Keys Air, which operates to all of the Florida Keys, will add a second Cessna Caravan Amphibian land and seaplane to its fleet this week and expand its network by four points. The company will serve Key West, Fort Myers, Tampa, Key Largo, Marathon, Marco Island, Naples and Boca Raton, the last four of which are new. Key Largo, which has no airport, is served by landing in Key Largo Bay. The carrier said it plans further expansion in the near future.
National Transportation Safety Board yesterday put more aviation issues on its "most wanted" list of safety improvements, including stricter rules for regional airlines. FAA replied with its own list of actions that Administrator David Hinson said responds to all board recommendations. NTSB dropped two aviation safety issues for this year - brake wear limits and performance for transport aircraft, and structural fatigue testing.
The Commerce Department and Commerce Secretary Ronald Brown "have been active advocates of U.S. business overseas, particularly aerospace," Aerospace Industries Association President Don Fuqua said this week. Commenting on efforts in Congress to eliminate the department, Fuqua noted that aerospace exports totaled $37.3 billion in 1994 and said AIA "would certainly approach any change in the status [of Commerce] with great caution." He said AIA would want "clear assurance that the close relationship between our government and industry in promoting U.S.
The lineup for next Wednesday's Senate aviation subcommittee hearings on the U.S.-U.K. bilateral is not set yet, a committee staffer said, but it will include officials from DOT, the State Department, GAO, airlines and interested cities. American, Delta and Continental probably will be represented, said an industry official. United said it has not been invited to testify.
The value of worldwide demand for commercial aerospace equipment will grow at an average annual rate of 8.4% through 1998, when it will reach $148 billion, according to a study from the Cleveland-based Freedonia Group. Analyst Edward Hester cited three factors: increasing air traffic as the economies of industrialized nations recover; continuing strength in Asia/Pacific markets, and replacing older aircraft to comply with noise regulations.
Two committees of TWA bondholders are urging the bondholders they unofficially represent to vote for a pre-packaged Chapter 11 filing by the airline as a "cleaner" way to accomplish the carrier's proposed financial restructuring. The committees representing holders of TWA's 8% and 10% notes both support the restructuring plan. But according to one source, a pre-packaged bankruptcy would make it easier for noteholders to switch the collateral that secures their current notes to the new notes they will receive in a restructuring.
Denver-based startup Frontier Airlines' April passenger traffic declined to 23.3 million revenue passenger miles from 24.7 million RPMs in March, and its load factor slipped to 43.8% from 44.3%. The number of passengers boarded also fell, to 42,061 from 44,455. Year-over-year comparisons are not available because Frontier has been flying only since July. The airline currently operates from Denver to 10 cities in six surrounding states, using a fleet of five 108-seat Boeing 737s.
Senior airline operations and safety representatives, with FAA officials, are scheduled to meet May 25-26 for a briefing on a new safety program developed by American. Al Prest, senior-VP operations for the Air Transport Association, said yesterday proponents hope the program can be developed into an advisory circular that all carriers could use. But American's airline safety action partnership (ASAP), which combines and extends elements of some previous programs, will not replace the FAA-backed flight operations quality assurance program (FOQA), Prest said.
U.S. airlines will carry about 9.3 million during the May 24-30 Memorial Day holiday period, according to Air Transport Association figures issued yesterday. The busiest day likely will be Thursday, May 25, when 1.52 million passengers are expected to travel, and almost 80% of all airline seats will be filled. This summer, ATA expects its member airlines to carry a record 160 million passengers, with 48.1 million boardings in June, 50.9 million in July and 51.3 million in August.
Lufthansa Group reduced its pre-tax loss to 53 million Deutschmarks in the first quarter 1995 from DM87 million in the same 1994 quarter. The company said its earnings, boosted by "heft" increases in business volume and currency-related expenditure benefits, came in "well above target." Lufthansa AG, the airline, reported that its first quarter pre-tax loss shrank to DM38 million from DM87 million. Lufthansa Group's passenger volume gained 9.5%, and freight and mail volume jumped 22.5%.
United has taken delivery of the first of 34 Boeing 777 widebody twinjets it intends to use mainly on transatlantic service. The carrier, which has options for 34 more 777s, will begin operating the aircraft June 7 between Washington Dulles and London Heathrow, and will use it initially between Denver and Chicago, Chicago and Washington, and Chicago and Frankfurt. It will take delivery of 10 more 777s this year.
