Since Canadian Airlines International is getting U.S. antitrust immunity in its alliance with American, archrival Air Canada wants immunity with a U.S. partner too, to remain competitive. Air Canada declines to identify the U.S. airline. United says it is the other half of the combine and expects to file for immunity soon.
The boards of Lucas Industries and Varity Corp. voted Friday to merge the two companies into a "highly competitive, global automotive parts, diesel and aerospace company." The merged company, to be called LucasVarity, would have had combined 1995 revenues of about $6.7 billion. Varity's strength is in anti-lock brake systems and traditional braking systems in the North American market, while Lucas is strong in Europe.
Taipei-based stock analysts who specialize in transportation issues, many of whom originally criticized China Airlines' recently announced purchases of Boeing 747-400 and 737-800 aircraft, now appear to support the deals. Typical is Ellen Lin, an airline analyst at Grand Cathay Securities Corp. "Overall, CAL has developed a good plan and the timing is right, as it is generally expected that there will be a major breakthrough in 1997 that will permit direct travel between mainland China and Taiwan," Lin said.
FAA said Friday its GPS program office is "confident" that the agency's dispute resolution process will reaffirm the decision to take away the $475 million Wide Area Augmentation System contract from Wilcox and award instead a $50 million bridge contract to Hughes, which had been a subcontractor on the project. Wilcox challenged the award of the contract last week (DAILY, May 29).
Morten Beyer Associates predicts a "famine of used aircraft" soon. MBA points to Fed Ex Aviation Services statistics showing that between Jan. 15 and April 15, the number of used aircraft for sale or lease fell 24%, to 360 from 473. Only 15 of 37 DC-9s, 35 of 56 737s and 34 of 57 727s remained listed. All eight A320s available in January found homes.
FAA is reported to have reviewed personnel records in an attempt to find out which of its inspectors testified anonymously at a Senate hearing in April, and a union official said a recent FAA stand-down has made inspectors more fearful of management than ever. The controversy was triggered last week by Sen. Bill Cohen (R-Maine), chairman of the Governmental Affairs subcommittee on oversight of government management, which conducted the hearing.
- In Federal Register dated May 28...Issued corrections on an airworthiness directive issued on May 7 for several types of commuter aircraft, including Beech, Cessna, de Havilland, Dornier, Embraer, Fairchild and Jetstream...Issued an AD on Robinson R44 helicopters requiring an adjustment to the lower-RPM warning unit threshold...Superseded an AD on Robinson R22 helicopters concerning a low-rotor RPM warning unit.
The Air Line Pilots Association has decided to oppose FAA's proposed rules on flight and duty time as written, because they increase flight time limits to offset stricter duty time limits. ALPA said the proposed rule fails to recognize scientific research in the effects of circadian rhythms on pilot fatigue. ALPA's executive board voted last week to oppose and call for the withdrawal of any notice of proposed rulemaking that increases daily flight time limits beyond eight hours.
After delays caused by federal government shutdowns and the elimination of the U.S. Travel and Tourism Administration, the Commerce Department's International Trade Administration has published overseas visitor arrival data for the first three quarters of 1995 and hopes to have the rest of 1995, plus an Internet home page, by the end of the summer. Total international visitors fell 5% to 32.6 million. The largest increase came from Brazil, the fifth largest market, which gained 35%.
Frontier Airlines signed a letter of intent to lease a new 737-300 from International Lease Finance Corp. Delivery is scheduled in April 1997. The carrier's current fleet comprises two 737-300s and five 737-200s, and two 737-200s were to be added this week. President Sam Addoms said Frontier will use the 1997 aircraft to expand operations, possibly to "some key destination in the East." Frontier serves 13 points in 11 states from its Denver hub.
U.S. customers placed all but nine of the 107 jet transport orders logged during the first quarter by Boeing and Douglas, according to Aerospace Industries Association. Generally, well over half the orders come from abroad. AIA says the first quarter results match the pace in 1995, when U.S. manufacturers received 421 net orders.
FAA is promoting several persons in its Office of Research and Acquisitions because of the departure of Robert Valone, deputy associate administrator. Valone will be succeeded by his director, Dennis DeGaetano. Gib Devey will move from deputy director to director. Ed Seymour goes from acting director of air traffic systems development to permanent director, and Peter Challan will move from acting deputy status to permanent deputy.
Boeing 747 Systemwide Aircraft Utilization Per Day Fourth Quarter 1995 B747-100 Northwest TWA Number of Aircraft Operated 23 8 Total Fleet Operations Departures 36 9 Block Hours 270 65 Flight Hours 254 60
Code-Sharing Regional Carrier Schedules Announced or Implemented - April 1996 Domestic City-Pairs Carriers Added Dropped New Shared ------------------------------------------------------------------------ Alaska Airlines Horizon Air Boise, Idaho- Jackson Hole, Wyo. Seattle-Boze- man, Mont.
The House Transportation aviation subcommittee approved by voice vote yesterday legislation (H.R.3539) to reauthorize FAA programs for three years, but it put off at least until full committee consideration most contentious issues that had been expected to arise. The subcommittee also approved legislation (H.R.3536) requiring airlines to request and receive certain records before allowing an individual to begin service as a pilot, and a bill (H.R.3267) to prevent children from piloting aircraft in pursuit of records.
New Orders: PSA Airlines has bumped its order for Do 328s to 25 from 20 through the exercise of five of 20 options. Twenty of the 30-passenger, high-speed turboprops already are in operation with the wholly owned USAir subsidiary (formerly Jetstream International). Press reports from Brazil say that Continental Express will acquire 150 Emb-145 regional jets in a deal valued at $1.5 billion. The reports may be exaggerated, however, and would equate to a $10 million selling price per unit. The number is believed to be closer to 50 plus options.
Flagship Airlines, operating as American Eagle, must continue to operate at Tuscaloosa, Ala., until July 3 or until replacement service begins, DOT said. Flagship has been repeatedly held in at Tuscaloosa. (Docket OST-95-371)
