Midway Airlines ordered four A320s from Airbus Industrie for delivery in December 1998 and took option on another four. To accommodate its immediate expansion plans at Raleigh/Durham, the carrier will lease four A320s from ORIX Corp. Two will enter service May 1 and the other two on June 1. Midway currently operates eight Fokker 100s.
Airline passenger traffic increased an "encouraging" 8.1% compared with the same month a year ago, when traffic growth was only 0.8%, Air Transport Association President James Landry said yesterday. He noted that January 1995 was a relatively mild month compared with 1994's record- breaking cold. ATA reported that domestic enplanements increased 9.9% and international enplanements rose 4.3%. Domestic revenue passenger miles rose 9.6%, while international RPMs increased 4.4%. Domestic available seat miles were up 6.1%, and intentional ASMs increased 1.9%.
FAA's decision to shorten the deadline for installing TCAS 1 (traffic alert and collision avoidance systems) from March 31, 1997, to Dec. 31, 1995, drew protest from the National Air Transportation Association. The original TCAS 1 deadline, last Feb. 9, was extended due to delays in developing and testing of the systems.
Most U.S. airlines preparing for new service to Canada are effusive in their praise for the recently signed U.S.-Canada agreement. "The new bilateral will allow air carriers on both sides of the border to expand their route systems profitably and will give travelers more access to key business centers across North America," said Gerald Greenwald, chief executive of United. Gaining new route rights, the large U.S. carriers voiced their approval of the agreement, while issuing schedule plans. American and Northwest announced several new flights between the U.S.
Some or all of Air Canada's fleet of 35 DC-9s could turn up eventually in the U.S. or China in the colors of an Air Canada-backed startup carrier, Chairman Hollis Harris told The DAILY in an interview. Harris said Air Canada has decided to delay phasing out the DC-9-32s for the time being to retain capacity for the new Open Skies aviation agreement with the U.S. But he also said the airline may hushkit the twinjets to extend their service lives beyond 2000, for use by Air Canada or elsewhere.
Continental has signed a letter of intent to outsource its cargo- handling services at Los Angeles Airport to Mercury Air Cargo, a wholly owned subsidiary of Mercury Air Group. Mercury will operate Continental's 140,000-square-foot cargo facility at the airport. The agreement triples Mercury's warehouse space at the airport, and the company is talking to other airlines about outsourcing opportunities, including additional ones with Continental.
Proposed legislation (H.R.1036) to correct unconstitutional elements of the Metropolitan Washington Airports Authority structure "contains more provisions than necessary to fix the constitutional problem, the combination of which seriously undermines the Authority's ability to finance improvements," MWAA said this week. In a Feb.
Denver's $4.2 billion new airport opened yesterday with a 6 a.m. departure by United Flight 1062 to Kansas City, and the first arrival was by United Flight 1474 from Colorado Springs. The first arriving passenger to enter the terminal was Elrey Jeppesen, for whom the terminal was named. The airport opened after missing four previous announced opening dates: Oct. 31 and Dec. 19, 1993, and March 9 and May 15, 1994. The automated baggage system, primary cause of those delays, was working smoothly, Reuters reported.
United predicts that its decision to discontinue service to 15 unprofitable destinations, reallocate resources to expand Denver service, and increase Shuttle operations to eight new city-pairs in April will add $25 million annually to its operating earnings.In an 8-K report filed yesterday with the Securities and Exchange Commission, the carrier also estimated other 1995 changes that will depress its profits - higher rent at the new Denver Airport and at Osaka's Kansai Airport - will increase operating expenses by approximately $140 million a year.
LOT Polish Airlines will overhaul its transatlantic business-class service in March by increasing legroom, adding footrests and banning smoking. The reconfiguration, which will increase seat pitch to 52 inches from 38 inches, is expected to be completed by midsummer. Six seats will be removed from business class on the carrier's three 767s. LOT's summer schedule calls for 20 flights a week to Warsaw from New York Kennedy, Newark and Chicago. The carrier will take delivery of a fourth 767 by mid- May.
Suggested modifications of the existing U.S.-U.K. bilateral drew criticism from a number of industry officials attending a briefing Monday (DAILY, Feb. 28). "There was a fairly strong reaction to the proposal," said an industry official, adding that the general perception was that "there is nothing in it for anyone but United." In presenting the modifications, State and Transportation department officials said the changes were part of the process leading to a new bilateral.
