Moody's Investors Service yesterday put the ratings of Northwest Airlines and NWA Inc. under review for possible upgrade, affecting $900 million in debt. The rating agency said its review will focus on the potential for continuing improvements in Northwest's financial flexibility, operating cash flow and debt protection measures. Among the numerous ratings to be reviewed are a B1 on Northwest's senior unsecured guaranteed notes and a B2 on senior unsecured notes.
FAA has completed Human Factors Guide for Aviation Maintenance, a publication intended to enhance air safety by offering ways to reduce human error and improve performance levels of airline maintenance workers, managers and safety inspectors. Preparing the book, FAA officials and contractors interviewed maintenance technicians and their line supervisors, set up laboratories at maintenance facilities, examined workplaces, shift records, personal and work-related records, and studied human and environmental factors related to human performance.
Deutsche BA, 49%-owned by British Airways, plans to launch London Gatwick- Berlin Tegel service Jan. 8 with two Fokker 100 flights per day. Berlin will be the fifth German city BA and its partner carriers serve from Gatwick. Deutsche BA serves Munich twice a day and will introduce three- times-a-day service to Bremen on Oct. 29. BA serves Frankfurt three times a day and City Flyer Express, operating as a BA franchise carrier, flies to Dusseldorf twice a day. The new Deutsche BA service will complement BA's four-times-daily London Heathrow-Berlin service.
Air Club International and Hawkair Aviation Services have applied in separate actions before DOT for renewal of their authority to operate charter flights between Canada and the U.S. Montreal-based Air Club International wants to continue operating one flight per week from Vancouver to Honolulu, using Boeing 747-200 and Airbus A310-300 aircraft (DAILY, Aug. 10, 1994) (Docket 49701). Hawkair, based in British Columbia, also seeks continued authority to serve third countries and the U.S.
Freddie Laker and Texas oilman Oscar Wyatt announced yesterday they will form Laker Airways Inc., giving Laker Airways another shot at operating successful transatlantic service. Wyatt will be senior shareholder, with a 51% stake in the company, which will operate from Florida to Great Britain, Italy and Germany. Laker has not yet filed at DOT for approval.
Burns&McDonnell Engineers-Architects-Consultants added Edmund Johnson as corporate director-transportation. CFM International named Gerard Laviec president and chief executive, succeeding Francis Avanzi, who returns to Snecma. Kaman Corp. named Huntington Hardisty president of affiliate Kaman Aerospace International. K-C Aviation appointed John Rahilly president. Sundstrand elected Robert Jenkins president, chief executive officer and a member of the board.
FAA Administrator David Hinson and Deputy Administrator Linda Daschle met recently with airline CEOs on airport security measures, which will get tougher. "We have to defend against possible terrorist attack," Daschle said, "and we want to come up with an acceptable package."
Federal Express, which reported a 23% increase in its August quarter net earnings to $75.3 million, said it managed to slow the rate at which its domestic yields are decreasing (DAILY, Sept. 15). The express carrier's average revenue per domestic package declined 3.4% from the August quarter a year ago, to $12.68. In the previous quarter, domestic yield per package was down 5% year-over-year. "We did a much better job of managing our U.S. domestic package yields this quarter," said Chief Financial Officer Alan Graf.
Swedish regional carrier Skyways, which posted a profit of 7 million Swedish krona last year, expects to make even more money this year as it continues to grow. Last year's profit turned around 1993 results, when Skyways lost 39 million krona. Jan Palmer, company president, said productivity, measured by revenue per employee, increased 27% during the past two years, and he attributed current success to a strong business focus, fulfillment of passenger needs, cost effectiveness and team spirit.
Airports Council International elected Paul Gaines chairman. Air Transport Association presented its third "Award of Excellence" to Robert Michael, general manager of the Regional Airport Authority of Louisville and Jefferson County, Ky.
