Aviation groups are supporting a proposal backed by Rep. Tom DeLay (R- Texas) to reallocate $100 million in big-city transit operating assistance to the Airport Improvement Program, bringing the House AIP recommendation to $1.7 billion.DeLay is expected to offer the amendment today during Appropriations Committee consideration.
It is widely believed that the proposed rule change is based only on the political whims of DOT Secretary Federico Pea and that, as Raytheon Aircraft commented, "The only justification that can be ascertained from the NPRM and related meetings and publicity is...because of public perception and political reasons." In a letter this week to President Clinton, Metro Credit President Jim Walker said, "In the face of media frenzy, your administration has effectively offered up the 19-passenger commuter industry as the sacrificial lamb."
Impact of the proposed rule on Essential Air Service and the resulting political ramifications were not addressed by either the FAA or commentators on the rule. Economic impact on the 19-passenger fleet would mean an increase in EAS subsidies and possible loss of air service in some markets. In President Clinton's home state of Arkansas, for example, El Dorado/Camden, Harrison, Hot Springs and Jonesboro could lose service; Dodge City, Garden City, Goodland, Great Bend, Hays and Liberal are all in Senate Majority Leader Bob Dole's former Kansas congressional district.
McDonnell Douglas DC-9 and MD-80 Systemwide Aircraft Utilization Per Day Fourth Quarter 1994 DC-9-30 Continental Northwest TWA Number of Aircraft Operated 31 77 35 Total Fleet Operations Departures 207 390 190 Block Hours 278 630 304
Air Canada has signed the single largest financing transaction in its history - a $1.466 billion export credit leasing financing facility for the six Airbus A340s and 25 A319s it ordered in May, the carrier said yesterday. Bayerische Landesbank, Credit Lyonnais and CIBC arranged the German, French and British portions of the syndicated financing, with CIBC acting as agent for the syndicate.
House Committee on Small Business will conduct a hearing on the effects of the airline commission cap on travel agents at 10 a.m. July 12 in 2359 Rayburn. Three of the six witnesses will be members of the American Society of Travel Agents, ASTA said, including ASTA President Jeanne Epping.
USAir Shuttle is offering a two-for-one special for weekend travel between tomorrow and Sept. 4. Passengers traveling together will pay a total of $163 roundtrip instead of the normal $72 one-way, per-person fare on Saturdays and Sundays. The Shuttle operates from Boston Logan and Washington National to New York LaGuardia.
Western Pacific Airlines elected officers and four new board directors this week at its first annual shareholders meeting in Colorado Springs. Martin Dugan was re-elected as a director. The new directors are Clayton Bennett, Ivan Irwin, Glenn Stinchcomb and James Wikert. Founder Edward Beauvais and Trevor Van Horn will remain on the board; they were not required to stand for re-election.
Memphis has its first nonstop transatlantic service with the launch of KLM/Northwest code-sharing flights to Amsterdam. The inaugural flight with a KLM MD-11 was decorated with a double-life-size decal of Elvis Presley. The aircraft was dubbed Elvis 1. Memphis is KLM's eleventh U.S. destination.
Continental's pilots will receive a $20 million cash payment upon signing the new collective bargaining agreement tentatively agreed to on Wednesday (DAILY, June 29). A Continental official called the agreement "mutually beneficial." Continental Express pilots still are bargaining under federal mediation and are not part of this agreement. Pilots will receive a 2.5% longevity pay snapback on Jan. 1 and a $10 million cash payment on April 1. Base pay will increase 13.5% on July 1, 1996, and another 5% on June 30, 1997.
BWIA International Airways has reached agreements with unidentified lessors to re-equip its fleet with eight 757s and three 767-300ERs, and it plans to bring in five 50- to 80-seat regional jets within the next two years, according to the carrier. BWIA, privatized by the government of Trinidad and Tobago in February, has not decided which small jet to order, a spokesman said yesterday, but the airplanes will be operated by BWIA or one of its Express partners.
Fokker has selected Collins Avsat satellite-based avionics for new flight management systems on its F70 and F100, giving Collins its first air transport market in this area, David Mineck, executive VP, Air Transport Division, said yesterday in Washington, D.C. The Collins Avsat, which also has been selected for Bombardier's Challenger 604, is currently in flight testing with certification expected this September.
