Airlines Reporting Corp. said travel agent sales in May were up 5% from May 1995 to $5.368 billion, and sales for the first five months of the year were up 4% to $26.553 billion. Domestic commissions increased 1% for the five months, international commissions rose 6% and total commissions rose 3% to $2.734 billion. Domestic fares for the five-month period were up 11%.
TWA has inaugurated service between Kansas City and Washington National with continuing service to New York Kennedy. The carrier is currently operating two daily 727 flights in the market.
Some TWA employees are picketing at airport ticket counters and at headquarters to protest the carrier's use of Tower Air and World Airways to carry passengers it could not accommodate last weekend because four leased 747s were not ready for delivery. Don Jacobs, chairman of TWA's Air Line Pilots Association Master Executive Council, said, "Our contract stipulates that the TWA product, by definition, must be produced by TWA employees.
Rejecting Justice Department recommendations, DOT made final its show cause order tentatively approving antitrust immunity for Delta's alliance with Swissair, Sabena and Austrian. With the approval, the carriers become the third alliance to gain such immunity, following KLM-Northwest and United- Lufthansa. Tentatively approved, American and Canadian Airlines International are awaiting a final decision, while tentative decisions are pending on United-Air Canada and United-SAS filings.
Aircraft Owners and Pilots Association asked FAA to withdraw a proposed airworthiness directive covering 46,000 Textron Lycoming engines, arguing that the agency failed to prove the AD as needed. "Six months ago, AOPA filed a Freedom of Information Act request to force FAA to release the data justifying such a sweeping and costly AD," according to Doug MacNair, AOPA director of aviation standards. "We have not received any official response from FAA.
Western Pacific has unveiled the ninth "logo jet" aircraft in its fleet, painted gold for Sam's Town Hotel and Gambling Hall facilities in Las Vegas, Kansas City and Tunica, Miss. Two Las Vegas models are painted on the tail. The casinos are owned by Boyd Gaming, which also owns the Stardust Resort and Casino, sponsor of Western Pacific's fifth logo jet.
Lufthansa, which has a 25.001% equity stake in DHL International, will appoint a full-time board member at DHL's headquarters in Brussels. Rainer Butz, who is on the board of Lufthansa Cargo, will take a director's post at DHL, beginning in 1997.
Southwest will increase flights to Orlando Oct. 27 from Austin and San Antonio, Texas, and double its service from New Orleans to two flights a day. The new Florida service has exceeded the carrier's expectations, said Dave Ridley, VP-marketing and sales. Flights to Austin and San Antonio continue on to Phoenix. The highest unrestricted fare from the Texas cities will be $199 one way.
Industry mediator and former National Mediation Board Chairman Robert Harris began assisting Continental and the Machinists union Friday in Washington in collective bargaining toward a new flight attendant contract. Negotiations have just begun, and NMB Chairwoman Magdalena Jacobsen, whose term ends July 1, said she will monitor the talks.
Responding to discounts in domestic and transborder markets, Air Canada introduced a new fare type over the weekend - L Class, lower than Q class but not as low as the lowest it must compete against. With eight other fare categories already, the carrier will introduce L Class in markets as needed.
DOT tentatively selected Reno Air over Alaska Airlines to operate scheduled service from San Jose, Calif., to Puerto Vallarta and San Jose del Cabo, Mexico, in competition against Alaska's service to the two cities from San Francisco. Reno proposed to offer two weekly roundtrips initially in each market with MD-80s, beginning June 19 to Puerto Vallarta and June 20 to San Jose del Cabo. Alaska proposed four weekly trips to San Jose del Cabo and three to Puerto Vallarta with the same type of aircraft, beginning Oct. 4.
National Transportation Safety Board Member John Goglia, who probably will preside at the public hearing into last month's ValuJet crash, came to the defense Friday of aviation repair stations and the FAA rules that govern them. Speaking in Washington, Goglia said, "This industry cannot exist without repair stations," and FAA's rules for them "are very good." But the rules "have to be followed. The trouble is it is very difficult to understand the rules. They cost money."
