Varig's re-evaluation of all its code shares led to termination of its agreement with Delta, Carlos Muzzio, Varig's general manager-North America and the Caribbean, said yesterday. Varig retains code shares with Lufthansa, SAS and Japan Airlines, and is in negotiation with South African Airways and Thai Airways International, the latter to supplement Varig flights to Hong Kong and Bangkok. Muzzio, describing the evolving alliances as a "big chess game," told The DAILY that Varig is discussing a new code-share deal with more than one U.S. carrier.
USAir and Deutsche BA plan to add Hamburg and Cologne/Bonn to their code- share points March 5. The two share codes on flights to Berlin and Dusseldorf. Passengers will fly on USAir from Philadelphia to Munich, and from Munich to Hamburg and Cologne on Deutsche BA.
FAA is allocating tens of millions of dollars for support activities in fiscal 1998 while zeroing many programs industry has viewed as vital. For example, despite FAA's earlier declaration that preventing runway incursions has high priority, its $8.46 billion fiscal 1998 budget request eliminates virtually all facilities and equipment (F&E) funding in this area (DAILY, Feb. 7). FAA also is dropping the National Satellite Test Bed (NSTB) system, one of its most successful programs.
Vanguard Airlines lost $12.6 million in the fourth quarter, deepening its $5.4 million loss in the same 1995 period, and $24.1 million in 1996, nearly double 1995's $12.2 million loss. The airline cited higher fuel and maintenance costs and a "largely unsuccessful expansion initiative during September and October" as reasons for its poor results. Vanguard restructured its routes Dec. 21 and expects the changes to improve its operating performance.
Southwest is objecting to DOT's proposed rule on access by the handicapped to air travel. The carrier supported a number of Air Transport Association comments, including the claim that DOT is going beyond its legal authority in proposing the amendments to regulations implementing the Americans with Disabilities Act, and it added some of its own. Southwest sees problems in mandating preferential seat assignments, bumping or relocating passengers to make way for handicapped people, and handling collapsible wheelchairs.
Lufthansa is negotiating a cooperation agreement with British Midland to develop its business in the U.K. The German carrier is responding to British Airways' operations in Germany through its local subsidiary, Deutsche BA. If the current negotiations are successful, British Midland would operate part of Lufthansa's U.K. services, Lufthansa Chairman Jurgen Weber said in an interview with German travel trade magazine FVW International.
All 17 members of the Senate Commerce aviation subcommittee asked President Clinton last week to "use all the powers and persuasions" of his office to facilitate a settlement of - or an agreement to arbitrate - the American- Allied Pilots Association dispute. The adversaries begin supermediation today in Washington, and the pilots will be free to strike at midnight Friday. After the two sides exchanged financial analyses last Thursday in Fort Worth, American President Don Carty said he still hoped the pilots would agree to arbitration.
Air France appointed Francois Bachelet executive VP and chief operating officer of Air France Cargo and Robert Iversen chief operating officer of the airline's Americas profit center.
FAA will demonstrate Cardion's Cooperative Area Precision Tracking System (CAPTS) in a Parallel Runway Monitor (PRM) mode this week at Atlanta Hartsfield Airport. The agency invited interested parties to witness the demo of what it calls "a potentially low-cost, high-update surveillance system for monitoring simultaneous ILS approaches to closely spaced parallel runways." FAA's budget shows nearly all efforts for surface surveillance systems have been zeroed out of the Fiscal 1998 plan. (See table on Pages 236-238.)
United Airlines Worldwide Cargo Division reported a record $772.5 million in cargo revenue for 1996, up 4.1% from the previous year. Cargo revenues from mail gained 8.3%, and revenues from freight were up 2.4%. Cargo revenue ton miles rose by 5.7% and freight ton miles were up 5.8%, mail ton miles 5.2%. Jim Hartigan, VP-Worldwide Cargo, said the carrier will launch freight service in March between the U.S. and Asia, using two converted DC- 10-30 aircraft, and will add two more in September.