Final rules issued by the Pension Benefit Guaranty Corp. require 4 million workers and retirees to receive notices from employers about the funding levels of underfunded pension plans. The Retirement Protection Act, which became law in December, requires companies with plans less than 90% funded to provide an annual explanation of their plans and limits to PBGC's guarantees. About 1,500 companies with large plans will have to send out the information this year, PBGC said. The pension reform law also accelerates funding for underfunded plans.
Turks Air is seeking renewal of its authority to operate non-scheduled all- cargo and charter freight service between the Turks and Caicos Islands and Miami. Under its current exemption, the carrier may use only wet-leased aircraft from a carrier that has received requisite economic authority from DOT. In its filing, Turks points out it has renewed a long-term wet-lease for all-cargo operations with DHL Airways. It also has a long-term wet- lease for all-cargo operations with Trans-Air-Link Corp. (Docket 48134)
FedEx said yesterday net income for the quarter ended May 31 increased 8% to $87.2 million from $80.7 million, while net income for its fiscal year was up to $297.6 million from $204.4 million. Revenues for the quarter rose 9% to $2.5 billion, and revenues for the year increased 11% to $9.4 billion. Operating income was $174.1 million for the quarter, down from $193.7 million. Operating income for the year totaled $591.1 million, compared with $530.6 million last year. International operating profit was $34.4 million for the quarter, up from $20.4 million.
Honeywell signed an agreement with Ramensky Priborostroitelny Zavod, a Russian manufacturer of inertial reference systems, for co-production of Honeywell navigation systems for customers in the Commonwealth of Independent States.
Talks between the U.S. and Japan are expected to begin Wednesday, a senior U.S. government official said yesterday. Likely to last two or three days, the meetings will follow a specific agenda. First, the U.S. will press Japan to honor its responsibilities to Federal Express on beyond-Japan cargo rights under the U.S.-Japan bilateral. If the U.S. can be sure that Japan will live up to its commitment, the official said, then the U.S. will address a cargo agreement.
Kiwi International Air Lines launched a new ad campaign this week, built on the theme "It's A Wonderful Flight," on television, radio and in the print media. Randy Greenburg, VP-sales and marketing, said the commercials are not the "pompous puff" heard from the major carriers. "They're confident and aggressive and use a comedic twist to underscore Kiwi's benefits and value to the customer." The commercials were created by Gianettino&Meredith, Short Hills, N.J.
Rep. Jim Lightfoot (R-Iowa) said yesterday he plans to join with House Transportation aviation subcommittee Chairman John Duncan (R-Tenn.) to introduce FAA reform legislation that would restore FAA to independent agency status. Lightfoot currently is sponsoring an FAA reform bill (S.1392), and Duncan has been considering legislation similar in many respects to Lightfoot's bill (DAILY, June 14).
FAA advised airline passengers this week to use their seat belts when they are seated. The advisory follows recent incidents in which passengers were injured when their aircraft flew into "severe turbulence." DOT has ordered FAA to study whether it needs to toughen seat belt rules. FAA's latest revision, in 1992, requires that passengers fasten seat belts when warning lights are on.
Bombardier selected Dowty Aerospace Propellers of Gloucester, England, to supply the propeller system for the new de Havilland Dash 8 Series 400 aircraft, Bombardier Aerospace Group - North America announced. The company formally launched the 70-passenger, 350-knot aircraft on June 12.
Northern Star (Midway Connection) and Empire Airlines are withdrawing from participation in the Airlines Reporting Corp., ARC said this week. ARC said it has been advised of Empire's intent to voluntarily cease scheduled passenger service after today. The cessation affects only scheduled service. Northern Star also intends to cease scheduled operations today. ARC will continue processing Empire transactions through July 16 and Northern Star transactions through July 23.
Economic impact on 19-passenger-aircraft operators of raising Part 135 aircraft and operations to Part 121 levels was "grossly" underestimated, according to comments on Notice of Proposed Rulemaking 95-5 submitted by Fairchild Aircraft. FAA estimated in the rulemaking that the total cost to the regional-airline industry would be $275 million over the next 10 years. Its own analysis, Fairchild said, shows that the cost to the Metro fleet alone would be nearly $264.6 million during the same period.
CDB Research&Consulting said a survey of 1,189 analysts gave Delta the highest combined rating on operating performance among four major airlines in a "Hidden Value" study conducted in cooperation with Financial World magazine. The study covered all types of companies, and analysts were asked what companies they track. Delta, AMR Corp., UAL Corp. and Southwest were the only airlines included.
