ValuJet Airlines has signed agreements to purchase four more DC-9s for $17.6 million, including modifications, giving it 33 of the aircraft. A spokeswoman said the carrier most likely will place the new aircraft on existing routes, but it may announce in June a decision to serve one or two new markets. The carrier recently took delivery of two DC-9s that it will use to expand to Boston next month. The spokeswoman said the age of the four new aircraft are in line with that of ValuJet's current fleet, which means they are about 25 years old.
Air South is offering fares as low as $20 one way on tickets used by midnight May 24. Air South said thousands of seats will be available. Examples of $20 trips are from Atlanta to Columbia, Jacksonville, Myrtle Beach and Tallahassee. Tickets are non-refundable and must be purchased "instantly."
Air L.A. has restructured its top management in an effort to reduce costs and strengthen operations. Its chairman and chief executive, Wayne Schoenfeld, has ceded the title of CEO to Dennis Altbrandt, former president and chief executive of Steps Education Products. William Hirsch, founder and former president of Wings West Airlines and an Air L.A. board member, will be president and chief operating officer in the transition period, during which the regional carrier will consider expanding its operation.
Responding to the hijacking of an Air France Airbus aircraft last December in Algiers, French authorities have decided to move Air Algerie's Paris operations from Orly Airport to Charles de Gaulle for security reasons. The Algerian flag carrier will share a terminal with charter carriers until June, when new facilities for the charter companies are scheduled for completion.
TWA's decision to lift its cap on travel agent commissions for domestic tickets was not copied immediately by any of the other capping airlines. TWA reached an agreement with the American Society of Travel Agents to return to uncapped 10% commissions until at least Sept. 30, a move it expects to bring in significant new revenue. From Sept.
Six Continental senior managers and some outside directors and their affiliates have purchased 225,000 shares of the company's Class B common stock in what a spokesman said amounts to a vote of confidence by the board and executive management in the future of the company.
A proposed budget resolution offered yesterday by House Budget Committee Chairman John Kasich (R-Ohio) includes the same assumptions about aviation-related spending reductions that the panel suggested earlier this year to help offset a tax cut. The proposed resolution assumes elimination of Air Traffic Control Revitalization Act premium pay, saving $608 million over seven years, based on funding at the fiscal 1995 level.
Air Malta has applied for authority to conduct scheduled and charter combination service between Malta and a point or points in the U.S., beginning Oct. 1. The carrier also asked DOT for fifth-freedom rights at intermediate or beyond points and code-sharing rights to the U.S. via intermediate or beyond points. Air Malta said it plans initially to serve New York with twice-weekly roundtrips. It has not determined whether it will operate into Kennedy or Newark airport. (Docket 50341)
Sky Chefs' parent company, Onex Food Services, has agreed to acquire Caterair International Corp.'s international operations and lease almost all of Caterair's U.S. assets. Sky Chefs operates as LSG Lufthansa Service/SKY Chefs. The marketing alliance between LSG Lufthansa Service and SKY Chefs will continue as the base "for a further successful strengthening of our ability to serve our customers with a single-company approach," said Helmut Woelki, chairman of the marketing committee.
United has named Graham Atkinson VP-Atlantic Division, replacing David Coltman, who will become senior VP-marketing. Atkinson previously was general manager-U.K. for United, and has worked in marketing and management positions at British Airways and British Caledonian.
Air Line Pilots Association has allocated $1 million from its $57 million major contingency fund to FedEx pilots to aid in stalled contract negotiations, and has agreed to make the full fund available, if necessary, for legal self-help.
The government of Australia wants to increase the ceiling on foreign ownership of Qantas from 35% to 49% in a move intended to drive up the price of the carrier's stock in the upcoming sale of the government's 75% stake. British Airways owns 25% of Qantas but will not be able to increase its holding because Australia does not intend to change the rule that limits an individual shareholder to 25%, according to Finance Minister Kim Beazley's office. Neither BA nor Qantas had any comment on the proposal yesterday.
