DOT has found a wide disparity in the method of listing fees and charges in advertisements by airlines and travel agents for air tour packages, and it has issued guidance to U.S. and larger foreign carriers and the larger travel agencies. A letter from Samuel Podberesky, DOT assistant general counsel for aviation enforcement and proceedings, generally calls for more specific language on the price of hotel, cruise, tour, car rental and other services when bundled with air fare.
GE90-powered 777 flight tests resumed Sunday after a hiatus of nearly two months, caused by a fan imbalance problem and ground testing of a fix.The aircraft accumulated eight hours of new flight time by yesterday, prompting hopes that Boeing can deliver the first GE-powered 777 to British Airways on schedule, in September.
Duff&Phelps Credit Rating Co. said yesterday it has established a commercial paper rating of D-2 for McDonnell Douglas Finance Corp., the wholly owned McDonnell Douglas subsidiary that finances aircraft purchases and leases equipment. The agency cited improved earnings quality in MDFC's $2 billion portfolio, which as of March 31 was allocated 68% to aircraft finance, 19% to commercial equipment leasing, and 13% to non-core and other business.
America West filed a registration statement with the Securities and Exchange Commission regarding its plan to prepay with existing cash $48 million of its $123 million in 11.25% senior unsecured notes, and to exchange the $75 million in notes for new notes with a lower coupon and longer maturity. The prepayment would give it an opportunity to improve its balance sheet and should reduce debt by about 10%, said William Franke, chairman and chief executive.
Korean Air will begin July 26 operating three weekly flights between Washington Dulles Airport and Seoul. Leaving Dulles every Wednesday, Friday and Sunday, a KAL 747 will stop in New York and go on to Seoul. With the addition of Dulles, the carrier has boosted the number of its North American gateways from seven to 11 during 1995, including recently launched service at San Francisco, Atlanta and Dallas/Fort Worth. "We are now the only Asian carrier to offer such extensive service from North America," said T.J. Kim, KAL's senior VP-American region.
South Africa is permitting Air Express International and three other forwarders to be ground-handling agents for imports in a three-month trial at Johannesburg Airport, AEI reported. The pilot program allows AEI to de- consolidate containers and loose cargo, clear the shipments through Customs, carry them to its warehouse and release them to local importers. Until the volume of imports caused Customs to loosen restrictions, South African Airways was the import-handling agent for about 75% of airlines serving the country, AEI said.
A senior U.S government official said yesterday he was hopeful - but not optimistic - that today's meeting in Los Angeles between DOT Secretary Federico Pena and Japan Transport Minister Shizuka Kamei will produce a breakthrough in the aviation dispute between the two countries. Commenting that optimism was "too strong" a term to describe his outlook, the official noted that this week's talks have been trimmed to one day from two, beginning at the vice ministerial level before Pena and Kamei meet, and broadened to involve more than the immediate needs of Federal Express.
Kiwi International Air Lines turned a profit of $1.7 million in the second quarter on revenues of $43.9 million, a significant turnaround, which changed leadership for the third time last week. The second quarter results enabled it to overcome first quarter losses and post a net income of $151,000 for the first six months on operating revenues of $80.9 million. New Chairman Russell Thayer said profitability resulted mainly from improvements in managing yield. Revenues for the second quarter were 80% higher, while passenger volume grew 77% to 420,000.
AMR Corp. yesterday reported second quarter net earnings of $178 million after preferred stock dividends, or $2.31 per common share, including an extraordinary loss of $13 million for the repurchase and retirement of outstanding debt, and despite the adverse impact on revenues and costs of a hailstorm that temporarily shut down 10% of its fleet. The storm, which reduced American's schedule for the entire month of May, and residual effects of American Eagle ATR relocations begun last winter, reduced net earnings by about $23 million.
Society of Travel Agents in Government will hold its annual Education Conference Sept. 11-13 at the Radisson Plaza Hotel at Mark Center in Alexandria, Va. Scheduled workshops include reinventing the way airlines, travel agencies and clients work together, and overviews of the government travel contracting process and government travel operations and financial management.
New Jet Aircraft Deliveries April 1995 Last 12 Months Carrier # Type Engines Delivery Air Afrique 1 A300B4-600R CF6-80C2A2 0 Air China 1 737-300 CFM56-3B1 3
Aeromexico has applied for authority to operate scheduled combination service between San Jose del Cabo, Mexico, and San Diego. It plans to begin daily or five-days-a-week service in the fall, using MD-80s. Noting that the route is now served only by Alaska Airlines, Aeromexico is proposing the first competitive nonstop service. "Thus, the proposed service clearly will result in significant service benefits to U.S.-Mexico passengers and is pro-competitive." (Docket OST-95-327)
Delta has begun a 30-day test at five city ticket offices in Cincinnati of a toll-free express telephone line that, if successful, will be expanded to all CTOs in North America. The CTOs are directing customers to use the line to make their reservations, and tickets can be picked up at a will- call window or sent by overnight delivery. In a taped message, Delta said frequent travelers that use CTOs will get faster, more efficient service with the express line.
