ValuJet's new focus city markets, Boston and Orlando, should develop well, but the carrier's margins will be lower where it competes with USAir than where it competes with Delta, according to PaineWebber analyst Sam Buttrick. He expects USAir to take a more aggressive competitive posture than Delta.
Airport and Airway Trust Fund Balance Sheet As of August 31, 1995 ASSETS Undisbursed Balances: Available for Investment $ 37.69 TOTAL UNDISBURSED BALANCE (Cash in Account) Receivables: Interest Receivables $ 127,477,582.40 TOTAL RECEIVABLES Investments: U.S. Treasury Certificates of Indebtedness
American Automobile Association predicts 30.6 million people will travel by car or airplane during the Thanksgiving holiday, a 2% increase from 1994. AAA estimates that 25.5 million of those travelers will drive, based on a national survey of 1,500 adults conducted by the U.S. Travel Data Center. AAA said 5.1 million people intend to travel by air, train or bus, but the Air Transport Association is expecting 11.6 million airline passengers.
Special report issued by the Rebuild Dubrovnik Fund says travel agents in the U.S. have gone a long way toward restoring the war-torn city. The fund was established in March 1992 by the American Society of Travel Agents and Atlas Travel of Dubrovnik. A major fund-raising campaign will continue throughout next year. It is encouraging donations to its buy-a-tile campaign, which initially paid to replace the terra-cotta roofs of the Old City. Donations can be made in the name of friends or relatives, who will receive a certificate.
TransQuest, the Delta-AT&T joint venture company, announced the availability of the TransNet Maintenance Information Network, an on-line service providing aircraft parts information designed for airlines of any size. The network contains equivalent part numbers, valid alternates, current prices from inventory, required tooling and packaging variations. It can be integrated into a subscriber's inventory and repair manuals. Delta said it saved more than $1 million since it began using TransNet in February.
Mesaba Holdings, the parent company of Northwest Airlink carrier Mesaba Airlines, has decided to stop paying quarterly dividends. Instead, the company will "concentrate our working capital on acquiring new aircraft and growing our regional airline system," said Bryan Bedford, chief executive. He stressed that Mesaba still has a strong balance sheet and earnings remain in line with analysts' expectations. Mesaba said recently it expects to replace its fleet of 26 Fairchild Metro IIIs with new, more cost-effective airplanes.
Galileo International plans to expand the availability of its Virtual Ticketing product outside of the U.S. market in April. Virtual Ticketing is Galileo's electronic ticketing, or ticketless, travel product. Galileo will offer airlines a Virtual Ticketing solution for both manual and electronic Billing Settlement Plan reporting environments. The computer reservations system company began offering U.S. travel agents Virtual Ticketing with United through Apollo in March.
Mercury Air Group said net income for the quarter ended Sept. 30 increased 23% to a record $1.2 million while revenue rose 46% to $51.9 million, also a record. "Mercury is benefiting from the resurgence in airline traffic," said Seymour Kahn, chairman. Net profit margins are expected to increase with the recent acquisition of Excel Cargo Inc. of Montreal, he said.
Lufthansa Technik completed a 747-400 Combi D-Check, strut modification and paint job in seven weeks, setting a speed record for the company. "I am sure that this turnaround time puts us into a leading position worldwide," said Volker Kadansky, Lufthansa Technik senior VP-aircraft overhaul. The work was done on a Lufthansa 747-400 Combi at Lufthansa Technik's Hamburg overhaul base. Performing a D-Check and strut modification usually takes about 10 weeks, Lufthansa said.
Boston and Orlando will join Washington Dulles and Atlanta as ValuJet "focus cities" in 1996 (DAILY, Oct. 23). The Boston buildup will begin Dec. 15 with nonstop service to Orlando and Tampa, the carrier said yesterday. On Jan. 11, ValuJet will add service to Raleigh/Durham, and on Jan. 18 to Fort Lauderdale and West Palm Beach. Total peak daily departures will increase to 17 from eight. From Orlando, ValuJet will add flights to Raleigh/Durham Jan. 11 and to Memphis and Philadelphia Jan. 18. Its peak daily departures from Orlando will rise to 13 from seven.
