Frequent flyer programs, some of which have not been devalued since their inception in 1981, have been changed recently or will be changed soon to curb awards. The programs have become so popular, airlines are finding them too costly, and many carriers have settled on an increase from 20,000 to 25,000 frequent flyer miles required for a free trip.
U.S. District Judge Miriam Goldman Cedarbaum, in rejecting one of British Airways' arguments that Virgin Atlantic Airways' suit against BA should be heard in the U.K. instead of the U.S., said that while it might be more convenient to try the case in the U.K. it would not be a significant burden to do so in New York. Her reasoning is that "both parties are airlines and can easily transport witnesses and documents to whichever forum is designated."
BAA plc has frozen at 1993 levels the rent it charges airlines for space and facilities at London Heathrow and the six other airports it manages in the U.K., the management and development company confirmed yesterday. At Heathrow, BAA is freezing airlines' rent in three of the four terminals, and is reducing the rent in Terminal 3, where the demand for space is the strongest and charges are the highest. A BAA spokeswoman told The DAILY that the decision to peg the rents at 1993 levels accompanied a continuing property review.
Rep. John Duncan (R-Tenn.) 103rd Congress Bills co-sponsored - H.R.943, introduced by Rep. Mac Collins (R-Ga.) - a bill to amend the Federal Aviation Act of 1958 to prohibit the issuance of a certificate of public convenience and necessity to an applicant which is controlled by a person who has controlled 1 or more air carriers which have filed, in the aggregate, 2 or more petitions for bankruptcy.
The Air Line Pilots Association will push ahead with its challenge to federal alcohol testing procedures, even though the new drug and alcohol rules took effect Jan. 1. ALPA maintains that the alcohol testing rules violate the Fifth Amendment due-process clause, the Federal Aviation Act and the Omnibus Employee Testing Act of 1991. It is concerned about the reliability of testing equipment, which "lacks precise standards for quality assurance and...is permitted to give a reading that is in error by as much as 25%," said ALPA President Randolph Babbitt.
Lufthansa and The Eastman Group (TEG) have signed a software development agreement under which TEG will build 12 initial, independent, travel software tools linked via a common command platform to enhance Lufthansa's support for travel agent bookings in the major global distribution systems (GDS). The new, integrated system will be called PASS for PNR Analysis and Servicing System. Using modular technology developed by TEG, the Lufthansa tools will automate high-priority processes in the airline's general services and agent operations in GDS queues.
TWA has received Securities and Exchange Commission clearance for - and has begun the process of - soliciting approval from its creditors for the debt- for-equity restructuring plan that would eliminate $500 million to $600 million of the ailing carrier's $1.8 billion long-term debt (DAILY, Dec. 22). SEC cleared the way for the solicitation Friday, when it declared effective the carrier's amended registration statement. TWA said balloting by holders of its 8%, 10% and 11% notes will be completed before a special shareholders' meeting it has called for Jan. 30 in St.
Jet Air International Charters is seeking renewal of its authority to operate non-scheduled, all-cargo service between Caracas, Venezuela, and co-terminal points Miami, New York and San Juan, Puerto Rico. The Venezuelan carrier wants permission to continue all-cargo service from Maracaibo, Venezuela, to Miami and San Juan, as well as other cargo charters. (Docket 47126)
British Airways and USAir have asked officials of Dade County, Fla., to consider a terminal layout at Miami Airport that will enable the airlines to develop a hub-type operation for easy connections with South and Central American carriers in the LatinPass frequent flyer program (DAILY, Dec. 28).
Extremely low fares and increased competition shaved profit margins and drove carriers in 1994 to scale back, slashing payrolls and turning to the big cost-control target, labor. Employee ownership has come to be in vogue in the highly unionized airline industry, but the question for 1995 will be how large a stake will end up in the hands of employees seeking more influence over the future of their companies.
Taiwan's Civil Aeronautics Administration has rejected a proposal by China Airlines (CAL) to buy 40 new transport aircraft over a 10-year period. CAA officials said that the airline did not provide fully detailed operational plans in support of the procurement request, and that CAA considers 10 years too long a period for accurate planning. They said CAL should break down the plan into phases and submit a separate proposal for each phase.
Officials from the Transportation and State departments visited the U.S. Trade Representative's office yesterday, trying to suppress plans to threaten withholding aviation services from European Union countries for preventing U.S. companies from exporting bananas.Because it is not included in the General Agreement on Tariffs and Trade, the aviation system is looked at increasingly as a potential trade retaliation tool.
Air-India has won the 1993 Royal Doulton Style Award for the finest tableware used inflight, the airline announced recently. Air-India said it was judged the winner from among the more than 40 airlines that serve food on Royal Doulton tableware.
