Continental loaded code-share partner World Airways' flights into the System One/Amadeus computer reservation system last weekend, just in time for the make-or-break phase of World's troubled Newark-Tel Aviv service.The route must perform well during the generally strong summer season or World will stop flying it, President Charles Pollard warned investors.
Aggressive expansion and stiff competition in the domestic market left Air Canada with a C$96 million (US$70.46 million) loss for the first quarter, a 9.09% increase from the C$88 million (US$64.59 million) the carrier suffered in the first quarter 1995. On a per-share basis, Air Canada lost C$0.62, down from C$0.74 lost in the 1995 period. The carrier posted an operating loss of C$40 million, sharply higher than the C$7 million deficit last year.
Daimler-Benz Aerospace (DASA) said it has subcontracted with Lufthansa Technik to standardize the cockpits of Airbus aircraft for FedEx. The package carrier, which has 37 A310s and A300-600s, has contracted with DASA to convert all of them into freighters. DASA said it subcontracted with Lufthansa Technik because it is an approved design organization certified to make such modifications. The third phase of the conversion program, which involves 17 aircraft bought from Martinair, KLM and Swissair, is scheduled to be completed in the fall of 1997.
Transportation companies chosen as the best in their category in an Internet World Wide Web survey will soon receive a new award - the Webbie. CIC Research, San Diego, which conducts Internet surveys, will award a Webbie to the most popular airline, airport, destination, lodging chain for business travelers, lodging chain for pleasure travelers, rental car company for business travelers and rental car company for pleasure travelers. The first winners will be announced May 13.
Trump Hotels&Casino Resorts Inc. is well positioned for growth after the sale of 13.3 million shares of newly issued common stock and the issuance of $1.2 billion in new first mortgage notes, the company said, and planned growth opportunities are on track. Trump World Fair, which is scheduled to open in Atlantic City in mid-May, will add 500 rooms and casino space to Trump Plaza Hotel and Casino, making it the largest casino hotel in Atlantic City. Trump's Taj Mahal in the city received approval last month for a new wing that will add 802 rooms.
The 1996 Toronto Tourism Awards program, launched recently, will honor frontline employees in six tourism sectors - accommodations, arts/attractions, restaurants, retail, transportation and services - for exceptional service. The awards, sponsored by Diners Club/enRoute and WHERE Toronto magazine, include a top prize package worth $5,000. Nominations will be accepted until the end of October and an awards ceremony will be held in November. For more information, call 416-955- 4969.
Pennsylvania State Travel Director Mark Hoy joins the Travel Industry Association today as director of international marketing. He also will become executive director of the USA National Tourism Organization with responsibility for establishing an overseas network of government contacts to promote tourism to the U.S. and formulating an international marketing strategy.
Tourism company Evrasia, which has established tours to Western Europe and Asia and is engaged in retail trade, wants to become a distributor for U.S. producers of consumer goods and find an American travel agency to establish tours to Ukraine from the U.S. For more information, contact Mykola Zhura in Kiev, 380-44-227-71-68 or fax 380-44-243-03-05.
Pilots at Delta and American wanting decisions about their jobs made locally instead of nationally are organizing independent unions. The Professional Pilots Alliance (PPA) at Delta, started in November 1993, waited until contract negotiations with the company were completed before trying to organize pilots so as not to weaken pilot unity. Now that Delta's pilots, represented by the Air Line Pilots Association, have ratified a new contract, the PPA is on the move again.
American Automobile Association has re-elected Van Smith chairman of the board at its 93rd annual convention in San Francisco. Also re-elected were Terry Baker as vice chairman and Dwight Sutherland as secretary.
Airport privatization would get a tryout under an FAA reauthorization bill being drafted by the House Transportation aviation subcommittee. The draft, which will call for a limited demonstration of privatization, also would modify distribution formulas for the Airport Improvement Program.
Delta, Malev and Austrian Airlines begin code-sharing service today on Delta's flights from Atlanta to Vienna and Budapest. Delta offers daily 767ER service.