World Airways posted a $4.8 million net profit in the fourth quarter, up from a loss of $1.6 million in the year-earlier period, but the carrier logged a net loss of $14 million for 1996. World retrenched at midyear from flying scheduled service to South Africa and Israel and charters to Europe, which forced it to take $32.3 million in charges against earnings during the year. Operating revenues, without the charges, improved substantially - World posted an operating profit of $21.6 million in 1996, up 36%.
AOPA's Medical Certification Department fielded 20,000 inquiries last year, up 15% from 1995, and medical issues accounted for 17% of the 120,000 calls in 1996 to the association's toll-free "Pilot Hot Line." AOPA said it helped more than 1,000 members avoid denial of a medical certificate last year.
ValuJet plans to inaugurate service March 6 from Atlanta to Akron/Canton, Ohio, a city it has never served. It will operate three peak daily nonstop flights with fares starting at $59 one way. All seats will be available at that price until March 31. The carrier is waiving the 14-day advance- purchase requirement and the advance-purchase requirement for travel connection to Akron from 13 other cities. After March 31, fares will range from $59 to $119 in the Atlanta-Akron/Canton market, and $79 to $189 in connecting markets.
Airborne Express posted operating earnings for 1996 of $79.2 million, up from $69 million the previous year. Revenues totaled $2.5 billion, up from $2.2 billion, and net earnings were $27.4 million, up from $23.8 million. The 1996 results include a non-recurring charge of $3.7 million for the loss of an aircraft. For the fourth quarter, operating earnings were $26.2 million, down from $27.8 million, while revenues rose to $651 million from $602 million. Net earnings were $10.7 million, compared with $12 million.
About half of all communications by pilots and controllers include at least one error, according to an FAA Civil Aeromedical Institute report. The study found mistakes in 40% of 2,500 controller communications and 59% of 5,900 pilot communications.
Several major carriers announced spring and early-summer fare sales last week. Continental took 50% off the regular 21-day advance purchase fare in the U.S., Canada, Europe and Latin America. All tickets must be purchased before Saturday. For domestic points, the sale covers travel through Sept. 30 and requires a 21-day advance purchase and a Friday- or Saturday-night stay. Fares to Latin America do not require an advance purchase or a minimum stay. Tickets to Europe require a three-day advance.
First Women in Freight Conference will be held March 5 at the Sheraton Hotel, Long Beach, Calif., in conjunction with the annual IATA Cargo Week. Women in Freight, founded by Unisys in 1996, is described as the "first organization to address the fundamental concerns of women professionals in the transportation and freight management industries worldwide."
Thai Airways International will lease rather than buy six Boeing aircraft, the airline said, in an effort to help Thailand reduce foreign spending. The airline, owned 93% by the Thai government, also may switch 21 future orders from Boeing and Airbus Industrie to leases. The immediate orders are for two 747-400s and four 777-200s, with a total list value of nearly $800 million. The 21 aircraft that may be lease-financed are six 777-300s, two 737-400s, two 737-500s, two 747-400s, five A300-600s and four A330- 300s.
Northrop Grumman posted record sales for 1996 of $8.1 billion, up from $6.8 billion in 1995. Operating margin for the year was an all-time high - $658 million, up 23% from $536 million. Net income was $234 million versus $252 million the previous year. Results included a non-recurring pre-tax charge of $90 million related to plant closings and a non-recurring pretax gain of $28 million from the sale of shares in ETC Systems.
New liability limit rules became effective as 12 U.S. carriers filed documents that waive the Warsaw Convention ceiling of $75,000 for passengers suffering death or injury in accidents on international flights. Under the new agreement, negotiated last year and gradually being adopted by the world's international carriers, passengers or their surviving relatives can recover full damages awarded by a court unless the airline can prove it was not negligent. If no negligence is proven, plaintiffs can recover up to $139,000.
China Airlines filed supplemental information for its application to conduct scheduled cargo service between Taipei and Miami. CAL told DOT it would accept a limitation on its certificate permitting it to operate the service only through a wet-lease operated by Atlas Air, expected to file its own documents soon. (Docket OST-96-1218)
