TWA plans to build a reservations center in Norfolk and hire up to 500 workers with an annual payroll of $13 million. The facility is scheduled to open in March. TWA currently operates reservations centers in St. Louis, Chicago and Los Angeles. Norfolk's Development Department, cooperating with the state of Virginia, has worked for several years to persuade TWA to choose the city. The Governor's Opportunity Fund has contributed $450,000 to the venture, an amount that was matched by Norfolk.
New Aviation Foundation economic study of the problems with carrier distribution systems concludes airlines and travel agents must restructure their relationship, perhaps by phasing out commissions altogether and moving to a fee-based system for agents. Majors pay $45-$50 to get a passenger to the gate, the study said, compared with less than $10 for the low-cost carriers.
A small group of investors calling themselves SkyTeams Airlines plans a November startup of a Part 121 airline, operating from Fort Worth Meacham Field to San Antonio, Austin and Houston Hobby Airport, using four jet aircraft. Jess Coker, executive VP, said SkyTeams was negotiating for four 737s when Douglas made an attractive offer for MD-80s. It appears the MD- 80s will be used for eight weekday roundtrips to Hobby, six to San Antonio and four to Austin.
UAL Corp. reported a record net income for the second quarter of $151 million, as well as a new all-time-high quarterly operating profit of $305 million. Like other majors, United cites a stronger fare environment as the primary contributing factor. After preferred dividend requirements, earnings per primary share were $9.20 versus $1.89 for second quarter 1994. The quarter marks the first time in six years that UAL posted four consecutive profitable quarters, said Chairman Gerald Greenwald.
Agreeing to a comprehensive marketing and operational alliance with Continental yesterday, USAfrica is targeting a fall restart of its direct service between the U.S. and West and Southern Africa. The accord includes a code-share arrangement under which Continental's code will appear on all USAfrica's flights. USAfrica also will shift the U.S. gateway for its service to Johannesburg, South Africa, via Dakar, Senegal, from Washington Dulles to Newark.
Local Washington-area airport authorities are pressing DOT to approve EVA Airways' bid for Taipei-Washington service despite Federal Express's objection. FedEx has asked DOT to defer action on EVA's application for extrabilateral authority to serve the route until the government of Taiwan gives approval to FedEx to construct and operate its planned cargo-handling facility and flight operations center at Chiang Kai Shek Airport in Taiwan (DAILY, July 19).
Consolidated Freightways reported second quarter net income of $20.1 million, its best quarter in six years. The results were up from $444,000 in the same quarter a year ago, when its motor operations were adversely affected by a strike. Operating income of $48.2 million, up from $13 million, was the best ever for a second quarter. Revenues rose 24.6% to $1.32 billion. CNF's Emery Worldwide unit reported operating income of $17.7 million, a decline from last year's $23.4 million, which benefited from the strike as motor shippers turned to air freight.
Boeing yesterday reported losses for the second quarter and first half after taking a pretax charge of $600 million for a special retirement program it offered earlier this year that was accepted by 9,500 employees. Net loss in the second quarter was $231 million on sales of $5.6 billion, compared with net earnings of $222 million on sales of $5.4 billion the same quarter last year. Net loss in the first half was $50 million on sales of $10.6 billion, compared with a net profit of $514 million on sales of $11.7 billion last year.
Orange County Board of Supervisors last night was set to consider an item directing county aviation staff to cooperate with the Orange County Transportation Authority (OCTA) in drafting a plan for the potential transfer of the county's aviation system - both John Wayne Airport and Marine base El Toro - to OCTA. Air Transport Association President Carol Hallett, in a letter to Supervisors' Chairman Gaddi Vasquez - who according to an industry source is undecided on the issue - expressed airline opposition to the proposed transfer.
DOT affirmed yesterday its initial decision to require the City of Los Angeles to refund airlines 25 cents of the $1.56 per thousand pounds landed weight landing fee imposed at Los Angeles Airport in July 1993, but it stayed the refund requirement pending appeals court review and provided that the city post adequate bond by July 30. DOT also deferred action on claims that the latest landing fee, imposed July 1, is inconsistent with DOT's decision on the previous fee.
The House yesterday passed the fiscal 1996 DOT appropriations bill (H.R.2002), defeating several amendments that sought to change or reallocate funds for FAA. Perhaps as significant is the decision of Rep. Gerald Solomon (R-N.Y.) not to offer an amendment to give the president line-item veto authority. Approval of such a measure could have meant a lengthy delay in conference for the DOT funding bill. Yesterday, the House defeated 416 to five an amendment sponsored by Rep. Robert Andrews (D-N.J.) to withhold fiscal 1996 funding for FAA's Military Airport Program.
Nordam said it will provide the thrust reverser system for the Cessna Citation Excel and the Citation Bravo. The Bravo is powered by Pratt&Whitney Canada 530A turbofans and the Excel by Pratt&Whitney's new PW545A turbofans.
FAA said yesterday it awarded a $207.1 million contract to Computer Sciences Corp. to produce, install and support the operational software for its new air traffic control automation systems. The En Route Software Development and Support (ERSDS) contract, awarded for three years with two one-year options, is an expansion of the original contract, the agency said.
Royal Aviation is seeking authority to operate scheduled passenger service between points in Canada and in the U.S. Also operating as Royal and Conifair, the Montreal-based carrier currently operates charter service between the two countries. (Docket OST-95-339)
Air New Zealand and South African Airways will develop business opportunities from South Africa to New Zealand and Australia under a commercial agreement signed recently in Johannesburg. The cooperation agreement, which includes a bilateral fares package, creates the potential for joint operations, schedule agreements and streamlined connections at common gateways in Asia and Australia, familiarization programs for travel agents, promotion of special events and joint advertising.
International Lease Finance Corp. yesterday announced orders for 54 new- generation 737s. Boeing valued the orders at $2.25 billion. CFM International, whose CFM56-7 powers the newer 737s, valued the engine portion of the orders at more than $500 million. ILFC said the order covers 11 149-seat 737-700s, three 189-seat 737-800s and 40 132-seat 737- 600s. The leasing company said it has the right to change more than half of the 737-600 orders into orders for the larger aircraft.
Commerce Secretary Ron Brown today will reveal the federal government's first tourism development strategy. The Tourism Policy Council, chaired by Brown, considered nine components of tourism, including product and infrastructure development, promotion, environmental concerns, and safety and security.
Summary of U.S. Major Carriers International Traffic December 1994 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) American 1,173 11.89 2,008 2,354,432 Atlantic 240 11.52 4,134 991,035
Rockwell International's Collins Air Transport Division said Lufthansa has named it the preferred avionics supplier for the carrier's A319 aircraft and, in the future, A320/321s, A340-400s and 747-400s.
Potential new-entrant charter operator Presidential Air has revised its marketing plan and aircraft delivery schedule. Presidential said it is delaying startup of its Long Beach-Mexico charter service due to the requirement for Department of Agriculture, INS and Customs clearances and approvals for the service and the inability of Long Beach Airport to support them.
Summary of U.S. Major Carrier Domestic Traffic Fourth Quarter 1994 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) America West 3,725 (0.88) 766 2,853,217 American 17,191 7.79 1,038 17,846,586
A "Principal Airline Fleet Review" published by Morten Beyer and Associates compiles and analyzes the numbers, ages and values of the 8,232 jet aircraft owned and leased by the world's 100 top airlines. The review also provides details on 2,678 aircraft operated by 514 smaller jet airlines, comparing them under the categories of leased and owned, cargo and passenger, for 141 aircraft types. For more information on the $375 review, call 703-847-6598 or fax 703-734-1474.
