Passenger traffic on Orient Airlines Association member carriers increased 11% in 1994 on nearly 9.2% more capacity, boosting the average passenger load factor one percentage point to 69.4%. OAA passenger capacity growth spiked upward in November and December, causing a decline in load factors. Richard Stirland, OAA director general, attributed the late-year increase to airlines adding capacity in anticipation of 1995 traffic levels.
A judgment was entered against Marvin Lashinsky and Georgetown Associates in a civil proceeding after U.S. District Judge William Rea found that Lashinksy had violated the Racketeer Influenced Corrupt Organizations Act. The DAILY reported Feb. 15 that Lashinsky was convicted in the case.
National Transportation Safety Board is expected to call today for a major upgrade in flight recorders. The board will consider an urgent staff recommendation to the FAA to require operators to equip 737s and other aircraft with better recorders for documenting flight data in case of accidents.
FAA Administrator David Hinson will visit a Washington, D.C., high school this week as part of a program to promote careers in aviation. He will sign an agreement between the FAA and Cardozo High School to develop a formal aviation curriculum, including student visits to FAA facilities and mentoring programs.
A number of senior-level management changes are said to be imminent at Air Canada. VP Sandy Morrison left the carrier recently to rejoin a trade association representing Canada's breweries.
Gellman Research Associates (GRA) is defending its DOT-commissioned study on international code sharing in the face of airline criticism that not enough data were available, especially ticketing data from foreign carriers, to validate the findings. GRA said that although more data would have strengthened the study, the theoretical and computational compromises it contains are common in this type of analysis.
Northwest will offer mileage bonuses to WorldPerks members for each time they connect through one of its three main hubs - Detroit, Minneapolis/St. Paul and Memphis. The ConnectFirst program also will offer a first class upgrade to business passengers traveling on full-coach fares. If first class is unavailable, the passenger will receive double miles, as well as the connection bonus. Members will earn 1,000 miles on roundtrip connections, and 500 miles on one-way tickets. A full-fare coach ticket is not necessary to receive the connection bonus.
Air Canada's domestic and international capacities were up sharply in January, but traffic growth did not keep pace (DAILY, Feb. 21). The airline's domestic capacity rose 13.7%, but traffic grew 6.8%, and international capacity increased 13.8%, while traffic rose 5%. Systemwide results: January 1995 January 1994 Revenue Passenger Miles 1,142,000,000 1,081,000,000 Available Seat Miles 2,043,000,000 1,796,000,000 Load Factor (%) 55.9 60.2
USAir has cut fares in the Pittsburgh-Philadelphia and Philadelphia-Boston markets to $53 one way, and reduced fares to $89 between Pittsburgh and Boston in anticipation of new competition. Its fares are for travel from March 6 until April 20. March 6 is the day Nations Air inaugurates Boston- Philadelphia-Pittsburgh service, with Boston-Philadelphia and Philadelphia- Pittsburgh one-way tickets costing $59, and Boston-Pittsburgh $89.
Continental is cutting more than 200 management-level positions, including 30 at the senior executive and VP level, and 90 clerical workers as part of an earlier-announced initiative to reduce its work force by 4,000. The cuts are aimed at reducing non-value-added parts of the company, said Gordon Bethune, chief executive.
DOT plans to announce route awards for new Canada service next week, just days after President Clinton and Canadian Prime Minister Jean Chretien sign the new bilateral agreement Feb. 24.
Lufthansa's executive board decided yesterday to place firm orders for 20 Airbus Industrie A319s. The decision is subject to approval by the carrier's supervisory board. The aircraft, seating 126 passengers in the Lufthansa configuration, will be delivered between 1996 and 1998 as replacements for 20 737-200s, which are to be sold. Earlier, Lufthansa sold 10 other 737-200s to Indonesia.