MGM Grand Inc. has sold its only airline business - luxury service MGM Grand Air - to Ypsilanti, Mich.-based American International Airways and its sole shareholder, Conrad Kalitta. Net gain to MGM Grand Inc. is $8.5 million for the fourth quarter 1994. AIA bought six aircraft - three 727s and three DC-8s - a significant inventory of spare parts and engines, MGM's FAA certificate and a book of charter contracts prebooked for 1995 for an undisclosed price. AIA will continue the charter service with the DC-8s but plans to sell or convert the 727s.
Korean carrier Asiana Airlines has launched service from Seoul to Beijing and Shanghai. Asiana operates five nonstops a week to Beijing and six to Shanghai. The Beijing services are flown with 767s and the Shanghai flights with a combination of 767s and 747-400s. Asiana, which was founded in 1988 with a fleet of six aircraft, now operates 34 737s, 767s and 747s to 12 domestic Korean destinations and on 23 routes to 10 countries.
Justice Department said that former Ambassador Robert Oakley, who once headed the State Department's counter-terrorism office, has agreed to a $5,000 fine to resolve allegations of improper lobbying after leaving government service. Oakley was charged with improperly lobbying the government to lift restrictions on Middle East Airlines of Lebanon, which was banned from serving the U.S. because of inadequate security measures at Beirut Airport.
The French-Italian ATR aircraft consortium hopes a new de-icing system, roughly doubling the protected wing area, will persuade FAA to lift its ban on flying the 156 U.S. ATR-42 and -72 twin turboprops in known or forecast icing conditions.
FAA's proposed rule to bring commuter pilot training requirements up to the standards of larger air-lines are significant in scope but lack specifics, according to the Regional Airline Association. RAA said it supports a single rule for aircraft in scheduled service to achieve the safety objectives of FAA, National Transportation Safety Board and regional carriers, but it added that the NTSB recommendations on which FAA's proposed rule is based lack specificity.
The city of Kansas City and its chamber of commerce are urging DOT to renew China Airlines' (CAL) authority to conduct intermodal cargo services in the U.S. (DAILY, Dec. 21). "At the present time, there is no direct all-cargo or combination service between Kansas City and Taiwan, even though Taiwan represents the seventh largest partner of the U.S., and is a major origin and destination for international air freight traffic to and from Kansas City," the city maintains.
House Majority Leader Newt Gingrich and a group of well wishers arrived in Washington Tuesday aboard a Delta 727. Also on the flight - a special section added to the carrier's regular schedule because of demand - was Delta Chairman Ron Allen. A Georgia group, Friends of Newt, dubbed the flight the "Speaker's Express."
U.S. National And Regional Carriers Jet Fleet Analysis Average Number Operated During October 1994 Aircraft # Operated Average Type (Stage) Age (Years) Alaska B737-200A 8 (2) 14.7 B737-400 20 (3) 2.2 MD-82 14 (3) 10.7 MD-83 28 (3) 4.8 Total Fleet 70 6.3 Aloha
U.S. Major Carriers Jet Fleet Analysis Average Number Operated During October 1994 Aircraft # Operated Average Type (Stage) Age (Years) America West A320-200 17 (3) 5.6 B737-100 1 (2) 25.8 B737-200 21 (2) 15.3 B737-300 33 (3) 7.5 B757-200 12 (3) 8.6
A U.S. federal judge has dismissed five of the eight claims contained in Virgin Atlantic's $325 million antitrust suit against British Airways, but the court will consider Virgin's allegations that BA has attempted to monopolize the U.S.-U.K. air transport market. The ruling, which was issued yesterday - more than a year after Virgin initially filed the suit in October 1993 and more than six months after BA's motion to dismiss was heard in a New York courtroom - was hailed as a victory by Virgin and characterized as a positive development by BA.
Granted orally an exemption to Taesa to conduct scheduled all-cargo services from co-terminal points Mexico City and Toluca to Detroit...Granted orally an exemption to Delta to operate combination services between Cincinnati and Paris... Granted orally an exemption to Airvias Linhas Aereas to conduct combination charters with its own aircraft and crew between Brazil and U.S. Under an earlier ruling, DOT limited the carrier's authority to wet-lease operations by Arrow Air.
U.S. government, in an effort to break the aviation stalemate with Japan, will decide which U.S. interests it will champion, said an industry expert. The choice means backing either Federal Express and its request for expanded access to Japan or the Memorandum of Understanding carriers, such as American and Delta, which are pushing for promised access to Kansai Airport.
