Cargolux Airlines International is seeking renewal of its authority to serve Prestwick, Scotland, as an intermediate point on some of its service between Luxembourg and the U.S. The carrier also is asking DOT to amend its existing authority to enable it to add Reykjavik, Iceland, as an intermediate point on its Luxembourg-U.S. service and Detroit as a co- terminal point on its scheduled all-cargo service. "While Cargolux relies specifically on the newly initialed 'open-skies' agreement between the government of Luxembourg and the government of the U.S.
The European Commission has ordered Air France to put 1.5 billion francs into escrow pending the outcome of two court decisions on whether bonds sold to a state-controlled bank in 1993 constitute an illegal subsidy. Last year, the commission ruled that the transaction, involving 1.5 billion francs in bonds sold to Caisse des Depots et des Consignations (CDC), an Air France shareholder, was state aid.
America West has appointed TMI North America, San Francisco, as its human resources training consultant. TMI will conduct a "Putting People First" program for 2,800 America West customer service employees. Leslie Wood, senior VP of TMI, said, "Putting People First is designed to drive a corporate culture to be service-oriented and motivate employees to perform at their best."
A meeting of a European Union aviation working group today in Brussels may offer a preview of a new EU strategy for dealing with the U.S. open skies initiative. The meeting, to be attended by representatives of the European Commission, EU member countries and the Association of European Airlines, will address external aviation relations issues. It comes less than a month after the EU Council of Ministers essentially rebuffed Transport Commissioner Neil Kinnock's attempt to establish EU competency in the talks between six EU members and the U.S.
FAA said yesterday it has "launched a comprehensive review" of National Transportation Safety Board recommendations issued Tuesday in connection with the USAir DC-9 accident last July 2 in Charlotte, N.C. Monte Belger, associate administrator for air traffic services, said FAA began the review "with a view toward acting as promptly and effectively as possible" to change FAA procedures. He said FAA already has moved forward on the board's recommendations to improve information about windshear and other adverse weather conditions. (See related story on Page 30.)
S&P yesterday affirmed its BBB+ long-term rating on Qantas and upgraded its rating outlook for the Australian carrier to stable from negative because of what it sees as progress by the airline in getting its cost containment and route restructuring back on track. The rating also is supported by Qantas's strong competitive position in major international markets and its extensive domestic route network, offset by its "somewhat aggressive" financial profile and the competitive nature of the industry, S&P said.
Lufthansa Technik has signed a cooperation agreement with U.S.-based Randland Aircraft Ltd. covering the exclusive sale of VIP cabin furnishing and fittings, and the exchange of market-related data. Randland Aircraft, a division of Randland Corp., trades in new and used VIP aircraft, such as corporate jets and aircraft used by heads of state. It also is an agent.
Air Transport Association reported yesterday that air cargo traffic increased 11.1% in February from the same month a year ago. ATA President Carol Hallett said that despite a report by the Commerce Department yesterday indicating economic activity fell 0.2%, cargo traffic has continued to grow. "While other areas of the economy are starting to experience a slowdown, airline cargo traffic has defied those figures, but we obviously need a sustained showing of this strength."
United Parcel Service has applied for renewal of its authority to provide certain scheduled all-cargo service between San Antonio, Texas, and Monterrey, Mexico. (Docket 49518)
Alitalia's 1994 net loss declined to 288 billion lire (US$168 million) from 344 billion lire in 1993, but its total debt increased by half to 3.059 trillion lire (US$1.79 billion) as a result of increased spending on fleet development. Excluding extraordinary items, such as restructuring and severance charges and gains from the sale of assets, Alitalia's 1994 net loss was 178 billion lire, compared with 431 billion the previous year. The Italian carrier's 1994 revenue rose 7.4% to 7.165 trillion lire (US$4.19 billion).
CFM International said yesterday it has signed a "framework agreement" with Russian aircraft engine manufacturer Rybinsk Motors to develop an agreement for production of CFM56 engines for use in Russia. The pact says future work to be performed by Rybinsk includes manufacturing CFM56 parts to be delivered to GE and Snecma, promoting the engines in Russia and participation in the production of the engines for Russian aircraft.
The Air Force is expected to announce this month the initial operational capability of a notam (notice to airmen) system for the Global Positioning System, but FAA is working on a different way to get flight information to civil aviators. Col. Michael Williams, chief of the DOD Notam Division of the Air Force Flight Standards Agency, said yesterday "we are shooting for April 17" as the announcement date, pending the results of tests under way at the FAA headquarters notam office.
United continues to cut costs by securing agreements with international-based employees swapping stock ownership for efficiencies. The carrier, negotiating with all of its 6,000 employees based outside the U.S., has reached agreement with 800 based in the U.K. It reached a similar deal last month with employees stationed in Vancouver. United spokesman Tony Molinaro said talks continue with employees in Japan, France, Australia and Mexico, where most of its offshore employees are based.
