Airports are generally pleased with DOT and FAA's proposal to limit the mandated use of historic-cost valuation to airfield assets and to lift the historic-cost cap on aeronautical facilities, but airlines promised a fight over the issue (DAILY, Sept. 8). ACI-NA President George Howard, who called the modifications "very sensible," said the new language "goes a long way towards alleviating the serious concerns raised by the airport community regarding the Feb. 3 policy.
Delta's systemwide passenger traffic fell 2.8% last month from August a year ago on 0.4% less capacity, resulting in a load factor decline of 1.7 percentage points to 70.5%. The number of passengers boarded declined 4.7%. Domestic traffic fell 1.9% despite a 1.3% increase in capacity, and international traffic was off 5% on 5.5% less capacity. Delta said August traffic last year was buoyed by lower fares in many markets.
Federal Express has started direct flights between Kaohsiung and Taipei, using a widebody Airbus A310. The all-cargo service is offered five times a week. The new route was inaugurated Sept. 4 at ceremonies presided over by Kaohsiung Deputy Mayor Huang Juin-yin and Timothy Neely of the economic section of the American Institute in Taiwan.
Air Transport Association has been "incapable of paying a meaningful role" in drafting FAA reform legislation despite repeated requests for input, said Rep. Jim Lightfoot (R-Iowa), co-sponsor of FAA reform legislation (H.R.2276). Responding to comments by ATA President Carol Hallett that the bill "only tinkers on the edges of reform," he questioned whether ATA still "harbors a misguided belief" that Congress will turn control of the air traffic control system over to the airline industry (DAILY, Sept. 8).
Hawaiian carrier Mahalo Air has appointed Michael Yocum president. He will retain his title of chief operating officer. Although he is not the first president - an investor held the position in name only when the carrier applied for a certificate - he is the first to be responsible for day-to- day operations, accounting, finance, marketing and administration, which have been Chief Executive Mike Nekoba's duties.
Cathay Pacific will relocate its flight training facilities to Australia and the U.K. by mid-1998 because a growing number of its pilots outside Hong Kong live overseas, particularly in those two countries, Cathay said last week. The Hong Kong-based airline said 50% of its pilots will be living outside Hong by 2002. Also, the current site of Cathay's flight operations ground training school at Kai Tak is not available as a long-term location because the area will be redeveloped when the new Chek Lap Kok Airport is opened and Kai Tak is closed.
Air Canada, in a joint promotion with Swedish automobile maker Volvo, is offering members of its Aeroplan frequent flyer program the opportunity to win a new Volvo 850 GLT Sportswagon by flying Air Canada or one of its Connector carriers until Dec. 31. Conversely, until Oct. 31, buyers and lessees of new Volvos will earn 25,000 Aeroplan miles, which is enough to fly anywhere in North America on Air Canada and its partner airlines. The Volvo company builds cars in Nova Scotia.
- Granted orally an exemption to Pacific International Airlines to continue to wet-lease Boeing 727 equipment to Air Caribbean for all-cargo operations between Curacao, Netherlands Antilles, and Miami. The flight will be routed Panama City-Curacao-Miami at a maximum frequency of two round-trips per week...Granted orally an exemption to Mexicana to engage in scheduled combination service between Morelia, Mexico, and Chicago...Granted orally an exemption to Turks Air Ltd.
Malaysia Airlines and Canadian Airlines International plan to code share on flights between Vancouver and Kuala Lumpur via Taipei, beginning this fall. The two weekly flights will be operated with a Malaysia Airlines 747-400. Malaysia Airlines reserves the option of adding a third weekly flight if passenger loads are satisfactory.
Allied Pilots Association says it has reached a tentative agreement with American Airlines that provides the job security protections necessary to prevent jobs from going to code-sharing partner Canadian Airlines International or other foreign code-sharing partners. The pilots meet tomorrow with top managers to discuss what they say is still a "problematic" situation - agreements with Reno Air and Midway Airlines to feed the carrier.
Delta and its three European partners - Swissair, Sabena and Austrian - filed a joint application Friday for antitrust immunity, so they can expand their marketing relationships. The application came three days after Belgium signed its open skies agreement with the U.S. An open skies regime is a prerequisite for antitrust immunity (DAILY, Sept. 7). If approved, the international alliance would become the second to gain the immunity after the Northwest/KLM deal in 1992.
Continental Express August traffic was down 7.5% to 74.6 million revenue passenger miles as the carrier and its parent continue to cut unprofitable routes from the schedule. Express also flew 8.6% fewer available seat miles, for a total of 139.2 million, during the month, compared with August 1994, while load factor rose 0.6 points to 53.6%.
