Conquest Industries has decided not to go through with the sale of Conquest Airlines to Air L.A. The California carrier signed a letter of intent last month to acquire Austin, Texas-based Conquest (DAILY, March 14). Last week, it said it will continue to focus its efforts on its code-sharing relationship with Aeromexico and its existing routes in the Southwest and Midwest.
American Society of Travel Agents (ASTA) has revamped its Department of Market Research and is embarking on several research projects, including a membership profiling survey, a membership profitability survey and an educational program survey. ASTA said it will offer statistical information to the industry, the media, consumers and its members. The association also plans to begin a study of agency budgeting, profitability, marketing strategies and market segmentation, in which it will observe and track a sample of agencies for one year.
The Puerto Rico Ports Authority and five airlines have reached a settlement of the issues raised by the airlines' complaint over new rates and charges at San Juan's Luis Munoz Marin and Mercedita airports. Late last week, DOT Administrative Law Judge Ronnie Yoder directed the parties to formalize the agreement and file a proposed order by April 19. The hearing in the Puerto Rico rates and charges proceeding was to begin April 21.
Reps. John Duncan (R-Tenn.) and James Oberstar (D-Minn.), the chairman and ranking Democrat of the House Transportation aviation subcommittee, have asked Budget Committee Chairman John Kasich (R-Ohio) to include in the House budget resolution an assumption that the aviation jet fuel tax will be repealed. Citing testimony at a recent subcommittee hearing and a recently released Congressional Research Service report, Duncan and Oberstar said the new tax will "severely hurt the already ailing airline industry."
DOT and Northwest settled a disagreement over the manner in which information was displayed in the carrier's on-time advertising campaign, the department said Friday. Without admitting it violated any regulation or law, Northwest signed a consent order promising to "cease and desist from future violations and pay compromise penalties" of $90,000. The department said it would not seek any further action against the carrier in connection with the claim.
Laker Airways has asked DOT for the authority to provide scheduled service between New Orleans, on the one hand, and Freeport and Nassau, Bahamas, on the other hand. The Bahama-based carrier would launch daily 727-200 scheduled combination service on the route as soon as possible. It currently has authority to operate scheduled service on a variety of U.S.- Freeport routes. (Dockets 48075, 48288&49196)
Air Transport Association Cargo Traffic February, 2 Months 1995 Revenue Ton-Miles (000) February February % 1995 1994 Change Domestic Freight 621,156 567,547 9.4 Mail 133,121 128,521 3.6 Total 754,277 696,068 8.4 International
Air Marshall Islands has applied for renewal of its authority to operate scheduled combination service between Majuro and Kwajalein, Marshall Islands, and Honolulu, and to conduct charter service between the Marshall Islands and the U.S. The carrier plans to continue to operate three roundtrips per week, using DC-8-62 combination aircraft. Air Marshall Islands also operates domestic and international service to the island nations of Kiribati, Tuvalu and Fiji, using two Dornier 228-100s and one BAe-748. (Docket 50284)
America West plans to announce an expansion of its club-sharing agreement with Continental, to allow its Phoenix Club members and Continental's President's Club members to share access to airport lounges worldwide. America West also is working on teaming up with Air New Zealand in its frequent flyer program.
U.S. officials will turn from last week's talks with the U.K. to negotiations with the Czech Republic today and Russia Wednesday. The U.S. will seek third-country code sharing from the Czechs, who want more frequencies to the U.S. With the Russians, the U.S. will look for increased overflight rights, more destinations in the Russian Far East and opportunities for non-designated carriers to engage in sales activities in Russia. U.S. officials are not sure what the Russians want.
Delta and Varig are seeking renewal of their authority to operate code- share and blocked-space service between the U.S. and Brazil. Under current exemptions, Delta is permitted to operate scheduled combination service between one or more points in the U.S. and nine Brazilian cities - Manaus, Brasilia, Rio de Janeiro, Sao Paulo, Recife, Porto Alegre, Belem, Belo Horizonte and Salvador. Varig can operate service between Atlanta and points in Brazil.
During a recent question period in the Canadian House of Commons, opposition leader Lucien Bouchard took Transport Minister Doug Young to task for Young's decision not to allow Air Canada to begin serving Hong Kong until December. Bouchard asked whether the decision was imposed by Prime Minister Jean Chretien, and Young said it was not. Young noted that Air Canada Chairman Hollis Harris said publicly that he appreciated the work done by the government on Hong Kong.
