A comprehensive federal government restructuring bill (H.R.1923) introduced in the House last month would establish a private air traffic control corporation, impose fees for airlines' use of slots at high-density airports and make cuts in aviation programs. The bill to implement a balanced budget, introduced by Rep. Gerald Solomon (R-N.Y.), would create a non-profit private Airways Corporation to operate the ATC system. It would require DOT to establish by Sept. 1 slot fees at high-density airports high enough to raise $300 million each year.
Vietnam's international passenger volume will increase 14-fold by the year 2010, to more than 17 million passengers from 1.2 million in 1993, according to the IATA-affiliated Air Transport Action Group. China's total will increase about half as fast to a total three and a half times larger than Vietnam - 62 million in 2010, up from 8.3 million in 1993.
Alaska Airlines' June traffic rose 16.2% on 16.6% more capacity, causing its load factor to slip 0.2 percentage points to 63.3%. The number of passenger boarded rose 15.7%. Through the first six months of this year, Alaska's traffic rose 17.4% on 22.2% more capacity, producing a load factor decline of 2.5 points. June 95 June 94 6 Mths 95 6 Mths 94 RPMs 808,000,000 695,000,000 3,937,000,000 3,354,000,000 ASMs 1,277,000,000 1,095,000,000 6,680,000,000 5,465,000,000
United's systemwide passenger traffic rose 2.7% last month on 3.5% more capacity, resulting in a load factor decline of 0.6 percentage points to 75.5%. The number of passengers boarded rose 6.4% from June a year ago. North American traffic was up 3.8% on 4.5% more capacity, and Pacific traffic rose 3.6% on 6.9% more capacity. June 95 June 94 6 Mths 95 6 Mths 94 RPMs 10,122,065,000 9,852,429,000 53,294,699,000 50,271,473,000
Through the first half of 1995, TWA's systemwide traffic rose 0.7% on 2.8% less capacity, producing a load factor increase of 2.3 points. Domestic traffic was up 3.8%, while international traffic fell 7%. June 95 June 94 6 Mths 95 6 Mths 94 RPMs 2,320,400,000 2,330,600,000 11,610,300,000 11,525,200,000 ASMs 3,265,300,000 3,538,800,000 18,007,200,000 18,527,100,000 LoadFtr% 71.1 65.9 64.5 62.2
Continental's second quarter financial results will include a $30 million - 96 cents per share - after-tax gain from the company's sale of its System One computer reservations system to Amadeus (DAILY, April 28). The pre-tax gain will be about $108 million, and the related book tax expense will be $78 million. Continental received $40 million in cash from the transaction, a 12.4% equity stake in Amadeus and a one-third equity stake in System One Information Management LLC.
United's operation of the first 777s delivered by Boeing was a factor in a CIC Research survey of Internet users in June. Of 1,300 respondents, 22% picked United as their favorite U.S. airline, 18% chose Delta and 14.6% liked American. The favorite aircraft for long-haul service were the 747, 767 and 777. Of the 82 people who chose the 777, only 22 had flown on it during the past month - the only month in which the aircraft had been in service.
Granted orally an exemption to Aeromexico to engage in scheduled combination service between Cancun, Mexico, and Los Angeles...Granted orally an exemption to Pacific International Airlines to continue to wet-lease Boeing 727 equipment to Air Caribbean for all-cargo operations between Curacao, Netherlands Antilles, and Miami. The flights are to be operated over the routing Panama City-Curacao-Miami at a maximum frequency of two roundtrips per week.
Three days of talks between the U.S. and Japan ended in Washington Friday without an agreement. The U.S. is evaluating a Japanese request for more talks in Tokyo. The two sides are working against a July 14 deadline - the end of the comment and reply period on the show cause order on the sanctions against Japanese carriers proposed by DOT this week (DAILY, June 20).
British Airways' "strategic intention" is to be the driving force behind the most successful of the many multi-carrier international alliances that eventually will emerge, according to Chairman Colin Marshall. He predicted recently that there will be "around 10, maybe less" of the multinational, global air transport combines sooner or later.
