AMR Corp.'s Airline Group netted $152 million in pre-tax earnings for the first six months of 1995, while The Sabre Group reported $209 million in earnings. The Airline Group's earnings compare with $48 million for the same 1994 period, while the Sabre gain was from $179 million. AMR reported its second quarter and six months financial performance last week (DAILY, July 20).
DOT Secretary Federico Pena and German Transport Minister Matthias Wissmann conducted productive discussions yesterday in Washington, continuing progress toward developing an open skies relationship between the U.S. and Germany, a DOT spokesman said. The meeting followed up negotiations July 12-14 in Berlin. The two countries have targeted 1997 for an open skies agreement.
Fine Airlines is urging DOT to approve its complaint against the government of Ecuador and Aeroservicios Ecuatorianos (AECA) despite Ecuador's recent approval of a charter permit for the U.S. carrier. Fine asks that DOT either suspend AECA's operating permit or require that the carrier apply in advance for, and obtain prior approval of, all non-scheduled or charter flights to or from the U.S., with a further condition that any approval would be subject to U.S. carriers' right of first refusal.
Sabre Decision Technologies has signed its sixth Asian client, EVA Airways of Taiwan. EVA plans to automate its yield management program with Sabre's AIRMAX revenue management system. The system will be installed by April. AIRMAX, designed to increase passenger revenues through efficient reservations inventory control, is used by 11 international airlines.
Airborne Express yesterday reported second quarter net earnings of $2.2 million on revenues of $545.9 million, compared with net earnings of $13 million on revenues of $484.5 million during the same quarter a year earlier. Net earnings for the first six months declined to $4 million on revenues of $1.1 billion, compared with net earnings of $19.4 million on revenues of $951.1 million the year before. Total shipments for the second quarter increased 20% to 55.7 million.
Thai Airways is seeking renewal of its authority to operate scheduled combination service between Bangkok and Los Angeles via Seoul. If approved, the carrier will continue to operate four roundtrips per week using 747-400 aircraft. Saying it was "very concerned over the seat restrictions imposed by Thailand on U.S. carriers," DOT granted the carrier authority earlier in the year to operate on the route for only 179 days (DAILY, Feb. 24).
Sen. Ernest Hollings (D-S.C.) introduced legislation (S.1055) last week to eliminate the requirement in the 1991 transportation drug-testing law that employers administer pre-employment alcohol testing of all applicants. Hollings said he agreed with Mothers Against Drunk Driving, which said, "It does not seem to make much sense to require that an applicant be tested who did not have the qualifications for the job and who was not going to be offered a position."
United will display its Connoisseur Class food and wine at the 14th annual Kapalua Wine&Food Symposium. Charlie Ahmes, director of onboard services-international, said the symposium "offers United the perfect venue to introduce its newly enhanced Connoisseur Class to potential passengers who seek and appreciate stellar service when traveling for business and pleasure."
TWA, in Chapter 11 bankruptcy protection for the past 24 days, yesterday reported a dramatic turnaround in its financial performance in the second quarter - net income of $5.2 million, compared with a loss of $58.1 million during the same quarter last year. The carrier also posted operating income of $54.4 million, compared with an operating loss of $18.6 million in the 1994 quarter. The results are TWA's first operating and net profits during the quarter since 1990.
Nations Air resumed operations Saturday after being grounded by FAA on July 14 following an inspection of the carrier's training programs and a proficiency check of its cockpit and cabin crews (DAILY, July 18). FAA said that in authorizing Nations Air to resume operations, it approved the airline's training programs for handling windshear, protective breathing equipment, its traffic alert and collision avoidance system and general emergencies.
Senate Governmental Affairs Chairman William Roth (R-Del.) last week introduced legislation (S.1063) to allow state and local governments to transfer federal-aid facilities, such as airports, to the private sector without a repayment of federal grants. The bill has been referred to Roth's own committee. Infrastructure facilities could be transferred by sale or lease provided that the facilities are maintained for their original purposes and grant assurances are observed.
Carol Carmody, U.S. representative to the International Civil Aviation Organization, will speak about ICAO's role in safety oversight at an Aero Club of Washington luncheon Wednesday, July 26. The luncheon will begin at 12 noon at the Capital Hilton, 16th&K Sts.
Rosenbluth International and AT&T have agreed in principle to establish an electronic management system for business travel needs that does not require the help of travel agents. The companies said they will release details in September on the product's features, which include complete vouchering, expense tracking and reporting capabilities to help companies reduce travel costs.
