Los Angeles-New York was American's top route in 1995, accounting for 2.8% of the carrier's total revenue passenger miles. Its best international route, New York-London, accounted for 2% of the total.
The seven largest U.S. airlines formally submitted to Congress this week their proposal for a temporary user fee system to replace the expired 10% passenger ticket tax while a comprehensive study of FAA costs is conducted (DAILY, May 24). Most other airlines want the ticket tax reimposed, saying user fees as proposed in the Senate FAA reform bill (S.1239) "would fall disproportionately on any low-fare, low-cost, short-haul or high-frequency air carrier" (DAILY, April 26).
UNC Inc. said yesterday it has made final the acquisition of Garrett Aviation Services for $150 million. Garrett had 1995 revenues of $338 million, and UNC said the purchase establishes "firmly" that it has "the world's largest aviation services company," with annual revenues approaching $1 billion. Dan Colussy, UNC chairman, said the transaction was financed with the company's offering of $125 million in 11% senior subordinated notes and $25 million in convertible preferred stock.
Chicago Express has established a code-sharing relationship with American Trans Air (ATA) out of its Chicago Midway hub, effective June 3. The agreement is billed as the first in the industry between two low-fare carriers. Chicago Express, a unit of Phoenix Airline Services, which also owns Northwest Airlink Express Airlines I, operates 47 flights each business day between Midway and Cedar Rapids, Dayton, Des Moines, Evansville, Grand Rapids and Green Bay with nine 19-passenger Jetstream 31s.
Gulfstream said it will increase the price of its green Gulfstream IV-SP business jet to $24.6 million, effective July 1. The new price is a 2.9% increase, or $700,000, and reflects valued-added improvements, increased warranty coverage and a "slight degree of inflation on the aircraft," said Gulfstream President Bill Boisture.
All Nippon Airways (ANA) bettered its operating results 5.4% for fiscal 1996 with operating revenue of 846 billion yen (US$7.94 billion). Operating income jumped 69.9% to 27.3 billion yen ($256.7 million) despite a 3.7% increase in operating expenses. "We are extremely pleased with our full-year results," said ANA President Seiji Fukatsu. "We have maintained our profitability on the strength of our operations, and look forward to further improving on this in the coming year," he said.
Northwest has plans in the pipeline that could reduce annual operating costs by as much as $100 million, starting in 1997, if all are approved. None involves drastic operational changes. One example is switching from aircraft to ground power units, which will save $10 million a year.
Market conditions in city-pairs from New York Kennedy Airport make it unlikely that the threat of new entry will prevent the Delta-Swissair- Sabena-Austrian partnership from increasing fares for business travelers on the four routes they will dominate under DOT's tentative approval of antitrust immunity for the alliance, the Justice Department said.
Draft legislation in the Illinois General Assembly that would have prevented a planned $180 million passenger facility charge-backed bond sale for noise projects around Chicago O'Hare Airport did not make it through the spring session. The draft bill called for creation of a suburban Chicago noise commission drawing about $30 million in passenger facility charges each year from O'Hare.
North Dakota is the state to visit for families vacationing on a budget, according to the results of an American Automobile Association vacation cost survey. Vacation expenses are the lowest in North Dakota, where food and hotel for a family of two adults and two children come to about $142 a day, compared with the national average of $193, followed by Nebraska, with an average of $145. Hawaii is the most expensive at $383 per day, and Delaware is second at $312.
Executive Jet Aviation said it will take delivery of seven more Citation V Ultra business jets from Cessna this year for use in its NetJets fractional ownership program. EJA has taken delivery of 21 Citation V Ultras since last July. NetJets also offers fractional interests in the Citation S/II, the Raytheon Hawker 1000 and the Gulfstream IV-SP. NetJets owners are guaranteed availability anytime and anywhere. Participants pay for actual flight time, not for deadheading or positioning time.
