Value Rent-A-Car is offering hourly car rentals that begin at 99 cents an hour. The offer is good at 46 locations in Florida, Atlanta, Denver, Las Vegas, New Orleans, Phoenix and Tucson. Value, the only rental car company with hourly rentals, believes the promotion will give it a "highly memorable marketing niche." No other companies have matched the offering.
Papeete, Tahiti, is recovering from riots sparked by French nuclear testing in the South Pacific. Some inner-city shops and hotels shut down for several days last week due to firebombings, while the airport closed to normal traffic after crowds set the terminal on fire and burned cars in the parking lot. Tourism officials claim travelers were kept away from riot areas, but they concede it will be hard to regain the confidence of tourists and rebuild Tahiti's image as a beautiful, peaceful destination.
Boeing 757/767 Aircraft Operating Costs First Quarter 1995 Dollars Per Block Hours B757-200 America American Continental West Crew Cost $282 $605 $414 Fuel&Oil 576 550 551 Rentals 627 395 1,140
FlightSafety's board authorized the repurchase of an additional four million shares of common stock, doubling the size of the company's stock buyback program. The company has repurchased 3.593 million shares of stock under 1993 authorizations to buy as many as four million shares. Funds from the program will come from existing cash, short-term investments and operations. FlightSafety currently has about 31.1 million shares outstanding. The FlightSafety board also approved an increased cash dividend of 14 cents per share, payable Nov.
DOT granted Continental authority yesterday to operate combination service between Houston and Ixtapa/Zihuatanejo and Huatulco, Mexico. Beginning Dec. 14, the carrier will operate three nonstop flights per week on both routes, using Boeing 737 aircraft. Continental noted that it is the only U.S. carrier serving Mexico from Houston, and the first to operate Houston- Ixtapa/Zihuatanejo nonstops. Aeromexico has begun operating one-stop service on the route.
The U.S. and Philippines began a critical round of negotiations yesterday in Washington that may determine whether air service between the two countries will continue to be governed by a bilateral agreement. Slated to last through Thursday, the talks will focus on one issue: whether temporary U.S. capacity limits set to expire in September 1996 will be extended. Pressing for continued limitations, Philippine officials face a monthend deadline to hammer out a new accord or abrogate the current bilateral with the U.S.
Taiwan's airlines will have more flexibility in setting domestic fares next year under a program of relaxed regulations expected soon from the Civil Aeronautics Administration (CAA). Currently, regulations set a single flat rate for all domestic flights. Airlines wanting to offer discounts must apply for approval from the CAA at least 30 days in advance or face fines of up to NT$150,000 (US$5,500). Details of the new regulations will be announced within the next several weeks, a CAA official said.
Microsoft Corp. is planning to offer Microsoft Interactive Television (MITV) on airplanes as part of inflight entertainment systems. Sony Trans Com and Hughes-Avicom have agreed to support the MITV platform and will integrate it into the inflight systems they offer. Sony will work with Microsoft to develop the hardware for the video-on-demand system, and Hughes will advise on interactive systems. Microsoft said MITV will enable airlines to use a single system to entertain passengers and assist flight crews.
Sita Group and Telepartner International have teamed to provide what the partners called "cost-effective, high-performance dial-up access to IBM host applications" throughout the world. The co-marketing agreement will enable multinational businesses and organizations using IBM-based systems to communicate with Sita's Dial Access Service. The service is to be available in 126 countries by the end of 1995.
National Association of Railroad Passengers, urging Congress to provide adequate funds for Amtrak in the fiscal 1996 DOT appropriations bill, supports earmarking one cent of the gasoline tax for long-term Amtrak improvements. The association says that even before Amtrak retired most of its older equipment, it was twice as energy-efficient per passenger mile as airlines.
Delta has formed an Executive Council to oversee daily operations and "refine" long-term strategies under the Leadership 7.5 program, with the aim of becoming a more aggressive and flexible competitor. Harry Alger, executive VP-operations, and two others have been named to the council, and Alger will take overall responsibility for Leadership 7.5, the three-year program designed to lop $2 billion off annual operating costs.