Tower Air reported a net profit of $568,000, four cents per share, for the year ended Dec. 31, 1994, well below its net income of $9.9 million in 1993. Operating revenues increased 8% in 1994 to $368 million. The company cited growth in scheduled passenger and cargo traffic, offset by reduced commercial and military charters. It reported a fourth quarter 1994 net loss of $1.6 million, compared with $1.7 million in the same 1993 quarter, while operating revenues were up 33% to $97.6 million.
The American Society of Travel Agents has filed at the Justice Department its complaint against airlines that have imposed commission caps, and has asked Justice to issue an injunction on the caps. ASTA claims the carriers acted through collusive efforts to fix prices. The filing asks the department to begin an immediate investigation of the seven airlines involved, and to restore commissions to the previous level of 10% until the issue is resolved.
Three FAA air traffic control officials testified yesterday that known weather conditions near the area where American Eagle Flight 4184 was flying in a holding pattern last Oct. 31 did not indicate that the aircraft would encounter icing conditions severe enough to disrupt airflow over its wings and cause it to crash. This is what investigators believe happened to the ATR-72 that crashed near Roselawn, Ind., killing all 68 aboard.
Air Canada's ability to expand its transborder operation rapidly under Open Skies will hinge in part on improvement of facilities at Toronto and other Canadian airports, according to Lamar Durrett, executive VP-corporate services and chief operating officer. While Air Canada will have to set up new stations and possibly expand existing stations in the U.S., Durrett said he is more "concerned" about the Canadian side of the operation, where the airline is faced with limited space.
Japan Airlines will introduce domestic APEX (advance purchase excursion) fares, offering 25% to 36% off regular fares, beginning May 8. The new fares go on sale March 8 and can be purchased two months to 28 days before departure. JAL has been planning to introduce the fares since the end of 1994, when the Japanese Ministry of Transport lifted restrictions on the level of discounts airlines can offer without obtaining prior government approval.
The Orient Airlines Association has denied rumors that it has withdrawn its computer reservations system complaint to the European Commission. Instead, OAA seems intent on stepping up pressure on the EC to put an end to what it sees as CRS pricing abuse. The association said it recently submitted to the EC additional evidence of travel agent abuse of booking practices, to counter descriptions of such practices as an isolated phenomenon.
American Society of Travel Agents' Eastern Regional Conference, to be held March 23-26 in White Sulphur Springs, W.Va., has officially sold out. "With the added pressure imposed by the airlines' new commission caps, it is critically important that our eastern regional travel agents seek out new ways to bolster their bottom lines," conference co-chair Natalie Intrater said. The program is designed to show agents how to remain profitable without relying on airline ticketing.
Fokker Aircraft of The Netherlands has frozen the basic concept of its prospective new-design 130- to 140-passenger jetliner and program managers have presented the plans to the company's management board, a Fokker spokesman said Friday.
DOT presented a proposal to industry yesterday outlining possible modifications of the current U.S.-U.K. bilateral. Hammered out during talks between the two sides in Washington last week (DAILY, Dec. 22), the changes include one new route to Heathrow, additional regional opportunities in the U.K. and a code-share provision, a DOT official said. After it assesses industry reaction, the U.S. plans further talks in London in a week or so, the official added.
FAA Administrator David Hinson said Friday the agency will open a public docket soon to seek opinions on how to respond to National Transportation Safety Board recommendations that enhanced flight data recorders be installed on transport aircraft (DAILY, Feb. 23). FAA will conduct a public meeting early in April to review the recommendations and consider actions that industry and FAA can take in response, Hinson said.
United and Northwest are opposing American's attempt to link the potential reallocation of USAfrica frequencies to its bid to expand its code-share agreement with South African Airways. TWA, World Airways and United have applied for the six weekly frequencies held by USAfrica, which suspended operations and declared bankruptcy Feb. 8, but is trying to hold onto the service (DAILY, Feb. 24).
Wings Club will hold its monthly luncheon meeting March 15 at the Grand Hyatt Hotel in New York City. Guest speaker is Lewis Jordon, president and chief operating officer of ValuJet Airlines. For more information, call 212-867-1770.
FAA has scheduled a workshop March 8-10 for all segments of civil aviation to discuss the safety and efficiency of aircraft operations on airport surfaces. "Just as we are working with the aviation community to improve the management and flow of airborne aircraft, we need to improve the surface movement of aircraft as well," said FAA Administrator David Hinson. Participants will divide into five working groups - human performance, surveillance, surface movement planning, guidance and communications - and share recommendations at the end of the session.
