Boeing, which halted flight testing of the GE90-powered 777 transport early this month after an "imbalance" was discovered in the engine, said yesterday that it has "set no date yet for resuming flight testing" (DAILY, June 7). Boeing said it still expects to deliver the first GE90-powered 777 to British Airways as scheduled in late September. General Electric Aircraft Engines said its GE90 "fix is under way," and it has started testing a modified fan blade platform for the engine.
The 1994 Federal Radionavigation Plan (FRP), more than a year late but due to be issued this week, will include a cutoff in Coast Guard funding of the Loran-C navigation program in 2000 despite protests from the aviation and maritime communities, sources told The DAILY yesterday.
TWA's management and board likely will decide today or tomorrow whether to risk a second trip through Chapter 11 bankruptcy protection in order to speed up completion of the carrier's proposed financial restructuring and debt recapitalization. Midnight tonight is the deadline for creditors and debtholders to vote on the company's complex restructuring proposal, in which as much as $500 million in debt would be exchanged for new debt and equity.
The Borough of Queens of the City of New York is urging DOT to deny Spirit Airlines' bid for an exemption from the High Density Rule to operate service between Detroit and New York LaGuardia Airport, which is located in Queens. The carrier "has not demonstrated any exceptional circumstances which would warrant this extraordinary relief," said the borough.
In what IATA Director General Pierre Jeanniot termed a "breakthrough," delegates to last week's International Air Transport Association (IATA) Airline Liability Conference in Washington, D.C., worked out a tentative agreement that would lead to an increase in worldwide passenger liability limits to more than $350,000. The tentative deal, hammered out by representatives of 67 airlines and regional airline associations, and observers from the European Civil Aviation Conference, the European Union and the U.S.
Alitalia was forced to ground roughly half of its flights yesterday as a result of a 24-hour strike by some of its pilots, flight attendants and ground staff. This month, Alitalia was hit by a wildcat pilot sickout that wreaked havoc on operations for two days. Yesterday's strike was scheduled in advance, giving travelers the opportunity to make other arrangements. Alitalia employees are protesting the airline's ongoing restructuring program.
Peruvian carrier Faucett has signed an agreement with Amadeus Global Travel Distribution under which the airline will become an Amadeus distributor in Peru. Amadeus and Faucett will form a national marketing company, Amadeus Peru, to support Peruvian travel agents with customer service, training, help-desk facilities, local marketing expertise and technical assistance. Because Amadeus recently acquired the System One computer reservations system, Amadeus Peru also will help current System One users in Peru to convert to Amadeus.
Preparations for the U.S.-Japan aviation talks are being complicated by auto negotiations between the two countries now under way in Geneva. A number of Japanese officials taking part in those talks also would be involved in the aviation talks, DOT General Counsel Stephen Kaplan told The DAILY. Currently, the U.S.- imposed deadline for the auto talks is 12:01 a.m. Thursday. Facing a July 14 deadline, U.S. officials expect aviation negotiations to start within the next two weeks (DAILY, June 23). The key for the U.S.
Worldspan will launch Worldspan Electronic Courier, a system that will distribute airline and rail tickets almost anywhere in the U.S. electronically, in the third quarter. Being introduced in conjunction with QuikTix Corp., an Arizona-based Electronic Ticket Delivery Network (ETDN) provider, Electronic Courier will become available automatically to Worldspan subscribers in the U.S. Delivery options will include same-day courier, airport pick-up and overnight standard or priority express for out-of-town deliveries.
Qantas has created a new position, general counsel and group corporate secretary, as part of restructuring its secretariat and legal departments. The new post, which combines the carrier's most senior legal position with that of group company secretary, will be filled by Brett Johnson, effective July 3. The current head of legal affairs has been appointed country manager of Thailand, and the company secretary is leaving the airline after 25 years.
KLM and the union representing its pilots, the VNV, signed an agreement late Thursday ending their months-old contract dispute. In a joint statement issued Friday, KLM and VNV said the agreement covers the terms of the pilots' 1995 labor contract and the basic premises and guidelines for further discussions of pilot-related costs. The pact, reached after four days of negotiations, "underscores that both parties concur on the need for KLM to be competitive in costs and quality.
