Russian carrier Baikal Airlines, based in Irkutsk, filed a suit in the U.S. District Court for the District of Connecticut against Empire Capital Corp., Stamford, Conn., charging breach of contract, breach of fiduciary duty, conversion, theft of funds and breach of the Connecticut Unfair Trade Practices Act. Baikal claims that Empire, an investment banking firm that buys and leases commercial aircraft, faxed it a proposed letter of intent in May for the acquisition of a 1986 757-200.
Japan does not support "the U.S. version of open skies" and believes it is "not really open," a Japanese official told The DAILY last week. Japan backs liberalization but wants "equal opportunity for Japanese carriers," including access to the "huge domestic American market," the official said. Another pitfall: the open skies concept "does not consider the capacity limitations of various key airports which international carriers would like to serve," including Tokyo Narita, Kansai and slot-constrained U.S. airports.
President Clinton has nominated Federal Highway Administrator Rodney Slater to be DOT secretary. Slater, a longtime political supporter of Clinton from Arkansas, served in a variety of state government executive positions and was chairman of the Arkansas State Highway Commission before coming to Washington. Slater, who does not appear to have any professional experience with air transportation, worked on the presidential transition team following Clinton's first presidential victory before taking over the Federal Highways post in 1993.
Kiwi, which still expects to resume scheduled service after the holidays and is flying charters in the meantime, has as its newest customer ValuJet, the airline it blamed for creating the conditions that forced it into bankruptcy. ValuJet, back in limited operation, hired Kiwi and two other carriers to fly charters to points it offered but cannot serve.
- In Federal Register dated Dec. 13...Issued special conditions on Gulfstream G1159A aircraft modified by Chrysler Pentastar to include a head-up display...Proposed an AD on Dornier 328-100 aircraft to require a check of the clearance between certain wing-to-fuselage braces.
U.S. Major Carriers Operating and Net Profit Nine Months 1996 Operating Net Profit/Loss Profit/Loss (000) (000) Nine Months 1996 Alaska $ 87,272 $ 45,298 America West 43,257 (3,563) American 1,115,880 488,604 Continental 302,948 272,927
IATA said Friday it is concerned about what it called rumors that point to a doubling of user charges at the new Chek Lap Kok Airport in Hong Kong. If the rumors are confirmed, IATA estimates the charges could amount to about US$150 for a family of four departing from Hong Kong. IATA Director General Pierre Jeanniot said he recently met with the airport authority to express airline concern about the possible fee increases, adding that he also raised the question of the sale of the old Kai Tak Airport.
The National Aviation Associations Coalition offered a list of qualities it hopes to see in the next FAA administrator, a slot that came one small step closer to being filled now that President Clinton has nominated Federal Highway Administrator Rodney Slater to be DOT Secretary.
TWA has promoted Michael Palumbo to chief financial officer and senior VP from VP and treasurer, effective immediately. Palumbo replaces Edward Soule, who has resigned.
FAA issued a final rule Friday on civil penalties for inflation as determined by cost-of-living adjustments. The first adjustment may not exceed 10% of the previous penalty, the agency said, and any increased penalties "apply only to violations that occur after the date on which the increase takes effect."
Kiwi International Air Lines leaped its last restructuring hurdle Friday - getting approval to have its flights listed on computer reservations systems - before it resumes scheduled passenger service in January. The airline was forced into court to secure those listings after three of four CRS vendors, Sabre, Galileo and System One, wanted payment of balances owed prior to Kiwi's Chapter 11 bankruptcy filing. "Unfortunately, we can't do that under bankruptcy rules," said Kiwi spokesman Rob Kulat.
SAS plans to reduce the commissions and bonuses it pays travel agents in Scandinavia for traffic within the region, beginning April 1, as its customers become increasingly able to book their own tickets. Evaluating the agents' pay structure, the airline said its aim is to compensate them "according to the task performed," depending on the nature of the product sold and "the competitive situation on the market."
United will attempt to fill more than 1,000 flight attendant positions in 1997 for North American routes. Although it continues to seek flight attendants who speak a language in addition to English to serve foreign customers, it told employees Friday that it will consider for a limited time candidates who speak only English.
Air Line Pilots Association said last week it supports a proposed FAA rule to require that flight attendants be proficient in English. The FAA Aviation Rulemaking Advisory Committee has decided to draw up rules requiring flight attendants to be able to read, speak and communicate clearly in English, a rule that exists now for pilots, air traffic controllers, dispatchers, mechanics and airport security personnel. ALPA said that English is necessary for flight attendants for effective crew resource management.
U.S. Major Carriers Operating and Net Profit Third Quarter 1996 Operating Net Profit/Loss Profit/Loss (000) (000) Third Quarter 1996 Alaska $ 53,101 $ 31,558 America West (53,143) (45,706) American 443,741 207,405 Continental 24,876 17,655
Korean Air Lines (KAL) and Asiana have applied for exemptions to serve new U.S. points as U.S. industry and government officials keep trying to resolve differences over operations by World Airways and Gemini Air Cargo in Korea (DAILY, Dec. 17). DOT Deputy Assistant Secretary for Aviation and International Affairs Mark Gerchick said last Thursday that government efforts have continued at the embassy level, and Gemini Air Cargo President and Chief Executive William Stockbridge returned last week from meetings in Seoul with government officials.
Although the FBI appeared ready to pay for part of the costs of investigating the crash of TWA Flight 800, Attorney General Janet Reno denied permission for the agency to do so, according to Jim Hall, chairman of the National Transportation Safety Board. Instead, the safety board will have to dip into some of its fourth-quarter Salary&Expense appropriation to pay for ongoing costs connected with continued scallop trawling and mockup of the fuselage wreckage, Hall said in a letter to Sen. Mark Hatfield (R-Ore.), chairman of the transportation subcommittee.
Daimler-Benz Aerospace AG has completed development of a surface movement guidance and control system for airport authorities. The routing system, created by the Daimler-Benz Airport Systems subsidiary in Friedrichshafen, enables a control tower to calculate the most favorable taxiway for landing aircraft by analyzing taxiing direction values and current hold instructions for all route sections. The system can handle single or multiple route generation functions simultaneously.
Mexicana has leased two Boeing 757s from International Lease Finance Corp. ILFC said the two aircraft have been delivered, and it is negotiating the lease of a third for delivery next year.
