Northwest Territorial Airways (NWT Air) has applied for authority to operate scheduled combination service between any point or points in the U.S. and any point or points in Canada. The carrier also requests permission to code share with Air Canada between points in Canada and the U.S. Wholly owned by American, NWT Air provides scheduled service primarily between Calgary, Edmonton and Winnipeg and points in Canada's Northwest Territories, using three 737-200 aircraft. (Docket OST-95-384)
Federal Express will not have to pay any additional excise taxes under an agreement with the Internal Revenue Service resolving an IRS claim that the carrier owed as much as $159 million. The dispute covered a seven-year period that ended March 31, 1991. FedEx gave up its claim for a $70 million refund for that period.
BAA Plc reported a 14.4% increase in pre-tax profits for the quarter that ended June 30, the first of its financial year. Profits increased to 127 million, with a pre-tax profit figure before exceptional items of 121 million. The group's seven airports handled 23.8 million passengers in the period, an increase of 8%. Gross revenue from retailing was up 10.9% to 138.7 million, producing net retail income of 98.2 million, an increase of 11.5%. Property income rose 6.8% to 51.0 million.
Legislation (H.R.752) to repeal the commercial jet fuel tax entered the August congressional recess with 280 co-sponsors, 62 more than a majority of the House. Through Aug. 8, the Senate legislation (S.304) had 34 co- sponsors.
Latin American flag carriers, meeting Friday in Cartagena, accused FAA of basing its "tough stance on safety oversight" on favoritism toward U.S. carriers serving Latin nations. Members of the Association of Latin American Airlines, meeting at the request of Gustavo Lenis, chief executive of Avianca, agreed unanimously that FAA is discriminating against small Latin airlines, a spokesman said yesterday. Civil aviation authorities from several nations also attended and expressed their agreement, he said.
SunGard Financial Systems awarded its entire $2.1 million travel program to Rosenbluth International. Rosenbluth's reservations center in Atlanta has handled SunGard's travel, and now its centers in Eagan, Mich., Boston and El Segundo also will be used.
America West has prepaid $48 million of its $123 million of 11.25% senior unsecured notes due Sept. 1, 2001, and has exchanged the remaining $75 million for new notes with a lower coupon and longer maturity. Chairman William Franke said that less than one year out of Chapter 11 bankruptcy protection, America West is performing much better than expected. It announced record earnings in the second quarter, when it had a cash balance of $300 million, enabling it to improve its balance sheet.
America West announced a fare sale for travel between Aug. 21 and Dec. 15 in many markets throughout its system in an attempt to boost leisure travel during the fall slack period. Savings range from $50 to $217 for roundtrip tickets, which are available until Aug. 21. Fares for night flights are lowest, and minimum stay, blackout dates and other restrictions may apply. Reduced fares are available for most of America West's international destinations, including Puerto Vallarta and Manzanillo, to which service begins Oct. 29.
American, in the past three days, reached a tentative agreement with its Transport Workers Union (TWU) unit, received a decision pending for three years on whether its Eagle carriers constitute a single transportation system and presented a proposal to its pilot negotiators to assuage their concerns over code sharing.
Finnair and Transwede have entered a code-sharing agreement on service between London Gatwick and Helsinki. The service will be operated initially by Transwede Fokker 100 aircraft using Transwede crews, but it is expected to gain Finnair equipment when required. Finnair already operates 20 weekly flights from London Heathrow to Helsinki and daily flights from Manchester to Helsinki and Stockholm.
Northwest is seeking authority to operate scheduled combination service between Detroit and Rome. If approved, the carrier plans to operate five weekly roundtrip flights on the route, using DC-10-30 aircraft. Northwest said it is prepared to begin the service April 1, 1996, when the U.S. will be allowed to designate a fifth U.S. carrier in the market under terms of the 1990 Memorandum of Understanding with Italy. In its request, the carrier noted that it is one of the few U.S.
Taiwan's Ministry of Economic Affairs tentatively approved a proposal by Mitsubishi of Japan to form a company to develop and produce the J650 jet transport in Taiwan. The ministry is willing to help Mitsubishi find investors and will review any application for subsidy, an official said.
Orange County, Calif., could raise $250 million without violating federal airport-grants law through contract management and the sale or lease of a future airport at Marine Base El Toro, the Reason Foundation said last week. In a report, "How To Privatize Orange County's Airport", the firm said using the two different modes of privatization would offer the revenue solution the bankrupt county is looking for.
