The Raleigh/Durham, N.C., Airport Authority has commissioned a study that concludes the first year of operation by American on the much-sought- after route to London was a resounding success, surpassing most expectations. American had predicted it would yield $500,000 in profits during the first year, but it actually generated $2 million, the study found. American predicted 21.05% of the traffic would consist of local passengers, but it accounted for 56% for the year June 1994-May 1995.
Business fares and the price of flying short-haul routes are creeping back up after declining steadily during 1993-94 and reaching low points at the end of last year. BTI Americas, a partner of Business Travel International, which tracks fares in more than 2,000 city-pairs using data derived from Sabre, reported $345 as the average coach price and $283 as the lowest logical business airfare (LLBA) during the fourth quarter of 1994. Those prices were down 14% and 23%, respectively, from 1993 highs.
Yields in the nation's top 25 city pairs slumped 8.5% in the fourth quarter of 1994, to an average of 17.6 cents per revenue passenger mile, Avitas reports. The quarter's performance dragged down the average for the year to 19.1 cents per RPM, off 5.3%. The biggest drop was in the Chicago-New York market - down 8.7 cents, or 36.9%, for the quarter and 6.3 cents, or 27.7%, for the year.
Qantas Chairman Gary Pemberton said the company will exercise its powers to ensure it does not exceed the 49% foreign ownership limit set by the Australian government. After its shares began trading Monday, the Qantas Share Registry received foreign ownership notifications representing 49.63%, but Pemberton said Qantas had no way of knowing the nationality of sellers among the 73 million shares, or whether there was any breach of the limit, until sales were settled.
USAir has cut fares to Florida and the Caribbean from more than 120 cities in the East for travel between Aug. 22 and Oct. 5 in a three-day sale that ends today. Roundtrip fares, priced as low as $198, require a Saturday night stay and a 21-day advance purchase. The $198 fare applies to Pittsburgh-Fort Lauderdale, $100 off the normal advance purchase excursion fare; Charlotte-Nassau, a $101 saving, and Boston-Paradise Island, Bahamas, saving $250. Service to Paradise Island begins Sept. 6.
FAA suspended bankrupt MarkAir's operating certificate "until it corrects deficiencies in the maintenance portion of its operations," the agency said. FAA alleges that the carrier failed to maintain an adequate staff of maintenance personnel, and that its continuing analysis and surveillance system is not being adequately maintained. The carrier operated six 737s providing scheduled service to Denver, Anchorage, Seattle, Reno, Oakland, Minneapolis, Phoenix, Los Angeles, Dallas, Atlanta, New York, San Diego and Chicago.
The newly revised Federal Radionavaigation Plan, now available from DOT, considerably shortens the life of the Omega and Loran-C navigation systems, Heywood Shirer, FRP program manager, said yesterday. The 1994 plan, due last December, was held up because work still was underway on FAA's Capital Investment Plan and phaseout dates for VOR/DME still were being worked out, Shirer said.
America West Vacations is testing Project SMART (Save Money and Reduce Travel), which allows tour sales representatives to work out of their homes, thus saving time and money on commuting to work. The company believes that it will benefit from lower facilities costs, and that air pollution in the community will be reduced. America West Vacations has been considering the program since 1993, studying similar plans at American Express and Carlson Wagonlit Travel.
The Senate Appropriations transportation subcommittee yesterday approved a DOT appropriations bill that would exempt FAA from many personnel and procurement regulations. The bill also would increase the cap on passenger facility charges to $5 from the current $3, allow FAA to raise user fees to help offset a reduction in the agency's operations account, establish state infrastructure banks partially financed by the aviation trust fund, and reduce air traffic controller bonus pay by 50%.
Visitors to Georgia can now make toll-free calls to reserve campsites, cottages and lodge rooms at any of the state's 48 parks. State officials said the new system, called Reservation Resource, is one of the most important customer service improvements ever made by its Department of Natural Resources. Georgia's state parks offer deep gorges and canyons, the southern Appalachian Mountains, the Okefenokee Swamp and waterfalls.
The nation's capital was the point visited most frequently by business travelers who responded to travel surveys conducted on the Internet in May and June by CIC Research. Fourteen percent said they visit Washington, D.C., most often, followed by San Francisco, New York, Los Angeles and Chicago, 11% each, and Dallas, 6%.
