Back from a recent fact-finding trip to the U.K., including a tour of London Heathrow Airport, Sen. Larry Pressler (R-S.D.) offered an optimistic assessment in the Senate of the potential for U.S. airlines to gain additional access to Heathrow.
U.S. all-cargo carriers are contending for access to new service opportunities in the U.S.-Peru market opened up by the recent agreement between the two countries. Struck May 5, the pact increased the number of all-cargo frequencies available from five to 11, immediately, and to 14 on Nov. 1, 1996. In its U.S.-Peru All-Cargo Service Proceeding, instituted in July, DOT consolidated existing bids for Peru service from Arrow Air, Fine Airlines, Millon Air and incumbent Challenge Air Cargo.
House Transportation Committee Chairman Bud Shuster (R-Pa.) said yesterday that legislation (H.R.842) to take the transportation trust funds off- budget now has 220 co-sponsors - two more than a majority of House members. House Speaker Newt Gingrich (R-Pa.) has named three new members to his transportation task force: Reps. Susan Molinari (R-N.Y.), Bob Franks (R- N.J.) and David Hobson (R-Ohio).
U.S. and foreign airlines canceled most flights into and out of southern Florida after midday yesterday in anticipation of Hurricane Erin. U.S. Customs shut down operations at Miami Airport, one of the busiest U.S. gateways. American said it expected to resume operations by 11 a.m. EDT today at Miami, Fort Lauderdale and West Palm Beach, subject to each airport's operational status. United also suspended all flights at the three airports, saying it expects flights to be back to normal by early today unless facilities are damaged or flooded.
The Aircraft Mechanics Fraternal Association (AMFA) has filed a motion in the U.S. Court for the Southern District of New York seeking a declaratory judgment permitting mechanics at Atlantic Coast Airlines (ACA) to strike. The Railway Labor Act prohibits unions from initiating unilateral "self- help" measures when parties are in federal mediation. ACA and AMFA currently are in mediated talks for their first contract.
Midwest Express Holdings has filed a registration statement with the Securities and Exchange Commission for the initial public offering of up to 5.14 million shares of Midwest Express Airlines common stock. Owner Kimberly-Clark Corp. will retain 20%-30% ownership of the Milwaukee carrier. No significant changes in its operation are expected, and it will continue to be managed by President Tim Hoeksema. Included in the offering is Astral Aviation, a wholly owned subsidiary of Midwest Express Airlines and operator of Skyway Airlines, Midwest's commuter carrier.
Air Line Pilots Association leadership have voted to give WestAir pilots immediate access to $500,000 from ALPA's major contingency fund (MCF) to support their contract negotiating efforts. Pilots at the Mesa Air Group subsidiary, which operates as United Express, have been in negotiations with management for two years.
Chances look promising for an accelerated discussion schedule with Hong Kong, a U.S. government official said. The two sides have been in contact, he said, adding that before setting up the talks, the U.S. wants evidence of Hong Kong's "intention to move forward to close the deal."
National Transportation Safety Board Chairman Jim Hall told Air Transport Association President Carol Hallett this week that he is "deeply disappointed" by ATA's reaction to his letter to FAA criticizing the agency for not expediting installation of updated flight data recorders on 737 aircraft. Hallett, in a letter to Hall last week, said ATA takes "strong umbrage" with the NTSB response to the FAA decision to work with the Aviation Rulemaking Advisory Committee on 737 recorders (DAILY, July 26).
Moody's Investors Service this week downgraded Fairchild Corp.'s subordinated debt issues to Caa from B3 and its senior secured notes to B3 from B2. Moody's said Fairchild's balance sheet remains highly leveraged with a debt to capitalization ratio of 92% at the holding company level. The company's growing net deficit and weak returns on equity continue to offset the modest reductions in total indebtedness, Moody's said.
Delta's Air Line Pilots Association unit has established an Internet home page to provide updated information on its contract negotiations with the company, background on the industry and labor settlements at other carriers. A mailbox is included to encourage feedback from users. Until Sept. 1, the World Wide Web site is www.whatsup.com/DALPA/DALPA.html. After Sept. 1, the home page can be found at www.DALPA.com. Anyone interested in a weekly overview of Delta pilot talks also can call 1-800- 354-ALPA, beginning Aug. 14.
