China Development Corp., an investment company owned by Taiwan's ruling Nationalist Party, has expressed interest in investing in Taiwan Aerospace Corp. CDC has paid increasing attention to the aviation and aerospace industries in recent years, and the current TAC prospects represent renewal of earlier plans that did not materialize. When TAC was formed, CDC agreed to invest NT$524 million (US$19 million) for a 10% holding, but it backed out of the deal after the planned TAC-British Aerospace regional jet joint venture fell through.
Cathay Pacific, staking out a position at the high end of the market, yesterday revealed plans for a $150 million, three-year program to "overhaul" the substance and style of its customer services. The airline said the upgrade, which is timed to coincide with the arrival of Airbus A340s and A330s and Boeing 777s, the return of control of Hong Kong to China in mid-1997, and the airline's move to Chek Lap Kok Airport in 1998, reflects a strategy of competing on service quality.
Precision Standard said it earned $200,000 before taxes on sales of $42.2 million for the quarter ended June 30. The company reported pretax earnings of $1.9 million on sales of $83.4 million for the six months ended June 30. The company said that after taxes, it lost $1.7 million for the quarter.
Business Travel Contractors Corp. (BTCC) has received non-disclosure agreements from 12 U.S. carriers interested in receiving a proposal for a domestic mileage-based fare program to be offered to corporate clients, but it will not receive one from Continental or Northwest. Northwest says it does not see any benefit for its corporate customers in adding another layer to the distribution system. Continental said this month it does not intend to participate (DAILY, Aug. 9).
Fernando Henrique Cardoso, president of Brazil, last week pledged government support to the newly privatized EMPRESA DE AERONAUTICA S.A. (Embraer) as the manufacturer moves forward with the EMB-145 regional jet program. Cardoso presided over official rollout ceremonies Friday for the Allison-powered, 50-passenger aircraft at the company's Sao Jose dos Campos factory near Sao Paulo.
Midway Airlines Chairman Jerry Jacob, referring to a statement by an FAA official that there are no U.S. carriers with an all-Stage-3 fleet, said Midway currently operates five A320s and 10 Fokker 100s, and "all 15 meet Stage 3 noise compliance" (DAILY, Aug. 16).
Delta Connection affiliate Comair will upgrade its turboprop service in Florida Sept. 18, substituting Canadair Regional Jet flights between Orlando and Pensacola, Sarasota, Fort Myers and Nassau. The carrier also will add to its jet service to Tallahassee and begin turboprop service between Fort Lauderdale and Jacksonville.
Japan Airlines and Thai Airways International plan to expand their joint operations in November. The two airlines, which currently cooperate on three flights a week between Nagoya and Bangkok, plan to increase their joint services to 21 flights a week. An extra weekly Nagoya-Bangkok service will be added, with each carrier operating two roundtrips a week. They will launch twice-daily joint services between Osaka Kansai and Bangkok, replacing the daily service each carrier operates now in the market.
Great Lakes Aviation will begin service Oct. 1 as Midway Connection from Raleigh/Durham to Myrtle Beach and Hilton Head, S.C., under its new marketing agreement with Midway Airlines. The carrier will operate six daily flights to Myrtle Beach and five on the return. It will offer roundtrip service to Hilton Head four times a day. All flights will be operated with 19-seat Beech 1900s.
Danville, Va., no longer will receive subsidized service when DOT terminates its subsidy Oct. 1. CCAIR, operating as USAir Express, will terminate its service at Danville as of that date. The DOT action this week was spurred by the recent reclassification of Greensboro, N.C., airport from a small to a medium hub because of growth in that facility's enplanements in 1994. (Docket 49587)
Michigan-based cargo carrier Superior Aviation will purchase from JSX Capital three Fairchild Metro IIs that the carrier previously had been leasing. The carrier, which operates six Metros in addition to 26 Cessna aircraft - primarily for UPS and Airborne contract work - is based at Iron Mountain and Lansing, Mich.
Illinois no longer is receiving subsidized essential air service, and the number of states containing points for which service is subsidized is now 30, including Alaska. A listing of subsidized service points - excluding Alaska - begins on Page RA2 and ends below.
National Transportation Safety Board investigators yesterday were gathering data and plotting a search for the piece of the propeller that broke off an Atlantic Southeast Airlines Embraer 120 engine before the aircraft crashed in Georgia Monday. The broken propeller on the aircraft's left engine is "one of the things we are looking at," a board spokesman said. NTSB also was concerned about why the aircraft did not continue to operate on its one good engine, he said. The aircraft crashed shortly after takeoff from Atlanta, killing five of the 29 on board.