Air France says it has employed a more environmentally friendly method for stripping the paint from its airplanes. Instead of chemicals, the carrier is using a computer-controlled system of high-pressure air jets that spray starch pellets on the surface to be stripped. Air France says the system is not only entirely non- polluting, but also faster and cheaper than conventional methods.
Delta and American Express have agreed to offer a co-branded credit card, the Delta SkyMiles Optima Card, early next year. Customers will earn SkyMiles on Delta for purchases using the card. The companies have not yet disclosed information on the interest rate and rewards structure. Delta will continue its participation in the American Express Membership Miles program, which gives cardmembers one mile for every dollar charged.
DOT yesterday selected American to provide scheduled combination service in the Los Angeles-Guadalajara market, reversing its tentative decision awarding the route to United. With its newly gained authority, American will begin operating a single daily roundtrip on the route by Aug. 16, an airline spokesman said, increasing to three daily flights Aug. 31. The service will be operated with MD-80s. The final order comes after a fierce battle between American and United to replace Alaska as the second designated carrier on the route.
Worldspan said it and QuikTix Corp. have launched the travel industry's first nationwide, multiple-option electronic ticket delivery network product. Electronic Courier offers airline and rail ticket delivery by same-day courier, airport pickup, overnight standard or priority express. Ticket deliveries are made via QuikTix locations throughout the U.S. for a fee starting at $7.50 per ticket, added to Worldspan's monthly subscriber invoices. No minimum transactions are required, and travel agencies retain full credit for all sales.
Aerolineas Argentinas says its ski packages, offered to North Americans through selected tour operators starting at $995, was such a success that bookings far exceeded expectations. Argentina's slopes are at their best June through September, its winter season, and the carrier operates to the Andean region each day from Miami and New York and six times a week from Los Angeles. Passengers connect to Las Lenas, Bariloche and Chapelco at Buenos Aires.
Stephen Carey has resigned as president and chief executive of the International Association of Convention&Visitor Bureaus (IACVB). He will remain as a consultant to the board and be a part-time consultant for Service Quality Management Resources while he searches for a CEO position in association management. IACVB Chairman William Grimmer, executive director of the Portland, Ore., Visitors Association, said Carey was instrumental in IACVB's transition from being run by an association management firm to one with a full-time staff relocated to Washington, D.C.
SkyWest Airlines and Continental signed a code-sharing deal yesterday by which the smaller carrier will begin carrying the Continental code as Continental Connection on flights this fall out of Los Angeles. The code share will not affect SkyWest's operations as a Delta Connection carrier.
Macau is minting coins in honor of its new airport, scheduled to open Nov. 9, the Portuguese news agency LUSA reports. Macau will issue 5,000 22- carat gold coins with a face value of $125, and 8,000 silver coins.
Passenger traffic on intra-European flights will grow 6.6% each year until 1999, according to estimates published by the Association of European Airlines. The five-year outlook "is for sustained growth in a relatively favorable economic climate, further stimulated by a continuing reduction in average fares as measured in real terms," the association said.
Boeing has denied published reports in Japan that the rise of the yen prompted the company to pull out of studies of the YS-X next-generation, small passenger airplane. Both Boeing and Japan are eager to produce a new, 100-passenger regional jet and have been working together to lay the groundwork for the project. But Japan's Yomiuri newspaper claimed that the YS-X has been postponed because the rise of the yen would make building it in Japan unprofitable, leading Boeing to back out of the study.
Continental's heavy summer traffic to popular destinations is good for the airline, but has been a drag for non-revenue-status passengers trying to return home. Last weekend 90 non-revs were stranded in San Francisco and 34 were "stuck" in Cancun, some up to five days.
Frontier Airlines is terminating service in four markets, inaugurating service to Chicago and Phoenix and changing its fleet plans. The carrier will end flights from Denver to four Montana cities - Billings, Bozeman, Great Falls and Missoula - Sept. 25 in favor of using its 737-200s in two new higher-demand markets - Denver-Chicago Midway and Denver-Phoenix.
Top 25 Domestic City-Pairs Markets O&D Passengers Fourth Quarter 1994 1994 1993 Average Market Market Passenger Top Carrier Rank Rank City-Pair Per Day (% Share) 1 1 Chicago - New York 8,226 United (40.8) 2 2 Honolulu - Kahului 7,267 Aloha (51.3)