The U.S. may look to advance key concerns - including relations with Japan and Hong Kong - during the new round of Asia-Pacific Economic Cooperation working group meetings on aviation competition issues. U.S. and Hong Kong principals have exchanged notes, but no talks are scheduled.
New airline operated by the National Fisheries Corporation in Micronesia has begun service to transport fresh fish to Guam, from which it is shipped on widebody aircraft to Japan. The startup carrier operates a modified 727-200 freighter purchased from Intrepid Aviation. The airline has contracted with RyanAir to provide flight crews. Continental will provide maintenance in Guam. Roberts, Roach&Associates helped establish the air cargo network.
An Air France Concorde, dubbed the Coors Light Concorde for the occasion, will try to set a new eastbound round-the-world record of 32 hours 44 minutes elapsed time this week. The current eastbound record, set by a Gulfstream IV business jet in February 1988, is 36 hours, eight minutes, 34 seconds, and the current westbound record, held by the Concorde, is 32 hours, 49 minutes and three seconds. The special flight will take off at noon tomorrow from New York Kennedy and is scheduled to return to JFK at 8:44 p.m. EDT Thursday.
Consolidators International said it now offers air wholesaling services to key cities in Europe. Julian Keeling, president, said midsize and smaller forwarders "now can be assured of having cargo of all sizes and weights delivered to European destinations in as little as 48 hours, and at fully competitive rates." He said forwarders with "loose" or uncontainerized cargo destined for Europe often are at a disadvantage in dealing with airlines.
Shuttle by United will expand to Reno Dec. 15, replacing United Express service with daily nonstop flights from San Francisco, using 737 aircraft. The Shuttle also will increase its service Oct. 4 from San Francisco to five cities - Las Vegas, Phoenix, Portland, San Diego and Seattle - and discontinue its nonstop flights between San Diego and Sacramento. Shuttle President Sky Magary said customers have "continually asked for" San Francisco-Reno nonstop service. The Shuttle currently accounts for 4% of United's capacity. As of Dec.
The National Mediation Board settled Friday a long-standing dispute over the representation of United's mechanics, ruling that the results of an election in which the incumbent Machinists union beat out a challenger were not tainted by company or union interference. In a vote count last Dec. 15, the Machinists received 6,482 ballots and the Aircraft Mechanics Fraternal Association (AMFA) received 5,923. AMFA filed a complaint alleging that the laboratory conditions of the vote were disrupted (DAILY, March 23).
United plans to open yet another foreign flight attendant domicile Dec. 1, this one in Santiago, Chile, with 30 flight attendants. Chairman Gerald Greenwald told employees the crews for its daily 767 flights between Miami and Santiago will be drawn from both cities, and incumbent flight attendants will be able to transfer to Santiago before locals are hired. United's flight attendants have expressed bitter opposition to the expansion of foreign domiciles.
FAA said a former employee was fined $5,000 and sentenced to a year's probation after pleading guilty to a charge of violating statutory restrictions on post-government-employment activities. The unidentified former employee was charged with representing a contractor competing in a procurement program within two years of his participation in the program as an FAA employee.
New Jet Aircraft Deliveries May 1995 Last 12 Months Carrier # Type Engines Delivery Air Afrique 1 A300B4-600R CF6-80C2A2 1 Air Canada 1 Canadair RJ CF34-3A1 8 Air Inter 1 A321-100 CFM56-5B 3 Air Littoral 1 Fokker 70 Tay620-15 0
Gulfstream International Airlines and United will expand their code-sharing relationship Aug. 19 to improve connections for passengers switching carriers at Miami, Fort Lauderdale, Orlando, Tampa and West Palm Beach. Gulfstream announced last week it is expanding its intra-Florida service (DAILY, Aug. 11). Gulfstream will add new code-sharing flights using Beech 1900 aircraft in the Tampa-Orlando, Fort Lauderdale-Orlando, Miami-Tampa, West Palm Beach-Tampa and Miami-Naples markets.
FedEx reported that average daily volume in July rose 9.4% from the same month last year to 45,089 packages, documents and express freight. International air freight declined to 43.2 million pounds from 44.7 million pounds in July 1994.
American Trans Air's July consolidated traffic - charter and scheduled operations - increased 27.3% on 21.4% more capacity, boosting the load factor 3.6 percentage points to 77.9%. The number of passengers carried increased 34.5%. Scheduled passenger traffic rose 47.7% on 44.7% more capacity, for a load factor increase of 1.6 points to 77.4%. Passenger traffic comprised 49.5% of American Trans Air's consolidated total in July.