USAir and American have some of the highest long-haul costs in the U.S. airline industry, according to a new study by Roberts, Roach&Associates. While earlier studies by the group have focused on the short-haul carriers, its latest survey of the industry investigates the cost of operating narrowbodies and widebodies in long-haul markets. Unfortunately for USAir, it tops the chart in both categories. The carrier pays 6.72 cents per available seat mile to operate a 757 on a 1,400-mile flight. American is not far behind at 6.70 cents per ASM.
Southwest will hold a "president for a day" contest June 12, when Chairman Herb Kelleher will "share the helm" of the carrier with the winner. Contestants can submit their most innovative ideas on management until May 8. All entries must be 100 words or fewer. The airline notes that since the idea for Southwest originally was written down on a cocktail napkin, entries that do the same will be considered for their "creative" inspirations.
DOT issued a show cause order yesterday tentatively selecting Continental over American to operate new service to Lima, Peru. Pending final approval, Continental can operate daily Houston-Lima service beginning as early as Nov. 1.
Western Pacific will add flights June 15 to San Antonio, San Francisco and San Diego from its Colorado Springs base. San Antonio will have two roundtrips a day, San Francisco three and San Diego two. The carrier celebrated its first anniversary on Sunday.
Taiwan's Civil Aeronautics Administration has extended for the seventh time Cathay Pacific Airways' temporary right to conduct service between Hong Kong and Taiwan. The latest extension will permit Cathay to continue service on the route until June 29. The bilateral agreement between Taiwan and Hong Kong expired April 29, 1995. A new five-year agreement was finalized more than four months ago but has not yet been signed because Hong Kong and mainland China have been unable to agree on all the conditions of the pact.
DOT has approved plans by Delta and Korean Air to expand their code-share service. Beginning June 1, Delta will purchase seats on KAL's four weekly Washington Dulles-New York Kennedy-Seoul Boeing 747 flights and KAL's daily 747 Honolulu-Seoul service, while KAL will acquire seats on Delta's daily L-1011 service between Honolulu and Los Angeles. Delta currently acquires seats on KAL's three weekly Atlanta-Chicago-Seoul flights.
Continental Express plans to begin service to Memphis from Houston Intercontinental Airport July 1, offering three daily nonstops with 48-seat ATR 42-500 aircraft.
Discussions that began Monday in Washington on United's proposed increase in frequencies in the Los Angeles-Tokyo market beginning May 2 continued yesterday, and a senior DOT official pledged a "proportional" response in the same city-pair market if the Japanese government does not allow the scheduled service increase. Japan is prohibiting the service expansion in retaliation for U.S. inaction on Japan Airlines' Tokyo-Kona, Hawaii, proposal, which itself was a reaction to Japanese delay on several other requests, including United's Osaka-Seoul beyond rights.
Air Transport Association President Carol Hallett has thanked Sen. Robert Dole (R-Kan.) for his commitment to the repeal of the 4.3 cent-per-gallon fuel tax. Dole's staff said the Senator wants quick action on the repeal of the tax, which affects more than aviation. The association is not certain at this point of what form the legislation will take, but word is something could be done by Memorial Day (DAILY, April 30).
U.S. Major and National Carriers Labor Expenses Fourth Quarter 1995 % Of Total Operating Systemwide Expenses America West $ 91,915,820 24.38 American 1,529,891,000 37.54 Continental 260,227,000 22.50 Delta 940,849,000 32.85
Lufthansa will split its stock 10 for one and convert its outstanding preferred shares into common bearer stock, the carrier said yesterday. Both moves are subject to shareholder approval at the carrier's Annual General Meeting July 3 in Frankfurt. The stock split would reduce the face value of the carrier's shares to 5 Deutschmarks from DM50. Lufthansa said the move is designed to bring its share price in line with that of other German companies and make the stock "more attractive to an even broader range of investors."