The Airlines Reporting Corp. has completed details for a program that will charge travel agents 3.5% of each service fee they impose on customers. The program, scheduled for launch June 5 to help agents with credit card billings, will charge a one-time recording fee of $25 per agency, covering all locations. ARC will review the 3.5% fee after six months to determine the actual cost to ARC of administering the program.
Air Ontario has requested renewal of its authority to provide scheduled combination service between Toronto and Baltimore/Washington Airport. The carrier currently operates four nonstop roundtrip flights a day and slightly reduced service on weekends, using 37-passenger de Havilland Dash 8-100 aircraft. (Docket 48059)
United States Aviation Underwriters Chairman Harold Clark said yesterday the company and its former chairman, John Brennan, were indicted in the Eastern District of New York. Clark said USAU will defend itself "aggressively" against the indictment, which alleges fraud in connection with handling claim settlements arising from the Dec. 7, 1987, crash of a Pacific Southwest Airlines aircraft. PSA Flight 1771 crashed after a former airline employee, David Burke, smuggled a gun aboard and killed his former supervisor, the cockpit crew and himself, USAU said.
National Mediation Board has named two mediators, Samuel Cognata and Laurette Piculin, to help Delta and its pilots in contract negotiations. Delta requested mediation with its Air Line Pilots Association unit April 17, and the carrier said it expects talks to begin before the end of this month. Delta wants to reduce pilot costs by $340 million a year as part of its Leadership 7.5 program, aimed at cutting $2 billion in annual operating costs by June 30, 1997 (DAILY, April 18). It has been negotiating with the pilots since fall.
Pratt&Whitney said yesterday it has formed a joint venture with China Airlines and Singapore Airlines Engineering Co. to repair high- pressure compressor stators for the PW4000 family of engines. The joint venture will be located near Chiang Kai-Shek Airport, south of Taipei. The three companies will build a 19,000-square-foot repair facility that will employ about 60 people when operations begin early in 1997.
Air Midwest has told DOT it intends to terminate all essential air service at Topeka, Kan. The USAir Express carrier said it will stop the Beech 1900 service between Topeka and Kansas City, Mo., July 11. (Docket 49505)
Midwest Express appointed Continental executive Dennis Crabtree VP- operations and Brenda Skelton senior VP-marketing and customer service, and it elected Skelton to the board of directors. Crabtree, who will oversee flight operations, training, inflight services, maintenance and quality control, was director of safety evaluation, senior director of safety evaluation and staff VP-safety and regulatory compliance at Continental. He also was president of Continental Express. Skelton joined Midwest Express in 1987 as director of marketing programs.
Reno Air is offering $21 "Blackjack" fares to its four Nevada gambling destinations on Tuesdays, Wednesdays and Saturdays in May. Tickets must be purchased by May 16. The fares apply to flights from Reno/Tahoe to San Diego, Los Angeles, Ontario, San Jose, Orange County and Vancouver; from Las Vegas to Colorado Springs and Tucson; from Laughlin to San Jose, and from South Lake Tahoe to Los Angeles. The $21 is for one-way travel and requires a one-day advance purchase. It is upgradable to first class for an extra $20. The flights to Vancouver begin May 18.
The combined market value of U.S. airline company stocks tracked by The DAILY rose 9.2% last month to $27.26 billion on the final day of April trading, from $24.95 billion at the end of March. A relatively mild winter on the U.S. East Coast, fewer fare sales and continuing cost-cutting efforts boosted airline financial performance in the first quarter, and most carriers are looking forward to a busy and profitable summer season.
Air Canada yesterday posted a "not unexpected" first quarter net loss of C$88 million (US$65 million), more than twice last year's, but it also reported an operating loss of C$7 million (US$5 million), its best first quarter operating result since 1987. In the first quarter of 1994, Air Canada had an operating loss of C$12 million and a net loss of C$32 million. The airline attributed this year's larger net loss to the weak Canadian dollar, and to C$40 million in one-time gains last year that it did not have this year.
National Car Rental/Interrent and American have teamed to give National customers AAdvantage miles. From June 15 until Aug. 15, National customers will earn double miles with every rental. Miles can be earned in the U.S., Europe and Canada, and at participating locations in Latin America and the Caribbean.
