AirTran Corp. shareholders have approved the spinoff of the company's Airways Corp. subsidiary through distribution of Airways stock to AirTran shareholders, except Northwest, in a special dividend. Northwest will get more AirTran common shares instead of Airways Corp. stock. AirTran shareholders also have approved an amendment to the company's articles of incorporation changing its name to Mesaba Holdings. The new name is now effective. Trading in Airways Corp. common stock will begin today on the Nasdaq National Market under the AAIR symbol.
Non-profit organization SER-Jobs For Progress will offer an international travel training program this fall in Miami that is designed to place 120 individuals annually in travel and tourism jobs. The eight-week course, which is free to the students, will use the American Airlines International Travel Academy curriculum. SER, which stands for service, employment, redevelopment, is a national network of organizations that helps individuals enter the work force via a partnership with the corporate and public sectors.
The global market for air traffic control/air traffic modernization (ATC/ATM) equipment, systems and services will surpass $92 billion over the next decade, and satellite technologies will play a significantly larger role in the market, according to a newly published study by consulting firm Booz-Allen&Hamilton, McLean, Va. The study, "Air Traffic Control and Air Traffic Management Systems: An Analysis of Policies, Technologies and Global Markets," finds a significant need exists to modernize ATC systems in Russia, China and other rapidly developing nations.
Duty Free International Inc. said its Airport Division sales jumped 11% to $26.3 million in the second quarter of 1994, due mainly to an increase in foreign tourists to the U.S. In the first quarter this year, the division opened 12 stores in the new Denver Airport, two at Boston Logan and one at San Juan Airport. The Inflight Division also posted healthy growth, with $44.9 million in sales for the quarter, up 12%, prompting the company to seek further "substantial growth opportunities" in inflight sales.
Pennsylvania Supreme Court ruled 5-1 Tuesday that USAir and American must pay a 6% tax on food, non-alcoholic beverages and meal supplies for flights originating in Pennsylvania. USAir originally brought the suit against the state, seeking $2.2 million in tax refunds. A lower court ruled in favor of the airlines in 1993. The carriers argued that food and beverages are integral to flight service and exempt from the tax. USAir, with its largest hub at Pittsburgh, estimates the tax will cost it $1.4 million annually. American said its cost is about $300,000 a year.
Delta subsidiary DeltaTel Inc. has introduced a communications card for long-distance calling and communications services. The card enables users to make calls, offers a personalized voice and fax mailbox, speed dialing, conference calling and access to reports on breaking news, weather, sports, financial information, horoscopes and soap opera updates. In the future, it will provide free direct access to airline, car rental and hotel reservations centers. The card was developed in conjunction with Atlanta telecommunications carrier Premiere Communications.
American charged that TWA put out "inflammatory rhetoric...without substance" when it commented on DOT's proposed changes in the on-time disclosure rules.
Munich Airport moved a record 13.5 million passengers through its gates in 1994 but lost money anyway. Intercontinental traffic expanded 5.5% to reach 1.1 million passengers as the number of carriers serving Munich rose from 180 to 198. Revenue increased nearly 3%, from 667 million Deutschmarks to DM686 million. Munich's operating result increased 30% to DM110 million due to reductions personnel costs and other operating expenses. Munich's bottom line was negative for the year, however, though the deficit, DM95 million, was DM6 million less than in 1993.
A new Latvian carrier with the financial backing of U.S. and Scandinavian interests will start operations next month, investor SAS said yesterday after the signing of a formal agreement establishing the not-yet-named airline (DAILY, March 30). The government of Latvia will own 51.03% of the new carrier; Houston-based Baltic International USA, co-owner of an existing Latvia-based airline, will own 20.04%; SAS will own 16.53%, and Swedfund and the Investment Fund for Central and Eastern Europe each will own 6.2%.
Representatives of Dallas/Fort Worth Airport were in Washington yesterday making a case at DOT and on Capitol Hill for nonstop service to London Heathrow. Following an August meeting between Dallas and Fort Worth mayors and DOT Secretary Federico Pena, the officials said they were there to keep pressure on the government to complete an agreement in the fall, giving the carriers enough time to compete for rights and begin service by next spring. In advance of the next round of U.S.-U.K. talks Sept.
Aerovias de Honduras (Honduras Airways) has withdrawn its application for authority to operate scheduled combination service between Honduras and points in the U.S. via intermediate points in Belize. It had proposed various routings to Houston and Miami using 727-200 and -300 aircraft (DAILY, Feb. 17) (Docket 50217)
Air Niagara Express has applied for renewal of its authority to operate scheduled combination service between Toronto and Atlantic City, N.J. The Canadian carrier has been operating the service on a charter basis but said it wants to offer scheduled service as soon as market conditions permit. Based in Mississauga, Ontario, the carrier operates two Convair 580 aircraft. (Docket 49616&OST-95-473)
Wilcox Electric received a $3.3 million contract to install two Wilcox Mark 10 instrument landing systems at Brunei Airport. The equipment will be delivered in November, and the contract will be completed by April.
