TWA said Friday it intended to file an amended S-4 registration statement with the Securities and Exchange Commission detailing changes in its proposed financial restructuring (DAILY, Feb. 1). At the same time, the carrier said the group of 10% noteholder which whom it struck a deal late in January that seemed to clear a major hurdle for the restructuring has recently proposed "certain changes" in the agreement. TWA had not responded Friday to the revised proposal.
The U.S. on Friday officially signed an open skies agreement with Canada, the U.S.'s largest aviation partner, capping negotiations begun in 1979. The first round of the last serious push for open skies came in April 1991, and talks labored through 11 more rounds before collapsing in December 1992. With the accord in hand, DOT officials today will award new Canadian routes to U.S. carriers affecting 11 cities. Cargo opportunities for both sides are available immediately, and charters will be free of restrictions in one year.
American Eagle carriers accounted for more than half of the 1,063 flight attendants hired by turboprop operators between January 1994 and January 1995. Simmons hired 298, Wings West 148 and Executive 95. Partner American did not hire any flight attendants during the period and is not expected to in the near future, says the Future Aviation Professionals of America.
Federal Express reported Friday agreements with Evergreen International Airlines to buy Evergreen's all-cargo route authority to serve China, and to lease two Evergreen 747s for use in the market. If the route transfer is approved by DOT, FedEx will become the sole U.S.-based express carrier with aviation rights to China, FedEx said. The authority covers scheduled service to China, including Beijing and Shanghai. "China is a pivotal market to our long-term expansion plans in Asia," said Frederick Smith, chief executive of FedEx.
Granted orally an exemption to Jet Air International Charters to engage in non-scheduled all-cargo services between terminal point Caracas, Venezuela, and co-terminal points Miami, New York and San Juan, Puerto Rico.
Royal Brunei Airlines' 1994 passenger traffic rose 27% to 2.03 billion revenue passenger kilometers. The number of passengers increased 23% to 769,409. In December, Royal Brunei's passenger traffic was up 12% to 207.3 million RPKs, and its passenger volume rose 12% to 86,176.
Cathay Pacific says its average daily utilization of the A330 will be nine hours, a big improvement over the five to six hours a day it operates the L-1011s that the A330s will replace. The Hong Kong-based carrier is looking at 15 to 15.5 hours a day utilization of its A340s, which will alternate between ultra-long-haul routes and intra-Asian flying.
The General Accounting Office expressed reservations last week about FAA's ability to oversee the safety of air traffic control services under the administration's proposal to establish a government ATC corporation. In testimony before the House Transportation aviation subcommittee, Kenneth Mead, GAO director-transportation issues, also said the proposed U.S. Air Traffic Services Corporation (USATS) can be financially viable if all the administration's budget, cost and revenue assumptions are realized.
For the first time, El Al and Royal Jordanian Airlines have developed vacation packages combining stays in their respective countries. The program includes roundtrip coach airfare on El Al and Royal Jordanian, six nights' hotel accommodations - three in Amman and three in Jerusalem - and transfers between the two cities. Passengers fly to either Israel or Jordan, and then return from the other destination. The package is available through Nov. 3 at prices ranging from $999 to $1,537 per person, based on double occupancy, with departures from New York or Chicago.
United's Air Line Pilots Association unit is endorsing Chicago Mayor Richard Daley's bid for re-election, the first time the union has endorsed a candidate for mayor. ALPA represents 2,200 United pilots in Chicago.
International Aviation Club of Washington will hold its monthly luncheon at 12:30 p.m. March 7. Guest speaker will be DOT Secretary Federico Pena. Reservations must be made by noon March 3. Contact Norma Kaehler, TWA, 808 17th St. NW, Suite 520, Washington, D.C. 20006.
Federal Express has reached an agreement with Evergreen International Airlines to purchase Evergreen's all-cargo route authority to serve China for an undisclosed sum, and also has reached a deal with Evergreen to lease two 747s to use in the market, FedEx said Friday. If the route transfer is approved by DOT, FedEx will become the sole U.S.-based express carrier with aviation rights to China, FedEx said. The authority covers scheduled service to China, including to Beijing and Shanghai.
Airlines decline to say how much they expect to save by capping travel agent commissions, but the Allied Pilots Association at American reports that Chairman Robert Crandall has put his carrier's amount at $150 million per year.
Federal Express named Brooke Harwood general manager-China and William Logue VP-Memphis hub operations. Martinair Holland named Susan Grim manager-information services in Boca Raton, John Mahan cargo customer service supervisor in Seattle and Conrad Barreiro passenger sales representative in New Jersey. Virgin Atlantic appointed Paula Strelitz sales manager for Wisconsin and Illinois.
Recent trends of swapping wage concessions for stock and making significant cuts in the work force will not improve financial performance of the major carriers in the long run unless the airlines can improve productivity as well, according to a new study of airline labor costs. The study, written by Darryl Jenkins and published by George Washington University's International Institute of Tourism Studies, says carriers must focus on the tie between earnings and productivity if they are to return to profitability.
Along with recommendations for upgrading flight data recorders on aircraft in service, the National Transportation Safety Board issued a list of proposed parameters for FDRs on newly manufactured (DAILY, Feb. 23). The proposed FDR enhancements are recommended for aircraft operated under Parts 121, 125 and 135 (10 seats or larger) and certificated after Dec. 31, 1996. The board also urged that the FDRs have a 25-hour recording capacity. Proposed FDR Enhancements For Newly Manufactured Airplanes Acceleration Parameters:
The board of transportation equipment leasing company PLM International has authorized the repurchase of up to $500,000 worth of the company's common stock. The shares may be acquired from time to time on the open market or through private transactions, the company said. They may be used for corporate requirements, or they may be retied. PLM had about 11.7 million shares outstanding as of Jan. 31.
Moody's assigned a Ba3 rating to $600 million of convertible subordinated debentures issued by United parent UAL Corp. The debentures, which mature in 2025, are being issued in exchange for the company's Series A convertible preferred stock, which are rated "ba3." The Ba3 rating is at the high end of Moody's below-investment-grade ratings.
Domestic fares crept up quietly late last week as United boosted prices $5 each way on routes under 1,000 miles and $10 on those over 1,000. Most carriers, which have tried to increase fares in recent weeks following a discounting frenzy, matched most of the United fares in most markets.
Applied Dynamics International named Tom Erkkinen senior applications engineer, Tim Hoffman eastern regional sales manager, Cynthia Sheng development engineer and Uma Bangalore applications engineer. Air Cargo Management Group hired Jon Biggs as associate director. Aviation Sales Company appointed Paul Hawthorne VP-quality control. Comsat appointed Chris Leber VP and general manager of its Aeronautical Services unit. FlightSafety International promoted Britt Hoskins to director- government business.
VASP Brazilian Airlines is offering a special fare of $657 roundtrip from Miami to Recife. The fare, a 39% savings on the slow-season tariff of $1,026, requires a 14-day advance purchase and a stay of seven to 21 days.
Lufthansa has increased its stake in German tour operator DER to 33.2% from 24.8%. It declined to reveal the price of the extra shares, which it acquired from Hapag-Lloyd. DER will continue to be majority-owned by German railway Deutsche Bahn AG. Lufthansa subsidiary Condor plans to buy a stake in travel agent Kreutzer Touristik. Lufthansa believes growth in the tourism sector will outpace increases in business and other travel sectors.
Richard Mintz, assistant to the secretary and director of public affairs at DOT, will leave the department in mid-March to become a senior VP at Ogilvy Adams&Rinehart, a Washington-based public relations firm.
