Boeing Co.'s board yesterday authorized production of the 777-300, the stretched version of its new twinjet, as what Boeing Chairman Frank Shrontz termed "an attractive option for progressively lower cost per seat within the 777 family and for replacement of early model 747s." The go-ahead follows this month's announcement that four airlines have ordered 31 of the aircraft, 20 of them new 777 orders and 11 conversions. Dale Hougardy, VP and general manager of the 777 division, said a 33-foot stretch will give the aircraft 368 three-class seats or 451 two-class seats.
The three largest U.S. airlines, United, American and Delta, accounted for 56.89% of the U.S. industry's total traffic in May. United led the pack with a market share of 21.174%, followed by American at 19.355% and Delta at 16.357%. Atlantic Coast had the smallest share among the 18 majors and nationals, accounting for 0.069% of the industry's total of 43.74 billion revenue passenger miles. The nine nationals together accounted for nearly 4.1% of the traffic total and 4.4% of the industry's combined capacity of 65.61 billion available seat miles.
Boeing said yesterday it will hold prices in its Spares Standards Catalog at 1994 levels until June 30, 1996. The standards catalog includes items such as fasteners, brackets and other components used in large quantities for repair and maintenance. Last fall, the company froze aircraft spares prices in its proprietary catalog, which covers parts from small machine fittings to large control surfaces designed specifically for Boeing aircraft, until May 31, 1996.
Worldspan will launch Worldspan Electronic Courier, a system that will distribute airline and rail tickets almost anywhere in the U.S. electronically, in the third quarter. Being introduced in conjunction with QuikTix Corp., an Arizona-based Electronic Ticket Delivery Network (ETDN) provider, Electronic Courier will become available automatically to Worldspan subscribers in the U.S. Delivery options will include same-day courier, airport pick-up and overnight standard or priority express for out-of-town deliveries.
As governments and carriers continue to push for open-skies aviation agreements and international airline alliances, antitrust immunity will play a key role in shaping the future of international competition, a panel of government and airline officials agreed last week. "It [immunity] is on the agenda for the next several years to be very, very important," DOT General Counsel Stephen Kaplan said at the American Bar Association's Forum on Air&Space Law.
Boeing, which halted flight testing of the GE90-powered 777 transport early this month after an "imbalance" was discovered in the engine, said yesterday that it has "set no date yet for resuming flight testing" (DAILY, June 7). Boeing said it still expects to deliver the first GE90-powered 777 to British Airways as scheduled in late September. General Electric Aircraft Engines said its GE90 "fix is under way," and it has started testing a modified fan blade platform for the engine.
The 1994 Federal Radionavigation Plan (FRP), more than a year late but due to be issued this week, will include a cutoff in Coast Guard funding of the Loran-C navigation program in 2000 despite protests from the aviation and maritime communities, sources told The DAILY yesterday.
The Borough of Queens of the City of New York is urging DOT to deny Spirit Airlines' bid for an exemption from the High Density Rule to operate service between Detroit and New York LaGuardia Airport, which is located in Queens. The carrier "has not demonstrated any exceptional circumstances which would warrant this extraordinary relief," said the borough.
The governments of Hong Kong and Australia agreed yesterday to put on hold for six months the implementation of punitive actions against each other's airlines stemming from a long-running dispute about fifth-freedom traffic (DAILY, June 22). Neither airline had comments or details on the decision, but wire reports from Hong Kong said the two governments have temporarily withdrawn their threats to limit each other's air traffic rights and have agreed to review their air services agreement.
Alaska Airlines unveiled new summer livery as part of its Alaska's World promotion, touting customer service associated with the 1940s and 1950s. The new look gives the impression that passengers are talking to the Eskimo painted on the aircraft tails - decals with comic-book-style dialogue bubbles extend from passenger windows saying "swell" and "good choice," and the Eskimo responds, "Thanks!"
Personal ExpertWare Inc. is expanding its Air Travel Manager (AirTM) software to offer consumers an integrated one-stop reservation system for online booking of airline tickets, hotel accommodations and car rentals. AirTM, which rebates air travel 5%, enables users to book flights on 200 airlines, 63 rental car companies and 27,000 hotels. Ian Willson, president of Personal ExpertWare, said a "typical" business traveler saves time, finds better and cheaper flights, and earns $600 per year in rebates.
