A USAir order for as many as 400 aircraft from Airbus Industrie could help standardize the airline's multi-type fleet and eventually reduce costs, but the deal is contingent on agreements between the airline and its unions to improve its cost structure. USAir announced "firm orders" for 120 A319/A320/A321s, with 120 more "to be reconfirmed at a later date" and open-date options for 160. The deal signals USAir's desire to spend a significant amount of future capital on narrowbodies instead of growing its widebody fleet.
United is expected to announce today an expansion at its Denver hub thatwould increase its operations there from the current 293 flights per day to more than 300. Shuttle by United, which stopped west of Denver in its last expansion, may be included this time, United sources said, and new service may be added to Las Vegas and Phoenix.
The Air Line Pilots Association (ALPA) has dispatched a team to the U.K. to explain the finer points of employee stock ownership plans (ESOPs) to the British Air Line Pilots Association (BALPA).
Although "some FAA staff personnel" still are working on plans based on the premise that free flight will require fewer air traffic controllers, "in fact, free flight will require more, not less controllers" Mike McNally, VP of the National Air Traffic Controllers Association, said yesterday at an RTCA symposium in Fort Worth. McNally said there is a need "today" for 3,000 more controllers to handle the transition to free flight. The future of free flight is "pure fantasy" unless it meets the needs of controllers, he said.
KLM, seeing salaries and unit costs rising steadily, profits sliding and full European deregulation looming next spring, yesterday launched a "Focus 2000" restructuring program that it expects to reduce expenses by 1.5 billion guilders ($885 million) during the next three years. The reshaping of KLM may include job losses and the revision of its current order for four 747-400 aircraft and one MD-11.
British Airways posted yesterday a 390 million ($608 million) net profit for the first half of its fiscal year, up 20.7%. For the most recent quarter, net earnings rose 23.9% to $429 million, a higher level of profitability than any airline reporting so far this year. The carrier also flew a record 20 million passengers in the period and is on a pace to carry more passengers this year than Continental or Lufthansa. Currently, BA ranks ninth in IATA's global standings, behind the two carriers.
This just in: The Census Bureau now has information on air transportation and other industries, including data on total travel agency sales for the year - the year 1992, that is. The just-released reports can be found quickly on the Internet at http://www.census.gov/prod/1/trans/uc92-s-2.pdf. The Bureau describes itself as the "preeminent collector and provider of timely, relevant and quality data."
British Airways is denying published reports in the U.K. that it is considering abandoning several domestic routes as a condition of its planned alliance with American Airlines. A report from the London Observer, picked up by Reuters, that BA would cut routes to Belfast, Newcastle and Plymouth from London Heathrow is "false," said BA spokesman John Lampl. He said BA has made it clear that it does not intend to give up any slots as a condition for approval, since no other major transatlantic alliance was forced to do so.
Alaska Airlines reported a 12.2% increase in October traffic, from 683 million revenue passenger miles to 766 million. Its available seat miles rose 6.8% to 1.196 billion, lifting the load factor 3.1 percentage points to 64.1%. RPMs for the first 10 months of the year were up 16%, ASMs 8.4% and the load factor 4.4 points to 65.8%. October 1996 October 1995 10 Months 1996 10 Months 1995 RPMS 766,000,000 683,000,000 8,290,000,000 7,147,000,000
European Commission air transport official Ludolf van Hasselt called yesterday for elimination of strict national-origin ownership rules, terming them the largest barrier to the international competitiveness of the world's airlines. Amplifying comments made last week in Washington by his boss, EC Director for Air Transport Claude Chne, van Hasselt told the IATA annual general meeting in Geneva that such a change could bring the aviation sector into the World Trade Organization's General Agreement on Trade in Services.
All Nippon Airways has applied to restart Nagoya-Honolulu service, beginning Feb. 1, operating daily, 420-seat 747s in an all-economy configuration. ANA previously operated the route three times weekly but suspended service in March 1993, when the Japanese economy was slowing. The carrier, which bills itself as "Asia's largest passenger airline," said it retains rights for the service under the bilateral treaty between the U.S. and Japan. ANA also hopes to serve Honolulu from Osaka but cannot operate on the route until the current treaty is revised.
Comair has introduced nine roundtrips between New York LaGuardia and Charleston, Columbia and Greenville/Spartanburg, S.C. The new flights come one month after the Delta Connection carrier started up LaGuardia-Montreal flights. Comair operates the flights with the Canadair Regional Jet.
