Sharp contrasts in FAA enforcement practices are highlighted by the shutdown this week of ValuJet and that in August 1990 of another Georgia- based carrier, TPI International Airways. ValuJet is being charged $2 million to cover FAA enforcement costs, while being encouraged to return to service upon meeting agency requirements. TPI, a small cargo carrier, was relieved of its operating specifications and not told why for 14 months.
The U.K. Civil Aviation Authority this week announced that it will impose certain frequency limitations and application procedures on passenger charter flights operated to and from the U.K. by fifth-freedom carriers. The number of fifth-freedom flights operated by any single foreign carrier in any one season will be limited to 10, except for flights permitted under European Commission legislation or other international agreements.
Boeing is increasing 737 production rates for the third time in six months, aiming to roll 17 of the aircraft off the Seattle-area production line every month by the beginning of 1998. Little more than a year ago, the company expected production of all five of its jetliner models to total 17.5 per month through at least 1997. But buoyant demand led Boeing to hike its rates in December for the first time in three years, from 20 per month then to 24 per month by early 1997.
European low-cost startup Virgin Express plans to move out of Belgium and into the rest of Europe this summer. On Sept. 2, the carrier will launch new daily flights, including service between Rome and Madrid. The route will be flown with a new 737-300 that Virgin will receive in August. Currently, the carrier is flying under its old name, EuroBelgian Airlines, but it will formally switch to the new name with the service additions. The introductory fare in the new market will be $77 with a regular one-way fare starting at $90.
Mesa Air Group has named Leman Wright, a long-time maintenance executive, to the newly created position of VP-powerplant systems. Wright was VP-maintenance for Liberty Express - formerly Crown Airways - a USAir Express division of Mesa Air Group based in Dubois, Penn. Wright's new responsibilities include coordination with all power plant vendors for Mesa's six airline divisions and overseeing directly Desert Turbine Services, Mesa's engine overhaul division.
Aero Club of Washington's luncheon honoring the Boeing 777 certification team has been postponed because of an unforeseen conflict with congressional hearings. A new date has not been set.
Delta said it has redeemed almost all of its $800 million in 3.23% Convertible Subordinated Notes due June 15, 2003. The notes have been converted to about 10.1 million shares of common stock. Delta announced May 15 that it would redeem the notes June 15. The conversion will cut $46 million annually from Delta's interest expense and result in the transfer of $626 million from long-term debt to equity, the carrier said.
The National Air Transportation Association estimates that FAA's proposed flight and duty time rules could cost on-demand air charter companies as much as $1.97 billion, bringing "financial ruin" to its segment of the industry. After studying the proposal for five months, NATA said charter pilots would lose $617 million in pay as they will be forced to switch to an hourly pay rate or job sharing. Increased costs and lost revenues would combine for a loss of $6.5 billion to implement the rules, NATA said.
Air Canada has started twice-weekly code-share service with Swissair between Calgary and Zurich. Operated with an Air Canada Boeing 767s on a Vancouver-Calgary-Zurich routing, the service offers the only direct flight from Western Canada to Switzerland. "This is further indication of Air Canada's strong commitment to provide Canadian travelers with the best in air transportation - more European destinations and better schedules than anyone has ever offered," Graham Edwards, general manager-passenger sales, said yesterday.
Regional Airline Association said an FAA proposal to amend pilot flight time limitations and rest requirements and establish duty time limits has little or no scientific justification, and it called on the agency to terminate the rulemaking effort. The association also called into question the rulemaking process itself, saying it was not a proper vehicle for issues as contentious as pilot flight time changes.
Cruise lines continue to beef up budgets to attract more passengers, and the Cruise Lines International Association has approved a $30 million, three-year advertising campaign. The American Society of Travel Agents is developing a Cruise Summit action plan to focus attention on marketing cruises, and has committed to "improve overall cruise sales."
House Appropriations Committee approve fiscal 1997 DOT appropriations bill House Appropriations Committee approved yesterday the fiscal 1997 DOT appropriations bill, including $8.155 billion for FAA (DAILY, June 7). Among amendments adopted by the committee is the set-aside of $2.4 million for activities of the National Civil Aviation Review Commission, a "blue ribbon" panel proposed to conduct a comprehensive review of aviation safety, financing and acquisition.
