Air Lanka reports the number of passengers carried in November was higher than in any November since the carrier was formed 17 years ago. In what is traditionally a slow month for the carrier, Air Lanka recorded a passenger load factor of 74.6% in November. A company spokesman said the improved results were the payoff from an aggressive systemwide marketing campaign that offered special fares to promote key markets and increase traffic on European routes.
TAP Air Portugal ordered 18 A319s with the option of converting five of the orders to A320s, Airbus said yesterday. The CFM-powered aircraft will hold 132 passengers when deliveries start in 1997. TAP will operate an all- Airbus fleet when the last of the 18 are delivered in 2000.
EVA Airways ordered two 747-400s hours after the merger between Boeing and McDonnell Douglas was announced, the carrier said yesterday. EVA said it plans a "similar event soon with McDonnell Douglas for two MD-11s." It plans to take two MD-90s in May to join one in operation.
Vanguard is holding an "incredibly low everywhere we go" sale in which children fly free. The fares require a one-day advance purchase. Tickets must be bought by Dec. 31 and travel completed by June 15. Examples of the fares are Chicago Midway-Minneapolis $49, Kansas City-Atlanta $42 and San Francisco-Minneapolis $79.
Initial proposals from the Clinton administration for $500 million in aviation user fees in fiscal 1998 and a 100% user fee-funded FAA in fiscal 1999 "are premature and would be a serious mistake if made a part of the final President's budget submission for the coming fiscal year," said Rep. Frank Wolf (R-Va.), chairman of the House Appropriations transportation subcommittee. In a Dec. 17 letter to President Clinton, Wolf noted reports (DAILY, Dec.
SAS, in a move to reduce idle capacity and boost operating margins, is shutting down or reducing frequencies on half a dozen of its international destinations. The route cancellations, to be staggered starting in the new year, will reduce the size of SAS's overall services network by 2%. But the company said that by shifting the released capacity to other routes, it should see a 3% rise in net production during 1997. SAS's Copenhagen-Minsk route will be canceled as of Jan. 1, followed by the elimination of its Osaka service on March 1.
American Chairman and Chief Executive Robert Crandall, noting that competition in the airline industry will likely intensify with emerging technologies and expanding opportunities, said yesterday growth and the success of individual companies also will require cooperation. In a prepared speech for the Wings Club in New York, he pegged several areas of government regulation and taxation to be watched. Crandall said the proposal by the U.K. to increase the departure tax from five pounds to 10 pounds is a way of taxing those who cannot vote.
National Transportation Safety Board member John Goglia is on the Clinton administration's "short list" for deputy administrator of FAA, according to sources. One source said nominating Goglia would be a "bold move" in reforming FAA. Another said Goglia would need a "strong administrator" to direct his activities.
Korea's Ministry of Construction and Transportation (MOCT) plans to build a new airport in Muan County near the port of Mokpo in South Cholla Province. Construction, scheduled for completion in 2001, is estimated to cost about 260 billion won - about US$325 million. The Muan airport will have a 2,500-meter runway, a passenger terminal with floor space covering 40,000 square meters and cargo, hangar and parking facilities.
A U.S. District Court judge in New York ordered USAir, British Airways and American to release more documents to each other in the discovery process as USAir's alliance-related lawsuit against the carriers progresses. The airline is pursuing a case on antitrust grounds against both carriers and breach-of-contract against BA. Of interest to USAir are BA and American documents that may describe how the proposed alliance would affect the smaller carrier.
European Union is taking a close look at the Boeing-McDonnell Douglas merger, with an eye to launching a full-scale inquiry into the deal. "It is more than likely that we will have to investigate" the merger, said EU Competition Commissioner Karel Van Miert yesterday in Brussels. Van Miert expects the U.S. manufacturers to give formal notice of their agreement to the European Commission in January. "This will be a complex and problematic issue," warned the Commissioner.
CFM International said yesterday its CFM56-7 engine for Boeing's next- generation 737 family was jointly certified by U.S. and French civil aviation authorities. Engines were delivered in October to Boeing and have been installed on a 737-700 in preparation for first flight next February. Launch customer Southwest will take delivery next October.