Clark County, Ariz., officials have given zoning approval for Bally Entertainment to build the Paris Casino Resort, a $500 million hotel/casino on the Las Vegas strip. The resort's design will pay tribute to famous French sites, among them a 50-story Eiffel Tower replica that will house a French restaurant. The 2,900-room resort, including a 1,500-seat showroom, is scheduled for completion in 1998.
Nice Systems of Tel Aviv said it was selected by the Romanian Air Traffic Services Administration to supply digital voice logging systems for 13 air traffic control sites. The company said its NiceLog system has been selected by authorities in the U.S., Hong Kong, Israel, Hungary, Norway and Holland over the past year. The system has open architecture and features extensive use of commercial hardware and software, the company said.
Crowne Plaza Hotels will re-enter the Washington, D.C., market next month when it opens its Franklin Square hotel, which has undergone $15 million in renovations. The building, constructed in 1921, recently was the home of the General Services Administration. It was purchased in 1994 by Home Plaza Corp., a Dutch/French venture headed by Parisian hotelier Albert Cohen, and has been restored by an international team of architects and designers.
Travel Industry Association is accepting nominations until July 26 for the Odyssey Awards and for its Hall of Leaders. The Odyssey Awards were reconfigured last year into two categories - travel promotion, and public and community service. This year, the travel promotion category will break down the advertising and innovative marketing categories into domestic and international sections. Winners will be announced at TIA's annual Travel Industry National Conference Oct. 17 in Alexandria, Va. For an application, call TIA at 202-408-TIAA.
Collins said a new video tape training aid is available to assist operators of its TWR-850 turbulence weather radars. The video, produced in conjunction with UND Aerospace, is designed to help regional airline and business aviation flight crews achieve optimal performance of the radar. Three dimensional graphics demonstrate appropriate tilt and range management techniques.
Southwest is one of five finalists for the Computerworld Smithsonian Awards. It was recognized for its introduction of ticketless travel, lauded by the Smithsonian as an outstanding application of aviation- related technology.
American Society of Travel Agents has filed a lawsuit against Nu-Concepts in Travel, a California agency ASTA claims is using the association's trademark. ASTA said the company has never been an association member but has distributed travel agent identification cards bearing ASTA's logo to consumers.
Terminal and en route charges based on the weight of an aircraft would lead to lower fees for small airplanes than a system based on cost allocation, according to a Reason Foundation study. The study, "Reinventing Air Traffic Control: A New Blueprint for a Better System," proposes restructuring the U.S. air traffic control system along the principle of "user pay means user say," according to Robert Poole, foundation president and co-author of the study (DAILY, May 29).
Delta boarded 81,827 passengers at its Atlanta hub on May 24, a one-day record for Delta and, according to the carrier, the most passengers ever boarded by a single airline at a single airport in one day.
German federal government, city of Berlin and state of Brandenberg reportedly have opted for Schonefeld Airport as the site of the major new international airport to serve the region. The supervisory committee, Berlin Brandenburg Airport Holding (BBF), meets June 24 to discuss the site selection.
Japan Airlines (JAL) posted an operating profit for fiscal year 1995, its first in five years. Growing demand for business travel and a stronger yen, which boosted tourist travel, led to the turnaround, JAL said. The carrier's operating profit of 15,403 million yen (US$141.51 million) compares with a loss of 9,858 million yen (US$90.56 million) in fiscal 1994. The fiscal year ends March 31. Sales revenue climbed 7.8% to 1.12 trillion yen (US$11.02 billion). JAL said cost cutting paid off and attributed a 5.3% increase in costs to additional capacity.
Hawaiian Airlines has tapped Michael McQuay, a longtime Continental executive, to be its new executive VP and chief operating officer. McQuay replaces Frank Forster, who will retire June 15. McQuay has held a string of operational posts during his 25-year career with Continental, most recently as VP of Continental's Houston hub. He served as president and chief executive of Continental Micronesia.
United and SAS have agreed to expand their alliance significantly by Sept. 30 for at least five years, on the condition that they receive DOT approval of antitrust immunity (DAILY, May 29). The broadened agreement requires "forms of business integration that go far beyond mere code sharing," the carriers said in a joint filing at DOT.
