What's Up

AccessAir - The start-up carrier, based in Des Moines, Iowa, has begun proving flights with B-737-200s along their proposed routes and on their proposed schedule for passenger service. Once the proving flights are successfully finished, the FAA will certify AccessAir and then the Department of Transportation will issue a final certificate. The airline plans to fly non-stop or direct (no change of planes) flights to Los Angeles or New York from Des Moines, Moline, or Peoria. AccessAir intends to add Colorado Springs, Colorado and Sioux City, Iowa to their future schedule, along with other major stops, such as Atlanta, Boston, Houston, Orlando, Portland, San Francisco, Seattle, and Washington, D.C. (Business Wire, Jan. 19)

Aeroperu - Peru’s heavily indebted flagship carrier is trying to sell a majority stake in itself during negotiations with American Airlines and Continental Airlines. The airline’s current partners, Delta Air Lines and Mexico’s Aeromexico y Mexicana de Aviacion, each hold a 35 percent share of Aeroperu, but are looking to reduce that to enable a new partner to help finance a $15-$20 million plan to reschedule debts. Another group, TPA Investment, a holding firm representing a number of U.S. investors, said it has started talks with Aeroperu about buying a majority stake. "We are negotiating the purchase of Delta and Aeromexico stakes to make a capital injection depending on the firm’s conditions and viable alternatives," TPA spokesman Thomas Birt said at a news conference, indicating that his company had helped turn around other troubled airlines with similar deals. (Reuters, Jan. 22)

Air France - Chairman Jean-Cyril Spinetta said that an announcement by the French government to sell 20 percent of the state-owned airline is "imminent." Although the sale will take place a year later than planned, it is expected to raise up to four billion francs. According to analysts, the sale should be concluded by late February. After the sale, of which 3.5 percent of the shares will be reserved for employees, France will still have between a 51 percent to 53 percent direct stake in the airline. (PA News, Jan. 25)

AirBC - The regional airline for Air Canada plans to build upon the success of its first nonstop flight between Denver and Edmonton. Starting April 5, AirBC will add a second daily nonstop to the route, operating both flights with the 76-seat British Aerospace 146 jet aircraft. All of AirBC’s flights in Denver are code-shared with United. (PRNewswire, Jan. 12)

America West - On March 24 the carrier will add its sixth Texas destination with new nonstop service between Phoenix and Midland/Odessa. The three daily nonstops will be operated by America West Express using the 50-seat Canadair Regional Jet. The regional carrier will also add two daily flights from Phoenix to El Paso in the CRJ aircraft beginning on March 27, which will complement the mainline’s four daily B-737 roundtrips between the two cities. (PRNewswire, Jan. 12)

America West announced plans to add its 16th and 17th California destinations on April 4. America West Express will offer four daily flights from Phoenix to San Luis Obispo, and three daily nonstops from Phoenix to Carlsbad/Oceanside. The regional carrier will operate the flights to both cities in the 37-seat deHavilland Dash 8 aircraft. (PRNewswire, Jan. 12)

American Eagle - The commuter affiliate of American Airlines will begin twice-daily flights between Puerto Rico and Trinidad on February 1. The new service follows the FAA’s decision to allow the carrier’s Super ATR turboprops to fly over water more than 50 nautical miles from land. "With this certification, we can fly more direct flights over water and not have to stay near the islands," spokeswoman Minette Velez said. She also added that American has no plans to change their Miami to Trinidad flights. (Dow Jones News, Jan. 29)

American Trans Air - Effective April 30 the airline will discontinue service between Milwaukee and Orlando. American Trans Air said it will still offer service to Milwaukee passengers in conjunction with its code-share partner, Chicago Express, which will continue to offer six daily flights to Chicago’s Midway Airport, where American Trans Air offers flights to 22 cities. (Dow Jones News, Jan. 20)

