DOT late last week completed its proposed legislation to establish a U.S. Air Traffic Service Corporation (USATS), but the proposal differs little from the outline announced in mid-February. The measure is expected to be introduced by request this week in the House and Senate. One change from the mid-February proposal is that the corporation's chief executive, who is appointed by the USATS board, would not be a member of the board.
Canadian Airlines International (CAI) will begin a "massive" restructuring of its route network and a "significant" downsizing of the company this fall unless it can reach agreements with its unions on C$125 million in work rule and other contract changes by June 30, the airline said Friday.
Transport Canada is canceling its MLS project in favor of continued use of ILS and future use of GPS. Negotiations are to begin soon with Micronav International to settle on the termination clauses of the contract.
Denver and Continental today will announce an agreement on lease terms at Denver Airport, a city official told The DAILY. The pact will establish rates and charges for Concourse A. The city filed a lawsuit against Continental in February after the airline reduced the number of gates it planned to occupy from 20 to four.
FAA is evaluating different technologies as a backup system for the Global Positioning System (GPS), including Loran-C, but it does not expect to make a decision before the yearend, George Donohue, assistant administrator for research and acquisitions, said Friday in Washington. This means that the phaseout period for Loran will be reduced in the next Federal Radionavigation Plan from the year 2015 to the 2000 under plans by the Coast Guard, which operates Loran.
ICAO appears headed away from a policy supporting a single international precision guidance system toward one endorsing three systems - GPS, MLS and ILS - and letting nations select whichever suits their needs. The key to the new policy, being considered this week in Montreal, is the multimode receiver.
Granted orally an exemption to Air Nova to perform scheduled combination service between co-terminal points Moncton and Fredericton, Canada, and Boston...Granted orally an exemption to United to conduct scheduled com- bination service between Denver and Calgary and between San Francisco and Calgary, and to integrate the rights with its existing authority to serve other points in Canada...Granted orally an exemption to Continental to engage in scheduled combination service between Newark and Manchester, U.K...Granted orally an exemption to 2734141 Canada Inc., operating as
United officially asked DOT to be designated as the second U.S. carrier to operate combination service between Chicago and London Heathrow. Saying it plans to begin 767-300 service on the route May 1, the carrier also asked DOT for permission to begin advertising and selling tickets immediately. "Sale of tickets for the summer 1995 season normally begins months in advance," the carrier noted. "It is, therefore, essential that no additional time be lost in the marketing and sale" of the new service, it added.
All Nippon Airways has completed a 21 billion yen (US$236 million) sale- lease back transaction involving three Boeing 747s and six 767-200s, the airline said Friday. It will continue operating the airplanes for up to three years. "With the increasing severity of the used aircraft market, the present time was judged best for the sale," ANA said. The Japanese carrier operates a fleet of 120 aircraft, 42 of which are leased. In the fiscal year that ended Friday, ANA took delivery of five 767-300s and three Airbus A320-200s.
Anyone who invested $100 in Southwest on Dec. 31, 1989, would have been better served to sell the shares at the end of 1993 than to hang on to them until the end of last year. The value of that $100 investment was $710.16 at the end of 1993, compared with $318.74 at the end of 1994. The share price peaked at $39 in the first quarter of 1994 and slid to $15.50 in the fourth quarter.
Associated Air Freight named George Frey VP-service. Bombardier Aerospace Group appointed Peter Reynolds director-flight test operations, a new position. DPI Labs named Dave Alderman director-sales and product support. Comsat appointed Chris Leber chairman of Skyways Alliance. Elsinore LP promoted William Ashworth to senior VP-systems integration. Greiner named Leslie Sagar project manager and assistant to Gene Faulkner, deputy division director-air transportation, Texas and Western operations.
FAA has certified for the first time an aircraft designed and built in China. The Y-12 Harbin seats 19 and can be imported and operated in the U.S., said Anthony Broderick, assistant administrator for regulation and certification.
