McDonnell Douglas, losing competitions on both the commercial and military fronts last week, sold seven MD-11 freighters in the last two weeks, a company official said. Despite the setbacks, it has a $9 billion backlog amounting to three years of deliveries. But the bad news may not be over. After losing contests for massive orders at USAir and American, sources said last week Douglas also is out of the running for Delta's expected $3 billion widebody order.
House Appropriations Transportation Subcommittee Chairman Frank Wolf (R- Va.) has asked President Clinton to nominate an FAA administrator quickly, "before the Christmas holiday if possible." In a letter to Clinton, Wolf outlined a host of issues that will require the administrator's full and early involvement, including aviation safety, FAA reform and aviation system financing.
KVERT, the volcano response team for the Kamchatka Peninsula, Russia, said its $10,000 IATA loan will run out next month and it will require $25,000 more to maintain its current level of operations in 1997. The Russian- American Coordinating Group for Air Traffic, which heard the volcano team's request at a recent meeting in Seattle, said KVERT's work is of utmost importance to Russian Far East and Northern Pacific aviation operations, and a permanent funding solution should be established.
Representatives of Canada's Department of International Trade renewed negotiations with Brazil last week regarding Brazil's PROEX export finance program (DAILY, Nov. 15). Canada has complained to the World Trade Organization that the program's interest rate buy-down, about 3.8%, violates WTO rules. The debate focuses on the recent order by Continental Express for 25 Embraer EMB-145 regional jets, plus 175 options. Competitor Bombardier Regional Aircraft Division complained to the CDIT, which in turn went to the WTO.
- In Federal Register dated Nov. 18...Proposed special conditions for Embraer EMB-145 aircraft to establish safety standards for certification of the aircraft with thrust reversers as optional equipment...Proposed an airworthiness directive on certain Boeing 747 aircraft requiring an inspection for corrosion and cracking of the upper deck floor beam...Proposed an AD on certain Boeing 747-200, -300 and -400 aircraft requiring inspections for cracking of the front spar web of the center section of the wing.
For the second consecutive year, United has won a food contest sponsored by the Physicians Committee for Responsible Medicine, which ranks airline menus for availability of low-fat foods and vegetarian dishes. United serves a cholesterol-free vegetarian steak with pasta and curry sauce that is 6% fat and a cholesterol-free mushroom ravioli with 14% fat. American and TWA received honorable mentions for their cholesterol-free vegetarian dishes, and Northwest for a cholesterol-free veggie sandwich. Delta ranked last--its vegetarian option is 48% fat.
TWA has withheld disclosure of its scaled-back January schedule and winter aircraft downsizing at the request of the Machinists union, which wanted more time to refine the plan. President Jeffrey Erickson told employees last week that both domestic and international routes will be cut, including some out of New York Kennedy. TWA plans to ground some 747s, replacing them with 767s, and ground L-1011s, replacing them with MD-80s or new 757s. Erickson said the changes will start adding "millions of dollars" to the carrier's bottom line immediately.
Revised U.S. Major Carriers Traffic October, 10 Months 1996 (000) October October % 1996 1995 Change Alaska Revenue Passenger Miles 766,000 683,000 12.2 Available Seat Miles 1,196,000 1,120,000 6.8 Load Factor (%) 64.0 61.0 America West
Eastwind Airlines, a niche 737 operator based at Trenton-Mercer Airport outside Trenton and Philadelphia, plans a threefold service expansion: it will add a third daily Boston flight to accommodate business travelers, inaugurate flights on Tuesdays, when it previously had no passenger operations, and expand existing Saturday service throughout its system. Eastwind serves Orlando; Atlanta Hartsfield; Boston Logan; Richmond, Va., and Piedmont Triad in Greensboro, N.C.
The National Transportation Safety Board ended a week of hearings into the May 11 ValuJet crash with testimony suggesting that FAA flight standards officials in Washington withheld from the agency's Flight Standards District Office in Atlanta a report critical of FAA's surveillance of ValuJet.
Airlines Reporting Corporation said total travel agent sales processed in October reached $5.220 billion, up 2% from last October. Sales for the first 10 months of the year were up 4% to $54.332 billion. Domestic fares increased 9% during the period and international fares 8%. Domestic commissions have risen 2% so far this year, totaling $3.253 billion, while international commissions grew 3% to $2.270 billion. ARC has 149 participating carriers, including three railroads, and 47,564 accredited travel agency locations.
U.S. National Carriers Traffic October, 10 Months 1996 October October % 1996 1995 Change American Trans Air Revenue Passenger Miles (000) 573,821 622,053 -7.8 Available Seat Miles (000) 872,494 927,344 -5.9 Load Factor (%) 65.8 67.1 Passengers 347,175 377,721 -8.1
Korea is regarded as one of the five likeliest prospects for an Asia/Pacific open skies agreement, but DOT is "concerned" that it is blocking what World Airways considers routine changes of its routes beyond Seoul, according to Gerchick. "We hope we can have a more positive response and better communication with Korea on this issue," he said. The current U.S.-Korea bilateral is "quite open," he said.
The board of directors of Western Pacific Airlines has named former TWA chief financial officer Robert Peiser as president and chief executive of the Colorado Springs-based airline. Founder Edward Beauvais will retain his duties as chairman while handing over daily operations to Peiser. Beauvais said if Westpac is to remain competitive, "we need the kind of leadership a top executive like Bob Peiser can provide." The carrier said Peiser is often referred to as a "turnaround" specialist.
FAA last week extended until Dec. 2 the deadline for the City of Los Angeles to return $31.1 million to Los Angeles Airport, giving the City Council a chance to act on the issue at a meeting tomorrow. Susan Kurland, FAA associate administrator of airports, originally requested that the funds be returned in 10 days (DAILY, Nov. 15), but Los Angeles Councilman Nate Holden subsequently asked for a delay so that the City Council could consider his motion to direct that the funds be returned to the airport account.
If DOT grants new route authority and code-share renewal to Polynesian Limited, it should make clear that all authority will be terminated if it catches the airline carrying cabotage traffic again, according to Hawaiian Airlines. "The history of Polynesian's efforts to establish, continue and then re-establish its service between Apia and the United States, especially Honolulu and Los Angeles, has been well documented in various pleadings," Hawaiian said in a DOT filing.
Japan's five airframe manufacturers expect to sign a memorandum of understanding soon with Boeing providing for about 18% participation in the U.S. company's 747 upgrade programs, the 747-500X and -600X. Japan's Ministry of International Trade and Industry is asking the Ministry of Finance for a $5.4 million subsidy for the manufacturers - Mitsubishi Heavy Industries, Kawasaki Heavy Industries, Fuji Heavy Industries, ShinMaywa Industry and Nihon Aircraft Manufacturing Co.
Latin America has an emerging class of "entrepreneur owner-managers" running airlines such as TACA, LanChile and LAPA, according to Tom Gallagher, managing director of CIBC Wood Gundy. Prospering carriers are building domestic and regional empires, he said, knowing that down the road this will be their bargaining chip for linking with global airline alliances.
