DOT has prohibited carriers from code sharing with foreign airlines on flights that overfly countries U.S. airlines are not allowed to overfly. The State Department said Dec. 20 that FAA was prohibiting U.S. carriers from overflying Afghanistan because of civil conflicts. Many foreign carriers continue to overfly Afghanistan on routes between Asia and Europe, however, and DOT said it now believes the prohibition should be extended to the application of U.S. carriers' codes to such flights.
The American Automobile Association (AAA) has named Apollo Travel Services its exclusive computer reservations system partner. The two have signed a five-year alliance agreement. "Apollo will play a significant role in helping AAA integrate its 4,000 auto travel counselors with its network of some 3,600 travel agents to create a powerful revenue generating sales force," said Graeme Clark, VP-marketing&financial services for AAA Travel.
Rep. William Clinger (R-Pa.) introduced this week legislation (H.R.951) to allow foreign interests to acquire, subject to DOT approval, up to 49% of a U.S. airline's voting stock. The bill would not disturb provisions of current law allowing, without restriction, foreign investments below 25% voting interest. Investments above 25% would be permitted if the key officers and two-thirds of the airline's board of directors still would be U.S. citizens; U.S.
The union representing air traffic controllers said a fully privatized air traffic control system could jeopardize aviation safety, but a government corporation would permit the government to retain control over safety free from cumbersome federal rules on procurement and personnel activities.
Mesa Air Group plans shortly to replace its de Havilland Dash 8- 100s/300s and Brasilias with a potentially "large order" of new aircraft. The 12 Dash 8s, originally acquired by Air Wisconsin and then sent by United to Atlantic Coast, lack the performance and oxygen systems required for Mesa's United Express Denver operations. Leading contenders are the 37-passenger Dash 8-200 and the 33-passenger Dornier 328. Embraer also is in the fray to add to the carrier's existing fleet of 30-passenger Brasilias. Mesa traditionally has operated a standardized fleet.
Japan-based computer reservations system Infini has implemented the Locator Back function for Aer Lingus, bringing the total number of Locator Back participants to 20. Infini is owned by All Nippon Airways and Abacus Distribution Systems.
Air Wisconsin Airlines Corp. yesterday posted an operating profit of $2.9 million and pre-tax earnings of $2.5 million for 1994, its first year of operation since being sold by United late in 1993. The company, which was purchased by CJT Holdings Inc., had 1994 operating revenues of $102.7 million and operating expenses of $99.8 million. Its operating profit in the fourth quarter was $575,000, and pre-tax earnings totaled $524,000. Revenues for the quarter were $25.8 million, and expenses were $25.2 million.
Air Transport Association Cargo Traffic December, 12 Months 1994 Revenue Ton-Miles (000) December December % 1994 1993 Change Domestic Freight 713,029 659,045 8.2 Mail 193,833 192,691 0.6 Total 906,862 851,736 6.5 International
American's Raleigh/Durham hub was losing market share to both the USAir hub at Charlotte and the new Continental hub at Greensboro well before American's announced pullout in December. Washington, D.C.-based AvStat Associates reports that in the third quarter of 1994, RDU's share of the traffic dropped to 24.7% from 32.6% in third-quarter 1993, while overall traffic for the three hubs increased to 4.4 million passengers from 3.7 million . Greensboro showed the largest increase, according to AvStat, more than doubling to a 12.4% share from 6.5%.
Delta is seeing an increase in bogus or phantom bookings by travel agents angered over its cap on commissions for domestic tickets.The carrier notes that it can prevent agents from booking on Delta by removing their "plates," action it took this week with International Tours of Garland, Texas. Computer reservations system vendors also can take action, because fake bookings violate CRS-agent agreements.
British Airways World Cargo revenues rose 7% in the December quarter to 135 million pounds and 12% through the first nine months of the carrier's fiscal year to 392 million pounds. The airline carried 506,000 tonnes of freight, mail and courier traffic through Dec. 31, an increase of 13.3%. Cargo yields reflected strong demand and some increases in rates, but remained depressed because of strong capacity growth. An export-led recovery in the December quarter saw the U.K.
Federal Bar Association's Transportation Law Section will hold its annual counsels' reception 6-8 p.m. Feb. 23 in Room 2167 of the Rayburn House Office Building, Washington. Telephone Sarah Handwerger at 202-638-0252.
TWA yesterday became the seventh airline to cap travel agency commissions to a maximum of $50 per domestic roundtrip, effective immediately. Industry observers had predicted Continental and TWA would be the last holdouts in order to swing bookings their way, but Continental matched the caps the day before. TWA also said it will now pay a flat rate of 11% on international commissions, down from 16%. Most carriers pay international commissions of 8% to 11%, depending on ticket type.