DOT is inviting U.S. carriers to apply for new services to Vancouver that become available in February 1996, the second year of the U.S.-Canada bilateral agreement. As in the first year, the U.S. may designate six additional carriers for the services. Carriers may operate two daily roundtrips, which may be used for a double daily service at one U.S. point or one daily flight at each of two U.S. cities. In addition, airlines awarded Vancouver service in the first year of the bilateral may use the new flights to expand those services.
Economic expansion in British Airways' most important worldwide markets will remain at 2% to 3% per year through the end of the decade, according to DeAnne Julius, the airline's chief economist. Such growth its crucial to the airline, which last week announced a three-year, $800 million program to revamp nearly all inflight service products (DAILY, Sept. 19).
In Federal Register dated Sept. 15...Issued an airworthiness directive on certain Fairchild SA226-AT/TC aircraft requiring replacement of the two lower aluminum cargo door receptacles...Issued an AD on Mooney M20K aircraft with Continental TSIO-520-NB engines installed under STC SA5691NM requiring inspection of the exhaust transition tube and turbo mount assembly for cracks...
Lufthansa plans a new, nationwide fare structure this fall for its flights within Germany as part of an effort to standardize its domestic products and operations. "In our new concept for flying in Germany, we have incorporated the ongoing experiences we have gained with domestic services operated by Lufthansa and Lufthansa Express," said Hemjo Klein, Lufthansa's chief executive-marketing.
Fares to Denver, relatively higher than other domestic markets because of the cost of the new Denver Airport, are coming down thanks in part to cheaper tickets to less-expensive nearby Colorado Springs Airport. United said it is cutting fares at Denver on a flight-specific basis to match comparable service to Colorado Springs. Roger Gibson, United VP-Mountain Region, said, "We listened to our Denver customers and promised that we would re-evaluate our fares. These cuts are the result of our re- evaluation." The fares range from $49 to $102 each way.
DOT determined Friday that a significant dispute exists between airlines and the City of Los Angeles over the new landing fee that took effect July 1 at Los Angeles Airport. The Air Transport Association and 59 airlines filed the complaint Aug. 25, claiming that the new $2.06-per- thousand-pounds landing fee - 50 cents higher than the previous fee - is based in part on costs DOT previously said are impermissible (DAILY, Aug. 29).
Delta has requested a change of venue from Los Angeles to home town Atlanta for consideration of the Air Line Pilots Association's request for an injunction to keep the airline from transferring operations of large jet aircraft to Connection carriers.ALPA does not expect a decision until late October. Pilot negotiators still were waiting Friday for management's business plan on increasing 100-seat flying. Interested in keeping up with Delta's mediated talks with pilots? Visit ALPA's Internet site at www.DALPA.com.
Wayne County (Mich.) Executive Edward McNamara said talks with Northwest Airlines on improving Detroit Metropolitan Wayne County Airport will explore expansion, modernization and ways to finance a new midfield terminal (DAILY, Sept. 20). Northwest serves 70.8% of enplaned passengers at the airport and occupies 60% of the gates.
United will increase international smoke-free flights Nov. 1, adding Flights 946/947 between Washington Dulles and Amsterdam, 1/2 between Los Angeles and Hong Kong/Singapore, 805/806 between San Francisco and Hong Kong/Singapore and 807/808 between San Francisco and Seoul/Manila. It will test no-smoking for three months on Flights 837/852 between San Francisco and Tokyo/Shanghai.
Toronto Pearson has the potential to become an international gateway on the scale of New York, Chicago or Los Angeles, but its future is in jeopardy because of terminals, runways and in-transit facilities that are inadequate and uncompetitive with other airports, according to Air Canada Chairman Hollis Harris. In a speech Friday to the Rotary Club of Toronto, Harris called for the adoption of a fast-track approach to the redevelopment of Pearson and said Air Canada would be willing to lead such an effort.
DOT has amended Grand Airways' certificate to operate interstate scheduled combination service, removing a condition that limited its authority to operation of two large aircraft. With the change, the carrier plans to add a third DC-9 to its fleet. DOT cited changes in Grand Airways' operations making it a medium-haul rather than a short-haul carrier. In addition, Grand "has experienced a significant increase in its passenger revenue base and total asset base," said DOT.
