DOT has set the procedural schedule for the application by United and Air Canada for antitrust immunity for their alliance. In the order, dated July 12, the department directed interested parties to file answers to the joint application not later than 21 days from the date of the order. Replies are due not later than seven business days after the last day for filing answers. The carriers filed their application June 4. (Docket OST- 96-1434)
Continental Chairman Gordon Bethune is scheduled to spend the week in Brazil, meeting with Embraer officials to consider purchasing EMB-145s. The carrier also has been considering the Canadair Regional Jet. Bethune also will meet with Brazilian government officials to press his case for new service from Newark. Continental Express President Dave Siegel said he had hoped for a deal last month, but "we are getting close here." He said this will be the biggest corporate decision to affect the regional operator for the next 10 years.
Philippine-based Grand Air inaugurated service on its Manila-Taipei route July 13. Initially, it will operate four weekly roundtrip flights, increasing to seven a week by yearend. Grand Air, which also flies between Manila and Hong Kong in addition to operating several domestic routes, also is seeking permission to fly to Seoul and Singapore.
U.S. Major and National Carriers Landing Expense First Quarter 1996 Average Amount Systemwide Spent Per Landing Alaska $ 5,368,000 $ 146.85 America West 8,004,394 159.78 American 57,857,000 299.11 Continental 23,536,000 218.76
Carnival Air Lines' traffic increased 12% in June, to 162 million revenue passenger miles from 144.7 million a year earlier. Available seat miles rose 8% to 249 million and the load factor gained 2.3 percentage points, reaching 65.1%. Carnival carried 130,205 passengers during the month. For the first six months of 1996, traffic increased 29.7% to 1.158 billion RPMs, ASMs rose 25.6% to 1.790 billion and the load factor was up two points to 64.7%.
U.S. airline officials warned yesterday that the proposed British Airways-American alliance could spark higher fares and poorer service as the U.K. House of Commons Transport Committee held a second day of hearings in London. Officials from United, TWA, Continental and Delta were slated to testify. "Unless a fully open and competitive market is already in place, the alliance, as proposed, will increase market barriers and can only be expected to result in increased fares," said TWA President Jeffrey Erickson.
Greyhound Air, Canada's newest no-frills startup airline, is up and running with 727 flights, operated by Kelowna Flightcraft Air Charter Ltd., that started last week. Greyhound of Canada is marketing the flights, which are scheduled to link up with its bus service across the country, although it holds no share in Kelowna. The flights operate, up to twice a day, from Vancouver, Calgary, Kelowna and Edmonton in western Canada through the airline's Winnipeg hub to Ottawa, Toronto and Hamilton in the East.
SkyWest Airlines reported a 17.6% increase in revenue passenger miles in June, to 62.6 million from 53.3 million, while available seat miles rose 7.3%, to 115 million from 107.2 million. The load factor for the month gained 4.8 percentage points to 54.5%. SkyWest carried 228,005 passengers in June and 1,282,367 in the first six months of 1996. Its traffic rose 39.3% to 342.9 million RPMs from January through June. ASMs increased 24.5% to 660.6 million, and the load factor grew 5.5 points to 51.9%.
Ecuadorian carrier Aerocomercial de Transporte y Rutas (ATR) is seeking authority to operate charter all-cargo service between Ecuador and the U.S. "As a new carrier from an FAA-determined Category 2 country," ATR said it "is aware that it is required to wet-lease [aircraft] from a qualified U.S. or a U.S.-approved foreign carrier."
AirTran Airways said its June traffic rose 167% to 79.3 million revenue passenger miles from 29.8 million in June 1995. Its capacity jumped 151%, and the load factor moved up 4.1 percentage points to 69.2%. For the first six months of the year, RPMs rose 261% to 498 million, while available seat miles increased 198% to 728 million, for a load factor gain of 11.9 points to 68.5%. Gus Carbonnel, VP-planning and scheduling, said Greensboro, N.C., continues to be a strong new point for the carrier, which is achieving load factors at or above the system average.
