The proposed National Tourism Strategy that will be acted on at the White House Conference on Travel and Tourism Oct. 30-31, issued yesterday, lists specific recommendations to address 10 stated objectives, including creation of a public/private partnership to advise the administration on national tourism issues by July 1996. Called Visit USA Inc., the organization would have a 45-memberboard on a budget of $100 million a year by 2000, not including private sector co-op funds for specific campaigns.
Continental yesterday reported third quarter net earnings of $111 million, the largest quarterly net profit in its history, and company officials reiterated that they expect the airline to break even - at worst - in the traditionally slow fourth quarter. The $111 million profit exceeds by $9 million the company's previous record, set in the second quarter, and the earnings per share of $2.68 on a fully diluted basis easily surpassed Wall Street's expectations.
Partners British Airways and USAir yesterday introduced Windows-based online travel systems that will enable their customers to plan and book travel through personal computers. USAir's Priority TravelWorks and BA's Executive TravelWorks will be provided free of charge to the airlines' highest-level frequent flyers. The systems offer access to the Apollo computer reservations network with real-time information on fares and schedules for 740 airlines, as well as information on 24,000 hotels and 37 rental car companies worldwide.
DOT, in separate orders yesterday, tentatively awarded new Peru service to Continental and issued a final order granting American additional frequencies in the U.S.-Brazil market. DOT Secretary Federico Pena said "the department's action will provide consumers and communities with valuable new travel options in some important South American markets, while adding momentum to the department's efforts to expand U.S. carrier service in the region." With its new service, Continental will operate seven weekly 757-200 flights between Newark and Lima, via Bogota.
TWA grossed about $55 million from the recent equity rights offering that was part of its prepackaged Chapter 11 plan of reorganization. The airline said the offering, in which 13.15 million equity rights were issued, was fully subscribed.
DOT has set procedural dates for consideration of the antitrust immunity bid of Delta, Swissair, Sabena and Austrian. Comments are due Nov. 3 and replies Nov. 13.
USAir is discounting fares to Florida by up to 40% - as much as $130 lower than 21-day advance purchase fares - from more than 135 cities. Travel must be completed by April 30, or by April 24 from some points in the Northeast.
Hawaiian Airlines' systemwide scheduled passenger traffic increased 22% last month on 18.1% more capacity, pushing the carrier's load factor up 2.2 percentage points to 69.1%. Through the first nine months of this year, Hawaiian's traffic gained 6.4% on 4.4% more capacity, resulting in a load factor increase of 1.4 points to 74.9%. Sept 95 Sept 94 9 Mths 95 9 Mths 94 RPMs 253,167,796 207,464,768 2,327,459,658 2,187,098,259
DOT has approved USAir's bid to operate scheduled combination service between the co-terminal points Boston and Philadelphia and the terminal point Madrid, Spain. The carrier plans to begin service May 1, 1996, with daily nonstop roundtrip services between Madrid and both U.S. cities, using Boeing 767-200ER aircraft (DAILY, Sept. 18).
Aeromexico's August passenger traffic fell 15.7% from the same month last year to 870.9 million revenue passenger kilometers. Capacity was down 16.6% to 1.21 billion available seat kilometers. The number of passengers dropped 15.3% to 673,536, but cargo traffic rose 9.6% to 6.1 million freight ton kilometers. Through the first eight months of this year, Aeromexico's traffic declined 18.6% to 5.79 billion RPKs on 10.6% fewer ASKs. The number of passenger enplanements declined 17.8% to 4.6 million, but cargo traffic rose 22.8% to 58.4 million FTKs.
Number of aircraft for sale or lease has declined sharply over the past 12 months, from 657 in October a year ago to 482, according to FedEx Aviation Services. Some of the biggest drops in availability involve the DC-9, from 86 to 37, and the 727-200, from 98 to 58.
American's Allied Pilots Association unit is prepared to offer the company a settlement proposal tomorrow that it says will resolve its biggest issue in contract talks - the scope clause - and economic issues as a result of agreements already reached by management on a temporary containment of the Reno Air and Midway Airlines relationships, international code sharing and alcohol testing.One bone of contention for the union is continued extensions to Hawaiian Airlines on making lease payments.
