Anthony Broderick, former FAA associate administrator for regulation and certification, will discuss safety and security issues, FAA's handling of ValuJet and the concept of FAA independence in an interview this week on Aviation News Today. The program airs on Washington NewsChannel 8 Sunday from 12:30 a.m. to 1 a.m. and from 1:30 p.m. to 2 p.m.
Boeing agreed to buy Rockwell International's defense and aerospace operations for about $3 billion in what it hopes will be a tax-free deal closing in November. Rockwell will spin off the businesses and their 21,000- strong work force into a new company, which Boeing will then acquire and re-name Boeing North American Inc., operating as a wholly owned subsidiary that reports to Boeing Defense&Space Group President Jerry King. Boeing will pay for the deal by issuing stock and assuming the Rockwell units' debt.
FAA says the revenue loss from its proposed tight new restrictions on Grand Canyon air tours would be "much less than estimated" by the air tour industry "because commercial sightseeing operators, pilots and many businesses that provide services" to the industry "could move to other areas of the United States." That language was employed in the NPRM that would make 87% of the park's airspace off limits. Scheduled tour operators carried 542,217 passengers to and from Grand Canyon Airport in 1994, up 27.1%, said AvStat Associates of Washington, D.C.
..."Imminent" was the Mesa response relating to its decision on acquiring a new regional-jet fleet. The carrier reportedly has selected the 50- passenger Canadair Regional Jet (CRJ) with an initial buy of about 12 plus a like number of options. Neither Mesa nor Bombardier Regional Aircraft would confirm the report, but The DAILY was told by a rival in the competition that it has conceded the sale to the CRJ because of its hot- and-high performance and range. Two Mesa Fokker 70s are being returned to the manufacturer.
Several members of the Senate Commerce Committee suggested yesterday that since terrorism is a national security issue, the federal government - not the airlines - should bear the expense and operational burden of ensuring effective aviation security. In addition, Sen. Frank Lautenberg (D-N.J.) told the committee he plans to introduce aviation security legislation covering improved baggage scanning procedures, passenger profiles, better security personnel training and an Office of Family Advocate to assist families of aviation disaster victims.
Canadian Air Cargo, expanding its operations in the South Pacific, signed handling agreements with three more carriers and is relocating to a larger facility in Honolulu, said John Gibson, general manger-international. The company will handle cargo for Continental and Air Micronesia as of Aug. 1 and for American as of Oct. 1. It current handles cargo at Honolulu for Qantas and EVA.
New Regional Aircraft Orders And Options, May 1996 Firm Orders Options Carrier No. Type No. Type Engines --------------------------------------------------------------------- Air Alliance 5 Beech 1900D 5 Beech 1900D PT6A-67D Air Mauritius 2 AA ATR-42-300 - - PW102 Dolgan Air 2 Beech 1900D - - PT6A-67D
Colorado legislature has passed a law calling for a $100,000 study on intrastate air transportation. The law states that "the recent opening of the Denver International Airport has permanently changed intrastate air travel in Colorado since the increased costs of operating out of DIA has forced air carriers to drop or significantly reduce service on their less profitable intrastate routes." The law said that limited air service "has adversely impacted the economic well- being of the state through underutilization of DIA as a regional transportation hub...."
House and Senate negotiators agreed Wednesday night on renewal of the aviation excise taxes through Dec. 31, 1996. A final vote in Congress on re-enactment of the taxes, which lapsed last Dec. 31, could come this week as part of the conference report on the small-business tax relief bill (H.R.3448). If Congress adopts the measure before taking its August recess, President Clinton would have until mid-August to sign it. Collection of the taxes would begin seven days after enactment, on transportation purchased on that date and later.
Carnival Air Lines and Pan Am have terminated discussions on a deal to combine the two companies. In mid-July, the companies announced a tentative agreement under which Pan Am would buy Carnival and fly under the Pan Am name (DAILY, July 18). But Carnival Chairman Reuven Wertheim said the companies could not agree on terms. A Carnival spokesman said it was a mutual disagreement over cash and stock. He said Carnival is not discussing a merger with any other airline at this time. The disagreement will have no impact on its business, he said.
American Trans Air will start service from Orlando to Grand Cayman and Santo Domingo Sept. 28 and Oct. 4, respectively. One-way fares start at $79 from Grand Cayman and $119 from Santo Domingo for travel by Dec. 14.
...Mesa Air Group, meanwhile, claims that letters to Colorado newspapers solicited by Sen. Ben (Nighthorse) Campbell concerning its service in the state "were full of errors and outright inaccurate" and "clearly from union activists who are currently involved in ongoing labor disputes." A spokeswoman said service deteriorated this summer due to a lack of timely new-aircraft deliveries, pilot attrition - 44 in 60 days - and over- booking. The carrier is adding 30 employees and three reserve aircraft at Denver, and maintenance there is being beefed up...
