Airport Group International, Glendale, Calif., was selected by the Bolivian government to operate three major airports - La Paz, Santa Cruz and Cochabamba - under a 25-year contract. AGI will be responsible for operation, maintenance and capital improvements of the facilities, which represent more than 80% of Bolivian air traffic, and has committed to spending $100 million in terminal expansion and modernization at the three airports. The Bolivian government will receive 20.8% of the profits from operation of the airports.
FAA does not have authority to restrict air tour flights in the Grand Canyon National Park, National Air Transportation Association President James Coyne said as the comment period on FAA's proposal closed. Coyne said the 1978 Airline Deregulation Act "eliminated government control and approval of routes." He described the proposed restrictions as "de facto economic regulation that the 1978 act forbids."
Summary of U.S. National Carriers Systemwide Revenues and Expenses Second Quarter 1996 (In Dollars) Total Operating % Passenger Carrier Revenues Change Revenues American Trans Air 185,896,969 12.28 105,384,173 Carnival 63,834,156 12.94 52,537,264 Hawaiian 96,008,842 12.34 81,398,257
United and the Air Line Pilots Association reached a tentative agreement Wednesday on a mid-term wage adjustment, subject to ratification by the members. The pact would give pilots a 3% pay raise in 1997, 3% in 1998, 2% in 1999 and 2% in 2000. Pilots would be eligible for a profit-sharing payment to be paid in a lump sum of up to 2% in 1998 and 1999, based on the company's performance in 1997 and 1998. United continues to negotiate for mid-term wage adjustments with the Machinists union.
Air France braced for several union strikes during the weekend, cutting 40% of transatlantic service late last week. Unions, truckers and other groups have paralyzed transportation in France for the past two weeks, mirroring a two-week halt to the country's commerce last December. The popularity of French President Jacques Chirac also is at an all-time low.
Standard&Poor's last week raised the equipment trust certificate ratings of American Airlines and Delta to 'triple-B' from 'triple-B-minus" and of United's to 'triple-B-minus' from 'double-B-plus.' About $6 billion worth of securities were affected by the move. Under a new policy, the two-notch enhancement for equipment trust certificates of lower-rated airlines now applies to all non-investment-grade airlines.
A complacent air transport industry received a harsh wakeup call when an unauthorized person - an investigative reporter - was able to roam airport security areas and passenger jetliners at will, according to Ronald Johnson, executive VP and chief operating officer of Ogden Aviation Services. Ogden, which hired the NBC Dateline producer who, with a hidden camera showed how easy it is to circumvent FAA's airport security rules, bore the brunt of a television program that aired Tuesday night. But Johnson said the program pointed out an "industrywide" problem.
DOT confirmed its show-cause order awarding scheduled all-cargo service between the U.S. and Japan to Polar Air Cargo. The award also gives Polar authority to serve one point beyond Japan. DOT confirmed the decision despite objections filed by Evergreen and Gemini Air Cargo.
Continental executives and corporate staff in Houston, continuing what may have become a holiday tradition, went to the airport during the Thanksgiving weekend to help load baggage, assist gate agents and guide the multitude of travelers through the terminals.
Midway Airlines is enhancing its customer service by marketing to female travelers and will launch focus groups next month for feedback. On the second anniversary last week of Midway's introduction of women-only lavatories on aircraft, the airline hosted a luncheon to recognize the requirements of female travelers. Midway said a study by the Female Executives of America found that women believe their travel needs are not met.
Western Pacific has purchased a Thrifty Car Rental franchise in Colorado Springs and its subsidiary, Colorado Car Rental Inc., which is about to open a new location two miles from the airport. Thrifty said this is the first time it has sold a franchise to an airline. Thrifty and Western Pacific have been marketing partners since the end of 1995.
Kiwi International said last week that it has received $2.5 million of a $5 million debtor-in-possession commitment from Edwards/Wasatch Enterprises (EWE) and the funding will allow it to resume scheduled service before the Christmas holidays. EWE committed to another $2.5 million within 60 days, Kiwi said. The airline plans to announce its new schedule and startup date early this week. Kiwi suspended scheduled service Oct. 15.
Minnesota DOT Office of Aeronautics named Chelen Johnson, Breck Elementary School in Minneapolis, and Daniel Whipple, Park Center High School in Brooklyn Park, Minn., winners of the 1996 Minnesota Aerospace Educator Award.
Orally approved Air Atlantic Dominicana's exemption to operate scheduled combination service from Santo Domingo, Dominican Republic, to San Juan, Puerto Rico; Miami, and New York, and to operate charters, without taking action on a dispute over the carrier's trade name, which DOT said could be pursued, if desired, through normal legal channels...Approved Adventure Tours USA charters using an Aviacsa 727-200 for numerous roundtrip flights from Dallas to Cancun, Cozumel and Puerto Vallarta between May 1 and Aug. 25, 1997...Approved Tourex Inc.
Brussels-based Virgin Express is considering the purchase of as many as 25 narrowbody jetliners worth more than $1 billion, tripling the fleet of 12 737s the airline currently operates, the company said. "We are looking into buying aircraft - either used or new," Virgin Express Chief Executive Jonathan Ornstein told The DAILY. The airline, formed this spring with Richard Branson's purchase of EuroBelgian Airlines, is favoring the 128-to 148-passenger 737-700. McDonnell Douglas and Airbus Industrie aircraft also are being considered.
British pilots union BALPA is calling for governments worldwide to address an alarming rate of midair accidents and near-midairs, which, if left unchecked, would lead to 400 deaths per week by 2006. BALPA said it is most concerned about air safety in Africa. The urgent call comes a week after two separate near-midairs over the U.K. and a midair disaster over India that killed 350.
Airlines could save money by using more accurate, real-time forecasts to manage aircraft movements from the gate to the runway, a study by the University of Rochester revealed. Modeling studies showed that it costs more than 50% more to have an airplane warmed up and ready on the taxiway than to keep the plane at the gate. Better forecasting could lower the $1.5 billion FAA estimates airlines pay each year for air traffic control problems. The modeling, from Rochester's William E.
Steve Brown, senior VP-government and technical affairs for the Aircraft Owners and Pilots Association, has been named president and chief executive of the National Aeronautic Association. He will take over the new post early this month. Brown has been with AOPA 16 years and in his present job six. He will continue as chairman of the Aviation Rulemaking Advisory Committee.
Jet Support Services promoted Karl Florian to VP-operations and Greg Hampton to director-corporate communications. Florian also was named chairman of the Professional Aviation Maintenance Association.
Summary of U.S. Major Carriers International Revenues and Expenses Second Quarter 1996 (In Dollars) Total Operating % Passenger Carrier Revenues Change Revenues Alaska 20,630,000 8.84 19,669,000 Latin 20,630,000 8.84 19,669,000 American 1,180,233,000 (0.16) 1,012,970,000