The Executive Committee of the Transportation Trades Department, AFL-CIO, passed a series of resolutions and agreed on legislative priorities last week, including international aviation policy issues it expects to arise this year in Congress because of the DOT initiative to negotiate open skies pacts with nine European nations. The committee, composed of the leaders of 30 unions that represent all transportation industries, voted to guard against airlines pursuing their goals in the global marketplace "on the backs of U.S.
World Airways' January block hours flown increased 46.6% from a year ago to 2,427 from 1,656, and its average aircraft utilization increased 50.8% to 9.8 hours per day from 6.5 hours. Revenues per block hour flown fell 31.2%, however, to $5,850 from $8,506. World pointed out that revenues per block hour are not necessarily directly related to profitability. Coleman Andrews, chief executive of World Airways parent WorldCorp, said the results "are on track with the achievement of profitable results for World Airways in 1995."
U.S. Major Domestic Commission Expenses Year Ending June 1994 % Of Total Average Passenger Roundtrip Commissions Revenues Fare Alaska $ 47,121,000 5.70 $236 America West 112,969,944 9.11 240 American 880,577,000 10.37 394 Continental 357,344,000 10.07 305
A negotiating team from the U.K. is scheduled to meet today with U.S. officials in Washington to explore ways to resurrect the stalled U.S.-U.K. bilateral talks.DOT is keeping its expectations "in check" until talks actually begin, said a department spokesman.
Boeing has told FAA it does not have enough time to satisfy head-injury certification standards for some of the economy-class seats of its in- development 777-200 before deliveries begin in May, to United (DAILY, Feb. 21).
Lufthansa plans to increase its daily nonstop San Francisco-Frankfurt service to nine weekly flights for the summer travel season. To complement its existing daily 747 service, the German carrier will add two weekly A340 flights March 30-Oct. 30. To introduce the service, Lufthansa is offering $340 companion fares for roundtrip travel on the A340 from San Francisco. Travel must be completed by June 1, and restrictions on the full-fare ticket apply to the companion. The new flights will be non-smoking.
Northwest will take 15 757s earlier than scheduled, but will delay 25 more and may defer delivery of four 747-400s, under an agreement with Boeing that one industry source said was Boeing's idea.
The DOT Inspector General's office is trying to block the testimony of a senior DOT IG special agent in a case before the Armed Services Board of Contract Appeals. The case involves termination by the U.S. Air Force on Aug. 30, 1990, of a two-year, $25 million cargo contract with TPI for falling below an 85% reliability level. The Air Force terminated the contract on the same day the carrier "voluntarily" surrendered its operating specifications to FAA in Georgia. TPI won the contract away from Evergreen International, which got it back when TPI was terminated.
Rep. Jim Lightfoot (R-Iowa) plans to introduce legislation to reform FAA and establish it as an independent agency. The bill, to be offered as early as this week, would require appointment of a select panel to find innovative financing mechanisms for aviation infrastructure, establish a management advisory board and mandate final action on all rulemakings within 18 months of initiation.
American Society of Travel Agents yesterday revealed a four-part attack - including a class-action antitrust lawsuit alleging price fixing - against airlines that have capped travel agent commissions on domestic tickets. The ASTA program, involving legal, legislative, consumer awareness and member education measures, includes an advertising campaign in major newspapers, beginning Friday, to alert the public to what the airlines are doing.
Aviation Capital Group subsidiary ACG Acquisition Corp. has purchased a 737-200 Advanced aircraft from Aer Lingus for an undisclosed price. The aircraft, serial number 21112, is equipped with JT8D-9A engines.
Delta has opened a centralized baggage service center in Atlanta to process baggage claims made throughout the U.S., Canada and the Caribbean. Claims filed in the Bahamas and Bermuda will be added in 30 days. The center, which is open 24 hours a day, has a toll-free number that dispenses information about misdirected baggage "in the unlikely event this should occur," Delta said. The airline said it can offer the service through WorldTracer, its recently implemented computerized baggage tracking system.
