months. The system enables passengers to choose among as many as 30 digitized movies for viewing at any time during a flight.
Shuttle by United, one year old, got a new president Friday. Amos Kazzaz, who has been United's director-onboard crew resources and manager-financial analysis, will succeed Sky Magary, who joined the carrier a year ago and is returning to his business, Magary Consulting Services Inc. United President John Edwardson said the carrier regrets Magary's departure but understands it as a reflection of his "entrepreneurial spirit."
Freight forwarder Stevens Air Transport, Inglewood, Calif., has opened its second Florida office in Miami. The new Miami facility has 10,000 square feet of warehouse space, and is located about five minutes from Miami Airport.
Delta Senior VP-Technical Operations Russell Heil, a 28-year veteran of the airline, will retire Nov. 1, Chairman Ronald Allen said in a memo to employees. Heil has led the Technical Operations Division since 1991. Previously, he was executive VP-operations and personnel. Ray Valeika, VP- technical operations, will assume Heil's duties.
The U.S., pursuing its goal to open Asian markets, agreed with Hong Kong on a memorandum of understanding (MOU) last week and conducted talks with Japan as DOT prepared for Secretary Federico Pena's Asian tour in November. Hammered out late last Thursday, the agreement stabilizes the U.S.-Hong Kong relationship before the British Crown colony reverts to Chinese control in 1997, and makes cargo operations feasible, said a U.S. government official. Previously governed by the U.S.-U.K.
FAA has tested a digital satellite data link installed on prototype controller workstations in Alaska and the Russian Far East as part of a project to automate transfer of air traffic control information. The agency says the digital data link will increase dramatically the safety, capacity and efficiency of international routes over the Russian territory.
