ValuJet Airlines is expanding service from Atlanta in July with the addition of DC-9s to three new nonstop markets - Kansas City, Mo., Jackson, Miss., and Newport News, Va. Beginning July 11, the carrier will operate three daily nonstops to Jackson and Newport News, and on July 18, it will add three daily flights to Kansas City. One-way fares will be as low as $49 to Jackson, $59 to Newport News and $69 to Kansas City. To introduce the new service, ValuJet is offering the lowest fare on all seats until July 31.
A DOT study of prohibiting the installation or use of gambling devices aboard foreign and domestic carriers drew stiff opposition from foreign carriers and governments. Required by the Federal Aviation Authorization Act of 1994 to conduct the assessment, DOT has been seeking feedback on safety and competitive issues linked to gambling on flights (DAILY, May 3). Foreign carriers maintain that a ban would raise serious sovereignty issues. Four carriers - Virgin Atlantic, Qantas, British Airways and TWA - filed comments opposing a ban.
The European Commission and the embassies of 19 countries have urged the U.S. government to treat U.S. and non-U.S. airlines the same in the award of restitution or prospective relief in the Los Angeles landing fees case. In a May 31 diplomatic note to the U.S. State Department, the EC and the countries, most of them European, challenged arguments by the City of Los Angeles that DOT has no authority to grant refunds to foreign airlines. The EC and the 19 nations contended that granting restitution to U.S. airlines but denying the same compensation to non-U.S.
Alaska Airlines flew 17% more revenue passenger miles last month than in May 1994 on 19.6% more capacity, resulting in a load factor decline of 1.3 points to 59.7%. The number of passengers boarded increased 15.3%. Through the first five months of this year, Alaska's traffic rose 18% on 24% more capacity, depressing the load factor 2.9 points. The number of passengers boarded increased 16.1%. May 1995 May 1994 5 Months 1995 5 Months 1994 RPMs 675,000,000 577,000,000 3,128,000,000 2,658,000,000
Despite the political battle leading up to Tuesday's agreement, the U.S.- U.K. mini-deal has drawn little reaction from Capitol Hill. Sen. Larry Pressler (R-S.D.), chairman of the Commerce Committee, said he welcomed reports that the "U.S.-British aviation agreement represents a net gain in economic opportunity for the United States." Pressler added that he was encouraging DOT Secretary Federico Pena and the U.S.
FAA has visited 48 civil aviation administrations for safety assessments to date. Of 30 completed assessments, "initial findings have shown that two- thirds of these countries were not fully complying with ICAO standards," according to Anthony Broderick, associate administrator for certification.
Lone Star Airlines, based in Fort Worth, Texas, is negotiating with city officials from Del Rio, Texas, and Acuna, Mexico, to analyze the need for service to Dallas/Fort Worth. If the communities can commit to a certain level of service, Lone Star said it will begin service to Del Rio Airport, possibly on July 10, offering two daily roundtrips on weekdays and one on weekends. Lone Star operates 30-seat Dornier 328s.
Eastwind Airlines has asked for an additional 90-day extension of its exemption from revocation-for-dormancy rules to start up operations. The potential new entrant earlier received a three-month extension to June 29 (DAILY, April 7). "It has become apparent that, although the FAA certification is well under way, it will not be completed by the end of June," said Eastwind. The hopeful startup airline also has filed a change in service plans, adding Trenton, N.J.-Greensboro, N.C., service to planned Trenton-Boston service.
A draft notice of proposed rulemaking on single-engine aircraft Part 135 commercial operations under instrument flight rules has been completed for FAA by the Aviation Rulemaking Advisory Committee. The draft is similar to a Canadian rule that allows single-turbine IFR operations for hire or compensation, but the draft limits such operations to turbines despite objections from the Regional Airline Association.
Latest update of a series of reports on airline competition published by Salomon Brothers concludes that the index used by the government to determine industry concentration is flawed, and that the level of concentration is excessive. Concentration is measured by using the Herfindahl-Hirschman Index (HHI), which is based on national market share data at the 50 largest airports, and it is classified in three categories - unconcentrated, moderately concentrated and highly concentrated.
Aerospace Industries Association has approved a policy - just before the Paris Air Show begins next week - calling for international air shows in Europe to be held every other year instead of annually. "The consolidation of the global aerospace industry, a trend toward fewer new products that stay in production longer, and a need to reduce costs have eroded the U.S. industry's support for a major European show every year," said AIA President Don Fuqua, reflecting a policy of AIA's board of governors.
