Clarification: Continental has begun eliminating about one-third of its Continental Lite capacity and will make more cuts if they are economically sensible, a Continental spokesman said in response to a Jan. 19 DAILY article that said executives are standing behind the product.
AirTran Corp. has named a former Northwest executive, John Horn, president of its Orlando-based subsidiary, AirTran Airways. Horn was president and chief operating officer of NWA Inc. and Northwest from August 1986 until October 1989. AirTran, which operates 737s between the Northeast and Florida, plans to take delivery of its fourth 737 soon and recently announced new service from Cincinnati to Orlando, beginning Feb. 22. In addition, the carrier said this week it will add low-fare service to Omaha from Orlando, effective March 1.
Colombian airline Tampa is seeking authority to operate all-cargo flights between Colombia and New York, and co-terminalize this service with its existing Miami flights. Tampa also wants renewal of its authority to serve Caracas, Venezuela, as an intermediate point on its New York and Miami flights. The carrier currently operates cargo service between Medellin and Bogota, Colombia, on the one hand, and Miami, on the other. It also flies cargo service between Colombia and San Juan, Puerto Rico, and co-terminalizes that service with its Miami authority.
Fast Air is seeking authority to operate scheduled cargo service between Santiago, Chile, and Los Angeles. It plans to operate the service with DC-8-71s and enter a reciprocal long-term wet-lease with LanChile under which the two carriers, which are commonly owned and controlled, will substitute one another's aircraft and crews on the route. Fast Air is authorized to operate cargo service between Santiago and the co-terminal points New York and Miami, via specified intermediate points. (Docket 50006)
Boeing said yesterday it will offer a selling and purchasing program for investors who owned fewer than 100 shares as of Dec. 22, 1994. Shareholders will be able to sell all, but not less than all, of their shares, or buy enough more to reach 100 shares, to cut servicing costs.
Intrastate regional Alabama Express Airways plans to begin scheduled service in September among eight Alabama cities. The carrier expects to operate five Jetstream 31 aircraft acquired from British Aerospace unit JSX Capital Corp. Four daily flights each are planned over four routes - Mobile-Birmingham-Mobile, Montgomery-Tuscaloosa-Birmingham-Montgomery, Montgomery-Birmingham-Huntsville-Muscle Shoals-Montgomery, and Montgomery- Mobile-Gulf Shores-Dothan-Montgomery. Backing the venture is Aviation Systems and Manufacturing Inc. (ASM) of Tuskegee and local banks.
Business Express will suspend its service between Boston and Montreal Mirabel Airport Jan. 21, the company said, citing lower-than-expected passenger traffic.
The 264 fatalities from U.S. scheduled commercial airline accidents in 1994 climbed to a five-year high and were the highest since 1988, when there were 306 deaths, the National Transportation Safety Board said yesterday. There were 25 air carrier fatalities in 1993, the board said. Charter airlines experienced their fifth consecutive year without a fatality. Fatal accident rates rose for large scheduled carriers, general aviation and air taxis but declined for commuter aircraft.
British Airways has filed an application to appeal a federal judge's ruling that three antitrust claims against BA made by Virgin Atlantic in an eight-claim lawsuit should be heard in court (DAILY, Jan. 4). The other five claims in the $325 million 1993 lawsuit were dismissed by Judge Miriam Goldman Cedarbaum, with whom BA's application to appeal was filed. The appeals process could take most of this year. As part of the motion for leave to appeal, BA asked Cedarbaum to put the discovery process on hold until the decision.
The Regional Airline Association is forging a multifaceted effort to promote the commuter safety record and counter incorrect perceptions of the industry that have arisen from recent commuter accidents. RAA, which launched the effort with a brochure on the heels of the DOT-sponsored two- day Aviation Safety Conference (DAILY, Jan. 11), also plans a multimedia initiative to inform news organizations, government officials and the public. The group hopes to finish the project in the next couple of months, RAA President Walt Coleman told The DAILY yesterday.
American launched a fare sale yesterday for flights between all U.S. points that it and its Eagle carriers serve and Mexico City, Monterrey, Guadalajara and Leon. Most tariffs are 25%-30% lower than the current lowest Monday-through-Thursday fare. The same discounts will apply from selected cities to Acapulco, Cancun and Puerto Vallarta. Tickets must be purchased by Jan. 27 and used by May 23.