A joint complaint to DOT from the United States Travel Agent Registry (USTAR) and the Association of Retail Travel Agents (ARTA) against the Worldspan/Microsoft online alliance is "grossly inaccurate," Worldspan VP, General Counsel and Secretary Douglas Abramson said in a rebuttal letter to Charles Hunnicutt, DOT assistant secretary for aviation and international affairs.
FAA and industry officials met yesterday for discussions on an airworthiness bulletin the agency issued earlier in the week on maintenance work performed for air carriers by third parties. The discussions addressed how to audit repair station work and how to report such work to FAA. The bulletin is part of an FAA effort to update its maintenance regulations - and airlines' oversight of third-party maintenance work - following the ValuJet crash.
Sen. John McCain (R-Ariz.) said Tuesday night he will defer the package of aviation safety and security amendments he planned to offer on the fiscal 1997 DOT appropriations bill (DAILY, July 25) and instead will work with colleagues on the measures as part of the FAA reauthorization bill (S.1994). Senate Majority Leader Trent Lott (R-Miss.) has scheduled action Sept. 19 on H.R.1994. The Senate resumed onsideration of the appropriations bill (H.R.3675) late yesterday after beginning work on it Tuesday.
The market for jet and turboprop corporate aircraft will show "modest growth through 1999 due in large part to expanding global commerce and increased recognition of the benefits of owning a corporate aircraft," according to a CIT Group forecast "Outlook for Corporate Aircraft 1997- 1999." While unit sales growth will average 1.2% on a compounded, annualized basis through 1999, dollar sales of new and used corporate aircraft should grow at a much healthier rate of 5.3% a year, reaching $6 billion, the forecast says.
Travel Industry Association of America has chosen Miami and Dallas as the 1999 and 2000 host cities, respectively, of the International Pow Wow conference, which promotes travel to the U.S. TIA said Pow Wow is the most important event for the U.S. travel industry, generating $3 billion in Visit USA sales in three days, of which the host city can expect to collect 10%. International tour operators from 70 countries will be on hand to buy travel products from 1,200 of the top airlines, hotels, cruise lines, entertainment facilities and car rental companies.
Fueled by disappointing results from expanded scheduled services, Amtran, parent of American Trans Air, reported a net loss of $2.3 million, or 20 cents a share, for the second quarter, reversing the $3.3 million in profit, or 29 cents per share, generated in the same 1995 period. "While much of the industry was enjoying record revenue, we saw ours decline 3.6% on a per-ASM [available seat mile] basis for the period," said George Mikelsons, Amtran's chairman and chief executive.
Northwest requested an exemption to provide scheduled combination code- share service between Los Angeles and Vancouver on flights operated by Alaska Airlines. Northwest also asked DOT to amend its Feb. 29 Vancouver service order, to shift Northwest's two second-year U.S.-Vancouver frequencies from the Minneapolis and Detroit markets to Los Angeles.
Bolstered by the profitable sale of Continental stock and increased international passenger revenues, Air Canada posted C$111 million (US$80.8 million) in consolidated net income, or 68 cents per share, for the second quarter. The gains represented a dramatic improvement over the same period a year ago, when the carrier lost C$20 million or 16 cents per share. Its operating income dropped from C$46 million last year to C$37 million, however.
Western Pacific Airlines President and Chief Executive Ed Beauvais and several private investors have formed a new airline, Mountain Air Express (MAX), that will operate as an affiliate of WestPac to Colorado ski destinations - Durango/Purgatory, Gunnison/Crested Butte, Aspen/Snowmass, Steamboat Springs/Hayden, Telluride/Montrose and Eagle/Vail, beginning Dec. 4 and offering 50 daily flights from WestPac's Colorado Springs base by Dec. 18. Beauvais will be chairman of MAX but said management of the two companies will be separate.
United States Air Tour Association, which opposes proposed limits on the air space above the Grand Canyon, warns that the limits actually could hurt safety. The Notice of Proposed Rule-making is the result of lobbying by groups against aircraft noise over the park. "Air tour experts firmly believe that if the NPRM takes effect, there will be a major air disaster over the Grand Canyon as a result," said USATA President Dan Anderson. USATA also argues that by reducing the areas in which tour operators are allowed to fly, noise will be increased in those areas.
Vice President Gore's Aviation Safety and Security Commission will take a fresh look at all aspects of airline and airport security and press for fast-track issuance of patents for inventions that would help deter or detect attempts at terrorism, Gore said yesterday at a meeting with Washington Dulles Airport employees. Commission members will be appointed during the next few weeks, Gore said, to conduct a short-term analysis of how to improve security technology and training procedures.
The U.S. tourism industry is expected to bounce back over the next four years when international visitors are projected to increase 3%-4%, following a 3% decline last year. The new Tourism Industries (TI) office in the Commerce Department is forecasting a record-breaking year for tourism in 1998 - more than 48 million international arrivals.
