Krasnoyarsk Airlines, operating as KrasAir, is seeking an amendment to its authority permitting it to conduct charter service between Russia and the U.S. In January, KrasAir received authority to operate scheduled combination service between Russia and New York, Miami, Los Angeles and San Francisco (DAILY, Jan. 17). A former division of Aeroflot, KrasAir is 51% owned by the Russian state and 44% by employees, with the balance held by an investment fund. It operates a fleet of 50 Russian-made aircraft and two DC-10-30s, leased from Douglas Aircraft.
USAir will reduce fares between Washington National and Columbus, Ohio, by as much as 50% Oct. 1 - the day ValuJet introduces $49 one-way fares from Washington Dulles. USAir is offering one-way weekend fares of $49 based on roundtrip purchase, and a $59 one-way fare any day of the week if purchased 21 days in advance, or $89 with a seven-day advance purchase. Children traveling with adults pay $49. The fare for less than a seven-day advance will be $139.
Air Canada and Canadian Airlines International, which have been paying commissions of up 12% on some domestic fares, will standardize commission rates on all domestic fares at 8.25%, effective Sept. 18. Over the past year or more, both carriers introduced 12% commissions on deeply discounted fares in selected markets where they compete with charter carriers for leisure travelers. But now, both carriers are moving back to the 8.25% standard. Canadian said yesterday the move will save it as much as C$6 million annually through a reduction in the cost of sales.
Reps. William Clinger (R-Pa.) and Bud Shuster (R-Pa.), chairmen of the House Government Reform and Transportation committees, have urged the chairman of the House Appropriations Committee to oppose FAA personnel and procurement reform measures in the Senate DOT appropriations bill. In a letter sent Friday to Rep. Bob Livingston (R-La.), Clinger and Shuster said the reform measures would undermine efforts in their committees to reform procurement government-wide and personnel and procurement at FAA.
SAS and United, both marketing partners of Lufthansa, have signed a cooperative agreement covering code sharing, connection scheduling, frequent flyer programs and passenger lounges. The agreement, to be implemented in phases beginning Jan. 1, subject to government approval, has been expected since last spring, when SAS and Lufthansa signed a comprehensive strategic alliance agreement (DAILY, May 12).
Union negotiators for pilots at Jetstream Airlines have reached a tentative agreement with the company on a collective bargaining contract that provides substantial improvements in wages, benefits and working conditions, according to the pilots, represented by the Air Line Pilots Association. The pact, which follows several months of informational picketing by pilots, clears the way for Jetstream to expand by operating new or modified Dornier 328s, ALPA said.
DOT tentatively reallocated USAfrica's six frequencies and a currently unallocated frequency in the U.S.-South Africa market to World Airways and Southern Air Transport. Awarded five frequencies, World plans to fly three weekly combination and two weekly cargo flights between New York and Johannesburg, via Accra, Ghana, using MD-11 aircraft. Southern Air Cargo plans twice-weekly all-cargo service between Columbus, Ohio, and New York, on the one hand, and Johannesburg and Cape Town, South Africa, on the other, using 747Fs.
Former FAA deputy administrator Barry Harris has been elected chairman and chief executive of new carrier Independence Air. The prospective Atlanta startup, awaiting government approval to begin service, intends to operate long-haul passenger and freight service with 270-seat A300B4s. Independence said it expects to launch service this year between Atlanta, Los Angeles and New York.
With antitrust immunity, requested Friday, Delta, Swissair, Sabena and Austrian plot a cooperative alliance creating "a seamless air transportation system" (DAILY, Sept. 11). Currently limited to point-to- point code-share arrangements on a limited number of routes, the expanded alliance would enable the carriers to coordinate scheduling, marketing, planning and pricing. Delta would enter into three separate and parallel cooperation agreements with the three European carriers, as well as an agreement that would coordinate the three parallel pacts.
The airline industry is considering a reform proposal that would initially establish FAA as an autonomous agency controlled by the aviation industry, and ultimately set up air traffic control as a separate, government- sponsored enterprise, sources said yesterday. The proposal, still being refined, is expected to be presented Thursday to the Air Transport Association board. ATA President Carol Hallett last week criticized the House FAA reform bill (H.R.2276) as inadequate (DAILY, Sept. 8).
Worldspan's top marketing official, Senior VP Lew Ellsworthy, left the computer reservations system company last week. His departure is the first major move at Worldspan since Mike Buckman succeeded Cal Rader as chief executive in June.
