DOT Administrative Law Judge John Mathias suggested that airlines won something of a pyrrhic victory in their successful claim that Los Angeles failed to adjust fiscal 1994-95 landing fees to reflect actual expenses in the previous year. "Indeed, in view of the proposed upward adjustment of the landing fee in the preliminary reconciliation, it appears the airlines have been better off with the maintenance of the status quo." Briefs on the judge's recommended decision are due today, and DOT must decide on the reasonableness of the landing fee by June 30.
FAA Technical Center, near Atlantic City, N.J., observed its 15th anniversary May 29 as a leader in research, development, test and evaluation in air traffic control, communications, navigation, airports, aircraft safety and security. The center, which also manages FAA's technology transfer and aviation research grants, operates a fleet of specially equipped aircraft to test new airborne equipment, operational procedures, navigation aids and guidance systems.
America West matched a summer fare sale good for travel through Oct. 15 that is being offered by the major carriers. The carrier said off-peak fares in various markets throughout its system are up to $80 lower than the previous fares. Tickets must be bought by June 2.
Sabre computer reservations system subscribers will be able to accommodate the Airlines Reporting Corp.'s (ARC) Service Fee Processing program scheduled for release on June 5, Sabre Travel Information Network said yesterday. Sabre's product development team has completed the necessary coding and testing to allow its subscribers to include a service fee category on a customer invoice.
El Al may consider flying on the Jewish Sabbath in order to more effectively compete in the international airline industry, Reuter quoted the airline's chairman as saying in an interview. "One has to look into it more thoroughly. It would definitely bring us more passengers," said Joseph Ciechanover. The government of Israel now prohibits the state- controlled airline from operating flights between sundown Friday and sundown Saturday in observance of the Sabbath. Ciechanover said El Al may be able to fly on the Sabbath once the government's stake falls below 50%.
Citing uncertainty about the "long-term damage" that will result from DOT's incremental approach to U.S.-U.K. relations, Senate Commerce aviation subcommittee Chairman John McCain (R-Ariz.) has asked to review DOT's economic analysis of the bilateral agreement before negotiations resume this week. In a May 26 letter to DOT Secretary Federico Pea, McCain said, "As we agreed yesterday, this subcommittee would like an opportunity to review your department's economic analysis of the bilateral air service agreement before you move forward with talks."
Continental will launch non-smoking flights to the U.K. with its July 19 inauguration of New York-Manchester service. The carrier also will offer passengers a choice of smoking or non-smoking flights when it adds a seasonal second daily Newark-Frankfurt flight. Continental Senior VP Barry Simon said the demand for smoking seats has "greatly decreased" between the U.S. and London recently. "In light of this trend and feedback we have received from our customers and employees, we will provide non-smoking service on 52 of our 122 weekly departures between the U.S.
All Nippon Airways boarded 134,395 passengers on its international services last month, an increase of 23% over April 1994. The carrier's international passenger load factor for April was 56.6%, up 0.6 percentage points. Domestic passenger volume increased 5.4% to 2.59 million, but the domestic passenger load factor declined two points to 55.2%.
Mexicana Airlines had net earnings of 124.8 million new pesos (US$20.5 million) and an operating profit of 28.3 million new pesos (US$4.7 million) for the first four months of 1995, the first time since 1989 that it has been profitable in the January-April period. Mexicana was in the black during the first quarter of 1995, but detailed results were not available.
In what may be the final piece of its global alliance puzzle, Lufthansa signed a memorandum of understanding late last week to develop a marketing and operational alliance with South African Airways.
United's more than 1,0000 employees in Japan have agreed to invest in the carrier in exchange for stock. United negotiated deals with U.K. employees in April and its Vancouver-based workers in March (DAILY, April 5).
Bauer Aerospace named Lou Auletta general manager of Woodward Governor test equipment business. Diefenbach Elkins promoted Robert Kahn to senior VP in charge of the firm's airline practice. O'Brien-Kreitzberg promoted Clay Baldwin to executive VP. Precision Standard named Carsten Birkebaek managing director of Pemco World Air Services Unit in Copenhagen. TNT Express Worldwide appointed George Wilton president of TNT Mailfast.