Organizations representing general aviation yesterday endorsed FAA reform legislation introduced yesterday, as expected, by Rep. Jim Lightfoot (R-Iowa), who termed it "a credible, realistic alternative" to DOT's proposal to corporatize the air traffic control system (DAILY, April 4). Noting that 10 of the 11 living former FAA administrators support an independent FAA, Lightfoot said "the DOT structure hinders the FAA from doing its job in the most effective manner."
UAL Corp. will issue $582.25 million worth of 6.375% convertible subordinated debentures to holders of its 6.25% Series A convertible preferred stock through an exchange offer that ended Monday afternoon. UAL, the parent company of United, had offered to exchange up to $600 million of the debentures for all of its outstanding 6.25% preferred stock (DAILY, March 6). Yesterday, UAL said an aggregate of 5.82 million shares of the preferred stock, representing more than 97% of the shares outstanding, were tendered or guaranteed for delivery in the exchange offer.
Seven airlines yesterday filed an amended rates and charges complaint at DOT challenging the Lehigh-Northampton Airport Authority's use of airport revenues to guarantee revenues for Midway Airlines service from Lehigh Valley Airport to Boston and Chicago Midway. Midway operated the service from October 1994 until Feb. 28, when it ceased service at the Allentown, Pa., airport as part of its new focus on Raleigh/Durham. A similar revenue guarantee arrangement was provided TWA in 1993 and 1994, but TWA also has left the airport.
ValuJet has executed agreements to purchase two DC-9-32 aircraft it expects to put into service by June 1. The aircraft, after being reconfigured for 113 seats and modified to meet FAA noise requirements, will cost a total of about $8 million. One of the aircraft, previously operated by Austral Lineas Aereas, is being purchased from McDonnell Douglas. Delivery is scheduled for May 1. The second was operated by British Midland and has been purchased from Nordbanken Finas AB of Sweden. It will be delivered May 29. The additions bring ValuJet's fleet to 29 DC- 9s.
Northwest has canceled more than $10 billion in firm aircraft orders and options since 1992 and deferred deliveries of an additional $4 billion worth of airplanes as part of an effort to improve its return on assets.At the same time, the airline plans to invest $430 million to refurbish and hushkit its DC-9s. The average age of Northwest's fleet was 16.8 years at the end of 1994.
Canadian Airlines International (CAI), which serves only three U.S. destinations on a scheduled basis, will become a significant player in the transborder market this summer as it and partner American progressively implement their code-sharing strategy. The two airlines plan to code share on 64 flights per day by the end of the summer, with American operating 39 of them and CAI 25. "This cooperative service agreement will be the largest of its kind in the world," said Don Casey, CAI's VP-marketing and scheduling.
Aer Lingus will lease three BAe 146-300 aircraft from British Aerospace Asset Management Organization for five years. Deliveries are scheduled April 18, and in mid-May and early June. The aircraft will operate on busy U.K. routes and replace smaller turboprops on some services.
Sabre Travel Information Network has reduced temporarily the cost of SabrExpress Ticketing in a bid to boost travel agent interest in the overnight ticket delivery product. For a limited time, STIN is offering SabrExpress at $5.99 for standard overnight and $6.99 for priority overnight delivery. The regular rates are $7 and $8, respectively. SabrExpress, which became available to Sabre subscribers in the U.S. in November, provides overnight delivery via FedEx to customers anywhere in the U.S., including Alaska and Hawaii.
Recent allegations against two U.S. cargo carriers are clouding the selection of airlines for new U.S-Peru cargo frequencies. The charges, leveled against Arrow Air by FAA and Fine Air by the Peruvian government, "raise serious questions" about their ability to operate their proposed service, according to Challenge Air Cargo. Arrow, Fine, Challenge and Millon Air are competing for three new frequencies.
Several industry groups told FAA that its proposal to require more sophisticated flight data recorders on older aircraft is unattainable within the time limits prescribed, too expensive, too broad and, in many cases, unnecessary. The groups - the Air Transport Association (ATA), the National Air Transportation Assocation (NATA) and the General Aviation Manufacturers Association (GAMA) - were replying to a proposed rulemaking FAA issued following pressure from the National Transportation Safety Board.
Apollo Travel Services will make available to travel agents next month an upgrade of its TS2000 automated accounting system, which the computer reservations system company said will make commission tracking and collection easier for subscriber agencies that are members of the Hotel Clearing Corp. (HCC).
USAir's board of directors will meet today to be briefed on the status of concession negotiations with its union groups. As of yesterday afternoon, no vote was expected on the agreement with USAir's Air Line Pilots Association unit for wage and other concessions in exchange for 20% employee ownership (DAILY, April 3). The Association of Flight Attendants at USAir said its negotiators met during the weekend and will receive a "cafeteria-style" list of possible concessions to choose from to satisfy its proposed level of investment in the company.
