Canadian Holidays, the charter and package tour subsidiary of struggling Canadian Airlines International, has been approached by potential investors interested in purchasing the operation. Canadian Holidays stressed that a firm offer has not been made.
Northwest is offering fall fares it says are as much as 50% lower than its regular excursion fare, with benefits as well for its AirCares charity program partners. Tickets must be purchased by Sept. 1 for travel between Sept. 16 and Dec. 14. Sale fares include a $398 roundtrip between Los Angles and New York, 49% lower than current fares, and $358 between San Francisco and Orlando. Northwest will donate $1 for each ticket sold, up to $500,000, to five charitable organizations.
South African Airways is urging DOT to accept a South African government proposal increasing the number of frequencies available in the U.S.-South Africa market. In comments on the U.S.-South Africa Allocation Proceeding, SAA said the new direct service opportunities, offered by South Africa in the most recent round of U.S.-South Africa talks, would satisfy the needs of U.S. carriers seeking access to the market and resolve DOT's USAfrica uncertainties.
UPS plans to give its full-time, non-management employees the opportunity to make a personal investment in the company by purchasing stock, beginning Oct. 2. UPS currently limits employee stock ownership to managers and supervisors. UPS Chairman and Chief Executive Kent Nelson said, "Today, more than ever before, we are calling on our people at all levels to take direct responsibility for the customer's satisfaction." UPS allowed managers to buy stock beginning in 1945 and has more than 28,000 active manager-owners.
Delta, Swissair and Singapore Airlines, partners in the six-year-old Global Excellence Alliance, have formed what they say is the aviation industry's largest independent buying consortium. DSS World Sourcing AG, owned jointly by the three airlines and based in Zurich, will source a variety of items, including flight amenities, beverages, duty-free stationery, uniforms, and office and computer equipment.
Airport and Airway Trust Fund Balance Sheet As of June 30, 1995 Current Month ASSETS Undisbursed Balances: Available for Investment $ 1,184.87 TOTAL UNDISBURSED BALANCE (Cash in Account) Receivables: Interest Receivables $ 0.00 TOTAL RECEIVABLES
Air Jamaica has appointed Jose Lorenzo VP-sales in charge of North America. He will also be responsible for airport operations in all seven of Air Jamaica's gateway cities. Prior to joining Air Jamaica, he was president of American Sales&Management Organization, responsible for all Avensa/Servivensa operations in North America.
Royal Jordanian Airline has named Motassem Kilani director-air services at New York Kennedy. He succeeds Omar Ismail, who has transferred to Karachi, where he is now area director for Pakistan. He was director-traffic procedures and systems for Royal Jordanian in Amman, and he was the airline's representative to the International Air Transport Association.
Miami-based Gulfstream International Airlines has named Tony Gattone senior VP-marketing and sales. He spent 38 years at United in operations, sales and marketing positions. Gulfstream said Gattone will focus on a planned route expansion into northern Florida, Alabama, Louisiana, Georgia, and Caribbean points. He also will oversee relations with major carriers.
Flight demonstrations show that advanced-technology surveillance, communications and display systems can increase safety as well as capacity in ground operations at major airports, NASA reported. The agency's Langley Research Center equipped its 737 research aircraft with a high- speed data link from Arinc and its own moving map display for tests at the FAA Tech Center, Atlantic City, N.J. An air traffic controller sent taxi routes and hold instructions to the aircraft, and these were displayed for the cockpit crew on the moving map.
The Lufthansa Group's profit for the first half of 1995 increased 40% from the first six months of 1994 to 189 million Deutschmarks (US$128 million). The strong earnings were achieved despite the strength of the Deutschmark relative to other currencies, which helped depress passenger and cargo yields and otherwise resulted in foreign exchange losses.
Air Transport Association staff has been working on concepts for FAA reform, which it plans to present to the ATA board in September. The association views financing as the single most important issue in FAA reform.
Department of Labor has issued a proposed rule that would allow the Pension Benefit Guaranty Corp. to be a clearinghouse of sorts to locate workers who are due pension benefits from employers who terminate their pension plans. The PBGC currently has a program to locate people in plans that terminate without sufficient assets to pay benefits, and the new program would extend that activity, beginning in 1996, to plans that are fully funded. The corporation said it expects a final rule in December.
A Japan Ministry of Transport advisory panel has tentatively recommended 3.65 trillion yen - about US$38 billion - in airport infrastructure investment over the next five years. The ministry will consider the final proposal, which would increase funding by 14.4% over the current five-year program, in preparing a draft to be endorsed by the cabinet next year. The advisory panel proposed beginning construction of a third airport for Tokyo, expansion of the Kansai Airport and modernization of the Nagoya Airport.
Swissair has been approached about helping to create a Palestinian airline, according to U.S. officials in Switzerland. Swissair's role would be to help obtain two 30-seat aircraft, plus maintenance and training.
Delta has created a wholly owned subsidiary, Delta Staffing Services Inc., to provide temporary clerical and administrative support services beginning this fall, initially in Atlanta. Delta normally contracts with temporary agencies for such services. It expects to reduce costs by dealing with the subsidiary, which may sell its services to other companies in the future.
DOT has awarded applicant requests in full for third-, fourth- and fifth- freedom combination service in the U.S.-Germany market for the upcoming winter season. Of the 267 third- and fourth-freedom frequencies available, DOT granted Delta 115, United 63, American 49, USAir 14, Northwest 10, TWA seven and Continental seven, leaving two unallocated. Delta received 92 and United 28 fifth-freedom frequencies, leaving 28 weekly frequencies unallocated. (Docket OST-95-334)
City and County of Denver reduced Denver Airport's airline rates and charges after determining that the amount needed to recover costs in 1995 is less than originally projected. As a result, the airlines will pay $8.7 million less annually to operate at Denver. The city said a contributing factor to the rates and charges reduction was its ability to increase the size of a June 1995 bond offering. Interest income on airport bond reserve funds has been higher than projected, the city said.
A Federal District Court judge in Minneapolis has ruled that travel agents have produced enough evidence of possible collusion by six airlines in capping domestic commissions to warrant a trial. The judge did not agree to impose a temporary injunction against the caps, however. No date has been set for the jury trial.
- In Federal Register dated Aug. 18...Proposed an airworthiness directive on Cessna 441, 500, 550 and 560 series aircraft to require replacing outflow safety valves.
U.S. Major Carriers Traffic July, 7 Months 1995 (000) July July % 1995 1994 Change America West Revenue Passenger Miles 1,254,538 1,173,070 6.9 Available Seat Miles 1,688,591 1,566,182 7.8 Load Factor (%) 74.3 74.9 American
Although India asked for next week's aviation negotiations with the U.S., the U.S. will come to them with a full agenda, including requests for direct service by four carriers - United, Northwest, FedEx and Polar Air Cargo - and third-country code-share access by three.India wants to serve Chicago O'Hare through London with authority to carry passengers from London, adding capacity on a route now flown by United, American and British Airways.
