U.S. Major Domestic Commission Expenses Year Ending June 1994 % Of Total Average Passenger Roundtrip Commissions Revenues Fare Alaska $ 47,121,000 5.70 $236 America West 112,969,944 9.11 240 American 880,577,000 10.37 394 Continental 357,344,000 10.07 305
A negotiating team from the U.K. is scheduled to meet today with U.S. officials in Washington to explore ways to resurrect the stalled U.S.-U.K. bilateral talks.DOT is keeping its expectations "in check" until talks actually begin, said a department spokesman.
Boeing has told FAA it does not have enough time to satisfy head-injury certification standards for some of the economy-class seats of its in- development 777-200 before deliveries begin in May, to United (DAILY, Feb. 21).
Lufthansa plans to increase its daily nonstop San Francisco-Frankfurt service to nine weekly flights for the summer travel season. To complement its existing daily 747 service, the German carrier will add two weekly A340 flights March 30-Oct. 30. To introduce the service, Lufthansa is offering $340 companion fares for roundtrip travel on the A340 from San Francisco. Travel must be completed by June 1, and restrictions on the full-fare ticket apply to the companion. The new flights will be non-smoking.
Northwest will take 15 757s earlier than scheduled, but will delay 25 more and may defer delivery of four 747-400s, under an agreement with Boeing that one industry source said was Boeing's idea.
The DOT Inspector General's office is trying to block the testimony of a senior DOT IG special agent in a case before the Armed Services Board of Contract Appeals. The case involves termination by the U.S. Air Force on Aug. 30, 1990, of a two-year, $25 million cargo contract with TPI for falling below an 85% reliability level. The Air Force terminated the contract on the same day the carrier "voluntarily" surrendered its operating specifications to FAA in Georgia. TPI won the contract away from Evergreen International, which got it back when TPI was terminated.
Rep. Jim Lightfoot (R-Iowa) plans to introduce legislation to reform FAA and establish it as an independent agency. The bill, to be offered as early as this week, would require appointment of a select panel to find innovative financing mechanisms for aviation infrastructure, establish a management advisory board and mandate final action on all rulemakings within 18 months of initiation.
American Society of Travel Agents yesterday revealed a four-part attack - including a class-action antitrust lawsuit alleging price fixing - against airlines that have capped travel agent commissions on domestic tickets. The ASTA program, involving legal, legislative, consumer awareness and member education measures, includes an advertising campaign in major newspapers, beginning Friday, to alert the public to what the airlines are doing.
Aviation Capital Group subsidiary ACG Acquisition Corp. has purchased a 737-200 Advanced aircraft from Aer Lingus for an undisclosed price. The aircraft, serial number 21112, is equipped with JT8D-9A engines.
Delta has opened a centralized baggage service center in Atlanta to process baggage claims made throughout the U.S., Canada and the Caribbean. Claims filed in the Bahamas and Bermuda will be added in 30 days. The center, which is open 24 hours a day, has a toll-free number that dispenses information about misdirected baggage "in the unlikely event this should occur," Delta said. The airline said it can offer the service through WorldTracer, its recently implemented computerized baggage tracking system.
Reno Air's January traffic rose 32.3% on 27.6% more capacity, producing a load factor gain of 1.8 percentage points. The number of passengers boarded was up 30.8%. "Our core markets show substantial year-over-year load factor improvements," said Reno Air President Robert Reding. He said Reno's results should continue to improve as it implements "minor seasonal schedule adjustments," including the discontinuation of one daily nonstop flight between San Jose and Colorado Springs Feb. 28, and two daily nonstops in the San Jose-Phoenix market April 1.
Air Canada's January systemwide passenger traffic rose 5.6% from the same month a year ago, but its capacity rose 13.8%, pushing the load factor down 4.3 percentage points to 55.9%. Domestic Canada traffic rose 6.8% on 13.7% more capacity, while international traffic increased 5% on 13.8% more capacity.
A coalition of 24 aviation industry organizations said last week it is "seriously concerned" with the funding aspects of the Clinton administration's plan for restructuring DOT because the proposal contemplates no funding for the air traffic control system from the general treasury.