United Express Affiliate Air Wisconsin Airlines Corp. this week announced a peak ski flight schedule to Aspen, Colo., effective Dec. 20 calling for 12 daily departures and as many as 17 each day over the weekend. In making the announcement, carrier President and Chief Executive Geoff Crowley praised the new Denver Airport for the easy connections it has made possible and noted the coming availability of electronic ticketing on United Express flights.
Malaysia Airlines has selected the Bovis, McClier and WTW joint venture to design and manage the carrier's ground support facilities at the Kuala Lumpur Airport, scheduled to open Jan. 1, 1998. The McClier Aviation Group is based in Chicago, Bovis International in London and WTW in Malaysia.
Canadian Airlines International plans to "significantly" increase its winter flying this year, particularly from its Vancouver and Toronto hubs, as part its drive toward profitability. "We have a very determined strategy in place, which is to focus on strengthening those routes which are profitable," said Barbara Amster, CAI's new senior VP-marketing and sales, who recently joined the airline from partner American. "We've increased transborder flight frequencies from 105 to 833 per week," she said.
The American Association of Airport Executives has established a World Wide Web (WWW) home page on the Internet, giving airport executives and the public access to electronic information offered by the association. Called AirportNet, the WWW site provides information on AAAE accreditation, the Airport News and Training Network, conferences and meetings, corporate relations, environmental affairs, federal affairs, membership, publications and regulatory affairs. The web site also provides data on the International Association of Airport Executives.
Alaska Air Group subsidiary Horizon Air flew 85 million revenue passenger miles last month, a 9% increase from the 78 million flown in August 1994. Capacity rose 19% to 134 million available seat miles, compared with last year's 112 million. As a result, the load factor dropped 6.3 percentage points to 63.2% from 69.5%. Enplanements rose to 378,000 from 370,600 in August 1994. Aug 1995 Aug 1994 8 Mths 1995 8 Mths 1994 RPMs 85,000,000 78,000,000 561,000,000 464,000,000
Saying it intends to file its own application for new U.S.-Italy service, Delta filed an answer opposing Northwest's bid for scheduled combination service between Detroit and Rome. The carriers are contending for frequencies that will become available April 1, 1996, under the existing U.S.-Italy agreement (DAILY, Aug. 23). USAir also has applied for the service. Northwest proposes five weekly roundtrips between Detroit and Rome, using DC-10-30s, and USAir wants five weekly roundtrips between Philadelphia and Rome, operated with 767-200ERs (DAILY, Aug. 21).
Sterling, Va.-based United Express affiliate Atlantic Coast Airlines flew 35.1 million revenue passenger miles last month, 14.9% fewer than in August 1994, when it logged 41.3 million, on capacity that declined 17.4% to 66.3 million available seat miles from 80.2 million. As a result, load factor climbed 1.6 percentage points to 53% from 51.4%. The number of passengers enplaned dropped 8.7% to 144,324 from 157,996.
Fine Airlines has applied for renewal of its authority to operate all-cargo service between Miami and the co-terminal points San Pedro Sula, Honduras, and Managua, Nicaragua. The carrier also seeks renewed authority to integrate this service with its existing authority to serve San Salvador, El Salvador, and Guatemala City, Guatemala. Fine currently operates twice- weekly service to San Pedro Sula and three weekly flights to Managua, using DC-8-50F aircraft. (Docket 49227&OST-95-503)
Air New Zealand will add a fifth weekly nonstop flight between Los Angeles and London Heathrow on Dec. 1. The carrier will operate all the flights with Boeing 747-400s.
Frontier Airlines chairman and co-founder M.C. Lund, 74, has retired. Sam Addoms, president and chief executive, said the carrier has no immediate plans to replace Lund on its board, which now comprises Addoms, who has been vice chairman, and outside directors B. LaRae Orullian and Paul Dempsey. Addoms said Lund's retirement "caps a 53-year career of distinguished service in the airline industry. In sparking the creation of Frontier, he was able to draw on his vast network of associates and friends gathered over these many years."
Air France admitted this week that cabin crew productivity improvement measures implemented last year have had some success but failed to meet all objectives. At the same time, the measures - which included increasing the number of working hours and reducing days off and consecutive rest days - have caused working conditions to deteriorate and increased fatigue among crews.
Gerald Baliles, former Virginia governor and chairman of the 1993 National Airline Commission, will be the keynote speaker at a workshop on aviation opportunities in Central/Eastern Europe and the Newly Independent States, scheduled Oct. 15-17 in Warsaw. Other speakers are Barry Valentine, FAA assistant administrator for policy, planning and administration; Nicholas Rey, U.S. ambassador to Poland, and Boguslaw Liberadzki, Poland's minister of transport.
