Fledgling California carrier Sierra Expressway Airlines ceased operations during the weekend. Using five 19-seat BAe Jetstream Super 31 aircraft, the carrier operated nearly six months from its Oakland base to South Lake Tahoe, Sacramento, Redding, and Eureka/Arcata, Calif., and Medford, Ore. It employed as many as 200 people.
Shuttle by United, challenging a news report portraying it as the loser to Southwest on the West Coast, says it never intended to "kill" Southwest, just defend its territory. A Shuttle VP says the venture has not reached cost objectives and probably never will attain Southwest's low costs, because it pays higher commissions, and operating at San Francisco and Los Angeles is more expensive. But it offers first-class seating, has a better customer mix and has a 72% load factor, and its market share in the two cities grew from 29% to 41% in 1995.
Cutting United's request by 30%, DOT issued a show cause order tentatively awarding 276 third- and fourth-freedom scheduled combination frequencies between the U.S. and Germany for the 1996 summer season. With 309 applications, the department pared back United to 44 of the 63 frequencies it requested; American to 42 of 49 and World Airways to seven of 12. Delta was awarded all but two of the 121 frequencies it requested. Four carriers were allotted their entire requests: USAir, 28; Northwest, 15; TWA, 7, and Continental, 14.
Fairchild Corp. will team with a consortium of Taiwanese companies to form a US$7.3 million venture to produce aerospace fasteners in Taiwan. The new company, which may be called King Grand Development Corp., will be located in Lungtan, in northern Taiwan. Fairchild will hold a 45% stake in the venture, while the Taiwanese partners, which include China Development Corp. and an investment firm controlled by Taiwan's Nationalist Party, will own 55%.
Boeing 727 and 737 Systemwide Aircraft Utilization Per Day Third Quarter 1995 B727-200 American Continental Number of Aircraft Operated 81 41 Total Fleet Operations Departures 294 135 Block Hours 694 344 Flight Hours 574 290
United has opened a $3 million Red Carpet Club in Miami Airport. It includes a lounge for First Class customers, a Business Center and a smoking lounge.
Moody's Investors Service downgraded its rating of the Airbus Industrie consortium's $95 million in long-term debt yesterday to A1 from Aa3, citing the weakening credit quality of its two biggest partners, the possibility that all of its partners will reduce their liabilities for its debt, and its overall business prospects.
Consultant Putnam, Hayes&Bartlett and Travel Intelligence bulletin have scheduled a meeting of airline representatives to discuss computer reservations systems' costs from 2 p.m. to 4 p.m. March 11 in Washington, D.C. (DAILY, Feb. 20). The meeting is timed to precede the Computerized Airline Sales&Marketing Association meeting March 12-13 in Annapolis, Md. Kevin Neels, a director of the consulting firm, said, "CRS booking fees have been the subject of controversy and complaint for well over a decade now.
Disneyland and Taiwan's EVA Airways have signed an agreement designating EVA as Disneyland's preferred airline for 1996. Also signing on were eight Taiwanese travel agencies that, under the terms of the deal, will provide individual and tour packages at special prices. Michele Rees, Disneyland's senior VP-marketing and sales, said Taiwan is Disneyland's second largest Asian market after Japan. The number of Taiwanese visitors to the theme park has grown 11% annually over the past five years and reached 110,000 in 1995.
United's frequent flyer members have contributed five million miles to charities since the carrier began its Mileage Plus Charity Miles campaign Jan. 1. United said the five-million-mile goal was reached on Valentine's Day. The charities aid children and families in need.
GP Express Airlines pilots have voted for representation by the Air Line Pilots Association. Of the 118 eligible voters, 83, or 70%, voted for ALPA. Pilots of the regional carrier, based in Nebraska, previously were represented by an independent union, Regional Express Pilots Association. ALPA said the pilots recently concluded a four-year contract with the company and will continue to work under that contract.
Simula said its Airline Interiors subsidiary received a $1 million order from a foreign carrier for its new 16G commercial aircraft seats, for delivery within 90 days to be installed on Airbus A300 aircraft. Options for the AI-1000 seats could increase the order value to $2 million, Simula said.
Consulting firm Putnam, Hayes&Bartlett and Travel Intelligence are organizing a meeting of airline representatives and their legal counsels to discuss actions that can be taken against the rising fees imposed by computer reservations systems. The meeting is tentatively scheduled March 11.
National Transportation Safety Board Chairman Jim Hall said the board will help the Dominican Republic develop a plan to recover the flight data and cockpit voice recorders from the Boeing 757 that crashed Feb. 5 off the coast of the republic. The Navy located signals presumed to be from the wreckage of the Birgen Air 757, Hall said. "We are awaiting detailed written information from the Navy regarding the exact location of the signals and the logistics involved in the recovery.
Precision Standard has had "serious discussions" with Hyundai Technology Development Co. on U.S.-South Korea joint ventures, but it would be "premature...to say that the parties have reached any definitive agreements in this regard," Chairman Matthew Gold said. Hyundai reportedly has been trying to get involved in the aerospace business with Precision Standard's Pemco unit (DAILY, Feb. 14). Discussions continue, Gold said.
Association of Flight Attendants filed suit in Denver against Mountain West Airlines, alleging that the carrier fired a flight attendant for supporting the union. The worker was dismissed in November for "comments" she made on a flight to a co-worker, who was not fired for participating in the conversation. AFA, which won the right to represent 60 Mountain West flight attendants last May, is negotiating its first contract. The suit seeks reinstatement of the flight attendant with full benefits and seniority.
FAA should abandon its massive revision of pilot, instructor and flight school regulations, rethink scores of "unjustified proposals," and move forward separately with "constructive changes in airman certification," according to the Aircraft Owners and Pilots Association.
Airlines and business jet manufacturers, including United, British Airways, Gulfstream, Bombardier, Cessna and Dassault, are being provided test units of an enhanced ground proximity warning system that AlliedSignal Aerospace says will display map-like pictures of surrounding topography in darkness or low visibility. Gulfstream and Bombardier said the system will be standard equipment on their newest aircraft. AlliedSignal plans to begin shipping production units next month, pending FAA approval, and expects to deliver 150 units this year.
