The House Appropriations Committee is recommending reductions in FAA's executive direction and management staffing in fiscal 1996, led by a 66% cut in the agency's headquarters public affairs staff. In the committee report (House Report 104-177) approved in late June, the panel said a $15.27 million reduction in the executive direction and management budget is needed to continue funding 5% bonus pay for air traffic controllers.
Air South's June passenger traffic rose 5.6% over May's level, to 35.4 million revenue passenger miles, despite a 5.8% decline in capacity. The number of passengers boarded rose 2.2% to 99,472, and the load factor jumped to 51.8% from 46.2%. The carrier said it has cut back unprofitable route segments.
Sabena's passenger traffic rose 15.7% in May to 735.4 million revenue passenger kilometers. The Belgian carrier's passenger enplanements increased 22.2% from a year ago to 445,045, and its cargo traffic rose 3.2% to 36.3 million freight ton kilometers. For five months, passenger traffic rose 20.6% to 3.23 billion RPKs, and passenger boardings increased 19% to 1.89 million. Freight traffic rose 5.5% to 179.2 million FTKs.
KrasAir has taken delivery of the first of two DC-10-30s, distinguishing the airplane as the first U.S.- registered aircraft to be operated by a Russian carrier into the U.S., according to a Douglas Aircraft official. The second aircraft will be delivered later this year, said Bill Perry, regional VP-commercial marketing for Douglas. KrasAir agreed to lease the two aircraft in April 1994 and since then has been working with Douglas on operational details.
Association of Retail Travel Agents, supporting the Travel and Tourism Tax Relief Act of 1995, is asking members to write their congressional representatives to seek support for the bill (H.R.1083). The legislation was introduced by Rep. Toby Roth (R-Wis.), chairman of the Congressional Travel and Tourism Caucus. ARTA also supports a proposed Joint Industry Economic Value Study that it believes will prove the monetary worth of travel agents to suppliers and consumers.
Canadian Airlines International, seeking wage and work rule concessions from its labor force, says it has "more or less" reached a deal with its Canadian Auto Workers unit but cannot finalize it. First, the carrier must resolve a few "interdependent" issues that it cannot address until talks with four other unions reach the same point as those of the auto workers. Contrary to speculation, the future of Canadian's senior management, particularly Chief Executive Kevin Jenkins, is not among the outstanding issues, the airline said.
American has asked DOT for authority to operate combination service between the U.S. and Taiwan, via Vancouver, under its code-sharing agreement with Canadian Airlines International. American's designator code would be displayed on connecting flights operated by either American or Canadian between U.S. points and Vancouver, and by Canadian between Vancouver and Taiwan. (Docket OST-95-311)
Air France Industries, the French flag carrier's overhaul and maintenance profit center, recently signed third-party work contracts worth $125 million.
Northwest and partner KLM this fall will expand the number of smoke-free international services they offer. All the airlines' flights between the U.S. and Canada and Europe, and all KLM flights within Europe will be become smoke-free as of Oct. 29. Northwest and KLM will offer transatlantic service between 17 U.S. and Canadian cities and European points Amsterdam, London, Frankfurt and Paris. Beyond Amsterdam, non- smoking flights will go to 61 European destinations, as well as connecting points in the U.S. and Canada.
An interactive publication to assist the business traveler, The Business Traveler Online, is available on the Internet at http://www.biztravel.com/guide/. The program offers an interactive forum enabling "road warriors" to enlighten others about good and bad travel experiences. The home page includes listings of airlines, car rental agencies, country data, weather reports, exchange rates, hotel/restaurant information and other travel and business tips.
DOT denied Tuesday the City and County of Denver's request for a waiver from filing a letter of credit or surety bond equal to the disputed amount in the TWA rates and charges complaint. The department gave Denver 20 days to provide the financial security to assure "timely repayment" of the disputed fees if TWA wins. TWA must pay the fees to the airport, DOT pointed out, because the carrier's obligation is not conditioned by DOT's determination on reasonableness. Denver has asked for a DOT extension until the end of the week to obtain the credit facility.
Continental has successfully concluded its previously announced efforts to restructure leases and related agreements on 27 widebody aircraft, and has entered into agreements in principle involving to three other airplanes, the carrier said yesterday. In January, Continental said it will ground - or reduce or defer rent on - 35 widebody aircraft. At least 24 of the airplanes - 21 Airbus A300s and three Boeing 747s - are being dropped from the fleet (DAILY, April 14).
Even as many in industry express concern about the number of seasoned personnel leaving FAA during the past couple of years, plans in Congress to balance the budget by 2002 mean "we could be forced to terminate literally thousands of employees who help maintain the national airspace infrastructure," according to Administrator David Hinson. Losses on this scale would mean growing flight delays that would cost airlines more than $2 billion a year, he said.
