Senate aviation leaders drafting bipartisan FAA reform legislation are considering a phase-in of dedicated user fees to replace current aviation excise taxes, implementing several fees almost immediately and allowing more time to develop air traffic control user fees (DAILY, Aug. 11). Senate leaders are aiming for Senate Commerce Committee approval early in September - before a House-Senate conference on the DOT appropriations bill (H.R.2002), which includes provisions exempting FAA personnel and procurement rules from a number of federal laws and regulations.
DOT has instituted the 1996 U.S.-Italy Service Proceeding to select an additional primary and backup carrier to provide scheduled combination service in the market. To be available April 1, 1996, the new route opportunity was included in the terms of the 1990 U.S.-Italy agreement, amended in December 1991. The agreement allows for a fifth carrier to operate between any point in the U.S., except New York/Newark and Chicago, and co-terminal points Milan and Rome.
American says it is "mystified" by a Northwest claim that a software package American is marketing to travel agents violates DOT computer reservations system rules and should be barred and recalled. American's new Preference MAAnager software bumps American's competitors off the screen and reintroduces display bias, Northwest argued in a complaint filed this week with DOT. But American spokesman John Hotard said the CRS rules were modified in 1992 to allow travel agents to introduce this very type of software.
Draft airport privatization legislation made public Monday in Australia would limit cross-ownership of some combinations of airports in addition to capping charges for five years (DAILY, Aug. 22). The legislation, expected to be introduced next month in Australia's Parliament, provides for the long-term lease of Sydney Kingsford Smith, Sydney West (Badgery's Creek), Melbourne, Brisbane and Perth airports by the end of 1996. The remaining airports among the 22 now operated by the Federal Airports Corporation (FAC) would be privatized during 1997 and 1998.
Canada, which plans to begin charging airlines for overflights Nov. 1, may be copied by the U.S. as part of an FAA reform package. Canada's plan for overflight charges - in advance of next April's transfer of air traffic control to a corporation - will cost foreign airlines C$165 million on an annual basis, according to the International Air Transport Association. IATA Director General Pierre Jeanniot has scheduled a news conference today in Montreal to discuss the concerns of member airlines.
Philadelphia is the largest U.S. city without nonstop service to Italy, even though the market is potentially large and the city has "longstanding Italian cultural and business ties," USAir said in its application for authority to operate scheduled service between Philadelphia and Rome (DAILY, Aug. 22).
United filed a petition yesterday at the U.S. Court of Appeals for the District of Columbia Circuit to get DOT to reconsider its order granting American authority to provide scheduled combination service in the Los Angeles-Guadalajara market. In its final decision reached earlier this month, the department reversed a tentative decision awarding the route to United (DAILY, Aug. 3).
TWA is to emerge today from its brief, pre-packaged trip through Chapter 11. The carrier went into bankruptcy - its second in less than four years - in late June as a way to implement a complicated debt-for-equity financial restructuring that will slice $500 million off its debt burden.It still will be more than $1 billion in debt as it comes out of Chapter 11, however.
Air passenger volume in Europe - including international and domestic scheduled and charter service - will double to nearly 842 million in 2010 from 400.3 million two years ago, according to recently released International Air Transport Association (IATA) projections. Passenger volume across Europe is expected to increase at an average annual rate of 4.5%, with a growth rate of 5.1% in Central and Eastern Europe and 4.4% in Western Europe, according to IATA's new 200-page "European Air Transport Forecast 1980-2010."
FAA will implement nighttime jet aircraft procedures Friday in a response to noise complaints involving the new Denver Airport. DOT Secretary Federico Pena told Denver Mayor Wellington Webb that FAA will institute the measures on a test basis for both operational and environmental evaluation. Earlier this year, Webb asked for assurances by FAA that the airport would be operated in accordance with its environmental impact statement (EIS).
Worldspan Travel Information Services has become the system provider for Virgin Island Airways' internal airline reservations and passenger information processing. Hosting services provided by Worldspan give the airline an internal automation solution for organizing and distributing schedules, fares, rules, aviation weather, and airport passenger services, including ticketing, check-in and baggage tracing.