The European Commission authorized Swissair yesterday to complete the deal, negotiated during the spring, to buy 49.5% of Sabena, but it is requiring Switzerland and Belgium to amend their bilateral aviation pact to make room for competition. The airlines said they will form working groups immediately to establish "specific customer service improvements, a strong presence of both partners in primary markets, and policies to improve financial results." They said they expect to start implementing the working groups' initial recommendations in November.
The Greater San Diego Chamber of Commerce has rounded up big names to attract business leaders to its Insights '95 symposium, aimed at positioning the San Diego-Baja region to take advantage of an expanding global economy. With the theme "Visions of the Global Community," the Aug. 4 event has sold 5,000 tickets at $295 apiece. Speakers include Gen. Colin Powell, Henry Kissinger, scientist Carl Sagan, Red Cross leader and former DOT Secretary Elizabeth Dole, CNN President Tom Johnson and former governors Mario Cuomo of New York and Ann Richards of Texas.
The National Air Transportation Association is asking Congress to repeal the upcoming commercial aviation fuel tax and expand pending repeal legislation (S.304, H.R.752) to cover aviation gasoline used by commercial operators. In a letter to Senate Finance Committee Chairman Bob Packwood (R-Ore.), NATA President James Coyne said the commercial avgas portion of the tax would only generate about $500,000 a year "but would cause irreparable damage to what are entirely small businesses."
Transportation Systems Inc. that specializes in transportation to major sporting events in the U.S., has received letters of intent worth an estimated $3.2 million from the official tour operators of Russia, France and Holland for travel services related to the 1996 Olympic Games in Atlanta. The agreements cover hotel accommodations, transportation and miscellaneous services. U.S. Transportation Systems Chairman and Chief Executive Michael Margolies said the company is working with 23 other international tour operators in an attempt to secure similar contracts.
Travel agents trying to reduce their dependence on airlines are learning how to seek out niche markets and become specialists in areas ranging from trips for senior citizens to adventure travel. The American Society of Travel Agents, offering Certified Specialist programs to teach agents how to conduct niche marketing, says specialty tours such as adventure travel and ecotourism are huge profit centers waiting to be tapped. They account for 10% of all tourism.
Air South's Reservations Center, after one year in business, has grown from 27 employees to 167 full and part-time workers. The Columbia, S.C.-based carrier said it routinely handles 10,000 calls a day. Rhonda McDade, director-reservations, said, "I believe we truly reflect Air South's growth."
McDonnell Douglas Corp. reported improved net earnings and record operating earnings for the second quarter and first half of 1995, no thanks to its commercial transport aircraft business. Increased deliveries among MD-11, MD-90 and MD-80 aircraft were the main factor in company-wide revenue growth - to $3.922 billion for the quarter and $7.255 billion for the half, up from $3.250 billion and $6.203 billion, respectively, in the same periods of 1994.
Telephone company Bell Atlantic plans to expand InfoTravel, its interactive yellow pages, to seven Marriott and Hilton hotels in Washington, D.C., according to Air Travel Card. The system provides information on hotels, restaurants and travel-related services, and it can dial telephone numbers or print local maps for hotel guests. Air Travel Card said the new service, which has been available since last spring in Atlanta and Santa Clara, Calif., will have 100 Washington advertisers and promote 30 area attractions.
Egyptair has ordered three A340-200 transports and taken options on two more, Airbus Industrie said yesterday. Delivery of the long-range aircraft, each powered by four CFM56-5C3 engines, will begin at the end of 1996. The aircraft will seat 260 passengers in three service classes, and Airbus Industrie said Egyptair plans to use them to open up nonstop routes from Cairo - for example, to Japan, Australia and the U.S. West Coast.
U.S. National Carriers Traffic June, 6 Months 1995 June June % 1995 1994 Change Alaska Revenue Passenger Miles (000) 808,000 695,000 16.3 Available Seat Miles (000) 1,277,000 1,095,000 16.6 Load Factor (%) 63.3 63.5
Southwest will release its second quarter net earnings early next week that Chairman Herb Kelleher reportedly said are "very strong," according to Reuter, which could not be confirmed with Southwest. Reuter said Kelleher would not comment on analysts' estimates the airline would earn 36 cents a share.
The U.K. enjoyed a major increase in the number of people taking air holidays for the year ended March 1995. More than 17 million passengers, representing 13.2% growth over the previous year, paid an average of 358 per holiday compared with 352 the year before, according to a report issued by the U.K.'s Civil Aviation Authority. These and other statistics on Air Travel Organisers' Licensing are provided in ATOL Business, published twice yearly by the CAA.