The only working prototype of the Antonov An-70 cargo airplane crashed last Friday during a test flight, killing its seven crewmembers, apparently after a midair collision with an accompanying An-72 aircraft that managed to land safely, according to a Reuter report from Kiev. The An-70, powered by four Progress design bureau D-27 14,000-horsepower propfan engines, was being built jointly by Ukraine, Russia and Uzbekistan as a replacement for the An-12. The crash site was about 25 miles from Kiev.
USAir started daily Pittsburgh-Mexico City service yesterday with introductory 14-day advance purchase fares of $398 roundtrip, and $198 companion fares. Frequent flyers will receive double miles through April 30.
Christopher Hart, named yesterday to the new post of FAA assistant administrator for system safety (DAILY, Feb. 15), said he will bring to his new job an emphasis on human factors and automation, areas in which he specialized during three years as a member of the National Transportation Safety Board. A commercial pilot with advanced degrees in aeronautical engineering, mechanical science and law, Hart said he wants to make more use of the Aviation Safety Reporting System and information from aircraft flight data recorders to try to spot trends that threaten safety.
A twin-engine Piper Navajo flown by Part 135 scheduled operator Las Vegas Airlines crashed Monday at Grand Canyon National Park in the first fatal accident by an air carrier since DOT Secretary Federico Pena and FAA Administrator David Hinson declared a "zero accidents" policy last month. The aircraft crashed while flying Taiwanese tourists on a sightseeing trip over the park, killing seven passengers and the pilot. Two other passengers were critically injured. The National Transportation Safety Board is investigating.
Airlines will not have to scale back flight operations in California to meet a federally mandated plan to lessen air pollution in the region. The Environmental Protection Agency said the interim final Federal Implementation Plan (FIP), to be published in the next few days, eliminates the proposed commercial airline "bubble" - a program that would have required aircraft engines to meet sharp reductions in nitrogen oxides and volatile organic compound emissions.
Supporters of off-budget status for transportation trust funds will not find much comfort in a vote Tuesday on the balanced budget amendment. The Senate rejected 57-41 an amendment to exclude Social Security receipts and outlays from balanced budget calculations. The vote suggests trouble for transportation trust fund off-budget status - if a sacrosanct program like Social Security cannot win special budgetary treatment, what can?
U.S. Air Traffic Services Corporation (USATS) Highlights of 1995 Clinton Administration Proposal Organization -- Not-for-profit Federal Government Corporation. Has about 41,000 employees. -- Responsible for operation, maintenance and development of the ATC system. -- Supports national defense activities. -- Responsible for compliance with applicable environmental laws and regulations. Governance&Management
Northwest, which at one time had five 727-200s based at Guam, will return the last two to the U.S. within the next several weeks. One of the aircraft is used to operate Northwest's daily Taipei-Seoul service, which is being suspended March 31. The other is being used five times a week between Guam and Nagoya, but Northwest will upgrade that service soon to a daily DC-10 operation.
U.S. and Canada bilateral negotiations, moving fast in anticipation of President Clinton's visit next week for a possible signing, are expected to be concluded today with an agreement on open skies. The two sides still are bickering over airport access, pre-clearance in Canada, user charges and a dispute resolution clause.
Worldwide international scheduled passenger traffic rose 8% in 1994 on 5% more capacity, boosting the average load factor two percentage points to 68%, IATA said this week. Worldwide freight traffic rose 14%. IATA said the world's airlines, which lost $15.6 billion on international scheduled services during the 1990-93 period, may have managed a profit of $1 billion in 1994, but final figures are not yet available. In December, scheduled international passenger traffic rose 7% on 5% more capacity, and cargo traffic was up 15%.
Air Malta plans to launch weekly service to Copenhagen on April 11 using 737-300s. With the new service, Air Malta will operate four weekly flights to Scandinavia this summer, increasing to five in peak months. The airline began scheduled service to Stockholm and Oslo in May 1994. Air Malta said a number of tour operators have indicated their interest in using the new service. Airline Directors, Air Malta's general sales agents in Sweden and Norway, has been appointed to represent the carrier in Denmark.
LatinPass frequent flyer program has received $250,000 in guaranteed financing from GE Capital Aviation Services. The funds will be used for hardware from GE Computer Leasing, according to Aviation Management Services, which manages LatinPass for its 14 Latin carrier owners. The new hardware and software systems were designed and installed by Airline Automation Inc.