U.S. Major Carriers Operating Revenues and Expenses First Quarter 1995 Operating Operating Revenues Expenses (000) (000) First Quarter America West $ 348,046 $ 323,151 American 3,679,173 3,427,971
U.S. National Carriers Operating Revenues and Expenses First Quarter 1995 Operating Operating Revenues Expenses (000) (000) First Quarter 1995 Alaska $ 238,363 $ 252,564 Aloha 53,390 54,682 American Trans Air 182,618 171,999
Continental and Alitalia are urging DOT to dismiss industry opposition and approve a renewal of their code-share arrangement, as well as a proposed amendment permitting Continental to operate the flights as its own, rather than as wet-leases to Alitalia. The proposal encountered stiff opposition from Delta, American, United and TWA (DAILY, Aug. 11).
AeroNAFTA conference, sponsored by the Fort Worth Chamber of Commerce, Bell Helicopter Textron and Lockheed Martin Tactical Aircraft Systems, will be held Oct. 5-6 at Fort Worth Alliance Airport. The conference will explore opportunities for the aviation and aerospace industries created by the North American Free Trade Agreement. Speakers include Rep. Pete Geren (D- Texas); Carlos Ruiz Sacristan, Mexico's secretary of communications and transport; and Edmundo del Valle Soria, Argentina's secretary of transportation.
USAir applied yesterday for authority to operate scheduled service between Philadelphia and Rome. It plans initially to operate the maximum allowable five weekly roundtrips, using Boeing 767-200ER aircraft. (Docket OST-95-423)
Polar Air Cargo has asked DOT to amend its operating certificate to enable it to expand its scheduled all-cargo service and integrate the proposed new points with its existing service destinations. The carrier has asked for permission to operate between the U.S. and points in Egypt, Fiji, Ireland, Pakistan, Panama, Paraguay, Saudi Arabia, Sri Lanka, Turkey, Uruguay and Venezuela, using Boeing 747F aircraft. By September 1995, Polar Air will be serving nine countries on a scheduled basis and four on a regular charter basis.
Scandinavian Airlines System is seeking broad new operating authority to expand its service to the U.S. and beyond. Submitted yesterday under terms of June 16 open skies agreements between the U.S. and Denmark, Norway, and Sweden, SAS asked DOT for authority to operate between a point or points in the three Scandinavian countries, via intermediate points, to a point or points in the U.S. and beyond. The carrier said it is considering the launch of a number of services before Jan.
FedEx management and Air Line Pilots Association negotiators continued federally mediated talks yesterday in Washington, D.C., as pilots conducted another round of informational picketing to protest lack of progress toward their first labor contract. After 10 days of sequestered talks in Cincinnati, which ended Aug. 9 with no agreement, the National Mediation Board resumed the talks Aug. 17 in Washington. Pilots picketed last week in Anchorage and yesterday in Seattle.
Cathay Pacific has signed equipment and services contracts with Unisys for the carrier's new Sydney (Australia) Data Center. Under the multi-part agreement, valued at $26 million over a five-year period by Unisys, Cathay Pacific will rent a Unisys 2200/922 enterprise server for three years and buy a Unisys 2200/500 enterprise server and peripherals. Unisys will operate the airline's disaster recovery site in Sydney for five years and provide other support services.
An Atlantic Southeast Airlines EMB-120 crashed yesterday shortly after takeoff from Atlanta. The pilot had reported engine problems and was trying to reach the West Georgia Regional Airport near Carrollton, Ga., when the crash occurred about 4 l/2 miles from the airport, killing two of the 29 people aboard. FAA said the aircraft departed Atlanta at 12:28 p.m. local time for Gulfport, Miss. Air traffic control lost radar contact at 12:45. The aircraft was located at 1:10 in an open field surrounded by trees.
Singapore Airlines will offer double mileage to American's AAdvantage members and Delta's SkyMiles members traveling in first or business class on all segments of its new San Francisco-Seoul-Singapore route. The carrier launched the service July 11, and the promotion is effective Aug. 20-Dec. 31.
GE Engine Services yesterday announced a 10-year, $380 million contract from Southwest to maintain the CFM56-7 engines that will power the carrier's 737-700 fleet when deliveries begin in 1997. The contract specifies a maintenance cost per hour, GE said, helping an airline "forecast expenses, manage costs and plan for technical improvements in its maintenance budget."
