John Lauber, Delta VP and former NTSB member, suggested last week that it is inappropriate to base a proposed rule solely on beliefs that a requirement - namely the reporting of mechanical delays - theoretically could affect safety. At a House hearing, Lauber noted other approaches - such as the Aviation Rulemaking Advisory Committee and regulation by negotiation - and added, "we now have regulation by perception."
Of the 14,000 votes veteran Sen. Robert Byrd (D-W.Va.) cast during his career through July 27, his support of the 1978 airline deregulation act is one of only two that he regrets. Air service has deteriorated, he said, "and it is very costly to travel back and forth to West Virginia by airline." The other vote he regrets was against the 1964 Civil Rights Act.
Air Transport Association is providing information on the Internet's World Wide Web. Users can access the ATA Publications Catalog, press releases, industry data, the ATA Airline Handbook, information on member carriers and links to their sites when applicable, and SPEC 2000 information. In the future, users will be able to purchase publications and register for industry forums on-line. The ATA web address is http://air-transport.org/ata/home.htm.
-- Air Macau executive committee named Ng Kian Wah chief executive of the airline. -- Aloha promoted Michie Spoerri to district sales manager-Hawaii, Japan/Asia. -- American Trans Air appointed Stan Hula VP-planning. -- DHL Worldwide Express named Mitsuo Ando president and representative director for DHL Japan, succeeding Shinichi Momose, who was elected vice chairman and representative director. -- United appointed Mark Schwab general manager-U.K., succeeding Graham Atkinson, who became VP-Atlantic Division.
Senate Commerce Committee is expected to act at its next business meeting on the nominations of Robert Francis and John Goglia to be members of the National Transportation Safety Board. Francis, whose term would end Dec. 31, 1999, would fill the seat previously held by John Lauber. Goglia, whose term would end Dec. 31, 1998, would fill the vacancy left by Susan Coughlin.
Raleigh/Durham Airport Authority is urging DOT to approve Midway Airlines' bid to operate between Raleigh/Durham, N.C., and St. Maarten, Netherlands Antilles, and between Raleigh/Durham and Cancun, Mexico. The authority praised recent moves by Midway "to fill the gap left" by the downsizing of American's presence in the market. "The introduction and continuing establishment and extension of the Midway system, now headquartered at Raleigh/Durham, is needed and will be supported by the Raleigh/Durham economy," said the authority.
Rift between American and its Allied Pilots Association is widening over the issue of code sharing with Canadian Airlines International (DAILY, July 28). The APA is postponing presentation of its settlement proposal that had been scheduled for tomorrow. APA President Jim Sovich said the proposal was based on the belief the two were building trust, but "that element now appears to be missing." Management has ignored concerns over the scope clause, APA says.
FAA Administrator David Hinson said Friday the agency will decide this week whether to put more modern software in the old IBM computers at the five busiest air traffic control centers. The most recent computer outages occurred at the Chicago center, but New York, Washington, D.C., and Miami also have experienced outages this year. The Air Transport Association has asked FAA to replace the Display Channel Complex in the IBM 920E computers with more modern technology (DAILY, July 27).
Standard&Poor's last week put GPA Group and related units on CreditWatch with "developing" implications, meaning the ratings may be raised or lowered. The action affects about $2.25 billion of debt. GPA Group, which has a corporate credit rating of B, is exploring a securitization of up to two-thirds of its fleet of 335 leased aircraft to refinance bank and other debt.
-- Aircraft Owners and Pilots Association named Ralph Hood national CFI marketing mentor for AOPA's Project Pilot Instructor Program. -- Association of the Bar of the City of New York appointed Shephard Melzer, Rogers&Wells, chairman of the Aeronautics Committee.
Aeromexico has applied for renewal of its authority to operate scheduled combination service between Tijuana, Mexico, and Las Vegas. (Docket OST- 95-351)
Delta's Air Line Pilots Association unit said the union remains committed to participating in the airline's cost reduction program for sustained profitability despite record net income of $251 million for the second quarter reported last week (DAILY, July 28). But if the union is to participate at the levels requested by management - 22% of the pilots' working agreement - it must have a fair value exchange, it said. Pilots are seeking returns in the form of job security, equity, a seat on the board and the return of furloughed pilots.
