...Regional jet operations "offer the greatest new-equipment profit potential in the airline industry today," according to another APA source, who said, "Abdication of the regional jet to Eagle will be the death knell of domestic scope at American." He predicted there would be 200 Eagle jets on the property in five years. "These aircraft are clearly not just 'feeder jets.' They are the foundation for a new category of flying at any major carrier that operates them, capable of both bypassing hubs as well as replacing current larger-jet service," he declared.
Singapore Airlines and Indian conglomerate TATA Industries will have to wait several weeks to launch a new airline in India. The Indian Civil Aviation Ministry is delaying action on the proposed joint-venture airline until it announces a new aviation policy in mid-October, SIA said. "The government said it will not rule on the proposed joint venture until after that event," said SIA spokeswoman Kandy Akina. The joint venture is under consideration by India's Foreign Investment Promotion Board.
American Society of Travel Agents announced that Joe Galloway of Trans- Continental Travel in Houston was the winner of the run-off election for senior VP of the society. He will serve a two-year term beginning next month. In the only other run-off election to be held this year, Bernice Cordero was elected president of ASTA's Puerto Rico/Virgin Islands chapter.
American filed suit in a Texas state court Tuesday night alleging that Northwest seeks to stop the consulting firm Roberts Roach&Associates from completing a study on the proposed American-British Airways alliance. The firm was retained by American to analyze the economic impact of a U.S.-U.K. open skies agreement and rebut reports issued by airlines opposing the alliance, including Northwest. Northwest, which had worked with Roberts Roach on other projects, sued the firm Sept.
USAir yesterday selected GE Engine Services as its primary engine overhauler and maintainer in a deal spanning several years and potentially worth hundreds of millions of dollars. USAir had decided not to renew an existing contract with Aviall, now a unit of Greenwich Air Services (DAILY, Sept. 24). The new contract covers more than 300 engines, including CFM International CFM56 series turbofans powering more than 130 Boeing 737 single-aisle twins, as well as GE CF6s powering a dozen Boeing 767s.
Continental Express posted a 20.4% increase in traffic last month to 89.8 million revenue passenger miles from 74.6 million in August 1995. Capacity rose 16.9% to 162.8 million available seat miles from 139.2 million. The resulting load factor gained 1.5 percentage points to 55.1% from 53.6%. Passenger boardings increased 11.2% to 399,456 from 359,379. August 1996 August 1995 ----------------------------- Rev. Passenger Miles 89,772,355 74,573,000
SITA said yesterday it has signed a contact with the Sabre Group to create the "world's largest international virtual private network (IVPN)." The network will connect all international locations for American Airlines, a customer of Sabre.
House and Senate negotiators reached tentative agreement yesterday on a final FAA reauthorization bill (H.R.3539), consolidating into one package the major aviation legislative initiatives for the 104th Congress. They adopted in principle a compromise on the airport privatization program proposed by the House that had been a main point of contention in the past several days. In addition, "fast track" procedures for House consideration of FAA financing reform legislation to be proposed by DOT were dropped.
British Airways, taking a new direction in the battle for approval of its proposed alliance with American, launched yesterday a U.S. campaign to inform journalists, politicians and government transportation officials about the extent of its ongoing investment in the U.S. economy. The airline said it supports "almost 400,000 direct and indirect jobs through staffing, manufacturing, tourism, sales and investment, and will impact on at least 39 states," according to a BA document sent overnight to reporters.
DIGEX Aero Cargo is seeking an exemption to operate charter all-cargo service between a point or points in Brazil and a point or points in the U.S. Operating a leased DC-8/62F configured for cargo, the Brazilian carrier currently operates charter cargo service within Brazil, and to Lima. (Docket OST-96-1723)
The U.S. government is expected to tender by late October a contract jointly funded by FAA and the Defense Department to help five Central European countries update and harmonize their civil and military air traffic control systems. The unprecedented transaction will help each of the five nations - Poland, Hungary, Romania, Slovakia and the Czech Republic - create a national air sovereignty operations center, or ASOC, and improve regional cooperation by enabling the centers to exchange radar information in real time.