International Air Transport Association is under a mandate by its membership to take legal action, if necessary, to fight proposed noise restrictions at the London airports. IATA said the steps it may take in the next few days are under review, and it "remains in contact" with the U.K. Department of Transport, which proposed the restrictions.
Airbus and Fokker Aircraft Operating Costs Systemwide Aircraft Utilization Per Day, Second Quarter 1996 A320-100/200 America West Northwest Number of Aircraft Operated 22 50 Total Fleet Operations Departures 109 199 Block Hours 270 550
Rosenbluth International has signed its second partnership agreement in China for travel management services, this one with China Merchants International Travel Co. In 1995, Rosenbluth entered a joint venture with Shanghai Spring International for business and leisure travel between the U.S. and Shanghai. Rosenbluth said travel management is a new concept in China.
DOT issued final approval for expanded cargo transfer flexibility at Anchorage and Fairbanks airports. Excluding airlines from Japan and the U.K., the order authorizes a number of foreign carriers to conduct change- of-gauge service, commingle foreign and non-foreign cargo, interline with other carriers, and make on-line transfers between their own aircraft. The move was supported by the state of Alaska, which has seen traffic declines at its main airports, and by the foreign carriers that will directly benefit.
Western Pacific Airlines' October traffic jumped 97.9% to 129 million revenue passenger miles from 65.2 million in October 1995. Its capacity shot up 82% for the month to 224.9 million available seat miles from 123.5 million, for a load factor increase of 8.7 percentage points to 57.4%. The Colorado Springs airline carried 146,032 passengers during the month, up from 88,269. It plans to expand service to Miami Dec. 4, the day after it ends flights to San Jose.
Lufthansa confirmed yesterday it is increasing air fares 2% for all service within Europe to compensate for rising fuel costs. The carrier joins British Airways, KLM, SAS and others who recently passed on sharply higher fuel costs to passengers and cargo shippers. Lufthansa also will increase first- and business-class fares 2% on flights to North America.
In recent bilateral talks held in London, Japan and the U.K. have agreed to increase mutual service frequencies between Osaka Kansai Airport and London Heathrow from seven weekly 747 flights to nine in April 1997 and 11 in April 1998. Weekly Nagoya-London flights will rise from two to three next April and four in April 1998.
Mary Alice Taylor, FedEx senior VP-U.S. and Canada, is resigning, effective early January, to join Citicorp as a member of the executive management team. Taylor has worked for FedEx since 1980.
Airbus and Fokker Aircraft Operating Costs Second Quarter 1996 Dollars Per Block Hour A320-100/200 America West Northwest United Crew Cost $337 $599 $621 Fuel&Oil 516 499 507 Rentals 751 385 655
American Airlines and ALM Antillean Airlines intend to create reciprocal code-sharing programs between the U.S. and the Caribbean, starting early next year. The agreement also will allow ALM to participate in American's AAdvantage program. American's codes will be placed on ALM flights between Atlanta, San Juan and Miami and several island destinations. ALM, which operates three MD-80s and several regional aircraft, will place its code on American's service from Miami to Aruba, Curacao, Port-au-Prince, St.
Hawaiian Airlines will auction off 67 Los Angeles-Honolulu roundtrips Nov. 11 on the Internet to celebrate its 67th anniversary. Online visitors can submit bids until that date at http://www.hawaiianair.com. Bidding closes at noon, Hawaii Standard Time. Tickets are valid for travel Nov. 15-Dec. 15.
British Airways won yesterday a French court approval to acquire ailing Air Liberte, which was put into receivership Sept. 26. After the decision, BA immediately went to work, announcing plans to increase service within France and cut unprofitable international operations. BA, which will hold a 67% stake in Air Liberte, has pledged to invest 440 million French francs ($86 million) in share capital, while bidding partner Banque Rivaud promises to spend FF190 million ($37 million). Banque Rivaud already owns 32.4% of the carrier.
Sabre Travel Information Network's Segment Revenue Management product enables airlines to improve control of their inventories and "generate enhanced revenues - potentially worth millions of dollars per year," Sabre said. The tool is the only one on the market that gives carriers the ability to join up to three flight segments as a single unit, maximizing the origin-destination revenue mix for each flight.
