TWA President Jeffrey Erickson exhorted employees last week to stand by their agreement to waive wage snapback provisions, the move that persuaded creditors to forego millions in lease payments and enable the carrier to operate through the winter. Four unions accepted the waiver and two, the Air Line Pilots Association and the Machinists, have reaffirmed the deal, Erickson said. But if any of the unions wobble, TWA's restructuring would fall apart in "an invitation to join Eastern and Pan Am in aviation history."
Alitalia has placed an order for 15 Fokker 70s to be operated by Alitalia subsidiary Avianova on intra-European routes from Rome. The aircraft will be configured to accommodate 66 passengers in two classes of service. Western European destinations with an average sector length of 500 miles have been earmarked by Alitalia for Fokker 70 service, including points in Germany, France and the U.K. The first two Fokker 70s will be delivered to the airline in October, followed by two more in November.
Worldspan plans to introduce its new Power Pricing product on May 3, the computer reservations system company said Friday. The system, which Worldspan said will be the travel industry's first product capable of displaying and rebooking lower-priced itinerary alternatives on airlines worldwide, will be made available to the CRS's U.S. travel agency subscribers at the time of introduction and will reach international subscribers later this year.
Delta Connection Comair is offering introductory fares to promote new service that begins May 1 from its Cincinnati base to Manchester, N.H., and Oklahoma City. Fares to both cities are $259 one way for tickets purchased April 20-May 15 for travel by May 31. Comair will offer two daily flights to Manchester and three to Oklahoma City.
Moody's Investors Service has assigned a range of investment grade ratings to Jet Equipment Trust notes and certificates used to purchase non-recourse loan certificates secured by aircraft leased to United. The agency gave an A1 rating to $305.8 million in Jet Equipment Trust 1995-A Class A senior notes; an A3 rating to $108.7 million in Class B mezzanine notes; Baa1 to $71 million in Class C subordinated notes, and Baa2 to $42.2 million in certificates.
DOT has granted renewal of Japan Airlines' Sendai-Honolulu authority and All Nippon Airways' authority to conduct scheduled combination services between Osaka and Guam.
Airbus Industrie bristled at FAA Administrator David Hinson's comment last week that the Boeing 777 is the first aircraft to receive simultaneous certification from FAA and Europe's Joint Airworthiness Authorities. Actually, the first one was its own A330, which completed the parlay in October 1993, the European manufacturing consortium observed.
Port of Spain, Trinidad-based regional carrier Air Caribbean has reached a code-sharing agreement with BWIA International Airways under which BWIA will sell transportation to the island of Tobago on Air Caribbean from New York, Miami and Toronto. In return, Air Caribbean will provide international access to passengers from Trinidad and Tobago via BWIA International.
United has ordered two 747-400s and four 757s worth $570 million from Boeing, to be delivered in April, May and June next year, as part of its five-year strategy to retire and replace older aircraft and improve its profitability. The 747s will replace aging aircraft on overseas routes, mainly in the Pacific, and the 757s will replace older aircraft in the U.S. To reduce maintenance costs, United plans to ground its 747-100s, DC-10-10s and early-model 737-200s in the next five years as announced last week (DAILY, April 13).
USAir intends to expand its new Business Select premium service beyond the 30 aircraft configured for the service, USAir Group Chairman and Chief Executive Seth Schofield told industry analysts this week. Schofield expects a meaningful financial improvement as a result. USAir followed Schofield's comments with an 8-K filing with the Securities and Exchange Commission Wednesday, elaborating on an earlier 10-K filing that said it would determine later this year whether to expand Business Select.
Anchorage-based MarkAir will cut off its links between Alaska and the lower 48 states as it returns four aircraft leased from GPA by May 10. The action results from its Chapter 11 bankruptcy filing last week, and it will make MarkAir a smaller Denver operation. It will be left with six aircraft at Denver, and subsidiary MarkAir Express will continue Alaskan operations. A MarkAir representative said it still wants to move its operation to Denver, where the hub is "doing well for us.
Las Vegas startup Tri Star Airlines has struck a joint marketing agreement with Japan Airlines that should guarantee good loads for its three BAe 146-200s operating to Vegas and the Grand Canyon from Los Angeles and San Francisco. Las Vegas and the canyon are immensely popular with Japanese and tourists from other Pacific Rim countries. President Don Martin said the agreement falls a little short of code sharing but does provide for jointly marketing full inclusive-tour packages in Japan, offering a "seamless product for the jet-level passenger."