American Society of Travel Agents' World Travel Congress, Nov. 5-10 in Philadelphia, will include two series of seminars on pursuing profitability. The "Managing for Profit Series," sponsored by Avis Rent a Car, is designed to educate agency owners and managers on gaining control of their businesses. The "Diversifying for Profit (corporate/leisure) Series," sponsored by the National Tour Association, will show how to evaluate an agency's current business mix and create strategic alliances with new partners.
International Lease Finance Corp. announced the lease of a new 757 with Rolls-Royce engines to Icelandair. The aircraft is to be delivered in January, with an initial lease term of 75 months.
Western Pacific Airlines is stretching its operations east, expanding to a total of 16 destinations by mid-December from its Colorado Springs base, where it began service in late April to only five cities. On Nov. 15, the carrier will begin daily nonstop service to Newark and Tulsa and add flights to Los Angeles and San Francisco. On Dec. 15, it will launch service to Washington Dulles and add flights at Seattle.
Gelco Government Services will enable SatoTravel to provide Gelco's Travel Manager voucher processing and accounting software to its customers. The system, which automates the travel document process, can calculate costs and per diem allowances, prepare and process authorizations and vouchers, and print forms. SatoTravel is particularly interested in using the software to help the Defense Department streamline its travel system. DOD wants to reduce the number of steps required to arrange a trip from 17 to six.
McDonnell Douglas hopes NASA will support its ideas for a blended wing body (BWB) transport - able to carry some 800 passengers at a fraction of today's cost - with a program to build an X-plane research aircraft that could start in 1998. Designers in Long Beach, Calif., one year into a three-year, $3 million NASA/industry/university program to come up with design concepts for the new aircraft, told The DAILY they see significant interest at NASA in funding part of an X-designated BWB aircraft for flight research.
One significant change in the Senate FAA reform bill from recent drafts allows FAA to impose fees for air traffic control services unless Congress disapproves them. In a draft circulated last week, the bill would have set up separate approval procedures for the two sets of user fees (DAILY, Sept. 11).
Swissair Group yesterday reported a net loss of 86 million Swiss francs (US$71.1 million) in the first half of 1995, far short of expectations. Industry observers in Switzerland had believed Swissair's first half results would improve from last year's six-months net loss of 48 million francs to a loss of 25 million francs. Even the most pessimistic estimate in recent wire service reports from Zurich involved a first-half loss of only 50 million francs.
FedEx said it has opened an international import clearance facility at Oakland Airport to handle shipments arriving from Asia via its new transpacific flight between Osaka and Oakland.
Virgin Atlantic applied for renewal of its authority to provide Milwaukee- Boston-London service under a blocked-space, code-share arrangement with Midwest Express. (Docket OST-95-619)
FAA and NASA signed a memorandum of understanding (MOU) initiating joint research and development activities to improve the efficiency of the U.S. airspace system. The agencies will form an integrated product team to manage the program, which will address both near- and long-term requirements and place initial emphasis on improvements that can be implemented within 10 years. "The combination of NASA's aeronautics and FAA's air traffic management expertise will help lead the nation toward our long-term goal of free flight," said FAA Administrator David Hinson.
Transport Canada's decision to tax foreign airlines that overfly Canadian territory drew sharp criticism yesterday from the Air Transport Association. ATA President Carol Hallett said Transport Canada should have waited for a new, non-profit corporation, Nav Canada, to establish its own mechanism for charging all users of the air navigation system (ANS). She said U.S.
Sun Pacific International has applied for a certificate to operate domestic and international combination charter service. The Tucson-based carrier intends to offer sub-service to other certificated supplemental charter air carriers, providing aircraft, crew, maintenance and insurance and using a Stage 2-equipped Boeing 727-200. The contracting carrier will be responsible for all other costs, including fuel, ground-handling, and landing and airport fees.
Tower Air employees based in New Delhi have filed a lawsuit against the airline, claiming it violated Indian labor laws when it laid them off, Tower Air officials said. The workers became surplus Sept. 2 when Tower Air decided to suspend flights from New Delhi because they are uneconomical. Under Indian labor laws, management must give 60 days' notice before terminating jobs, the workers said.
Airport owners and operators are trying to keep up with advances in information technology as they market themselves to travelers, but some remain skeptical about the Internet.