Yemen Airways has ordered two new A310-300s for delivery in the last quarter of 1996. Until then, it will lease two A310-200s, taking delivery in April and May. The aircraft, Yemen's first widebodies, will be used on regional routes and service to Europe.
Air Canada will inaugurate service between Toronto and Tel Aviv, Israel, June 30. The twice-weekly 767-300ER service will be Air Canada's first service to the Middle East.
Revenue passenger miles outgained available seat miles by nearly three percentage points during December for The DAILY's sampling of 10 large regional airlines. Average RPM growth for the group was 13.2%, compared with 10.3% for ASMs. Three of the 10 carriers posted traffic growth exceeding 30%. Delta Connection SkyWest led the group with a 36.7% increase in traffic versus one of 29.4% in capacity; Delta Connection Comair was up 34.2% in traffic versus 26.2% in capacity. Both operate new fleets of Canadair Regional Jets.
A revenue shortfall during the December quarter has prompted Mesa Air Group to lower earnings estimates from 17 cents per share to from seven to 10 cents per share, the company said this week.
DOT Secretary Federico Pea announced a measure step up the pressure on countries that still require spraying of insecticide in the cabins of arriving flights. The proposal would require that passengers be notified if their destination country requires the spraying. Pea pointed out, however, that seven foreign countries have agreed to halt the practice: Mexico, Jamaica, El Salvador, Chile, Cape Verde, St. Lucia and Belize. "The countries that have responded to our request include popular tourist destinations visited by millions of U.S.
USAir will start nonstop service between its Pittsburgh hub and Mexico City on Feb. 15. The airline is offering a special introductory fare of $398 roundtrip and a $198 companion fare for travel through May 15. Members of its frequent flyer plan will receive double mileage credit for trips in the market through April 30.
AirTran Corp. subsidiary Mesaba Aviation flew 25.6 million revenue passenger miles in December, a 9% increase from the 23.5 million recorded in December 1993. Capacity rose 8.4% to 57.8 million available seat miles from 53.3 million. Load factor climbed 0.3 percentage points to 44.4%, and passenger boardings increased 4.7% to 116,496.
Air France's systemwide passenger traffic rose 15% in 1994 on 6.8% more capacity, boosting the load factor 5.2 percentage points to 73%. The number of boardings rose 8.6% to 15.6 million. Cargo traffic was up 17.4% on 5.4% more capacity. In December, passenger traffic rose 5.3% from December a year ago on 6.4% more capacity, depressing the average load factor 0.7 points to 65.4%.
British Aerospace's BAe 146 [ SALES ] and leasing arm earned $175 million in lease revenue commitments in 1994. Asset Management Organisation reported signing 60 aircraft leases, of which 30 were new and 30 extended leases. AMO Managing Director Robin Southwell said, "We always knew we had a good product, but even so we have been surprised at how well the AMO concept has been received in the marketplace. Regional air transport is undergoing a radical change, and interest in the 100-seat regional jets is now intense.
USAir will increase service from the Washington area to Hartford, Conn., adding three daily flights from Dulles Airport March 5, using one 737 and two Embraer aircraft. The carrier already offers three daily flights from Baltimore/Washington and four from Washington National. USAir is promoting the new service with a 21-day advance-purchase fares offer from all three airports of $49 one way on Monday, Tuesday, Wednesday, Thursday and Saturday and $69 on Friday and Sunday. The unrestricted coach fare from Dulles will be $89.
Fuel Cost and Consumption U.S. Majors, Nationals and Large regionals December 1993- November 1994 Total Total Cost Gallons (Dollars) ------- ---------- 1993 December Domestic 1,021,799,885 551,569,326
Bilateral talks with Canada went well this week but are not likely to be wrapped up next week in Washington, according to industry officials. Meetings Monday and Tuesday in Ottawa were businesslike and friendly but, strictly speaking, were not negotiations, the officials said. Instead, they were an article-by-article discussion of the draft agreement, identifying issues for further discussions, with the real talks set to begin this week in Washington. Key topics will be dispute resolution and user charges.