Airlines in India, including state-owned domestic carrier Indian Airlines and nearly a dozen privately owned carriers, have demanded an immediate 10% hike in their fares following the Indian government's decision last week to raise the price of petroleum 10%-30%. The hike, the first since February 1994, would not affect foreign airlines and Air-India, civil aviation ministry officials said.
DOT renewed for two years American's exemption to operate combination service between Honolulu and Vancouver under a code-sharing arrangement with Canadian Airlines International. American's code will be displayed on Honolulu-Vancouver service operated by Canadian, beginning this fall. (Docket OST-96-1354)
- Granted orally to TAP Air Portugal an exemption permitting it to carry individually waybilled cargo on passenger charter flights between Lisbon and Miami July 24-Oct.
Alaska Airlines asked DOT for an exemption to operate scheduled Los Angeles-Vancouver service in order to make Los Angeles an intermediate point on its recently inaugurated service between San Diego and Vancouver.
New aircraft will continue to accommodate future passenger travel expansion, but worldwide used aircraft transactions have outpaced new deliveries in five of the past six years, according to Air Cargo Management Group. There were 5,154 used aircraft deals between 1990 and 1995, compared with 3,913 new deliveries, a "trend that is likely to continue into the 21st century."
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With one fraud case already before the courts, the DOT Inspector General is investigating 17 more potential violations of buyout pledges by former FAA employees who accepted as much as $25,000 to leave their jobs and agreed not to work for the government. FAA has identified some 300 more cases as possible violations, and the IG intends to review all of them.
June traffic grew at SAS to 1.94 billion revenue passenger kilometers, a 24% increase over the June 1995 level. The number of passengers increased to 1.89 million. The passenger load factor for the month was 71.8% while freight ton kilometers increased 29% to 38.89 million.
American plans to introduce service Sept. 4 from Austin to Los Angeles and Boston, using 139-seat Super 80s. American served the Austin-Los Angeles route in the past but discontinued it in 1994. "We're much more optimistic this time around," said Robert Harvin, regional sales manager for Texas. "We've studied the market closely and have timed our service to be more attractive to business travelers, who will be able to make day trips to the West Coast."
American Trans Air applied for authority to operate scheduled combination service between Orlando and Grand Cayman, Cayman Islands. Starting Sept. 14, the carrier plans to operate two weekly roundtrips using Boeing 727 aircraft configured for 173 passengers, and Boeing 757 aircraft configured for 216 passengers. Service patterns may vary seasonally, depending on passenger demand, the carrier added.
International Civil Aviation Organization's council has revised and updated its code of conduct for the regulation and operation of computer reservations systems. The new code will take effect Nov. 1, replacing one adopted in 1991. The new code extends to non-scheduled air services, and to emerging information systems, such as the Internet.
TWA and its pilots are discussing opening pilot domiciles in Boston and Kansas City and talking through other issues they want to resolve before contract talks next year. The Air Line Pilots Association says communications with the company have taken on a "more constructive tone" recently, after management agreed to stop contracting out flying because it was short of aircraft. TWA has agreed to give pilots who failed training prior to the 1994 contract a second chance to complete the training curriculum.
Taiwan's Ministry of Transportation and Communications has given official approval for private helicopter service to begin this year. Under terms announced last week, any general aviation company that has suffered no financial difficulties or management disputes over the last two years, has recorded 500 flight hours with no accidents, and has committed no irregularities in its most recent 250 flight hours may apply to operate helicopter passenger and cargo flights.
A large U.S. contingent, including representation from Capitol Hill and the Justice Department, will be in London this week for the resumption of U.S.- U.K. negotiations. Scheduled to begin Thursday, the talks will be the first since the American-BA tandem endorsed open skies. U.S.-Japan negotiations remain on hold. There has been "a contact or two but no movement," said a U.S. official.
Lufthansa's communications subsidiary, Lufthansa Systems, has set itself the lofty goal of deriving half of its revenues from third-party customers within four to six years. In 1995, its first year of business as an independent entity, outside business accounted for just 5% of its revenues.