Canadian Airlines International last week replaced its senior marketing official with longtime American Airlines executive Barbara Amster in a management shakeup that saw six VPs and one senior VP leave the struggling Canadian carrier. The changes to seven of Canadian's 22 officer positions were described collectively by Chief Executive Kevin Jenkins as the "first step" of an overall management structure review that will be completed by the end of the year.
American Trans Air parent Amtran Inc. reported second quarter net earnings of $3.3 million and an operating profit of $6.3 million, both significant improvements over the second quarter of last year. Amtran's operating revenues for the quarter increased 22.3%, driven largely by the growth of its scheduled operations. Scheduled service revenues rose 65.5% and accounted for 52.7% of overall revenues. In the second quarter of 1994, scheduled service provided slightly less than 40% of the company's revenues.
FAA Administrator David Hinson, defending his agency's safety record, said "only five or six" of the 420 airworthiness directives it issued last year grew out of National Transportation Safety Board recommendations. This means FAA originated about 98% of all safety measures in 1994, he said.
Political clout of the Machinists union figures to grow as the union considers merger with the Steelworkers and United Auto Workers. A recent IAM survey of members found that of 8,000 respondents, 95.8% voted in the 1994 elections and 79.3% backed the candidate endorsed by labor. Job security was ranked by 55% as the key issue.
Moody's Investors Service said United's ratings outlook is brightening because of the airline's continued progress in achieving the operating and financial goals set out last summer at the time of its employee buyout. The rating agency said the progress is "leading to increasing stability in Moody's rating from its previous negative outlook." United's senior unsecured rating is Baa3. Moody's said that United has trimmed its wages and benefits, and that Shuttle by United is contributing to the carrier's overall profitability and unit cost improvement.
Airport and Airway Trust Fund Income Statement October 1, 1994 - May 31, 1994 Current Month RECEIPTS (Revenues) Revenues: Excise Taxes (Transferred from General Fund): Liquid Fuel other than Gas 11,958,000.00 Transportation by Air, Seats, Berths, etc. 434,208,000.00 Use of International Travel Facilities 19,902,000.00
House last week passed 272 to 151 the Commerce-Justice-State appropriations bill (H.R.2076), which reduces fiscal 1996 funding for the U.S. Travel and Tourism Administration to $2 million. Funding at that level, $14.3 million less than the budget request, would sustain the agency only through December.
- Granted orally an exemption to Heavylift-Volgadnepr to operate four cabotage cargo charter flight between Wilmington, Ohio, and Seattle, Wash., using Russian-registered Antonov 124 aircraft during the period July 23- Aug. 12, 1995, carrying GE90 engines and related parts for production of Boeing 777 aircraft...Granted orally an exemption to Northwest to operate combination service between points in the U.S.
Airport and Airway Trust Fund Balance Sheet As of May 31, 1995 ASSETS Undisbursed Balances: Available for Investment $ 559.69 TOTAL UNDISBURSED BALANCE (Cash in Account) Receivables: Interest Receivables $ 271,014,037.07 TOTAL RECEIVABLES Investments: U.S. Treasury Certificates of Indebtedness
FAA's international safety assessment program is controversial at the International Civil Aviation Organization, which evidently is not accustomed to excitement. Carol Carmody, U.S. representative to ICAO, joked in a speech last week that FAA's efforts have "made for a lot of sleepless afternoons" at ICAO.
Southwest has dedicated a new 737-300 to June Morris by painting her signature and the Morris Air logo on the cockpit. Chairman Herbert Kelleher said, "We wanted to celebrate the union of Southwest and Morris Air, along with recognizing June's extraordinary contributions to the travel industry, by dedicating in her name an aircraft that will fly throughout the Southwest system." Southwest acquired Morris Air in December 1993.
- In Federal Register dated July 21...Proposed an airworthiness directive on certain Raytheon Hawker 1000 and BAe 125-1000A aircraft to require inspection for damage to an electrical cable loom...Proposed an AD on Saab 340B aircraft to require inspection for cracking of the beams over the overwing emergency exits.
-- Ackerly Airport Advertising named Anne Bachman national account manager and Paul Gilman account manager-LaGuardia, MacArthur and Stewart airports. -- Cooper Aviation Industries appointed Lynda Harmison manager-inside sales for Cooper Express. -- Douglas Aircraft division of McDonnell Douglas named Bonnie Soodik VP- general manager, quality. -- Loral elected Arthur Simon to the board.
