The weakness of the dollar "represents a threat to the aerospace industry and therefore to Germany as a high-tech location," Daimler-Benz Aerospace Chairman Jurgen Schrempp said in comments just before taking over as the chief executive of Daimler-Benz Group. "We are as determined as ever to keep this industry in Germany," Schrempp said in a Munich press conference. "But it is clear that under current circumstances we cannot do that without help." He called for "intensive and constructive dialog" with labor unions and politicians.
United's Association of Flight Attendants unit yesterday charged the airline with declaring war on flight attendants with its announcement this week that it plans to open a flight attendant domicile in Hong Kong. "Despite United's latest advertisement showing satisfied employees as owners, the company still refuses to treat its largest employee group, the flight attendants, with any amount of respect," said Kevin Lum, president of the AFA's Master Executive Council at United.
The world's airlines posted a net profit of $1.8 billion on their international scheduled services in 1994 - the industry's first such profit since 1989 - according to data issued yesterday by the International Air Transport Association. In the past five years, the world's airlines have lost a combined $15.6 billion on their international services, including $4.1 billion in 1993.
Tower Air's first quarter operating revenues and expenses grew considerably over a year ago but its net loss for the 1995 period was virtually the same as in 1994 - $3.581 million, compared with $3.578 million. Its operating loss increased 9.3% to $6.65 million from $6.08 million. The expanding carrier's operating revenues soared 43.6% and its operating expenses rose 40.3%. Tower attributed its increased operating revenues to growth in its scheduled passenger, commercial charter and military charter markets.
As the U.S. approaches completion of its open skies initiative with nine European countries, it is turning its sights to a new venture directed at Asian nations. The U.S. was expected to have initialed bilateral pacts with Sweden, Denmark and Norway yesterday or today, completing the first phase in the nine-country effort, launched in November 1994. Official signings are expected to be completed in May, a U.S. government official said. He acknowledged that other European countries are interested in gaining similar agreements but said the U.S.
Airbus yesterday rolled off the assembly line the 100th aircraft of its A330/A340 family, in this instance an A330 destined for Malaysia Airlines. Production of the A330/A340 began two years ago, and 78 are in service.
Continental yesterday said it will pay $2.3 million in on-time performance bonuses to full-time and part-time employees at the manager level and below for the month of March. The money is the second payment of a program announced in January that offers a cash incentive each month the airline ranks in the top half of DOT Consumer Report on-time arrival standings. Continental is making the payments even though publication of the monthly DOT report has been delayed since January because of proposed changes to the reporting process.
Crossair, Swissair's regional airline subsidiary, said it plans to raise at least 100 million Swiss francs in equity capital to finance part of its aircraft purchase program. A company spokesman clarified that the capital rise will take place in two steps, resulting in a total amount between 100 million and 150 million francs. Earlier, the company said it would generate equity in two steps of between 100 million and 150 million francs, giving the impression that each step would raise these amounts.
DOT yesterday published the final draft of its International Air Transportation Policy, the first such policy statement since 1978. Introduced last November by DOT Secretary Federico Pena, the document envisions a global industry composed largely of competitive international air systems linked by marketing or code-share arrangements.
Cross examination of airline witnesses in the Los Angeles Airport rates and charges proceeding ended yesterday after two days, and the hearing resumes today with the airlines' cross examination of airport witnesses. John Driscoll, executive director of the Los Angeles Department of Airports, is the first airport witness scheduled today. In action yesterday, attorneys for the City of Los Angeles finished questioning the airlines' accounting expert and cross examined the carriers' expert in economics and a properties official for American.
Finnair has launched service between Helsinki and Osaka and plans to start Helsinki-Bergen flights via Stockholm on Saturday. The carrier operates the Osaka service twice a week and will serve Bergen at the same frequency. Finnair's 1995 summer schedule also includes twice-weekly San Francisco- Helsinki service from May 22 to Sept. 11, with a third weekly flight during the June 10-Sept. 7 period. Summer service will again be offered between Helsinki and Toronto twice a week from May 24 to Sept. 8, and between Helsinki and Murmansk once a week from May 22 to Sept. 8.
Avitas, the Reston, Va., aviation consulting firm, yesterday announced the resignation of Fred Klein, its VP- asset valuation. All aircraft appraisal inquiries or questions will now be handled by John Vitale. He can be reached at 703-476-2300.