TWA, which has abandoned its travel agent commission cap, and United, which has not, recently increased the fee they charge passengers for changing or canceling restricted-ticket reservations to $50 from $35, and both are passing a larger portion of the money collected to travel agents. Airlines had received $5 of the $35 cancellation/change fee, but TWA and United are passing along $15 of the higher fee. United, like other carriers, said it imposed the increase to cover the cost of making the change, and because last-minute changes cause "breakage."
Rep. James Oberstar (D-Minn.), ranking Democrat on the House Transportation aviation subcommittee, said yesterday he will co-sponsor the FAA reform bill (H.R.1392) introduced last month by Rep. Jim Lightfoot (R-Iowa). Oberstar, a past sponsor of FAA independence legislation, said he strongly supports Lightfoot's bid to make FAA an independent agency. He noted that 10 of the 11 living former FAA administrators supported FAA independence this year, and all 11 opposed a government corporation to run air traffic control (DAILY, Feb. 24).
McDonnell Douglas Aircraft said it is leasing a DC-10-30 to Aeroflot, which has taken an option on a second aircraft. The first, to be delivered in July, will be used on long-haul freight routes. Douglas will provide crew training on the DC-10, which along with the DC-9 received Russian certification in 1993.
Danish carrier Maersk Air has placed firm orders for six 737-500s in a transaction valued at $186 million, and it took options on seven more of the twinjets. Deliveries of the six firm aircraft will being in early 1996 and continue through the year, gradually replacing Fokker 50s on Maersk's domestic and international routes. Maersk is moving toward eventually being an all-Boeing operator. "The fact that we're replacing our 50-seat turboprop fleet with a larger jet might surprise some," said Maersk President Bjarne Hansen.
The European Commission approved yesterday the creation of an information technology joint venture between Lufthansa and EDS. In January, Lufthansa spun off three of its divisions, including its information technology operation, into separate but wholly owned companies. At the time, EDS took a 25% stake in one of the new companies, Lufthansa Systems GmbH. The joint venture is controlled by both companies and will provide IT services tailored to the requirements of the airline and travel industries.
U.S. Major and National Carriers Food Expenses Fourth Quarter 1994 Cost Per Systemwide Passenger America West $ 7,466,743 $ 2.00 American 152,443,000 7.41 Continental 28,348,000 2.77 Delta 103,233,000 4.61 Northwest 58,457,000 5.15
Delta has been named "Best Airline" for the fourth year in a row by the ROBB REPORT's annual "Best of the Best" readership survey. The magazine, polled its subscribers regarding products, places and services in 35 categories.
Boeing Chairman and Chief Executive Frank Shrontz says negotiations with Saudi Arabia on the prospective Saudia aircraft deal are in their final stages, and the company hopes its new 777 will be part of the buy. The Saudis visited engine manufacturers last week, and Boeing is sending yet another team to Saudi Arabia to try to nail down the deal.
AST Research said it has signed an agreement to supply American with desktop, notebook and server systems for the carrier's customer service base, including the Sabre Travel Information Network.
U.S. Major and National Carriers Landing Fees Expenses Fourth Quarter 1994 Average Amount Systemwide Spent Per Landing America West $ 7,298,656 $ 156.70 American 57,497,000 264.61 Continental 29,494,000 208.92 Delta 60,127,000 246.62
Compania Panamena de Aviacion, S.A., has applied for a one-year renewal, beginning June 14, of its authority to operate combination service between Panama City, Panama, and San Juan, Puerto Rico, via Santo Domingo, Dominican Republic. The carrier provides daily service on the route, using Boeing 737-200 aircraft. (Docket 43853)
DOT has given interested parties until tomorrow to supplement their answers to the joint application of Federal Express and Evergreen International Airlines for U.S.-China all-cargo authority. (Docket 50173)
SAS has suspended its service to Kiev because the Ukrainian government will not give it landing rights until it settles a revenue tax dispute with the carrier. SAS said the Ukrainian government has imposed a 15% tax on all revenue from the airline's Copenhagen-Kiev service. According to SAS, the tax is retro-active to May 1994 and is to be collected from all ticket sales, regardless of whether the tickets were sold in Ukraine.
France is expected to open up a fourth domestic market to competition by allowing Air Liberte and TAT to challenge state-owned Air Inter on the Paris Orly-Bordeaux route. The action was recommended early this month, at the conclusion of France's national elections, by the Conseil Superieur de l'Aviation Marchande, and the new government is considered likely to approve it. CSAM, which represents air transport operators, also recommended that TAT be allowed to serve Orly-Nice in competition with AOM and Air Inter.
