City and County of Denver reduced Denver Airport's airline rates and charges after determining that the amount needed to recover costs in 1995 is less than originally projected. As a result, the airlines will pay $8.7 million less annually to operate at Denver. The city said a contributing factor to the rates and charges reduction was its ability to increase the size of a June 1995 bond offering. Interest income on airport bond reserve funds has been higher than projected, the city said.
A Federal District Court judge in Minneapolis has ruled that travel agents have produced enough evidence of possible collusion by six airlines in capping domestic commissions to warrant a trial. The judge did not agree to impose a temporary injunction against the caps, however. No date has been set for the jury trial.
- In Federal Register dated Aug. 18...Proposed an airworthiness directive on Cessna 441, 500, 550 and 560 series aircraft to require replacing outflow safety valves.
U.S. Major Carriers Traffic July, 7 Months 1995 (000) July July % 1995 1994 Change America West Revenue Passenger Miles 1,254,538 1,173,070 6.9 Available Seat Miles 1,688,591 1,566,182 7.8 Load Factor (%) 74.3 74.9 American
Although India asked for next week's aviation negotiations with the U.S., the U.S. will come to them with a full agenda, including requests for direct service by four carriers - United, Northwest, FedEx and Polar Air Cargo - and third-country code-share access by three.India wants to serve Chicago O'Hare through London with authority to carry passengers from London, adding capacity on a route now flown by United, American and British Airways.
George David, president and chief executive of United Technologies Corp., will become chairman of the U.S.-ASEAN Council on Sept. 6. He succeeds M.R. Greenberg, chairman of American International Group Inc., who has chaired the council for six years. The 300-member council represents U.S. business interests in ASEAN, the Association of Southeast Asian Nations, comprising Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
The nine U.S. major passenger carriers flew a combined 41.85 billion revenue passenger miles last month, a 2.6% increase from July a year ago. The group's capacity rose 1.3%, and its average load factor was up 0.9 percentage points to 66.9%. For seven months, RPMs rose 4.4% on 2.5% more capacity, boosting the group's load factor 1.2 points to 65.1%. United flew 10.45 billion RPMs, capturing 22.16% of the majors' total traffic. American's share was 20.66% and Delta's 16.55%. For seven months, United's traffic share was 21.96%, American's 20.74% and Delta's 17.01%.
Continental is offering passengers four free nights in hotels in Europe, as well as car service from the airport, if they purchase a Business First ticket with the American Express card. The offer is good in London, Paris, Madrid and Frankfurt. Travel must be completed by Dec. 15, although applicable dates vary according to hotel and city. Continental, which offers two daily flights to Frankfurt in the summer, has made one of them smoke-free.
DOT canceled the operating certificates of Jet USA Airlines and Air Serve last week for failing to begin operations within a year of the department's determination of their fitness. Jet USA was granted a certificate on June 10, 1994, and it was given an additional 60 days to start up. However, when DOT asked on Aug.
The Airbus Industrie A319 and the high-gross-weight (HGW) version of the A340-300 both flew for the first time Friday. The 124-seat A319, a shortened version of the A320, is billed by Airbus as the latest addition to the new-generation Airbus family from Hamburg. It is powered by CFM International CFM56-5B6 engines rated at 23,500 pounds thrust, and a model using IAE V2500 engines will follow. Friday's flight, lasting three hours and five minutes and described by Airbus as "highly successful," followed the aircraft's rollout by one day (DAILY, May 25).
FAA said last week it plans to conduct comprehensive regulatory reviews every three years, beginning in July 1997, and requested comment on the proposal. The agency reviewed its rules last year, and it said in the Aug. 24 Federal Register regulatory reviews in the Clinton and Bush administrations have shown "that there is great value in obtaining public input to the agency's regulatory agenda and priorities regardless of whether such input is an affirmation of the direction the agency is going or an indication of a need to alter course."