Harris Corp. is developing an antenna that will enable airline passengers to tune in their favorite television shows in flight. Harris was chosen by In-Flight Phone Corp. to develop and manufacture an inflight entertainment system that will provide live TV on Continental aircraft. IFPC brought together Harris and DirecTV, a leading direct broadcast service, to equip the aircraft to receive and display satellite signals during flight. Starting next summer, Continental passengers will be able to tune in more than 20 channels of live TV.
Pilots of American Trans Air ratified yesterday a tentative agreement reached Aug. 6 with the airline. The four-year agreement was approved by 84% of voting members. Negotiations had stalled earlier this year, when a tentative agreement was rejected by the pilots in January due to pay and scheduling conflicts. The pilots elected the International Brotherhood of Teamsters as their collective bargaining representative in June 1993. "We think the contract is good for both sides," said ATA spokeswoman Mary Cochran.
South Korean conglomerate Samsung, repeatedly named in Dutch press reports as an imminent rescuer of the remaining assets of Fokker, has proposed a takeover package in which the Dutch government, the Stork Group now controlling some former Fokker assets, and Samsung would split ownership of a reborn aircraft company focusing on regional aircraft, officials close to the talks confirmed this week (DAILY, Aug. 22). Under the proposal, sources said, Samsung would control 70% of the new Fokker aircraft company, with Stork and the Dutch government each holding 15%.
Cryotech Deicing Technology announced a one-million-gallon expansion of its liquid deicer storage capacity at its Fort Madison, Iowa, plant to meet growing demand for E36, its potassium acetate runway deicer. Cryotech said E36, an alternative to glycol and urea-based deicers approved by FAA in 1991, has a low environmental impact and is essentially non-toxic to aquatic life.
Air Pacific will delay its nonstop service from Vancouver to Nadi, Fiji, until early 1997. The Fiji-based carrier is scheduled to start 747 service once a week on Nov. 1, but has not yet received government approval. It currently flies two times each week from Los Angeles to Fiji.
Southwest Chairman Herb Kelleher says the airline will announce service to at least one more new point before yearend, but it will not be Trenton Mercer County Airport. Asked by reporters if that airport could be used to serve the New York area, Kelleher said the cost would be too high. There is no room at Newburgh, N.Y., he added.
Moody's Investor Service yesterday upgraded the senior debt rating of McDonnell Douglas Corp. to Baa1 from Baa2, citing improved operating and cash flow outlook as well as a stronger balance sheet. The move affects approximately $1.2 billion of debt securities. Moody's said McDonnell Douglas's long-term outlook brightened due to success with securing defense contracts, an improved structure after cost-cutting moves and its ability to keep its commercial aircraft business profitable even with low delivery levels.
Northwest will begin Minneapolis/St. Paul-Osaka service, effective April 6. The announcement came just weeks after the carrier revealed plans to start service from the Twin Cities to Tokyo in December. Northwest initially will offer three weekly flights to Osaka Kansai, a region with more than 23 million inhabitants. It will increase service to daily flights, beginning June 15. Osaka service will connect with Northwest's daily Osaka-Manila flight.
Classic Custom Vacations was chosen the 1996 Tour Supplier of the Year of the American Automobile Association. More than 700 U.S. and Canadian travel agents cast their votes among 14 preferred tour operators. Classic was singled out for making the booking process and followup user-friendly.
U.S. Major and National Carriers Labor Expenses Second Quarter 1996 % Of Total Operating Systemwide Expenses Alaska $ 91,216,000 29.95 America West 93,504,765 23.11 American 1,147,965,000 33.40 Continental 287,070,000 23.30
BE Aerospace said net sales for its second quarter, ended Aug. 31, jumped 79% to $103 million from $57.5 million the same quarter a year ago. Operating earnings were $9.5 million versus a loss of $3.6 million. Net earnings for the quarter were $1.9 million, compared with a year-earlier loss of $7.5 million. Net order bookings of $109 million were more than double last year's level. Sales for the first six months were up 77% to $200 million. Net earnings totaled $3.3 million, up from a net loss of $40.5 million.
U.S. Major and National Carriers Maintenance Expenses Second Quarter 1996 % Of Total Operating Systemwide Expenses Alaska $ 25,238,000 8.29 America West 38,558,011 9.53 American 343,932,000 10.01 Continental 141,568,000 11.49