Airborne Express, which operates primarily Douglas narrowbody aircraft, may decide by the end of the month on a move to widebody freighters. The leading candidates appear to be Airbus Industrie's A300B4 and the Boeing 767-200. Since these aircraft would have to be converted, Airborne probably could not begin service with them before late 1996.
Frontier Airlines, reversing its projections, said Friday it expects to report a loss for the June quarter, the first quarter of the Denver-based startup's second fiscal year. The original estimate was based on advance bookings and normal seasonal traffic improvements. "Preliminary reports indicate our earlier revenue projections were eroded by lower-than-expected yields, induced by heavy industrywide discounting during the period," said Frontier President Sam Addoms.
Delta's systemwide passenger traffic declined 1.3% last month on 0.1% less capacity, depressing the load factor 0.9 percentage points. The number of passengers boarded fell 2.2%. Robert Coggin, Delta senior VP-marketing, attributed lower domestic load factors in June to the carrier's continued marketing focus on the frequent business traveler. "This, as well as a more favorable fare environment this year, is resulting in improvements in both domestic and international passenger mile yields and total passenger revenue."
- In Federal Register of June 30...Issued special conditions on the SIAI Marchetti S211A airplane...Superseded an AD on Boeing 747SP aircraft concerning inspection for cracks in the web of the wing front spar over engine Nos. 2 and 3. - In FR of July 5...Issued an AD on certain Agusta A109 helicopters requiring a modification of the tail boom vertical fin.
Ernie DuBester has been nominated by President Clinton to another three- year term, through July 1, 1998, on the National Mediation Board. DuBester was chairman from December 1993 until last week, when Maggie Jacobsen succeeded him.
Northwest will continue its Minneapolis/St. Paul-Anchorage service through Jan. 2 instead of ending the seasonal flights as usual at the end of September. It operates two daily flights in the market and a third rountrip each Friday, Saturday and Sunday. It also operates service from Minneapolis to Anchorage via Seattle year-round.
The only engine on a ValuJet DC-9 suspected of reaching 3,000 cycles since overhaul by THY of Turkey was scheduled to be removed for disassembly during the weekend, Anthony Broderick, FAA's top enforcement official, said Friday. The 3,000-cycle limit was one of three recommendations issued Thursday by the National Transportation Safety Board (DAILY, July 7) during its investigation of the uncontained failure June 8 of a JT8D engine on a ValuJet DC-9 during a takeoff from Atlanta.
Lufthansa's efforts to "internationalize" its costs include a deal with its unions allowing the airline to recruit up to 10% of cabin crew members abroad and pay them at lower, foreign wage levels; and moving some revenue accounting functions to India and some technical services to Ireland. According to Chairman Jurgen Weber, "made in Germany" is evolving into "made by Lufthansa."
An overflight fee proposed by Transport Canada is being protested by U.S. carriers. Air Transport Association President Carol Hallett said it "appears that one segment of the airline industry - non-Canadian airlines - is being singled out to pay an arbitrary fee in advance of a comprehensive revamping of the system of Canadian charges for air navigation services."
Year-over-year load factor increases and yield improvements continue to produce strong revenue results for USAir, according to Chairman Seth Schofield. In June, USAir's load factor increased 1.7 percentage points to 68.1%. "The combination of strong summer traffic and the positive effects of our earlier announced capacity reductions has produced the highest June load factor since 1987," he said. In June, USAir's passenger boardings fell 7%, but its passenger traffic dropped only 2.6%.
USAir's traffic declined 2.6% last month on 5% less capacity, pushing the airline's load factor up 1.7 percentage points to 68.1%, its highest June load factor since 1987.
Mesa Air Group has named Ben Harrison to the newly created position of VP-planning and pricing. Harrison, 46, who is responsible for strategic market planning of Mesa's six airline divisions, has 23 years of airline experience with Braniff, AMR and Metro. Mesa also appointed George Lippemeier, 54, president of Desert Sun Airlines, the company's recently formed, Phoenix-based jet division that operates Fokker 70 regional jets on behalf of America West to Des Moines and Spokane from Phoenix.
Galileo International has appointed James Lubinski to the newly created position of senior VP-Denver product development. He will join the computer reservations system company on July 17. Lubinski most recently was senior VP/division head of systems and operations of Boatmen's Trust Co., a subsidiary of Boatmen's BancShares.
