Millon Air formally requested an immediate exemption to wet-lease flights for its customers through certificated U.S. all-cargo carriers as it works to restart operations with its own aircraft. Supporting letters also were filed this week by clients in Ecuador and Florida. Millon was shut out of new all-cargo allocations to Brazil after it ceased operations following a Millon 707 crash in Ecuador this fall (DAILY, Dec. 13). (Docket OST-96- 2012)
Airbus A319 powered by International Aero Engines' V2524 powerplant has received European Joint Aviation Authorities type certification. The aircraft with CFMI CFM56-5B engines was certificated by the JAA last April. Both versions also were certificated by the Commonwealth of Independent States. First customer for the IAE-powered A321 is International Lease Finance Corp.
U.S. Major and National Carriers Landing Fees Third Quarter 1996 Average Amount Systemwide Spent Per Landing Alaska $ 6,074,000 $ 146.01 America West 8,447,625 160.71 American 61,680,000 307.25 Continental 30,441,000 267.32
India's privately owned domestic carrier NEPC Airlines has signed an aircraft purchase agreement with Airbus Industrie for acquiring 11 A320 aircraft at a cost of nearly 11 billion rupees (US$315 million), NEPC officials said Tuesday. The aircraft are scheduled for phased delivery culminating in 2000, they added. The sale is Airbus Industrie's first among India's private carriers and comes close on the heels of Boeing's US$320 million deal with Jet Airways for 10 latest-generation 737s.
The Pakistani government is laying plans to privatize Pakistan International Airlines and other transportation entities in the country, said a source close to the airline. Pakistan is moving quickly to package the offerings and expects to conclude the public offerings before the end of 1997.
Frontier Airlines said yesterday it will lease two new 737-300s from Boullioun Aviation Services. The 138-seat aircraft are to be delivered in August 1997 and January 1998. They will bring to 14 the number of 737s in Frontier's fleet including 10 now in service and two to be delivered next April and August under previously announced agreements with other leasing firms.
Air Canada experienced a 10.3% rise in November revenue passenger miles and a 5.4% capacity gain. The load factor increased 2.5 percentage points to 57.1%. International traffic, up 12.2%, led the airline on 6.1% more capacity. Domestic traffic increased 7.1% on 4.3% more capacity. For the year to date, international traffic rose 20.6% on a 17.6% capacity gain.
British Airways, in its decision yesterday to sell its 23.11% stake in USAir, effectively has closed the door on the three-year partnership, the same alliance that BA trumpeted earlier this year as valuable to its strategic future. Industry observers noted that the move makes a BA tie-up with American more likely, since there will be no more three-way alliance implications and BA's three directors will resign from the USAir board when the sale is complete. The value of the sale, based on documents obtained by The DAILY, is approximately $451 million.
Delta has decided not to resume seasonal service to Juneau, Alaska, this summer, saying it must put its resources where they have the greatest revenue potential. Delta said the decision will not affect its service at Anchorage or Fairbanks.
Fokker Aviation said its services division received a five-year contract from American for technical and logistical support services for the carrier's fleet of 75 F100s, including engineering and operational assistance, and joint product improvements. Fokker Aerostructures received an order from Boeing to supply lightweight wing components. Fokker Services and Fokker Aerostructures are two of the four healthy companies combined in Fokker Aviation.
FAA is considering whether to issue an airworthiness directive affecting third-party freighter conversions after engineers learned of possible structural integrity problems. FAA spokesmen said the agency recently met with cargo operators over the issue and is examining what action to take.
The U.K. Monopolies and Mergers Commission, at the request of the U.K. Civil Aviation Authority, will investigate and report on the maximum level of airport charges for Manchester Airport for five years beginning April 1, 1998. CAA, required by law to request the investigation every five years, has asked the MMC to look at a number of issues, including the airport's capital program and the regulatory implications of Manchester Airport's status within the public sector and the valuation of the airport's assets.
U.S. major carriers, led by Continental, have taken much more decisive actions this year by raising fares 10% in recent days on 21-day advance purchase tickets in anticipation of the expiration of the 10% federal excise tax on tickets at midnight Dec. 31. The ticket-tax-lapse strategy will add hundreds of millions of pre-tax dollars to their coffers. Last year, as the ticket tax expired Jan. 1, carriers were more hesitant, choosing instead to enact four separate fare increases during the first quarter, spreading the fare hikes on a more gradual basis to passengers.