Gruntal&Co. analyst Steve Lewins has initiated coverage of ValuJet with a neutral rating. Lewins is generally high on the airline - one of his few worries is future maintenance costs for all those DC-9s - but he said the stock is fully priced at the current level of about $32 5/8. He noted that when the carrier started in late 1993, it did not pay more than $2.5 million for any of its DC-9s, but because of increased demand for the twinjets - primarily from ValuJet - the cost of its last four was $17 million.
Air Wisconsin's May passenger traffic rose 64.7% from the same month last year on 46% more capacity, boosting the United Express carrier's load factor 6.4 percentage points. The number of passengers declined 3.2%. The airline attributed the drop in boardings to longer aircraft stage lengths. For five months, traffic rose 30.1% on 28.2% more capacity, boosting the load factor 0.8 points. The number of passengers boarded increased 4.2%. May 1995 May 1994 5 Months 1995 5 Months 1994
The state of Hawaii said it "strongly supports" Northwest's bid for renewal of its authority to operate between Honolulu, on the one hand, and Nagoya and Fukuoka, Japan, on the other. The service "confers important consumer benefits, by providing passengers and shippers with a competitive service alternative to other U.S. and foreign carrier services operating between the United States and Japan," the state said.
U.S. National Carriers Productivity In Revenues And Expenses Per Employee Fourth Quarter 1994, In Dollars Total Total Operating Operating Revenues Expenses Total Airline (000) (000) Employees Alaska 256,022 255,189 6,477
American Airlines' VP-Human Resources Mary Jordan has been named president of American Eagle carrier Wings West Airlines. Jordan began her career at American as a financial analyst and held various positions in finance before joining the personnel department in 1989. She replaces Barbara Feeser, who has rejoined American's headquarters staff in Fort Worth.
American Chairman Robert Crandall, prior to addressing an audience of Latin American airline executives, was presented a bullet-proof vest by conference sponsor Bob Booth, publisher of the Aviation Latin America&Caribbean newsletter. Crandall accepted the vest with a laugh and said he would wear it the next time he appears before a congressional committee.
Boeing believes the commercial aircraft industry will supply 15,462 new airplanes worth $1.04 trillion to the world's airlines between now and the year 2014, a market $60 billion richer and 1,408 aircraft larger than projected a year ago, in its annual Current Market Outlook. Nancy Bethel, VP-marketing at Boeing Commercial Airplane Group, told reporters yesterday that the recovery, while slower than expected, is nonetheless under way and picking up steam, in line with last year's forecast.
Swissair, Austrian Airlines and Garuda Indonesia have cut over to the Japan-based Infini computer reservations system's Group PNR Handling Phase 1 (GHP1). The GHP1 allows specified travel agents selected by the carrier to retrieve, queue and ticket the group PNRs residing in the airline's system. Agents can enter group passenger names and other related information, as well as make selected modifications.
FAA said yesterday that Express One International voluntarily grounded its fleet of 39 aircraft at midnight Sunday following an investigation that "disclosed serious safety concerns." A national aviation safety inspection program audit of the Dallas-based cargo and passenger carrier "disclosed systemic problems with systems that control and track the day-to-day airworthiness" of the carrier's 727s and DC-9s, the agency said.
United's VP and Treasurer Bruce Ashby has joined Delta as VP-marketing development, a new position. His appointment becomes effective June 16. Ashby will oversee all flight scheduling, marketing analysis including domestic route development, interline and code-share development, pricing and revenue control.
United could see more negative publicity at another Boeing 777 inaugural ceremony - again by its own employees. United's Association of Flight Attendants unit will rally tomorrow at Washington Dulles Airport, as they have at two other events for the 777, to protest the planned opening of a foreign domicile in Hong Kong. The union says the highest paying jobs are being shipped overseas because many of its members cannot afford, or do not want, to transfer to Hong Kong.
The U.S still is sorting through aviation issues regarding Japan to determine whether to respond with a show cause order announcing sanctions or pursue talks, DOT General Counsel Stephen Kaplan told The DAILY yesterday. It remains to be seen whether telephone talks between DOT Secretary Federico Pena and Japan's Minister Shizuka Kamei were productive, he said, noting that there is "no new resolution but some suggestions" from both sides "on how to move forward in a process sense."
British Airways' systemwide passenger traffic rose 11.7% in May on 5.9% more capacity, boosting the airline's passenger load factor 3.7 percentage points to 70.2%. The airline's U.K./Europe traffic increased 3.5% on 0.8% more capacity, but its intercontinental traffic jumped 14% on 7.3% more capacity. The airline boarded 2.73 million passengers during the month on a systemwide basis, an increase of 6.7% from May a year ago.
First Aviation Services said it acquired National Airmotive Corp. for $30.4 million. National Airmotive, a distributor and overhaul agency for gas turbine engines, employs 350. First Aviation Services is a unit of First Equity Development, an investment banking firm specializing in the aerospace industry.