The National Labor Relations Board (NLRB) voted last week to reject a petition by UPS to be governed by the Railway Labor Act (RLA), like all other airlines, instead of the National Labor Relations Act (NLRA). UPS wants protections provided by the RLA regarding labor instability and service disruptions; the act requires mediation before strikes are permitted. The NLRB determined that the air portion of UPS's package delivery system is not part of its core business.
Continental is urging DOT to reverse its tentative decision granting Delta and USAir new Toronto service from Atlanta and Pittsburgh, respectively, and award New York/Newark-Toronto service to Continental.
Consolidated Freightways said yesterday it has accepted $100 million aggregate principal amount of its 7.35% notes due 2005 that have been tendered by the holders pursuant to the company's exchange offer. The company originally issued the notes on June 1 in a private placement. Under the terms of the exchange offer, the company will issue $100 million aggregate principal amount of 7.35% notes due 2005 in exchange for the tendered notes.
Rep. Norman Mineta (D-Calif.), ranking Democrat on the House Transportation Committee, announced yesterday he will resign Oct. 10 to become VP of the transportation systems and services division of Lockheed Martin Corp. Mineta, 63, who entered Congress in 1975, chaired the House Public Works Committee - predecessor to the Transportation Committee - in the last Congress and was chairman of the House aviation subcommittee from 1981 through 1988.
USAir has requested authority to operate combination service between Charlotte, N.C., and St. Maarten, Netherlands Antilles. The carrier also asked for two years' renewal of its authority to operate combination service between Baltimore/Washington and Philadelphia, on the one hand, and St. Maarten, on the other hand. The carrier anticipates operating one weekly roundtrip between Charlotte and St. Maarten, using Boeing 757 aircraft. USAir currently operates twice-weekly BWI-St. Maarten service, using 757s. After initially operating one roundtrip between St.
DOT's Bureau of Transportation Statistics (BTS) has issued the report Federal, State, and Local Transportation Financial Statistics, Fiscal Years 1982-1992, detailing transportation-related revenues and expenditures by mode and government jurisdictions. A copy can be ordered by contacting BTS at 202-366-DATA or by fax on 202-366-3640.
ValuJet officials, meeting yesterday with the Association of Flight Attendants to begin drafting an initial contract, said they will consider the union's proposal, the same as the one governing flight attendants at Southwest, during the next 10 days.AFA considers this a good sign. Meanwhile, the Teamsters union is assessing interest in representation among the growing carrier's ground workers.
Amerijet International has asked for authority to operate scheduled all- cargo service between Miami and points in Venezuela. Specifically, the carrier wants to operate from Miami to Caracas, Maracaibo and Velencia; however, it requests that the authority not be limited to specific point- to-point service but be as expansive as the current U.S.-Venezuela bilateral agreement permits.
Capital Cargo International Airlines has applied for a certificate to operate charter and scheduled all-cargo service. If approved, it will begin Dec. 1 operating service between Orlando, Fla., and Central America using one Boeing 727-200 aircraft. It plans to add a second aircraft to its fleet in October 1996.
Northrop Grumman delivered its 1,000th CF6-80C2 translating cowl engine set, which creates reverse thrust on a number of widebody aircraft, including the Airbus A300 and A310, the Boeing 747 and 767 and the Douglas MD-11.
MarkAir's pilots will take a 20% pay cut for 90 days while their union, the Air Line Pilots Association, negotiates a longer-term deal with potential purchaser Terry Hallcom. The pay reduction, to take effect Sept. 1 subject to a ratification vote of the membership, was offered last week during bankruptcy court hearings and approved by the court. Hallcom, chief operating officer for USAir Shuttle, would buy MarkAir through his company, B&T Holdings (DAILY, Sept. 7).
Singapore Airlines plans to take over regional subsidiary SilkAir's service to Hangzhou in eastern China. SIA will begin operating a weekly Airbus A310-300 flight on Nov. 1. SilkAir, which has served Hangzhou since April 1994, will operate its last flight in the market on Oct. 25. SIA is making the change because SilkAir is streamlining its fleet and plans to stop flying the A310. Instead, SilkAir's fleet will comprise only Boeing 737s and Fokker 70s, which do not have the range to fly nonstop to Hangzhou from Singapore.
ValuJet will expand service from Atlanta and Washington Dulles next month. On Oct. 1, it will add one daily nonstop frequency to Fort Myers, Fla., from Atlanta and on Oct. 25, it will add one nonstop each to Boston, Columbus, Dallas/Fort Worth, Hartford, Louisville, Newport News, New Orleans and West Palm Beach. The additions will give the carrier 105 peak daily departures from the Georgia airport. From Washington, ValuJet will introduce new service to Columbus with two daily flights, beginning Oct. 1. Fares start at $49 one way.