Federal authorities refused comment Friday on whether a criminal investigation is under way involving the May 11 crash of a ValuJet DC-9 that killed 110. The U.S. Attorney's office in Miami refused to confirm or deny a Business Week report that ValuJet and SabreTech, its maintenance contractor, are targets of an investigation. FAA referred inquiries to the Justice Department.
Air Canada's traffic grew 25.5% in May, compared with May 1995, on a 20.6% increase in capacity. The carrier flew 1.59 billion revenue passenger miles on capacity of 2.46 billion available seat miles. The load factor for the month was 64.8%, up 2.5 points. International RPMs grew 36.1% for the month on a capacity increase of 38.8% international ASMs. For the first five months of the year, traffic was up 19.8%, compared with same period in 1995, on 12.9% more capacity. The load factor of the period was 62.6%, an increase of 3.6 points.
American Society of Travel Agents has questioned the decision of Air Canada and Canadian Airlines International to cap travel agent commissions at the same level as six U.S. carriers - $50 roundtrip and $25 one way. ASTA President Jeanne Epping said it was in part because of the work of travel agents, who handle 80% of all airline ticket bookings, that both carriers reported increases in passenger revenues of at least 13% in the first quarter of 1996, compared with the same 1995 period.
American filed suit with the Supreme Court of Venezuela in an effort to recover $8.2 million in federal exchange losses it says it suffered in that country in July, August and September 1995 after the government devaluated its currency to 270 bolivars to the U.S. dollar from 170 bolivars. American said it was supposed to be paid at the higher rate but was paid less for those months because of foreign currency controls. In spite of the suit, the carrier said it will continue to operate service to Venezuela.
In a survey of residents in the Dallas area by Dalfort Aviation, which wants to start interstate service from Dallas Love Field, more than 350 of 398 respondents said Love Field would be more convenient for them than Dallas/Fort Worth. Colorado Springs was cited more often than any other city when respondents were asked which destination, not now served, they would most like to be able to reach from Love Field.
Antitrust immunity for Delta's alliance with Swissair, Sabena and Austrian was still being debated within DOT late Friday, with issues "still to be resolved," a senior official of the department said. At DAILY presstime, DOT was considering working into the weekend to issue a final order. Its tentative decision was in favor of immunity, with limited exceptions (DAILY, May 22).
Airline Capital Associates named Frank Rosenberg managing director. Associated Global Systems appointed Diana Bergeron international manager-Dallas/Fort Worth, Marlon Deyton service manager-Atlanta District and Paul Iten district manager-Tampa. Go America Tours named John Ruzich senior VP-North America.
Delta asked DOT to act promptly on its request to code share with All Nippon Airways and not allow United's application to code share with Thai Airways International to have any bearing on it. United asked DOT to defer or deny Delta's request until the Japanese government assures the U.S. it will approve United's application to code share with Thai between the U.S. and Thailand via Tokyo. Delta said the request is one more example of United's "hypocrisy" on U.S.-Japan service issues.
American has applied at DOT to change its request for 3.5 U.S.-Peru weekly frequencies so that it might operate Dallas/Fort Worth-Lima service instead of Miami-Lima. DOT already has tentatively chosen Continental for Houston- Lima service, and the department is asking carriers to submit proposals for Phase Two of the U.S.-Peru proceeding. American said that if the final outcome provides it seven frequencies for DFW-Lima service, American will continue to seek 3.5 Miami-Lima frequencies in Phase Two.
Officials at the larger airlines are upbeat about their meeting last Thursday with House Republican leaders. Sources said that although Congress is headed toward renewing aviation excise taxes in the short run, key legislators are committed to pursuing alternatives and some expressed concerns over the fairness of the current system. Ways and Means Chairman Bill Archer (R-Texas) is expected to propose tax reinstatement for up to five years because the revenue is needed to meet budget requirements.
The Russian government has established a state corporation, the Federal Aviation Service (FAS), to take over civil aviation and air traffic management from the Commission on Air Traffic Control (Rosaeronavigatsia), the Department of Air Transport (DAT) and the General Directorate for the Air Traffic Control System Modernization. A resolution issued May 14 and signed by Prime Minister Viktor Chernomyrdin gives the FAS, directed by Gennady Zaitsev, until mid-July to submit draft regulations.