KPMG, international accountants and consultants to the transportation industry, offers country-specific guides that contain general information on conducting business and on taxation for more than 30 countries. Requests can be sent by fax to 201-307-8071 in the U.S., and 44-1923-23-97- 58 in the U.K.
GE Aircraft Engines put GE90 and Aircraft Engines home pages online this week. The GE90 home page, on the World Wide Web, features information about the engine's development program, including why GE decided to design a new engine rather than a derivative, and technical data and press releases. GE also provides a link to the Boeing 777 home page for a complete look at the engine and its application. The GE Aircraft Engines home page comprises an overview of the company, including its history, annual report and recent developments.
Illinois DOT officials say putting off construction of a proposed south Chicago suburban airport at Peotone, Ill., will add "hundreds of millions of dollars" to the facility's cost each year.State Transportation Secretary Kirk Brown unveiled yesterday an adjusted cost estimate of about $2.3 billion, up from the original estimate of $1.9 billion in 1991.The new cost accounts not only for inflation, but also for upgrades in the airport plan for items such as a people-mover and automated baggage system.
A bomb threat at the New York Terminal Radar Approach Control shut down operations Monday evening for over an hour and a half at New York's LaGuardia and Kennedy and Newark airports, delaying 329 flights. At 4:25 p.m., the TRACON received a telephone call threatening an explosion at 6 p.m., and it was evacuated by 5:25 p.m. The National Air Traffic Controllers Association said a skeleton crew, including 15 controller volunteers, remained until between 5:50 and 5:55 p.m. to hand off traffic to other control centers.
Massachusetts Office of Travel and Tourism has awarded NYT Custom Publishing a contract to publish the Massachusetts Getaway Guide, the state's leading tourist publication, in 1996 and 1997. NYT, which produced the 1995 guide, also publishes USAir's inflight magazine and Four Seasons Hotels and Resorts Magazine, which were chosen as the best inflight magazine for 1995, and best custom-published magazine, respectively, by Folio Magazine.
Heads Up Technologies announced this week the development of a new digital checklist system with the ability to cross check and announce the status of many aircraft systems. An update of the Carrollton, Texas-based company's earlier CMS400, the CMS400C is capable of cross-checking as many as 12 aircraft systems and activities.
U.S. Customs Service Commissioner George Weise yesterday shed some light on new inspection procedures that may be used in the U.S. following a trial run at Miami Airport (DAILY, Aug. 29). The changes being considered in coordination with other federal inspection services are ways to enable Customs to receive more information more quickly to target passengers considered high-risk for terrorism or drug trafficking, and allow low-risk passengers to speed through Customs. A 1994 study concluded that 99% of the passengers arriving at Miami Airport complied with U.S. laws.
Growth in passenger traffic slowed in July for the 25 member carriers of the Association of European Airlines. The Brussels-based group said passenger volume rose a little more than 5%. In contrast, traffic grew an average 8% for the first six months of 1995. Despite the slowdown, AEA said its airlines have "extremely high" load factors on many routes.
A NASA test pilot landed an MD-11 Tuesday at the Dryden Flight Research Center at Edwards Air Force Base, Calif., using only engine power for control, the first such landing for a passenger jet. Piloted by former astronaut Gordon Fullerton, the aircraft made its first landing at 11:38 a.m. Pacific Daylight Time. It then took off again and made a second landing at 12:18 p.m., "proving that the [propulsion-controlled aircraft] concept is feasible for a commercial transport," NASA said yesterday.
India, China and South Korea signed a memorandum of understanding Sunday night in Shanghai to form a consortium to manufacture the Third World's first 100-seat passenger aircraft, India's civil aviation ministry officials said Monday. South Korea, represented by Korea Commercial Aircraft Development Center, a consortium led by Samsung Aerospace Industries and established expressly for this project, will hold 40% of the project's equity.
International Aviation Women's Association will hold its seventh annual conference in Paris Oct. 19-21. This year's theme is the European Union and its effect on the aviation industry. Discussions will include liberalizing ground-handling in Europe, European political issues, effects of the EU on aviation manufacturers and the International Court of Aviation and Space Arbitration. For program information, call Lisa Savitt, 215-751-2063, or Mary Reilley, 415-986-4200.
Ecuador has completed the privatization of Ecuatoriana with the sale of a 50.1% stake in the airline to VASP/Ecuador, a consortium comprising Brazilian carrier VASP and Ecuadorian investor Juan Eljuri Anton. The VASP/Ecuador bid was valued at US$32.9 million. The government will receive about US$10.5 million in cash, and the buyers will provide an aggregate US$64.2 million in resources to the airline over five years.