Workers at McDonnell Douglas's jetliner unit facing layoffs could get a reprieve if Saudi Arabian Airlines goes ahead with its long-awaited fleet order by the end of June, according to the company's top finance executive. "There's a lot of talk about something materializing before the end of the second quarter," Executive VP and Chief Financial Officer Herb Lanese told reporters Wednesday in a conference call on the company's first quarter financial results (DAILY, April 20).
The City of Chicago filed suit Monday night seeking a declaratory judgment stating that the compact signed Monday with Gary, Ind., creating the Chicago-Gary Regional Airport Authority is valid and lawful. The new authority, which came into being at midnight Saturday, will oversee Chicago's O'Hare, Midway and Meigs Field and Gary Regional Airport. The lawsuit, naming Illinois Gov.
AMR Corp.'s chief financial officer this week said the icing crisis surrounding ATR aircraft cost the American Eagle parent $20 million after taxes. American Eagle and other ATR operators moved scores of the aircraft from their northern bases last winter after an icing problem was blamed for a fatal Simmons Airlines crash in Indiana and stringent cold-weather operating conditions were placed on the aircraft.
The National Transportation Safety Board considered the status of FAA runway incursion prevention programs as well as the specifics of the collision of a TWA DC-9 and a Cessna 441 last Nov. 22 at Lambert- St. Louis Airport, NTSB President Jim Hall said during the board's two-day hearing on the accident. The hearing, which ended yesterday, included testimony from Capt. Donald Carr, pilot of the DC-9, who described the sudden appearance of the Cessna on the runway as his aircraft was nearing 100 miles per hour on takeoff.
Taiwan's Aero Industry Development Center is studying the feasibility of producing a six- to nine-seat commuter aircraft, a Taiwanese newspaper reported. Taipei's United Daily News quoted sources within the military, which runs AIDC, as saying that the unit has completed the first stage of wind tunnel experiments that are required before the first prototype can be produced.
Swissair Group expects to grow in 1995 and post a larger profit than it did in a disappointing 1994, the airline company said yesterday in confirming previously released financial results for 1994 (DAILY, March 31). The group recorded a net profit of 23 million Swiss francs, less than half 1993's profit of 59 million francs, on operating revenue of 6.45 billion francs. The company described as "encouraging" the results of regional subsidiary Crossair and Swissair Associated Cos.
The 12-year-old Dash 8 program passed two major milestones this week, Dash 8 manufacturer Bombardier Regional Aircraft Division announced - the first Series 200 delivery and the 400th aircraft in the program to be delivered. The manufacturer said 444 of the model have either been delivered or accounted for in firm orders. The first Dash 8 was rolled out April 19, 1983. The company is producing three major versions of the Dash 8 - the 37- passenger 100, 39-passenger "hot-and-high" 200 and 50-passenger 300 series - with another under study.
Subsidized Essential Air Service As Of March 1, 1995, (Excluding Alaska) State/ Subsidized Service to Aircraft Communities Carrier (Hubs) Type Alabama Anniston Gulfstream Atlanta Beech C-99 Arizona Kingman Mesa Phoenix Beech 1900 Prescott Mesa Phoenix Beech 1900 Page SkyWest Phoenix Metro III
The relative strength of the Japanese yen against the U.S. dollar cost Northwest more than $59 million in the first quarter, but the airline expects the strong yen to be a plus for the full year, Northwest officials said yesterday in reporting better-than-expected first quarter financial results. Northwest posted net earnings of $2.6 million and an operating profit of $135.1 million for the quarter ended March 31.
Passenger growth for European Regional Airlines Association (ERA) members was 15.2% during 1994. That compares to an average of 16.8% per year since 1987. Growth was especially strong in November and December at 21% and 20%, respectively. ERA did not provide absolute numbers. The association said 74% of the reporting carriers achieved growth of more than 5% during the year.
DOT Administrative Law Judge Ronnie Yoder has given the parties in the Puerto Rico Ports Authority Rates Proceeding until April 21 to formalize their settlement agreement and file a proposed order. He had ordered the agreement filed by April 19, but the parties asked for more time (DAILY, April 17).
The U.S. should try to move toward a liberalized, open skies regime with Europe by swapping access beyond its gateways for the end of state subsidies for European carriers, Belgian Senator Herman De Croo said yesterday. In a speech at the International Aviation Club in Washington, De Croo said the U.S. and Europe will have to agree on the definition of open skies and reciprocity before negotiators can make progress toward them. "It is all too obvious to us Europeans that at this moment in time, 'open skies' end at U.S. gateways," he said.