Charles Hunnicut, DOT assistant secretary for aviation and international affairs, will meet with British counterpart Tony Goldman in Paris Monday. Likely to discuss the proposed American-British Airways alliance, Hunnicutt will try to determine the willingness of the U.K. to open up its market.
Blue Dart Express Ltd. of India, which has a technical and operational affiliation with Federal Express of the U.S., launched Blue Dart Aviation and claimed a first - it is the country's first courier company to deploy an all-jet fleet on domestic routes. Blue Dart Aviation, a wholly owned subsidiary of Blue Dart Express Ltd., will operate two Boeing 737-200 aircraft purchased from state-owned domestic carrier Indian Airlines for 138 million rupees ($3.9 million) and converted into freighters at the U.S. facilities of Stambough Aviation.
The "hotel of the future" will be created with the aid of new- generation software solutions under a joint marketing agreement signed by EDS and Hotel Information Systems. EDS will supply integration and technology resources to the new generation Advanced Guest Link (AGL) software marketed by HIS. The software helps hotel chains improve rate and inventory management and tracks customer preference and property utilization. In the future, AGL could enable hotels to determine in advance guest preferences, in type of room or breakfast, for example.
Commerce Secretary Mickey Kantor will argue the case for U.S. industry participation in building airport infrastructure, airport design and air traffic control on a trip to Korea, Indonesia and Thailand next week. Decisions are close on a number of contracts.
The New Zealand Tourism Board reports that most areas of the country have not been affected by Monday's eruption of Mount Ruapehu, and the official ski season will open Saturday as planned. "Except for Mount Ruapehu and immediately adjacent areas, most transportation services, sights and attractions in New Zealand are open and operating as normal," said Kathy Ward, regional VP-the Americas. Operations at Auckland Airport and four nearby regional airports were temporarily suspended as of yesterday, but flights within the South Island continue to operate as usual.
The Air Transport Association, commenting on FAA's proposed flight and duty time restrictions and rest requirements, said in a 230-plus page response that the agency is "just plain wrong" and does not understand the economics of the regulation. Pulling out all the stops on the issue by conducting its own cost/benefit analysis and reviewing FAA's, ATA hired the leading scientists specializing in sleep and fatigue research and a statistician to review FAA's methodology.
Pan Am Airways, supplementing its March certificate application, told DOT it has successfully completed two private offerings, both of which exceeded expectations. Each offering was expected to raise $6 million, but the first yielded $10.5 million and the second $8.1 million plus $500,000 in other assets, said the company. Pan Am has appointed as director of security Lloyd Anderson, who was an Eastern director and chief pilot and has consulted on airline, labor and aviation security issues since 1986. (Docket OST-96-1211)
Sundstrand Corp.'s board declared a quarterly cash dividend of $0.17 per share, payable Sept. 17 to holders of record at the close of business Sept. 3.
Vienna's summer outdoor film festival on Rathausplatz runs from July 6 until Sept. 1. The Vienna Tourist Board said thousands of people gather every year in front of the large screens for free shows that feature food from all over the world. Beethoven's nine symphonies and the music of Johann Strauss will be featured during concerts, performed by the Berlin Philharmonic and the Vienna Philharmonic.
Kiwi International Air Lines has come under criticism for increasing fares and opening a city ticket office in Atlanta Tuesday in the wake of the ValuJet shutdown. Kiwi says the office and fare increase were under way beforehand. Kiwi reported 17,000 bookings yesterday, compared with 11,000 on a normal Tuesday, but it expects business to taper off.
Industry officials expressed dismay at the forced retirement of FAA Associate Administrator for Regulation and Certification Anthony Broderick. After consulting with FAA Administrator David Hinson, Broderick announced Tuesday he would retire at the end of the month, citing a need for "major, visible changes" in the agency in the aftermath of the ValuJet crash (DAILY, June 18).
Fort Lauderdale officials are banking on Money Magazine's July issue, which published a poll picking it as the most livable big city in America, to boost tourism. The other top finishers are traditionally hot tourist destinations - Orlando, San Francisco, Tampa - and Fort Lauderdale notes it was ranked 56th only three years ago.
Marriott will build its first Courtyard hotel in Alaska near the Anchorage airport. The 154-room hotel, scheduled to open in spring 1997, will have an indoor swimming pool, whirlpool spa, gym and three meeting rooms.