KLM has added two 747-200F freighters leased from Atlas Air to its intercontinental route network from Amsterdam recently to keep pace with growing demand. One of the aircraft is serving Nairobi, Johannesburg, Kuala Lumpur and Jakarta, and the other is flying to Chicago, Dubai (in joint service with Emirates), Bombay, Singapore and Delhi. KLM also operates 747 Combis between Amsterdam and Chicago, Atlanta and New York. Separately, KLM Cargo has signed a cooperative agreement with Malaysia Airline and is talking with Garuda Indonesia about a similar deal.
Air Transport Association (ATA) President Carol Hallett says an industry analyst's view that airlines could pass the $500 million cost from the looming 4.3-cents-per-gallon fuel tax on to the consumer is "ludicrous." The analyst who spoke on condition of anonymity, said the tax will raise operating costs per carrier by about 1%, which could be made up in other ways, such as price increases (DAILY, April 14).
Associated Air Freight appointed Jeff Hartshorne regional sales manager-Southwest. Aviation Insurance Services of Utah named Rodney Ritter VP. Citicorp Global Aviation Aircraft Management Business appointed Mark Fabian VP-technical operations. Grimes Aerospace added Dana Skaddan as senior VP-marketing and strategic business development. Phaneuf Associates named Lisa DeFrancesco VP-regulations. Textron Financial's Aerospace Finance Division named Doug Peck regional sales manager-central U.S.
America West has reached a tentative five-year agreement with the Air Line Pilots Association, which represents its 1,027 pilots, on their first contract with the carrier. They have been negotiating the contract for one year, and will not release details until the pact is ratified by a majority of the pilots and approved by the America West board of directors. The pilots' negotiating chairman, Jim McCartney, said, "This agreement is very good for pilots and the company.
Flight attendants at American Eagle carrier Simmons Airlines ratified Friday a new contract Friday that was tentatively agreed to March 10, following two years of negotiations. The Association of Flight Attendants said the new contract includes pay increases of up to 50%, improved vacation, per diem, duty time and rest requirements and other changes.
DOT is instituting a Miami-Lima Service Proceeding to select one primary and one backup carrier to provide new scheduled combination service between the two cities. The department will consolidate existing applications from United and Carnival into the proceeding. In the meantime, it is extending United's temporary authority to operate 4.5 available frequencies between the U.S. and Peru for up to a year, or for 90 days after a final decision in the proceeding (DAILY, March 8). The proceeding grows out of an agreement earlier this year between Peru and the U.S.
The Orient Airlines Association (OAA) has become an active member of the Geneva-based Air Transport Action Group. "Asia/Pacific is the area which has the highest rate of traffic growth in the world," said OAA Director General Richard Stirland. "It is also an area which contains some of the most intractable aviation infrastructure problems.
- H.R.1101 - introduced March 1 by Rep. James Moran (D-Va.) - a bill to abolish the Board of Review of the Metropolitan Washington Airports Authority, and for other purposes. Referred to the Transportation and Infrastructure Committee.
South Africa Airways has applied for renewal of its authority to operate scheduled combination service between Johannesburg, South Africa, and New York, via Ilha do Sal, Cape Verde; Johannesburg and Miami via Cape Town, South Africa; and Johannesburg and Los Angeles. SAA performs services to the U.S. on Boeing 747s. Under its exemptions, it is permitted to commingle traffic on Johannesburg-Los Angeles and Johannesburg-Rio de Janeiro service and engage in charter service between points in the U.S. and South Africa. (Dockets 47731&48466)
House Transportation aviation subcommittee plans a hearing May 11 on the new Denver airport, focusing on "what went wrong" with the planning and development of the $4.2 billion facility. DOT Secretary Federico Pena has been invited to testify, and other witnesses may include representatives of the General Accounting Office and the airport.
Ukrainian carrier Khors Air is seeking authority to operate charter all- cargo service between Ukraine and the U.S., and fifth-freedom charter cargo service beyond the U.S. Khors plans to operate up to three Il-76s to the U.S. A privately owned and operated company founded in 1990 and based at Borispol Airport in Kiev, Khors operates three An-12 aircraft, 10 Il-76s, one An-24, one An-26 and one An-32.
Chicago Mayor Richard Daley Friday announced plans to create a regional airport authority to oversee the four airports in Chicago and Gary, Ind. The Chicago city council was expected to vote Saturday on the six-year compact, which was approved Thursday by Gary's Common Council. Under Daley's plan, which was developed in cooperation with Indiana Gov. Evan Bayh and Gary Mayor Thomas Barnes, the Chicago/Gary Regional Airport Authority will oversee O'Hare, Midway, Meigs Field and Gary Regional Airport.