Sterling One, a new company advertising new service between Long Beach and Chicago, said yesterday that it is an indirect carrier, and that AvAtlantic will provide the service (DAILY, Oct. 16). Sterling One issued the clarification at DOT's prompting after it announced new service in the market last week without mentioning AvAtlantic's role.
Machinists union strike at Boeing continues with 24-hour picketing, the union said, as the company insists on negotiating the contract on the table and the union says that in that case, there is nothing to discuss. An IAM spokesperson said the union may hear this week from the National Labor Relations Board on charges it filed against the company, alleging that it withheld information on the health care proposal, and on subcontracting and outsourcing, which "we hope will get us back to the table." A second charge involves cuts in retiree medical benefits.
U.S. airlines will post strong financial results for the third quarter, and the earnings momentum generally is expected to continue into 1996, according to airline analysts. As many as nine airline companies are expected to report their September quarter results during the next two weeks, beginning today with Continental, whose stock closed at $40 per share on Friday, an all-time high.
Delta's Air Line Pilots Association unit has decided to implement retroactively the 2% pay raise it agreed in August 1994 to hold in abeyance for one year, including it in contract negotiations. The pilots said their Master Executive Council voted last week to call for the implementation of the raise in response to members frustrated by the current mediated talks.
Canadian Airlines International has extended its Weekend Getaway Fares promotion to sun destinations. The airline has been offering the fares for travel between 14 cities in Canada and five U.S. points since late summer (DAILY, Aug. 17). In the extension, Canadian is offering discounts up to 80% off full economy fares for weekend travel to Honolulu, Las Vegas, Reno, Fort Lauderdale and West Palm Beach. Getaway Fares travelers to the sun destinations must leave Canada on a Thursday and return the following Sunday or Monday.
The Air Transport Association said yesterday that John Motley, executive VP for government and public relations, has resigned to become senior VP of government and public affairs for the National Retail Federation. Motley joined ATA in June after 24 years at the National Federation of Independent Business. ATA President Carol Hallett has eliminated the position of executive VP and named Guy Clough senior VP for economic and external affairs.
The Senate Finance Committee is scheduled to continue work Wednesday on its version of the budget reconciliation bill, including a provision that would extend for 18 months, not two years, the exemption for commercial aviation fuel from the 4.3 cents-per-gallon transportation fuels tax.
The Securities and Exchange Commission told Denver officials last week that its Central Region office plans, to recommend administrative action as a result of its investigation into Denver Airport revenue bonds. SEC Denver Branch Chief of Enforcement, Donald Deagle, cited the city with violations of sections of SEC Acts of 1933 and 1934. A response from the city is due Oct. 27.
Air Canada is offering reduced fares from Edmonton, Calgary and Vancouver to some European and western U.S. destinations. The discounts are available to San Francisco, Honolulu and Frankfurt from Edmonton and Calgary, and to those three points and London from Vancouver. "Air Canada is introducing a wider choice of fares to suit different budgets and travel plans," said Robert Milton, the airline's senior VP-marketing and in-flight service.
Summary of U.S. Major Carriers International Revenues and Expenses First Quarter 1995 In Dollars Total Operating % Passenger Carrier Revenues Change Revenues American 1,046,676,000 6.69 894,535,000 Atlantic 396,698,000 6.49 317,143,000
AirTran Airways' load factor dipped to 45.7% in September after topping 66% in both July and August. "Florida's record number of tropical storms contributed to lower-than-expected traffic results in September," said John Horn, the airline's chief executive. "However, bookings for the fourth quarter are strong and reservation activity is at an all-time high," he said. AirTran flew 31.98 million revenue passenger miles last month on 69.94 million available seat miles. The airline boarded 37,416 passengers during the month.
Singapore Airlines (SIA) systemwide passenger traffic rose 9.1% in August to 4.57 billion revenue passenger kilometers. The airline boarded 989,000 passengers during the month, an increase of 9.3% from August a year ago. SIA's cargo traffic rose 9.6% to 294.2 million freight ton kilometers. Through the first eight months of the year, SIA's passenger traffic increased 6.4% to 31.34 billion RPKs and its passenger enplanements rose 7.8% to nearly seven million. Cargo traffic for the period increased 10.9% to 2.29 billion FTKs.