American has sold frequent traveler miles to more than 150 companies since introducing its AAdvantage Incentive Miles program in November. Daniel Flamberg, director-marketing for Dial-A-Mattress, said the company underestimated the allure of miles in changing buying patterns. "Using AAdvantage Incentive Miles got us new, high-end business at a very competitive price. We added more than $150,000 in incremental business at a cost of $2,400." Companies must purchase at least $1,200 in mile vouchers to enter the program.
DOT continues to study its options in dealing with Japan, an official said.Japan said it will not allow any new services by U.S. carriers - even those clearly permitted under existing agreements - until it begins talks with the U.S. The first casualty of the action appears to be United's Osaka- Seoul service, slated to begin June 7.
National Transportation Safety Board last week asked FAA Administrator David Hinson to limit some of Air Transport International's (ATI's) flight activities and conduct an in-depth inspection of the carrier. The board at the same time questioned the competency of ATI's principal operations inspector (POI). NTSB called for FAA to examine its oversight of ATI by the agency's Little Rock and Denver flight standards district offices (FSDS) and to limit the operation of ATI's engine-out ferry flights to test flight crews trained in three-engine procedures.
ValuJet has contracted FlightSafety International to conduct its crew resource management training. FlightSafety will offer training at the carrier's Atlanta base for pilots, and new hires will train at its Miami center.
International Air Carrier Association general assembly confirmed Marcel Pisters, former deputy secretary general of the Association of European Airlines, as IACA's new director general.
Air Canada has secured a new US$207 million credit line from a group of Canadian and international banks which it intends to use to pay off partially an existing US$400 million Euro Note Issuance Facility that matures in December 1996. The balance of the US$400 million note will be paid off with funds from operations, the carrier said. "This [new] facility enables Air Canada to level out its debt repayment schedule," said Rob Peterson, the airline's senior VP-finance and chief financial officer.
KLM has sold its holdings in three hotels to Golden Tulip International B.V., the hotel management company in which the Dutch airline has a 25% stake, KLM said Friday. Two of the hotels - the Golden Tulip Barbizon in Hoofddorp, and the Golden Tulip Barbizon Center in Amsterdam - were wholly owned by KLM. The third, the Golden Tulip Barbizon Palace, Amsterdam, was 33% owned by the airline. All three hotels were being managed by Golden Tulip International. Terms of the transactions were not revealed.
Rep. Jim Lightfoot (R-Iowa) plans to introduce his FAA reform legislation tomorrow. He invited representatives of the National Aviation Associations Coalition to the meeting to encourage industry support for the initiative.
Boeing 727 And 737 Domestic Aircraft Utilization Per Day Third Quarter 1994 B727-200 American Continental Number of Aircraft Operated 71 48 Total Fleet Operations Departures 293 196 Block Hours 622 433 Flight Hours 513 354
Senate Budget Committee members Slade Gorton (R-Wash.) and Christopher Bond (R-Mo.) have written committee Chairman Pete Domenici (R-N.M.), urging him to assume in the fiscal 1996 budget resolution a repeal of the jet fuel tax. Domenici has begun developing budget assumptions to be considered in several weeks. Assumption in the budget that the tax will be repealed would make it easier for the Senate Finance Committee to propose continuation of the industry's exemption, which expires Oct. 1.
Continental has lowered transatlantic fares to Paris, London, Madrid and Frankfurt through April 10. The price is good for travel through Dec. 14 and does not require an advance purchase. Fares for travel between April 24 and May 31 are almost all $100 lower than prices charged the rest of the year. The highest one-way sale fares are San Diego-Madrid, $419, and Cleveland-London, $379. The lowest are $249 for Newark-Frankfurt/London.
Northwest launched a summer fares sale Friday that was quickly matched by most major carriers. Northwest said its fares cut up to 40% from regular fares for domestic travel, and offer discounts in many markets to Canada and some to Mexico and the Caribbean. The fares are available for sale until April 7 for travel May 1-Sept. 14. Some examples from its Minneapolis/St. Paul hub are $278 roundtrip to Boston, $358 to Los Angeles and $238 to New York.