Alaska Air Group completed an offering of $132.25 million of convertible senior debentures due in 2005, the airline company said (DAILY, June 9). The company increased the original offer of $100 million to $115 million, and the managing underwriters for the offering, Merrill Lynch and Goldman Sachs, exercised their 15% overallotment option Thursday morning. The bonds will bear interest at 6.5% and are convertible to common stock at $21.50 per share, about 22% more than Thursday's closing price.
World Airlines' attempt to gain South Africa frequencies continues to draw opposition. United joined TWA and USAfrica in urging DOT to dismiss World's application for a temporary allocation of five frequencies - currently USAfrica's - to conduct scheduled combination service between the U.S. and South Africa. Noting current efforts by the U.S. and South Africa to reach a bilateral agreement, with another meeting of the two sides possible by the end of July, United said the U.S. "should not take action with respect to U.S.
Bad News: Emery Worldwide President David Beatson says the cargo carrier's operating costs doubled at DIA, and "there is really no added value to our customers there." If airport managers do not "study more seriously" the problems faced by cargo airlines, they will "lose our business," he says.
Air Express International declared a quarterly dividend of five cents payable July 28 to holders of record July 7. The dividend is a 25% increase over the existing dividend and is the fourth increase since AEI reinstated dividend payments in 1991.
Striking down an earlier decision to raise a bridge loan worth US$110 million to finance its acquisition of Boeing aircraft, Air-India has decided to raise the full sum for final payment amounting to US$350 million, senior Air-India officials said last week in Bombay. India's national carrier already has floated a tender for the loan syndication, they added.
U.S.-U.K. working group meetings last week in Washington focused on sorting through technical language on issues involving cargo, charters and pricing, giving officials a head start on plenary sessions scheduled July 17-21 in London, according to Patrick Murphy, DOT acting assistant secretary for aviation and international affairs.
Stepping down June 30 as DOT general counsel, Stephen Kaplan tells The DAILY he is likely to spend his last week at the department in negotiations with Japan, if the two sides agree to meet. In an eventful two years with DOT, Kaplan was instrumental in negotiating the new U.S.-Canada bilateral.
AirTran Corp. said it received an Internal Revenue Service ruling that makes the distribution of all outstanding shares of its Airways Corp. subsidiary to AirTran's shareholders tax-free for federal income tax purposes. The spinoff of Airways Corp. will qualify as a tax-free reorganization. AirTran has not yet set a date for AirTran's shareholders to vote on the spinoff and other matters.
Although DOT decided not to recommend rulemaking to change the high- density rule following its HDR study, the department listed a number of changes that "could be made to improve the performance of the rule and/or simplify its implementation." Many of the changes would impact directly the current commuter service at the nation's four slot-controlled airports - Washington National, Chicago O'Hare and New York LaGuardia and Kennedy.
USAir intends to support a new aviation maintenance program at Fayetteville, N.C., Technical Community College, providing more than $250,000 in parts for 727s, 737s, DC-9s and F28s, plus training courseware and maintenance manuals to support the donated parts. The parts are surplus, and USAir will phase the 727 out of its fleet during the year.
USAir Group and Hawaiian Airlines stock prices moved dramatically in different directions Friday on speculation that USAir is interested in acquiring Hawaiian, TWA or both. A USAir spokesman called the reports "unfounded." USAir's stock price declined about 10% to slightly more than $12 per share, while the price of Hawaiian's stock, which resumed trading Wednesday after an 18-month hiatus due to its Chapter 11 bankruptcy, zoomed up 6 1/8, or 83% to $13.50 per share before trading was halted by the American Stock Exchange.
Aeromexico Vacations, launched in 1992 by Aeromexico, says business rose 29% last year. It offers service on Aeromexico along with various hotel packages to Mexican destinations, as well as Colonial Cities Tours and Copper Canyon Adventure. Aeromexico Vacations also offers special honeymoon, golf and fishing vacations from all Aeromexico gateways.