Flight Dynamics said FAA has approved lower visibility minimums for takeoffs on 737-300s fitted with its head-up guidance system (HGS). The company said airlines flying HGS-equipped 737s can obtain operational approval to take off in visibility as low as 300 feet runway visual range (RVR) at Category 2 and 3 airports. Landing operations were approved for 700 feet in 1994 for 737-300s, and Flight Dynamics said certification for landing in visibility of 300 feet is expected next year.
George Umbreit, past president of Citicorp Aircraft Management and former Boeing regional manager-international sales in Europe, died of cancer Nov. 10.
Lufthansa Cargo laid the foundation last week for another extension of its Frankfurt cargo hub. The current Lufthansa Cargo Center (LCC) has been plagued with capacity problems for four years. When it began operating 13 years ago, the LCC was designed to accommodate about 425,000 tonnes of cargo a year, with step-by-step expansion up to 900,000 tonnes. Last year, Lufthansa Cargo handled 1.1 million tonnes of cargo at Frankfurt.
ING Aviation Leasing of The Netherlands has leased an ex-Continental's A300B4 to Faucett Airlines of Lima. ING, which now leases three A300s to Faucett, was advised by International Aviation Partners of Boca Raton, Fla. Faucett has subleased two of the aircraft to APA Airlines of the Dominican Republic.
Fine Airlines says that the government of Peru has no evidence that the carrier knowingly shipped arms to Ecuador to be used in actions against Peru, and that the Peruvian government is using the carrier as a scapegoat. Peru banned operations by the all-cargo carrier in March, and Fine filed a request for sanctions at DOT in September (DAILY, Nov. 8). In a response filed this week at DOT, Fine said carriage of the cargo Peru claims was physically impossible. Fine operates DC-8s with a maximum capacity of 90,000 pounds.
United accounted for 2,374 of the 3,042 flight attendants hired by global airlines between October 1994 and October 1995, and the carrier intends to hire 120 more this month, according to the Future Aviation Professionals of America. Among the nationals, ValuJet hired the most - 710 - and intends to hire at least 100 this month. American Trans Air, next at 545, also intends to hire 100 this month.
Fokker named Eelco Wagner VP-marketing and sales for North America and president of Fokker Aircraft USA, succeeding Maarten van Eeghen, who joined the Dutch Railway Co. Bert Wilschut, VP-contracts marketing and sales, was named VP-marketing and sales for Africa, the Middle East and China. Peter Glasbeek succeeds Wilschut. All report to Bernard Dijkhuizen, member of the Board of Management for marketing, sales and services.
Aviation ties between the U.S. and India became more strained this week when United and Northwest filed complaints at DOT against the government of India for allegedly creating administrative obstacles that could prevent United from starting service in mid-December to Delhi and Northwest from serving Delhi and Bombay in April. Northwest has asked DOT to retaliate by modifying Air India's foreign carrier permit to eliminate three weekly frequencies to New York, effective Dec.
Continental Express President Jonathan Ornstein, who resigned last week, plans to join Continental Chairman David Bonderman in creating a low-cost airline operation in affiliation with Virgin Atlantic, The DAILY was told. Bonderman confirmed hiring Ornstein for an airline venture but did not provide details. Ornstein also declined comment. The European venture reportedly would operate from Brussels under the name TransEurope. Sources said operating costs would be roughly half those of competing airlines that cater to high-yield business travelers.
Kunming's international airport will be expanded to provide for increased passenger and air cargo traffic, according to Li Huaxiong, deputy director of the Yunnan Foreigh Economic Relations and Trade Department, as reported in DAILY affiliate China AeroMarkets. In addition, Li said, there are plans in Yunnan to order six 737 aircraft in 1996.
TAG Aeronautics said it has converted options into firm orders for four Bombardier Global Express business jets, bringing its total orders to 10 for the aircraft. First flight of the Global Express is scheduled in September 1996. TAG is Middle East distributor for the aircraft.
Federal court in Atlanta will conduct a hearing Friday at 10 a.m. on ValuJet's lawsuit against TWA and Delta on allegations that they violated antitrust laws, and against TWA charging breach of contract concerning New York LaGuardia slots the St. Louis carrier was to lease to ValuJet but now may lease to Delta (DAILY, Nov. 13). The suit was filed Thursday, and the court approved a temporary restraining order that expired Monday. TWA said that after lengthy negotiations, it could not reach a slot lease agreement with ValuJet and has started negotiations with Delta.