Thailand's Transport and Communications ministry has disqualified the sole bidder for a license to operate the country's second international airline, saying the bidder failed to meet the requirement for posting a 500-million- baht bond.
U.S. Air Force issued this week a request for proposals for an Air Sovereignty Operations Center (ASOC) that will support the peacetime mission of air sovereignty for the Czech Republic, Hungary, Poland, Slovakia and Romania. The basic contract is for three complete systems with options for five more. The RFP was issued by the Electronic Systems Command at Hanscom Air Force Base, Mass. The ASOC concept grew out of the Regional Airspace Initiative, which is part of the NATO Partnership for Peace program.
IATA said a travel association complaint against its planned World Wide Web site should be dismissed. A recent Association of Retail Travel Agents (ARTA) filing at DOT charged IATA, Cathay Pacific, Aer Lingus and Icelandair with setting up Web sites that would sell tickets at below- tariff prices (DAILY, Dec. 4).
The Malaysian government has singled out the development of an indigenous aerospace industry as a significant contributor to export earnings after 2000, according to the country's recently issued Second Industrial Masterplan. The plan envisages development of the aerospace industry spearheaded by the manufacture of light aircraft. So far, the Malaysian government has taken the lead in developing the aerospace sector, but the private sector is being encouraged to take initiative as well but has generated only a few proposals.
Embraer said it has received FAA certification of its EMB-145 aircraft, and Continental Express President David Siegel said service with the 50- passenger regional jet will begin next March. Continental Express has 25 firm orders valued at more than $375 million, with options for another 175 over a 10-year period. It will take delivery of four this month, 12 in 1997 and 18 per year starting in 1998, Siegel said. The aircraft will be used to expand the carrier's three major hubs - at Cleveland, Houston and Newark.
Northwest and its pilots union have reached a tentative agreement on staffing and productivity issues that would increase the pilot flying hours, while committing the carrier to put more aircraft into service. The tentative pact gives Northwest the flexibility of requiring more hours of flying on 747 and DC-10 aircraft but at higher rates of pay, said the Air Line Pilots Association. Northwest declined comment on the agreement, which the pilots say also includes more voluntary overtime.
KLM will raise fares today on flights from The Netherlands as much as 5%, the carrier said. After raising Amsterdam-U.S. fares 5% since Nov. 12, KLM said it now will raise fares in most other international markets. The move "is based on industry-wide IATA consultations and follows similar action by several major IATA carriers," KLM said. Passengers will pay 4% more for tickets from The Netherlands to the Middle East; 3% more to Brazil, and 5% more to all other destinations, except to the U.S. Lufthansa said yesterday it will raise fares 3% globally within days.
Privately owned Indonesian carrier PT Sempati Air has undergone a management shakeup in preparation for its bid to list its stock on the Jakarta exchange in 1997. "The changes in Sempati's directors, besides anticipating plans to go public, are to raise the company's performance in order that it can compete, not just with domestic firms but also with foreign ones," said Hutomo Mandala Putra, the carrier's president- commissioner.
U.S. National Carriers Traffic November, 11 Months 1996 November November % 1996 1995 Change American Trans Air Revenue Passenger Miles (000) 514,171 594,548 -13.5 Available Seat Miles (000) 819,653 879,183 -6.8 Load Factor (%) 62.7 67.6 Passengers 307,425 383,193 -19.8
The Sri Lankan government, seeking to sell off 40% of Air Lanka in a privatization program, has identified the most likely buyers. They are Air Asia Ltd., represented by the Mercantile Group of companies, and a U.S. consortium associated with the Maharajah Organization. Two other potential buyers are Malaysian Airline System and Thai Airways International, a government spokesman said. At least 77 potential buyers expressed an interest in acquiring all or part of the shares offered.
A 24-hour strike by 767 pilots of All Nippon Airways on Sunday forced the cancellation of 30% of the carrier's domestic service. The halt was the second in a month, after pilots walked out Nov. 19 with the same protest over a new work rule and wage agreement that took effect in April. "The strike only affected domestic service," said ANA spokesman Tom Fredo, noting that the airline did not expect another walk-out this month. By Japanese law, strikers must give 72 hours' notice to the company.
FAA is proposing to prohibit use of airport revenues for direct subsidy of airline operations, although an airport could waive or discount an airline's landing fees or other fees during a promotional period.
