China Airlines reported a 7.3% increase in operating revenue in 1996 to more than NT$50 billion (US$1.83 billion). The passenger load factor grew by more than three percentage points to 75.1%, the highest among the Orient Airlines Association's 16 member carriers.
Open skies has good prospects in France, the European Union and even Japan, according to Paul Mifsud, KLM VP-government and legal affairs. Speaking yesterday at an industry conference in London, Mifsud said it appears that the "basis for a deal is in place" for a U.S.-U.K. agreement, even though he believes further talks are unlikely before June 18 given British elections and a new U.S. DOT secretary. But the European Union must not be overlooked as a player, he said.
Amerijet continues its opposition to fifth-freedom rights for Air Jamaica, given Amerijet's continued failure in its efforts to secure self- handling at Jamaican points, an option the U.S. carrier and DOT maintain is granted under the bilateral.
Even though Continental has negotiated a number of agreements to increase its liquidity, it "remains more leveraged and has significantly less liquidity than certain of its competitors" and thus may be "less able...to withstand a prolonged recession in the airline industry," the company said in an annual 10-K filing with the Securities and Exchange Commission. The carrier said it "does not have general lines of credit and has significant encumbered assets," while several competitors have credit lines, unencumbered assets or both.
GrandAir plans to increase service between Manila and Taipei to seven flights per week from the current four. The company, which launched the service seven months ago, claims the highest passenger load factor among the five airlines serving the route. It did not announce a startup date for the increase in service.
Summary of U.S. Major Carriers Domestic Traffic, Third Quarter 1996 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) Alaska 3,289 15.13 838 2,755,548 America West 4,586 3.68 851 3,903,300 American 16,805 1.33 1,138 19,120,491
Southwest will offer one-way discount fares to Nashville of $49 from Detroit and $99 from Los Angeles and Oakland when it starts service in those markets April 6. Tickets may be purchased through April 5 for travel April 6-July 22.
The death of Deng Xiaoping is not without impact on aviation. Hong Kong's new Chek Lap Kok Airport may be named after the late Chinese leader when it opens next year, Hong Kong Financial Secretary Donald Tsang said last week. Political control over Hong Kong reverts to China on July 1.
Carnival Air Lines is offering double credit to FunPass members until March 14, and to pets under its PetPass frequent flyer program. Carnival customers earn free tickets after six transcontinental or 10 short-haul domestic roundtrips.
Commerce Secretary William Daley will speak at the 15th Annual Travel and Tourism Unity Dinner March 5 at the Washington Hilton&Towers. DOT Secretary Rodney Slater signed up earlier as a speaker, and the Tourism Government Affairs Council, sponsor of the event, said this is the first time two cabinet members have agreed to address the dinner.
Passenger traffic of Air Transport Association member airlines increased 10.2% in January from the same month in 1996, to 43.011 billion revenue passenger miles. Capacity increased 7% to 66.438 billion available seat miles, improving the load factor 1.8 percentage points to 64.7%. Domestic traffic was up 10.5% and international traffic 9.1%. Domestic passenger enplanements increased 9.4% to 37,002,000 and international enplanements 8% to 3,967,000.
Japan's Ministry of Transport last week approved construction of a new airport on reclaimed land off Kobe, 60 kilometers north of Osaka Kansai Airport and about 50 kilometers southwest of Itami (old Osaka) Airport. The Kobe municipal government expects to begin construction next year and open the airport by October 2004. With a 2,500-meter runway and a parallel taxiway, the airport will be able to handle 20,000 takeoffs and landings a year, and the Kobe government forecasts 3.4 million passengers in the first 12 months.
Wasatch International Corp., which rescued financially troubled Kiwi International Air Lines, has appointed Diran Kaloustian chairman of Wasatch's board and Charles Edwards a director. Kaloustian is president of Lone Star Crude Oil Co. and Edwards chief executive of a medical technology group, real estate and condominium development group and a manufacturing company.
Continental is offering double frequent flyer miles to anyone flying in the U.S. or to Canada, the Caribbean, Mexico, Latin America and Europe until March 14. Double OnePass miles are not available on code-share flights. It also is offering bonus miles until July 31 to anyone booking tickets via an online system - 1,000 bonus miles for an electronic ticket booked on the World Wide Web site and 500 bonus miles for a paper ticket.
Air New Zealand (ANZ) and Qantas terminated a code-share agreement called Tasman Air Share, effective May 1. The carriers adopted the arrangement in 1991 for tourist service to the Tasman region on the north coast of New Zealand's South Island. Both carriers will continue to serve the area. ANZ said the total number of flights will increase slightly, but the number of seats available will remain about the same.
Delta is auctioning four Paris dream vacation packages for two to its SkyMiles frequent flyer program members. The package includes six nights at the LeGrand InterContinental Hotel Paris, roundtrip air fare and museum passes. The winners will depart April 16. Members must fax their bids, starting at 300,000 miles, to Delta at 404-715-9384 by March 3. For more information, the SkyMiles Instant Information line is 800-323-2323.
British Airways has developed a franchise agreement with British Mediterranean Airways that will keep a British competitor on routes between the U.K. and the Levant after BA drops service to Lebanon, Syria and Jordan on March 30. BA resumed service to the Mideast countries during the past two years following almost a decade of unrest in the region, but it has not been profitable.
TWA will distribute a dividend of $1 per share on 8% cumulative convertible exchangeable preferred stock, payable March 15 to holders of record on March 5.
Four months before political control of Hong Kong returns to China, Cathay Pacific Airways is comfortable on its own and has no immediate intention to code share or form other links with a regional or international airline. "No one has persuaded us that these grand alliances are as good as everyone says," said Simon Heale, Cathay's deputy managing director.
House is scheduled today to consider legislation (H.R.668) to reinstate the aviation excise taxes through Sept. 30. The bill could pass by voice vote today, but a recorded vote, if ordered, would be postponed until tomorrow.
Cathay Pacific Airways ordered two more A340-300 aircraft and an A330- 300, strengthening its position as the largest operator of the two types. It now has firm orders for 11 A340-300s and 13 A330-300s. Seven of the A340s and 11 of the A330s have been delivered. The newly ordered aircraft will be delivered in the fourth quarter of 1998.
ValuJet has resumed service to Boston Logan, offering five daily peak- hour roundtrips, four of which are one-stops, between Atlanta and Boston and four between Washington Dulles and Boston. All Atlanta-Boston seats cost $89 until March 31, and Washington-Boston $49.
British Regional Airlines ordered five EMB-145s valued at $75 million, with delivery of the first three aircraft scheduled in June, July and August. European type certification is expected next February. Four EMB- 145s have been delivered to U.S. launch customer Continental Express, and Regional Airlines of France gets its first this month. The order book stands at 72 firm and 219 options.
Shanghai Airlines of China leased three 737-700 aircraft from International Lease Finance Corp., for delivery in September 1998, January 1999 and May 1999 on eight-year terms.