Delta Air Lines and Scenic Airlines are offering daily code-sharing service year-round from Las Vegas to Grand Canyon on Scenic, which operates aircraft specially designed for sightseeing. Scenic's de Havilland Twin Otters feature windows that are about four times larger than standard, and passengers are briefed on the tour through headsets that deliver the narration in eight languages. Scenic is wholly owned by SkyWest Airlines, a Delta Connection carrier.
The National Transportation Safety Board is urged FAA Friday to require immediate ultrasonic inspection of Hamilton Standard propeller blades like the one that broke off Atlantic Southeast Airlines Embraer 120 Flight 7529 before it crashed in Georgia last Monday. In its preliminary recommendations, the board specified that Model 14SF and 14RF blades that have accumulated 1,250 cycles since their last inspection undergo the ultrasonic inspection before further flight.
Continental has reached a tentative agreement during mediated talks with its Continental Express pilots, represented by the Independent Association of Continental Pilots, for a first contract. The union said the pact provides an increase in total compensation of 26% over the two-year term, but a company spokeswoman said the two disagree on the actual percentage.
American's pilots, represented by the Allied Pilots Association, have been asked by the Air Line Pilots Association at FedEx to lend a hand extolling the virtues of union membership to non-union FedEx pilots riding in American jump seats. Newly organized FedEx pilots are awaiting a decision by the National Mediation Board on their request for contract arbitration. An APA spokesman said the union will gladly suggest to its pilots that they help out.
The Clinton administration is planning to keep air traffic controllers working if the government shuts down Oct. 1 due to an impasse on the budget between Congress and the administration, but the Air Transport Association is arguing that other services related to air traffic control should be deemed essential services as well. In an Aug.
Granted orally an exemption to Northwest Territorial Airways (NWT) to operate scheduled and charter combination service between any point or points in Canada and a point or points in the U.S. The carrier received authority to hold out Air Canada's designator code on scheduled flights between Canada and the U.S...Granted orally an exemption to American to operate combination service between Honolulu and Vancouver, under a code- sharing arrangement with Canadian Airlines International.
The recent U.K. offer of limited new access to London Heathrow for U.S. airlines was "quite a distance from what we feel we deserve," a senior U.S. government official said. He noted that negotiations to open up Heathrow have only begun, however, and "it's clear that there will be an opportunity for carriers."
AAR Corp. appointed Ran Ronen senior consultant to the company, responsible for new business development in the Middle East, Europe and the Far East. AAR Oklahoma named Russell Beahm director-quality assurance. Associated Air Freight named Tim Lewis service manager-Atlanta district. Astra Jet named John Yates manager-Great Lakes region. Circle International appointed Peter George VP-air operations. DynAir Tech of Florida named Jaime Galindo VP-operations.
Airline alliances generally are accepted as the shape of the future, but the industry still is divided on whether such marriages need to be secured with an equity investment.James Strong, managing director of Qantas, which is 25% owned by partner British Airways, said recently that alliances that are not cemented by ownership are not as strong as those that are, and that airlines in "transitory relationships" are not as willing to make the big decisions.On the other side of the issue is Lufthansa Chairman Jurgen Weber, who believes making money cements relationships.
Continental has given the go-ahead to implement 26 of 29 recommendations from a task force charged with reducing aircraft ground mishaps and employee injuries. One approved recommendation is to link improvements in the safety record to the carrier's performance review program, which currently pays bonuses to employees for good on-time performance. Reducing ground mishaps should improve reliability, a major component of the Go Forward Plan.
DOT has tentatively granted the applications of Delta and USAir for new Toronto service. Both will operate the maximum service available to U.S. carriers under the new U.S.-Canada aviation agreement - twice-daily roundtrips, USAir from Pittsburgh and Delta from Atlanta, both using 757 aircraft. Selecting Delta and USAir from five applicants for the service, DOT said it found tentatively that their proposals "offer the strongest competition to foreign-flag carriers in the U.S.-Toronto market."