Canadian Airlines International plans to offer up to six nonstops a day from Toronto to Orlando, St. Petersburg/Clearwater and Fort Lauderdale this summer. Effective Oct. 29, Canadian will operate two daily nonstops to Orlando and one daily nonstop each to St. Petersburg and Fort Lauderdale, with extra flights on weekends. In early December, service to St. Petersburg and Fort Lauderdale will increase to twice daily.
Balkan Bulgarian Airlines (BBA) has applied for an amendment giving it authority to operate its current Sofia-New York/Detroit service via Malta, with fifth-freedom rights between Malta and the U.S. points. In support of its bid, the carrier pointed out that its "existing nonstop services are - and its proposed nonstop and one-stop service would remain - the only single-plane scheduled service between the United States and Bulgaria."
National Air Transportation Association is encouraging changes in FAA's operating environment - personnel and procurement reform and contracting out of various services - to cut costs rather than imposing new fees to cover current services. The Senate-passed DOT appropriations bill includes $10 million in user fees.
Kiwi International Air Lines has named Jerry Murphy president and its fourth chief executive since February, when it ousted founder Robert Iverson. At that time, Byron Hogue was made chairman and chief executive and Danny Wright president. Shortly thereafter, another power struggle ensued, Hogue resigned, and Wright was made president and chief executive (DAILY, May 3). In July, Kiwi named Russell Thayer chairman and Wright left the airline (DAILY, July 13).
American Trans Air is offering a free night's hotel stay and a free day of car rental to vacationers this fall. Its "take an autumn leave" special, combining the extras with what the carrier termed its everyday low fares, is good through Jan. 31 at Choice Hotels and Avis. Reservations must be made by Sept. 15. Examples of off-peak fares include $109 one way between Indianapolis and Nassau, $99 between Chicago and Orlando and $109 between Milwaukee and St. Petersburg. Senior citizen fares also are available.
Eagle Jet Charter Inc. (EJC) has applied for a certificate to operate scheduled interstate combination service. A Las Vegas-based air taxi operator, Eagle Jet currently holds authority to provide charter service using small airplanes. If approved, the carrier plans to continue operating its point-to-point service using 44-passenger F27 aircraft in coordination with aerial sight-seeing tours of the Grand Canyon and the surrounding area with smaller aircraft conducted by its sister company Eagle Canyon Airlines.
LanChile has acquired a 56.9% stake in Chilean competitor Ladeco for $22 million. The transaction, which Bob Booth, editor of Aviation-Latin America&Caribbean, told The DAILY has been finalized, came two weeks after Chile's Antimonopolies Board approved the merger of the two airlines. LanChile acquired investor Sebastian Pinera's 56.9% stake in Ladeco, and Pinera, who recently sold his 20.9% stake in LanChile, will acquire 35% of LanChile for an undisclosed price, said Booth.
USAir has automated the redemption of its frequent flyer program miles in an attempt to make it easier for members to receive their awards. Members can call to make a reservation and have the award ticket sent to them instead of having to call the Frequent Traveler Service Center or picking up the ticket at a ticketing facility. Tickets are mailed if reservations are made at least 21 days before departure.
Subsidized Essential Air Service As Of July 1, 1995, (Excluding Alaska) State/ Subsidized Service to Aircraft Communities Carrier (Hubs) Type Alabama Anniston Gulfstream Atlanta Beech C-99 Arizona Kingman Mesa Phoenix Beech 1900 Prescott Mesa Phoenix Beech 1900
TWA emerged Wednesday from its second Chapter 11 reorganization in less than four years, trimming $500 million from its debt load in a move the company estimates will reduce its interest expenses by more than $50 million annually (DAILY, Aug. 23). The pre-packaged bankruptcy reorganization plan, filed June 30 with the U.S. Bankruptcy Court in St. Louis, entailed creditors swapping old debt for new equity. Creditors increased their stake in the airline to 65% from 55%, and employee holdings declined to 30% from about 45%.
A used aircraft conference will be conducted Sept. 12-14 at the Seattle Sheraton Hotel and Towers by Cargo Facts. Panels will discuss startup carriers' use of used aircraft; used-aircraft product enhancements; support for used-aircraft operators provided by original equipment manufacturers; future use of used aircraft by cargo and express carriers, and public versus private finance for used aircraft operators. Morten Beyer, head of Morten Beyer&Associates, is the conference chairman.
FlightSafety International said it has secured a site and building approvals for an aviation training center near the Kunming Airport. The facility will comprise a three-story training center and a 12-story building for flight crew accommodations. The pilot and flight attendant training facilities structure will follow the design concept and internal layout of FSI centers in Paris, Wilmington and Tucson but will have an additional floor for flight attendant training. The center will accommodate six simulators with easy access to a central computer room.