With its expansion at Midway Airport, American Trans Air plans to add 500 jobs in Chicago by the end of the year. The airline currently has about 6,000 employees, with slightly more than a thousand in Chicago. Amtran spokeswoman Mary Cochran said that the carrier will add an as yet undetermined number of domestic flights and destinations from Midway, and is also considering the start of international flights from there. (Reuters, Jan. 12)

British Airways - During March the carrier will use a larger aircraft on its Denver to London flights. From March 1 to March 21 British Airways will use a B-747-400 in place of the current B-777. The expanded service will offer a 68 percent increase in economy-class seats, and may be continued for several additional weeks into April. (Dow Jones News, Jan. 20)

Continental - The airline plans to expand jet service from Cleveland by 25 percent. This spring will see flights to Montreal on April 1; to Islip, N.Y. and Memphis on May 1; and to Manchester, N.H. on June 1. Charlotte, Jaxksonville, and Omaha, Neb. will be added on July 1. The company also plans to add Continental Express service from Providence, R.I. on April 4 and from Chicago on June 10. (Dow Jones News, Jan. 25)

Pending Israeli government approval, Continental plans to inaugurate daily nonstop service between Newark and Tel Aviv in August. The airline plans to use the 283-passenger B-777, with 48 seats in BusinessFirst and 235 in coach. (PRNewswire, Jan. 20)

The airline is negotiating with Fort Lauderdale-Hollywood International Airport to lease four gates in a terminal now under construction. "I don’t know if that’s going to go through," William Sherry, airport director, said. "I can’t tell you which way it’s going to go. There are still some issues that have to be resolved." He also said that the terminal will eventually have three concourses and 23 gates, but will start out with one concourse and nine gates. (Reuters, Jan. 15)

Delta The airline’s management has agreed to enter into early contract talks, a request put forward a week earlier by its ALPA unit. Delta suggested that the talks could start when negotiations over pilot pay and work rules for the new B-777 are completed or on September 8, whichever comes first. ALPA began early openers on the B-777 issues in February. (Aviation Daily, Jan. 20)

Delta plans to offer hourly nonstop service between Atlanta and Philadelphia on April 4. These new flights will join with already offered hourly flights from Atlanta to Boston, Chicago’s O’Hare, New York’s LaGuardia, Newark, and Washington’s National. Also, on April 4 Delta will add one additional flight from Atlanta to Austin, Greensboro, and Norfolk. (PRNewswire, Jan. 18)

Iberia - Spain plans to sell 30 percent of Iberia Lineas Aereas de Espana, its state-run airline, directly to investors. Banco Bilbao Vizcaya in Spain is reported to be an interested investor. American Airlines and British Airways have already pledged to acquire a 10 percent interest between them. (M2 Communications, Jan. 18)

Japan Airlines - The carrier plans to expand operations across the Pacific on April 1 to meet growing competition and to avail themselves of opportunities to cooperate with overseas airlines. In March the carrier will fly between Tokyo and Dallas three times a week, and increase flights between Tokyo and Las Vegas to four a week in April. In May JAL will fly five times a week between Osaka and Chicago, and in August will increase the Tokyo to Dallas flights to one a day. (Dow Jones News, Jan. 20)

Japan Airlines will begin joint services with American on 30 routes for 192 round-trip flights on May 10. Among the routes are flights from Narita to Fukuoka, Chicago, and New York and Chicago to Washington, D.C. The airlines plan to increase their joint offerings to 157 routes during the year. (Asia Pulse, Jan. 13)

Kiwi - After announcing the addition of 16 more flights a week from Puerto Rico, Kiwi said it would stop serving Chicago’s Midway Airport, one of its original destinations, on January 31. Although the carrier owes more than $300,000 for terminal rent, landing fees, and other charges at Chicago, Kiwi spokesman Rob Kulat denied that was a factor in leaving Midway and said the airline would pay the bill, but could not say when. (Associated Press, Jan. 28)