Pre-Open Skies Service, Europe-U.S. As of May 1, 1995 U.S. Cities Served Operator Code Share AUSTRIA Vienna Chicago Swissair Austrian Miami Lauda Lufthansa New York Austrian Delta Washington Austrian Delta BELGIUM Brussels Atlanta Delta Sabena
German carrier LTU International Airways has licensed Sabre Decision Technologies' (SDT) Aircrews crew management decision support computer system. SDT said the system will reduce by 60% to 70% the time required for LTU to create and manage its crew schedules.
Abacus Distribution Systems and the Hotel Clearing Corp. (HCC) are offering Abacus's IATA travel agencies free use of HCC services from May 1 through June 30. HCC was founded by 13 international hotel companies to provide a central clearing house for paying hotel commissions to travel agencies. Every month, HCC provides travel agencies a single consolidated commission check in local currency for all commissionable reservations made at any HCC participating hotel.
The domestic route network realignment Delta unveiled Feb. 1 will take effect Monday with the introduction of nonstop service from Denver to the carrier's international gateway at New York Kennedy and the expansion of service at its Cincinnati and Salt Lake City hubs. As part of the adjustment, Delta is adding 15 flights at Atlanta for a total of 544 daily departures; 33 flights at Cincinnati for a total of 203, making Cincinnati its second largest hub, and 12 flights at Salt Lake City for a total of 166 per day.
Seventh annual Greater Washington Aviation Open charity golf tournament, scheduled May 8 at the Manor Country Club, Rockville, Md., is sold out. Space still is available in the tennis tournament and for the reception and dinner. Master of ceremonies and honorary chairman is Rep. Jimmy Duncan (R-Tenn.), chairman of the House aviation subcommittee. For more information, call 610-975-6604.
U.S. National Carriers Traffic March, 3 Months 1995 March March % 1995 1994 Change Alaska Revenue Passenger Miles (000) 663,000 575,000 15.3 Available Seat Miles (000) 1,115,000 904,000 23.3 Load Factor (%) 59.5 63.6
FAA is expected to announce this week that it will stick with Loral Corp. to continue development of the DSR, or Display System Replacement, the en route portion of the Advanced Automation Program, which used to be called the Advanced Automation System.The DSR will replace the old Initial Sector Suite System (ISSS) in the AAP, now years behind schedule and hundreds of millions of dollars above cost.
FAA Administrator David Hinson, reacting to the recent bombing of the federal building in Oklahoma City, has ordered increased security at all FAA facilities nationwide. He said security personnel will perform more thorough checks of individual identification, personal packages and vehicles. "These measures may cause delays and some inconvenience," Hinson said, adding that FAA's security staff is working closely with the FBI and other law enforcement agencies. He said security will be tightened further if necessary.
Some 354 FAA employees decided to take buyouts during a five-day period last month, bringing to 3,322 the number who have elected to leave the agency since it launched a streamlining effort two years ago as part of the Federal Workforce Restructuring Act of 1994. The 354 took separations that are deferred to October through December of this year, and to 1996. The latest buyouts were offered mainly to employees in accounting, budget, personnel and procurement - jobs that were targeted in every federal agency by the National Performance Review.
An FAA rule to be issued tomorrow over the objections of the Air Transport Association will require pilots to log 100 hours of flight time within 120 days of completing training on an aircraft. Pilots no longer will be able to receive credit for operating experience by observing another pilot. In addition, the rule requires that the captain or the first officer have at least 75 hours experience in the aircraft type to which they are assigned. The National Transportation Safety Board and the Air Line Pilots Association had argued for requiring 100 hours of experience.
America West yesterday unveiled a new advertising campaign with the slogan "It Seems Silly to Pay More." The campaign, which company President Maurice Myers described as "somewhat whimsical, but always straightforward," features 14 television commercials, nine radio spots, more than 20 magazine advertisements and outdoor work in selected markets. Trade advertising also is being developed.
The U.S. scheduled airline industry's systemwide passenger traffic increased 3.6% in March and 5.9% in the first quarter, but Air Transport Association President Carol Hallett warned of problems on the horizon. "A relatively mild winter, coupled with good demand, helped the industry get through the first quarter with some pretty strong passenger numbers," Hallett said. "However, the storm clouds out there are the signs of a slowing economy and the question is what that will mean for traffic growth in the coming months," she said.
Sabre Decision Technologies is conducting a facilities maintenance study for the Dallas/Fort Worth Airport Board, developing recommendations for more efficient operation of many airport facilities, including emergency systems, shuttle trains, parking lots and terminals. The study is SDT's first for an airport involving non-flying assets.