Alitalia appointed Bruno Scaldaferri manager-sales and marketing, North America. Aloha promoted Henry Arii to VP-safety. Swissair appointed Stephan Egli VP-product development and distribution.
British Airways is talking to its labor unions in the U.K. about doing away with national contract negotiations and using a system of localized bargaining. BA wants to give its managers flexibility to negotiate wages and work rules that reflect local conditions more closely.
Air Canada received route authority last week to Belgium, the Czech Republic, Greece, Haiti, Israel (service starts June 20), Russia, Singapore and Spain under Canada's new "Use-It-Or-Lose-It" policy. It lost its Cuba and Dominican Republic authority to charter carrier Air Transat, however. Canadian Airlines International did not get any primary authority but won backup authority to the Czech Republic.
American Airlines, AMR Corp., The Sabre Group and AMR Management Services are sharing a World-Wide Web site on the Internet. American said 400 web pages are immediately available as the first information phase at uniform resource locator http://www.amrcorp.com. Internet users can find information on American, American Eagle, Sabre and AMR Management Services and other wholly owned businesses. The second and third phases will provide travel-related interactive information.
Merlin Express, the wholly owned freight carrier operated by Fairchild Aircraft, is obtaining Part 298 authority to carry passengers. The airline operates 37 Metros under contract to DHL, FedEx and UPS and also maintains 50 C-26 military variants in 44 states. It plans to offer passenger aircraft under wet-lease to start-up carriers and others that require the additional lift in what is expected to the "third tier" of regional airline operations - providing feed to large regionals that move into larger equipment and quit the smaller community markets.
The chairman and ranking Democrat of the House Government Reform and Oversight Committee told DOT Secretary Federico Pena this week that they find "troubling" their understanding that DOT agreed to end the April round of aviation negotiations with the U.K. "in the face of limited opposition," and agreed not to pursue closure on a mini-deal until the Senate Commerce aviation subcommittee could conduct a hearing on the negotiations. The May 23 letter, from Reps.
Gulfstream International last month reported the largest percentage increase in the number of passengers boarded among a sample of 12 regional carriers tracked by The DAILY. The Florida-based United Express affiliate carried 28,377 passengers during the month, up 82.04% from 15,588 in the same month one year ago. In second place, logging a 21.72% increase in enplanements, was Alaska Air Group's Horizon Air, which carried 296,500 passengers compared with 243,600 in April 1994.
Major U.S. carriers, still hiring more pilots than any other airline category, will produce 2,000 new pilot jobs in 1995 if they can sustain April's pace for the rest of the year, according to AIR, Inc.Five of the 11 majors hired 185 new pilots in April. Although American and Delta are beginning to recall a small number of furloghed pilots - the industry-wide total is 2,250 - Continental began layoffs in April and USAir plans 250 furloughs this year.
A Canadian Airlines International joint labor/management committee has less than six weeks to secure C$325 million (US$238 million) per year in cost savings, C$125 million of it from labor, or watch the airline attempt to shrink its way to profitability by grounding aircraft, eliminating jobs and abandoning routes, including all of its newly won transborder service. That was the message sent yesterday in a letter and pamphlet from the airline's Strategic Planning Steering Committee (SPSC) to employees.
Continental confirmed yesterday that it has had discussions with Mesa Air Group proposing a combination of Continental's subsidiary, Continental Express, and Mesa Air Group. In a terse statement, Continental said no agreement had been reached, but Continental "continues to explore various opportunities."
Continental Express pilots, not faring any better in contract talks with management than Continental pilots, have declared an impasse and requested federal mediation last week. The Independent Association of Continental Pilots (IACP) filed the request with the National Mediation Board, which has docketed the case and plans to assign a mediator as soon a possible. The IACP represents about 4,700 pilots - nearly 600 of which are Continental Express - that have been without a contract since 1983. Continental pilots also are in mediation over their contract.
The fatal crash of a Simmons Airlines ATR-72 last November has shed more light on an unusual - and hazardous - icing phenomenon, and FAA is considering new training and test procedures that may be incorporated in aircraft manuals to handle such weather patterns. The ATR-72, which crashed Oct. 31 over Roselawn, Ind., killing all 68 people aboard, encountered what weather experts called "super cooled drizzle drops," leading to a buildup of ice on the upper part of the wing that ultimately caused the accident, it is believed.