LOT - Tadeusz Syryjczyk, Polish Transportation Minister, confirmed that the government would sell a minority share in LOT before summer. "The privatization of LOT will soon be discussed by the government and in the first half of the year airline companies or alliances will be invited to negotiate," he said. Syryjczyk added that Poland planned to keep a majority stake in the airline for several years. One of the airlines showing interest in the privitization is LOT’s code-share partner, British Airways. (Reuters, Jan. 27)

Philippine Airlines - Two more creditors have joined a growing list of those opposed to the proposed rehabilitation plan for the carrier. The U.S. Export-Import Bank, the trustee of four Philippine Airlines’ B-747-400s, said the current plan is "fatally flawed," and that they would do everything possible to oppose its adoption and implementation. "The plan is unfair to international secured lenders because it eliminates contractually agreed rights; fails to cure defaults; and fails to follow the procedures described by the interim rehabilitation receiver and PAL as required by Philippine law," it claimed. Dai-Ichi, a holder of a $1-million floating rate note issued by PAL to raise cash for its operations, said that the airline failed to provide enough information regarding its cash flow, and said there was little assurance that PAL could repay its $2.1 billion debt. (Airline Financial News, Jan. 11)

Reno Air - On March 1 the airline added five daily roundtrip flights between Los Angeles and San Francisco. The new service will bring to eight the number of roundtrips between the two cities, and they will be scheduled to operate every two hours. (PRNewswire, Jan. 21)

SkyWest Airlines - The airline has signed an agreement with Bombardier, Inc. to purchase up to 50 Canadair Regional Jet aircraft. The agreement has firm orders for 25 series 200LR (Long Range) planes, and with related support equipment, is valued at about $560 million. Deliveries will begin in June, 2000 and continue through December,2002. SkyWest Plans to use the new aircraft for growth in new markets and as replacements for turboprops in selected markets. "The range and speed of the CRJ facilitates the development of a highly efficient route system," stated Ron Reber, Chief Operating Officer, SkyWest Airlines. "This will give us the ability to redefine how Intermountain and West Coast travelers can best utilize the hubs of our partners, United Airlines and Delta Air Lines." (PRNewswire, Jan. 22)

Sun Country - The Mendota Heights, Minn.-based airline, primarily a charter operator during its 16-year life, plans to offer daily nonstop service to several major cities from Minneapolis/St. Paul. Starting June 1, Sun Country will fly to Boston, Detroit, Las Vegas, Los Angeles, New York’s JFK, Orlando, Phoenix, San Francisco, Seattle, and Washington’s Dulles. "The current environment in the Twin Cities marketplace has presented Sun Country with a timely business opportunity, one that will benefit the traveling public as well as our company now and well into the future," Bill La Macchia Jr., Sun Country president and chief executive, said in a news release. (Reuters, Jan. 15)

United - The carrier announced that its United Express affiliate, Air Wisconsin, will begin daily nonstop service between Denver and Omaha on March 1 and between Denver and Billings, Montana on March 4. Air Wisconsin will operate the service in 50-seat Canadair RJs. (PRNewswire, Jan. 25)

United said that it will end its daily service between Delhi, India and Hong Kong and between Delhi and London on April 4 because of disappointing profitability. The airline is considering eventually to resume service to Delhi direcly from the United States if technical issues, such as flying over the North Pole, through Russian airspace, and over high mountains, can be resolved. (Reuters, Jan. 14)

Vanguard - The carrier plans to add another nonstop flight between Chicago’s Midway and Minneapolis/St. Paul on April 15. The new service, set to coincide with the delivery of Vanguard’s eleventh B-737-200, will bring to six the number of daily roundtrips between the two cities. (PRNewswire, Jan. 21)

Vanguard will begin nonstop service from Chicago’s Midway to Cincinnati with four daily roundtrips on April 15. Robert J. "Rocky" Spane, CEO and President of Vanguard Airlines, said, "This new route epitomizes Vanguard’s strategy. We are targeting heavily populated, short-haul, high-fare, relatively uncompetitive markets. We offer low fares, an attractive schedule and true midwestern hospitality to appeal to business and leisure travelers alike." (PRNewswire, Jan. 20)