Amerijet International has asked DOT for authority to operate scheduled all-cargo service between Miami and Guadalajara, Mexico, independently and in combination with its Miami-Mexico City/Merida/Cancun services. If approved, the carrier said it plans to begin the service as soon as possible with at least one flight per week, extending its Miami service beyond one of its Mexican terminals to Guadalajara, using Boeing 727-100 or -200 aircraft. The carrier said it "will expand the service as market conditions dictate." (Docket OST-95-352)
Air Express International has acquired the U.K. air and ocean freight forwarder Brantford International from its parent FW Terminals, a division of Hong Kong-based OOCL.
Japan was the biggest single contributor to the United States' 1994 travel surplus, accounting for $12.5 billion - up 15% over 1993 - of the $21.6 billion total, the U.S. Travel and Tourism Administration said. Reporting on revised final data from the Bureau of Economic Analysis for 1994, the agency said higher spending by U.S. residents in Europe accounted for a 37% decline in the travel surplus with Europe. The surplus was $1.8 billion with Germany, down 17%, and $1.4 billion with the U.K., down 32%.
DOT has concluded that Wrangler Aviation, operating as Tradewind International Airlines, meets citizen requirements after its major organizational restructuring. In July 1993, DOT gave the Greensboro, N.C., all-cargo carrier four months to restructure, finding at that time that Wrangler was majority-owned or -controlled by interests from Singapore (DAILY, July 19). The carrier filed an objection to the order and garnered support for its case from Piedmont Triad Airport Authority and political leaders, including Baltimore Mayor Kurt Schmoke, Sen.
Summary of U.S. Major Carriers International Revenues and Expenses Fourth Quarter 1994 (In Dollars) Total Operating % Passenger Carrier Revenues Change Revenues American 1,063,430,000 19.83 907,041,000 Atlantic 442,810,000 24.17 362,160,000 Latin 539,251,000 20.61 479,546,000
Airbus Industrie and at least five companies are fleshing out their stakes in the new Airbus Military Company being set up to manage Europe's Future Large Airlifter program. BAe is finalizing its arrangements for about 15% of the new company, and Airbus is expected to hold roughly 30%. Italy's Alenia, not an Airbus member but one of the original EuroFLAG companies, gets 20%, and Spain's CASA probably will hold about 18%.
DOT has issued a consent order concerning violations of advertising requirements by TWA and directing the carrier to cease and desist from future violations and pay compromise civil penalties. DOT said Friday it found that the carrier failed "to prominently and proximately disclose each-way fares" in separate ads appearing in The Washington Post and The New York Times.
International visitors to the U.S. are expected to account for 1.1 million U.S. jobs by the year 2000, the Commerce Department predicts, not 11 million as reported in The DAILY, July 27.
Federal Express said it will launch Sept. 5 a new service to provide delivery by 8 a.m. to major U.S. metropolitan markets. Called FedEx First Overnight, the service will provide the 8 a.m. delivery from any U.S. zip code to more than 90 major markets. The carrier said it is offering a money-back guarantee if the package is not delivered by 8 a.m. or if the status of the package cannot be reported within 30 days of inquiry.
FAA has issued a final environmental impact statement on the Expanded East Coast Plan's (EECP) effect on New Jersey and has tentatively decided to continue the current routes and procedures, which were implemented as part of the EECP beginning in 1987 but modified as called for in the Solberg Mitigation Proposal (DAILY, Dec. 15, Oct. 4).
Northwest's profits during the past year mean 1995-96 revenue of about 100 million guilders for KLM as the Dutch carrier revalues its 25% stake in its U.S. partner. KLM wrote down its investment to zero back when Northwest was losing money.
Singapore has exempted airlines from its Retirement Age Act, which otherwise would bar early retirement of cabin crewmembers. "It is common among airlines, particularly those in the Asia Pacific region, to adopt a business strategy which projects a youthful and dynamic image to maintain and enhance their competitiveness," says the Ministry of Labor.
USAir's unilateral decision to break off concession discussions with its unions, begun more than a year ago in an attempt to obtain billions in labor cost savings, is "a serious error," according to the airline's pilots union. The carrier said Friday it will return to conventional collective bargaining instead of negotiating for savings in exchange for 20% ownership by employees (DAILY, July 31).
Westinghouse Electric Corp. received a $5.4 million contract from Airborne Express for an air traffic control surveillance radar system at Wilmington, Ohio, in what the manufacturer said is the first sale of an ATC radar to a non-government customer. The purchase includes an ASR-9 airport surveillance radar and monopulse secondary surveillance radar, which will be installed by November. Wilmington is Airborne Express's headquarters and the hub of its overnight package delivery operations.