Gulfstream V, which Gulfstream Aerospace describes as the "world's first ultra-long-range business jet," has received FAA certification. The company said it has a firm $3 billion backlog for Gulfstream V and IV-SP business jets.
Garuda yesterday accepted delivery of its first Airbus A330-300 and its first extended-range Douglas MD-11 at ceremonies in Toulouse and Long Beach. Garuda will get six of the Rolls-powered A330s by the end of next March and three more by mid-1998. The A330s will carry 42 Executive Class passengers and 251 Economy Class passengers. Garuda, which now operates six MD-11s, will get two more MD-11ERs in 1997. The Garuda MD-11ER will carry 300 passengers in three classes.
U.S. Major and National Carriers Food Expenses Third Quarter 1996 Cost Per Systemwide Passenger Alaska $ 12,219,000 $ 3.57 America West 5,773,813 1.24 American 164,830,000 7.92 Continental 34,553,000 3.70 Delta 92,262,000 3.65
Aer Lingus plans to begin scheduled service from Newark to Dublin and Shannon in mid-May. The six weekly flights will be in addition to service from New York Kennedy, Boston and Chicago. Aer Lingus's planned Newark operation will extend the airline's reach to passengers beyond the East Coast, since flights will connect with service to 170 additional cities via its code share with Delta. Newark-Shannon air fares will start at $498 roundtrip.
FAA said it has rated aviation safety oversight by Thailand as "conditional." This means FAA inspectors found areas of safety oversight by Thailand's civil aviation authority that did not meet ICAO safety standards. It also means that Thai carriers will be permitted limited operations to the U.S. while negotiations continue to implement corrective measures. Thai carriers will be under heightened FAA inspections and surveillance.
Onur Air signed a contract for one A321, bringing its A321 fleet to four by next November, Airbus said yesterday. Its IAE-powered A321s carry up to 220 passengers.
Sky Games International and its joint venture with Harrah's Entertainment Corp., called Interactive Entertainment Limited (IEL), has signed a strategic sales and marketing agreement with Nichimen Aviation Corp. of Tokyo. Nichimen will provide IEL with sales and marketing services in Southeast Asia, which is Sky Games' target market. Gordon Stevenson, president of IEL, said, "This relationship has already resulted in top- level meetings with a major Asian airline.
Australia's Federal Airports Corp. is completing a study of upgrades needed in Sydney Kingsford Smith Airport's international terminal to accommodate peak-period traffic during the 2000 Olympic Games. FAC is asking firms to express interest by Jan. 9 in working on the project, which will include new gates and a "substantial reworking" of the existing terminal.
Miami-based Rich International Airways, the target of several recent filings attacking its integrity and opposing its effort to resume operations, filed in response this week and denied a variety of charges, including those from former employees and creditors David Jewhurst and Donald Hackman that Rich officials told employees to deviate from FAA procedures (DAILY, Dec. 16).
The fate of the narrowbody aircraft market is one of several questions left unanswered by the Boeing-McDonnell Douglas announcement. One factor may be 737 facility size. Boeing told investment managers last week it could build 600 737s annually - or 55 per month - at maximum capacity in Renton and Everett, said Gruntal&Co. analyst Steve Lewins.
United and EarthLink Network Inc. have joined forces to develop and distribute Internet travel reservations software. The two companies will combine EarthLink's TotalAccess software with United's United Connection Internet reservations service.
Air 21, the struggling F28 operator in Fresno that celebrates its first anniversary tomorrow, is desperately seeking new investors. The carrier was forced to cancel most of its flights Dec. 11 and was not back to 100% service until the following Saturday after ground-handler Delta refused to provide service because its bill had not been paid. Delta provides the service in San Francisco, Los Angeles and Las Vegas. Air 21's Reno service also was in jeopardy for a few days this week.
Prestige Airways signed a consent order with DOT for violating advertising regulations. The scheduled carrier agreed to pay $5,000, with another $5,000 suspended if no further violations are recorded. DOT cited an Aug. 28 newspaper advertisement for $29 fares from Chicago Midway to St. Louis and Flint/Detroit. The department said the ad failed to include passenger facility charges, failed to note PFCs were not included in the price, and did not indicate the fare was non-refundable.