Air Express International said fourth quarter net income increased 39% to $6.7 million and 1994 net income rose 30% to $22.6 million, compared with comparable periods the year before. Fourth quarter revenues rose 40% to $296.4 million and full-year revenues jumped 37% to $997.4 million. Operating income increased 31% for the quarter to $11.2 million and 22% for the year to $38.2 million.
Fourth quarter problems that removed some of the luster from Southwest's sterling 1994 have followed the airline into 1995 and will affect its first and second quarter results, Southwest officials said in interviews and appearances last week. "Some of the issues we had in the fourth quarter are dribbling here into the first half of the [new] year," Tammy Romo, Southwest's manager of investor relations, told The DAILY. "We're going to continue to be under pressure here in the first half," she said.
Aircraft Electronics Association named Dan Prosser, Stevens Aviation, chairman of the board. Aircraft Owners and Pilots Association Legislative Action appointed Mary Johnston director-legislative affairs. Committee for Dulles elected Edward Zigo, Clarke-Hook, president. National Association of State Aviation Officials named Megan Granlund staff associate and promoted Lori Lehnerd to director-aviation programs. Port of Oakland named Charles Foster executive director.
Chicago Mayor Richard Daley says he will fight "by any means necessary" a bill introduced Friday in the Illinois legislature by Republican House Speaker Lee Daniels to establish what Daley termed a "power grab" - a state-controlled regional airport authority that would take over O'Hare and Midway airports.
Granted orally an exemption to Air Operations of Europe for charter service between Sweden/Denmark/Norway and the U.S...Granted orally an exemption to Pacific International Airlines to continue to wet-lease 727s to Air Caribbean for all-cargo operations between Curacao, Netherlands Antilles, and Miami, originating in Panama City...Granted orally an exemption to USAir to renew its authority to operate between Pittsburgh and Ottawa...
The Air Transport Association has asked the Bureau of Labor Statistics to review its methods of measuring air travel price changes. David Swierenga, ATA's chief economist, told Commissioner of Labor Statistics Katharine Abraham that ATA was dismayed by the bureau's January Consumer Price Index, which cited a 2.2% air fare increase as one of the significant factors in the index rise. Swierenga said the industry experienced some of the sharpest price declines in January since the fare wars of 1992, about 8%.
Air New Zealand grounded most of its 737-200 fleet fitted with Nordam hushkits because of blade failures, Timothy Mooney, director of marketing communications-the Americas, said Friday. Last week, the carrier experienced the fourth turbine blade failure in six months in a hushkitted engine. James McCrea, ANZ managing director, said the New Zealand Civil Aviation Authority and the carrier agreed that there is a reliability problem "that relates to the use of overhauled turbine blades in these engines."
Delta's "framework" for quick resolution of contract talks, presented Thursday to its Air Line Pilots Association unit and under study by the union, offers stock options, but not ALPA's request for common stock and a seat on the board.The deal would provide some job protection related to international code sharing, but not the domestic job security ALPA wants in light of U.S. route restructuring that the union says subcontracts flying to regional partners.
- In Federal Register dated Feb. 10...Proposed to supersede an airworthiness directive on Beech 1900 series aircraft concerning modifying the instrument air plumbing system...Proposed to reopen the comment on a proposed AD on Jetstream 3101 and 3201 aircraft concerning modifying the shear fitting at the top of each escape hatch...Reopened the comment period on a proposed AD on Jetstream 3101 and 3201 aircraft concerning modifying the electrical system...Withdrew a proposed AD on Douglas DC-10 aircraft concerning modifying the fuel crossfeed dump shutoff system.
Delta's gross unrealized gain on its investment in Singapore Airlines stood at $143 million Dec. 31. On the same date, Delta had a gross unrealized loss of $24 million on its investment in Swissair.
Collins has signed a five-year component maintenance program agreement with TWA to provide equipment repair for more than 50 aircraft. Collins said the pact is expected to save TWA 20% on the existing extended warranty agreement's pricing. TWA expects to save about $100,000 in the first year of the contract. The program allows the carrier to pay for avionics repair services monthly at a fixed price per flight hour per unit. It also provides reliability analysis and tracking systems to assess equipment performance.