United Parcel Service has been awarded its largest contract, $1 billion over five years, to make small-package air deliveries and some ground shipments for JCPenney. "To our knowledge, this is the largest distribution contract ever announced in the industry," said Ed Brockwell, VP-national accounts. He said UPS will bring new technology and logistics to the contract, and it will assign a full-time team from engineering, finance, information services and customer service to the client.
Ongoing talks with Japan may disrupt DOT plans for an in-house review of its Asia policy during the last week of July. Currently being organized, the retreat-like meeting is expected to last at least two days and bring together DOT experts with strategic planners from the airlines, "to talk about the big picture in Asia and develop a comprehensive approach to what we're doing," a DOT official said. The goal is to get everyone thinking five, 10 and 20 years ahead rather than to develop a near-term wish list, the official added.
Representatives of key legislators and the Clinton administration debated FAA reform yesterday, with financing reform increasingly the axis of debate. In a panel discussion at an Airports Council International-North America/American Association of Airport Executives legislative conference, David Schaffer, majority counsel of the House Transportation aviation subcommittee, urged continued industry support for legislation (H.R.842) to take the aviation, highway and two other trust funds off budget.
Rosenbluth International has acquired South African travel agency Gundelfingers Travel, which has provided travel services for Rosenbluth clients for the past two years. Rosenbluth has appointed Gundelfingers Chairman Barry Saxton VP-international. Saxton will oversee all Rosenbluth's operations outside the U.S. from a London office. Gundelfingers associates will manage the South African operation.
Revamping the U.S. Travel and Tourism Administration (USTTA) should be a priority at the White House conference on Travel and Tourism in October, according to state and travel industry officials. Preliminary recommendations from 23 states show that more than half believe the USTTA, in danger of having its funding cut by the new Republican Congress, needs a substantial overhaul. USTTA also could become a private/public organization (DAILY, March 2).
American Society of Travel Agents will host a weekend retreat for past participants of its Travel Management Academy Aug. 18-20 in Phoenix at the Pointe Hilton Resort at Tapatio Cliffs. Attendees of the reunion will discuss the benefits offered by the academy and ways to improve the curriculum. Graduates should call Verlette Mitchell at 703-739-2782.
Status of Airline Labor Contracts As of July 12, 1995 Flight Airlines Pilots Engineers Attendants ABX IBT-7/31/95 -- -- In negotiation Alaska ALPA 12/1/97 -- AFA 3/14/99 Aloha ALPA 11/30/96 -- AFA (8/31/93) In negotiation
The American Society of Travel Agents, which asked President Clinton early this week to restore full diplomatic relations with Vietnam, praised his announcement Tuesday that the U.S. will work to normalize relations (DAILY, July 12). ASTA board members met recently with government and tourism officials in Ho Chi Minh City and Hanoi for the first time in 25 years, and ASTA President Jeanne Epping told Clinton they found a "sincere spirit of cooperation....Travel and tourism builds bridges of understanding and appreciation between nations.
The first 45 of 305 cabin attendants hired by All Nippon Airways on a lower-wage, contract basis began flying recently on Japan domestic routes. The remaining 260 will go to work on domestic and international routes by mid-September. The contract cabin attendants, whom ANA calls Sky Service Attendants, were hired on one-year contracts that are renewable twice. After the three years, they will have an opportunity to become full-time flight attendants, ANA said.
American Trans Air's consolidated (scheduled and charter) passenger traffic rose 13.6% on 12% more capacity in June, producing a load factor increase of one percentage point to 71.3%. The number of passengers boarded increased 24.8%, but the length of the average trip dropped 9% to 1,689 miles. Through the first six months, the carrier's passenger traffic rose 28.2% on 27.2% more capacity, boosting the load factor 0.6 points to 70.5%. The number of passengers boarded rose 26.6%.
Maps of the world, including descriptions of 20,000 historical, cultural, geographical and social features, are available on CD-ROM from DeLorme Mapping, Freeport, Maine. DeLorme's Global Explorer software program includes a network of world air routes that enables users to plot a route between any two cities in the world, and receive the distance, plus two options for likely commercial air routes. If the cities chosen do not have a commercial airport, the program draws a line to the nearest airport.
Aeromexico's passenger traffic was down 19% in May to 693.8 million revenue passenger kilometers, and it fell 18.7% in the first five months of this year to 3.41 billion RPKs. The number of passengers boarded declined 19% in May to 560,168, and 17.8% for five months to 2.7 million. Cargo traffic jumped sharply in both periods, however. It increased 21.6% in May to 8.1 million freight ton kilometers and was up 26.4% for the five-month period to nearly 38.2 million FTKs.
