The U.S. airline industry should return to profitability this year - the current Wall Street consensus is a net profit of $1 billion - because of price cutting and firm pricing, according to a recent Standard&Poor's commentary.The industry will remain burdened by a heavy load of debt and leases, however.
Avmark named Ed Lindquist to develop the Operations and Technical Department and to support the company's aircraft parts authentication and tracking system. FlightSafety International named Barry Massey manager-Greater Philadelphia/Wilmington Learning Center. Premier Aviation elected Ron Standerfer, senior VP-marketing and head of New York/New Jersey regional office, to its board. Signature Flight Support named Richard Dodson chief executive.
Airlines Reporting Corp. said 1995 sales are continuing at a record- breaking pace. In May, total travel agent sales processed were up 11% to $5.123 billion, compared with $4.626 billion in May 1994, a record for a four-week processing month. Total sales for the year to date are up 4% to $25.596 billion. Domestic fares for the first five months of the year were up 5% from the same 1994 period, ARC said, and international fares increased 1%.
Air Canada Chairman Hollis Harris will speak on open skies tomorrow at the International Aviation Club's monthly luncheon, 12:30 p.m. at the International Club, 1800 K St. N.W., Washington. A reception begins at 11:45 a.m.
A Council of European Union transport ministers meeting slated for Tuesday in Luxembourg will address an EU approach to aviation talks with the U.S. The group will discuss a draft negotiating mandate recommended in April by the European Commission and likely will come to no specific conclusions but rather agree to continue working on the issues, a diplomatic source in Brussels said.
Association of Flight Attendants last week started campaigning to educate the public on the need for child safety seats on aircraft. AFA wants FAA to make the seats mandatory. Union members are distributing literature and stickers with the message "Child Restraint Seats For Kids Under Two" at Charlotte Douglas Airport ticket counters, and are sending postcards to congressional representatives and FAA.
One miscellaneous provision of a preliminary draft of Rep. John Duncan's (R-Tenn.) FAA reform bill would require FAA to answer a petition seeking an increase in the fee airlines retain when collecting passenger facility charges. Citing higher-than-anticipated costs, airlines last year asked FAA to restore compensation for collecting the PFC to 12 cents per PFC. Under the PFC regulations, compensation dropped to eight cents last year.
In introducing legislation (S.928) last week to establish an independent FAA and undertake various other FAA reforms, Sen. James Inhofe (R-Okla.) said his bill "offers a more prudent and realistic approach to the FAA reform than the extremely risky alternative of privatizing or corporatizing the air traffic control system" (DAILY, June 15). Inhofe said that although he has "been a fan of privatizing for a long time," oversight of ATC is an inherently governmental function.
Opposition to proposed changes to the commuter rules is mounting among smaller regional carriers, especially Alaskan operators. The Alaska Air Carriers Association completed a 110-page draft comment strongly criticizing the changes affecting Alaska airports.
Aeromexico has applied for renewal of its authority to operate scheduled combination services between Mexican points Guadalajara, Mexico City, Puerto Vallarta and Tijuana, and Fresno, Calif. It is not currently serving the market but wants to retain the authority in case economic conditions warrant future service. (Docket 50395)
USAir, which earlier this year reached an agreement in principle with Boeing to delay delivery of eight 757-200s from 1996 to 1998, is not scheduled to take delivery of any aircraft in 1996 or 1997. During those years, it plans to spend roughly $90 million on fitting some of its older aircraft with hushkits.
Kiwi International will announce operating results today showing that May was its third consecutive profitable month - a $401,000 profit on revenues of $14.4 million. The carrier said it carried a record 146,000 passengers. Kiwi's year-to-date loss is $167,000, compared with $6 million for the same period in 1994.
Alaska Airlines on Friday will unveil new livery tied to its new Alaska's World campaign, designed to bring back a sense of old-fashioned, high- quality customer service. Officials are mum on the new look except to say that the aircraft will not be painted, and the new livery will last only through the summer.
Jet USA Airlines has asked for additional startup time so it can finalize its financing. Originally called All America Airways, the new entrant was found fit to begin scheduled service last June and was given until June 1995 to begin service. Since the approval, it "has been aggressively seeking financial investors to complete the financing of the airline," said the carrier.
DOT said Friday it will not recommend a rulemaking to change the High- Density Rule because the potential costs to consumers, airlines and communities would outweigh any benefits gained from changing or eliminating the rule. The high-density rule limits takeoffs and landings at Washington National, Chicago O'Hare and New York LaGuardia and Kennedy. The department's decision is based on its report on the rule, issued late Friday. The report states that changing or lifting restrictions at the four slot-controlled airports would not affect safety.
- In Federal Register dated June 12...Proposed an airworthiness directive for certain Jetstream model ATP aircraft to require an inspection to ensure that various components of the retraction actuator of the nose landing gear are secure, and inspection of the bearing cap mounting holes.
Rosenbluth International has opened an office in Singapore through its acquisition of Harpur Travel Management. It plans to tap into the Asia/Pacific market, where it has a presence in Japan, Hong Kong, Taiwan, China, Australia and New Zealand. Digby Collis, who has been appointed director for Singapore, said travel management is a somewhat new concept in the region, and there is enormous potential for companies to realize sizable savings.
United has applied for renewal of its authority to operate with its code- share partner services between the U.S. and Almaty, Kazakhstan; Kiev, Ukraine; Minsk, Belarus; Tashkent, Uzbekistan; Tallinn, Estonia; Vilnius, Lithuania; Asmara, Eritrea; Dar es Salaam, Tanzania; Malta; Tunis, Tunisia; and Thessaloniki, Greece. All service is operated via Frankfurt. (Docket 50398)
The National Air Transportation Association (NATA) said it will oppose flight and duty-time rulemaking that does not take into account the unique nature of smaller Part 135 operations. "The association and its members are extremely concerned with the impending FAA flight and duty-time proposal," said NATA President James Coyne in a letter to FAA Administrator David Hinson.
Granted orally an exemption to Aero Costa Rica Acori to operate scheduled combination service between San Jose, Costa Rica, and U.S. co-terminal points Miami and Orlando, via intermediate points Managua, Nicaragua, and San Pedro Sula, Honduras, with full traffic rights, and charters....Granted orally an exemption to Aero Internacional operate cargo charter service between any point or points in Mexico on the one hand and any point or points in the U.S.
FAA said Friday it has entered into a consent order with Express One International that imposes a $500,000 civil penalty as a result of violations found by FAA and outlines steps to be taken by the carrier to resume operations. The cargo and passenger airline voluntarily halted operation of its 39 aircraft June 4 following an FAA investigation (DAILY, June 6).
British Airways will begin operating with its own aircraft to Charlotte, Pittsburgh and Baltimore from London Gatwick, beginning Jan. 1, instead of under its wet-lease arrangement with USAir. USAir operates the flights with its own aircraft painted in BA colors, and with its own crews wearing BA uniforms. BA will begin operating the flights to Charlotte Jan. 1, to Pittsburgh March 1, and to Baltimore April 1. It will operate the flights to the U.S. with 767s that will be available after it takes delivery of three new Boeing 777s.
Delta, the official carrier of the 1996 Olympic Games in hometown Atlanta, may bear the title again in the winter games of 2002. The International Olympic Committee ruled Friday that Delta hub Salt Lake City will be the host of the games. Delta already has provided $1 million in transportation support to the city in its fifth bid for the games.