Korean carrier Asiana Airlines will take delivery today of its second Boeing 747-400 freighter. It plans to receive two more 747Fs before the end of the decade, and it will get one of the first 767-300 freighters next year and a second in 1998. The 747-400F is one of five new Boeing aircraft Asiana plans to acquire this year. The carrier's all-Boeing fleet numbers 36 aircraft. Taiwanese carrier EVA Airways took delivery last week of its second McDonnell Douglas MD-11 freighter and said it will expand its intercontinental air freight service.
VASP Brazilian Airlines ordered two more MD-11s, adding to the four currently in its fleet, Douglas Aircraft Co. said. The two new aircraft, scheduled for delivery in November and December, will be powered by General Electric CF6-80C2 engines. The carrier plans to add four more MD- 11s to its fleet through 1998, including both passenger and freighter versions, Douglas said. The manufacturer's most recent MD-11 orders came in December, two for FedEx and one for Swissair.
Alitalia was forced to ground roughly half of its flights yesterday as a result of a 24-hour strike by some of its pilots, flight attendants and ground staff. This month, Alitalia was hit by a wildcat pilot sickout that wreaked havoc on operations for two days. Yesterday's strike was scheduled in advance, giving travelers the opportunity to make other arrangements. Alitalia employees are protesting the airline's ongoing restructuring program.
Alitalia would increase the wet-leased 767-33AER service operated for it in some of its U.S. markets under terms of an application to DOT by Monarch Airlines of the U.K. Wet-leasing, a point of contention between the Italian flag carrier and its unions, would shift from Australia to the U.K. and grow from two 767s to four on services between Rome and Boston/Chicago, Milan and New York Kennedy/Newark, and Rome/Milan and Miami. The two aircraft already being flown on Alitalia routes are operated under a wet- lease pact with Nordstress Australia Pty.
Pilots at USAir's Jetstream Airlines began an informational picketing campaign Sunday to express dissatisfaction with the pace of contract negotiations. Complaining that it has been negotiating with the company for more than a year and a half, the Air Line Pilots Association unit at the USAir Express carrier began the picketing at Dayton Airport and plans to expand it to airports at Pittsburgh, Johnstown and Altoona, all in Pennsylvania, and at Hagerstown, Md.
United Parcel Service said yesterday it will invest $130 million over the next five years to develop further its facilities and service in the Asia/Pacific region. UPS said it has spent $102 million since 1988 to acquire and expand operations in Singapore, Hong Kong, Malaysia, Taiwan, Thailand and Australia. The new strategy calls for a $115 million investment in aircraft, $3 million in buildings and facilities, $3 million in vehicles and $13 million in other technology and service enhancements.
Taiwan's Ministry of Economic Affairs is expected to sign strategic alliance agreements early in July with three U.S. companies - Lockheed Martin, Allison and AlliedSignal - covering the transfer to Taiwanese companies of technologies needed for production of aircraft parts and engines. Yang Shihchien, vice minister of economic affairs, visits the U.S. from June 29 to July 15.
TWA's management and board likely will decide today or tomorrow whether to risk a second trip through Chapter 11 bankruptcy protection in order to speed up completion of the carrier's proposed financial restructuring and debt recapitalization. Midnight tonight is the deadline for creditors and debtholders to vote on the company's complex restructuring proposal, in which as much as $500 million in debt would be exchanged for new debt and equity.
Preparations for the U.S.-Japan aviation talks are being complicated by auto negotiations between the two countries now under way in Geneva. A number of Japanese officials taking part in those talks also would be involved in the aviation talks, DOT General Counsel Stephen Kaplan told The DAILY. Currently, the U.S.- imposed deadline for the auto talks is 12:01 a.m. Thursday. Facing a July 14 deadline, U.S. officials expect aviation negotiations to start within the next two weeks (DAILY, June 23). The key for the U.S.
Atlant-Soyuz Airlines has applied for authority to operate charter passenger service to complement its charter cargo operations between Russia and the U.S. Atlant, a private joint stock company founded in 1993, expects to begin cargo service this month or early July and, if approved, to launch roundtrip passenger service in September. The Moscow-based carrier currently operates an Il-66M passenger aircraft and is planning to acquire a Boeing 737. For its cargo operations, it is relying mainly on Il-76s (DAILY, May 9).
Peruvian carrier Faucett has signed an agreement with Amadeus Global Travel Distribution under which the airline will become an Amadeus distributor in Peru. Amadeus and Faucett will form a national marketing company, Amadeus Peru, to support Peruvian travel agents with customer service, training, help-desk facilities, local marketing expertise and technical assistance. Because Amadeus recently acquired the System One computer reservations system, Amadeus Peru also will help current System One users in Peru to convert to Amadeus.