Airlines Reporting Corp. reports that total travel agent sales processed for the first six months of the year were up 4% to $31.572 billion, while domestic commissions fell 1% to $1.962 billion. International commissions rose 2% to $1.326 billion. Domestic fares sold climbed 5% to $20.776 billion and international sales 1% to $8.296 billion. ARC has 153 participating carriers and 46,361 accredited travel agency locations.
Although civil aviation officials have downplayed the prospects of jamming Global Positioning System signals, the Air Force is seeking ways to combat "intentional and unintentional interference to GPS user equipment." The Air Force's Wright Laboratory and the GPS Joint Program Office are requesting proposals by Aug.
FAA's Technical Center is giving industry until Aug. 1 to request solicitation documents for a grant to design an explosives detection system based on computer tomography (CT). The solicitation will close on Sept. 8. FAA will enter into one or more cooperative agreements, or make one or more grants, or establish a combination of such arrangements, to support this research.
Members of the Association of Retail Travel Agents can save up to 50% on their long-distance calls with ARTA's new Talk 'N Talk prepaid calling card from Bottom Line Telecommunications. Members receive the first five minutes free, and the association's lobbying and educational projects benefit every time they make a call. The card provides a flat, per-minute discounted rate regardless of time of day or day of the week.
Southwest Airlines yesterday reported slightly higher net income for the second quarter - $59.7 million or 41 cents per share - than the 1994 quarter's $58.5 million or 40 cents per share. Chairman Herbert Kelleher, who had predicted that the company would not fully recover its profitability until the third quarter, commented that Southwest "met the increased short-haul competition head-on, continuing to grow in those contested markets, and we have benefited by our competitors' collective capacity reductions since the beginning of this year."
Herbert Lanese was elected deputy president of McDonnell Douglas Aerospace, the company announced yesterday. As chief financial officer of McDonnell Douglas, Lanese was credited by many in the financial community with helping the corporation's turnaround. He is to succeed John Capellupo, 60, as president of McDonnell Douglas Aerospace when Capellupo retires, said Harry Stonecipher, the corporation's chief executive. "Our government aerospace segment is our powerhouse, and I want a powerhouse in line to run it," Stonecipher said.
Used Jet Aircraft Deliveries April 1995 Carrier # Type Engines Previous Operator Aircraft Perform Sys 2 DC-9-20 JT8D-11 SAS Aero California 1 DC-9-30 JT8D-9A Interglobal Aero Control 1 727-200 JT8D-7B United Aero Lloyd 2 MD-83 JT8D-219 Allegro Air
Midway Airlines has requested authority to operate between Raleigh/Durham, N.C., and St. Maarten, Netherlands Antilles, and between Raleigh/Durham and Cancun, Mexico. Midway plans to begin daily roundtrips to Cancun in late October and to St. Maarten on or about Dec. 15. It plans to use A320 aircraft on both services but reserves the right to use other aircraft - it also operates Fokker 100s - depending on market conditions. (Docket OST- 95-322)
Pemco World Air Service Group has received FAA approval of a supplemental type certificate for its maximum zero fuel weight and maximum landing weight increase for 727-200 aircraft. Matthew Gold, chairman of parent company Precision Standard, said Pemco will offer the upgrades to current and future customers who operate Pemco-converted freighters or standard aircraft in passenger configuration. First use of the upgrade will be in Pemco's first full convertible combi, which is set to receive FAA and Transport Canada certification next month.
United is opposing World Airway's bid to serve beyond points on its proposed route between New York and Accra, Ghana, and it wants DOT to deny World access to Accra until it grants United's earlier filing for Accra service. United agrees with USAfrica Airways' objection (DAILY, July 18) "to the extent that it [World's application includes any authority for World to serve New York-Johannesburg."
The U.S. Air Force has issued revised regulations establishing responsibilities and procedures for requesting and granting civil aircraft access to Air Force airfields. The regulations, covering landing permits and joint-use agreements, were published in the July 20 Federal Register and are effective immediately. The Air Force received no comments on the rule when it published its proposal in the March 22 Federal Register.
U.S. Travel and Tourism Administration survey of overseas travelers to the U.S. in 1994 shows that first-time visitors accounted for only 24% of the total, down from 32% in 1993. Travel overall rose 3%, to 4.6 million - the smallest increase since 1984. The decline in first-time visitors fed an increase in the average trip expenditure, up to $3,222 per person in 1994 from $2,784 in 1993.
