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Aviation History
1985
1985 - 2298.PDF
AIR TRANSPORT China Southwest chooses 737-300 BEIJING Boeing has scored a hat-trick in airliner sales to China this year with an order for four 737-300s to new Chengdu- based regional airline China Southwest Airlines. The contract is worth about $104 million. China Southwest, an airline set up jointly by the Sichaun and Guizhou provinces and the city of Chongguing, will take delivery of the first -300 in November this year. Nos 2, 3, and 4 will be delivered in January, February, and June 1986. This latest acquisition will see Boeing aircraft based in five major Chinese cities- Beijing, Chengdu, Guangzhou, Kunming, and Xiamen. The US manufacturer has now sold more than $1,000 million worth of aircraft to China since 1972. The China Southwest sale is its third in the country this year. In February Boeing clinched a deal with the Yunnan Province for two 737-300s to serve on domestic and international routes from early 1986. In June it announced a major order from CAAC for five 737-200s plus two 767-200ERs. A second 747-200B Combi was also ordered. With delivery of the China Southwest aircraft the Boeing fleet in China will increase to 46 aircraft. Total 737 orders to date are for 1,323 aircraft, 216 of which are for the -300 model. European, Australian, and Chinese airlines have ordered 40 Boeing 737s in the past month, the manufacturer reports. Strike produces Pride Air LOS ANGELES ~ Pride Air, Inc, an airline set up by former Continental Airlines pilots, will start operations on August 1, flying eight Boeing 727-200s and linking eight western cities with seven cities in Florida via its New Orleans hub. Chairman and chief execu tive Paul Eckel, says that Pride will be based in New Orleans, offering a coast-to- coast fare of $199 without restrictions. The eight western cities are Los Angeles, San Francisco, San Diego, San Jose, Sacra mento, Las Vegas, Denver, and Salt Lake City. Florida destinations include Miami, Fort Lauderdale, Orlando, Tampa, Jacksonville, West Palm Beach, and Sarasota. Eckel says that Pride raised $15 million in start-up capital, most of the money coming from 360 former Continental pilots. One invested $150,000, and more than 100 others contributed over $90,000 each. Pride's 500 employees and eight 727s will compete with Eastern, Delta, and Continental, says Eckel. His airline will meet the lowest fare offered by any competitor, starting with a $129 advance purchase fare coast-to-coast. "Pride Air is not 'Air Revenge'," observes Eckel, referring to the origins of the airline in the continuing US Air Line Pilots Association strike against Continental. "We have only one objective, and that is to succeed on economics." Eckel was head of the Employees' Association at Continental, and led the employees' attempt to buy the airline before Frank Lorenzo took over. Eckel says that Pride will be profitable because its pilots are now non-Alpa, and will be paid less than the Alpa salary scale. But employees have additional stakes in owner ship and profits. "We don't intend to have raises at Pride Air on a regular basis, but we will share profits with employees in an Employee Stock Ownership plan (ESOP)." Under the ESOP, 15 per cent of pre-tax profits are slated for distribu tion to employees. "The bottom line is: If we succeed we will share the rewards," says Eckel. "But if we fail, we will share that, too." Pilots' seniority is based on the seniority they held at Continental, and on how much money they have invested in Pride Air. Maersk is Scandinavia's first customer for the 737-300. China Southwest is the latest of 21 customers who have bought a total of 216 737-300s in the four years since its launch, making it the fastest-selling Boeing except the 727-200 NEWS SCAN Air New Zealand is to fly a third weekly service to London Gatwick following discussions between UK and New Zealand authorities. Air New Zealand and Cathay Pacific will also resume a direct link between Hong Kong and Auckland after services were suspended last year following a dispute about traffic on the route. The net profit earned by Frankfurt Main Airport in 1984 increased by 22 • 4 per cent to DM 40-5 million (£10-34 million). This followed a 7 per,, cent increase in passenger traffic to 19 • 03 million, and a 12 per cent rise in cargo traffic ' to 772,800 tons. i Upgrading of the runway at Vladivostock has allowed Aeroflot to begin scheduled services with Il-62s from Moscow. Vladivostock is the i fifth airfield in the Soviet Far East with 11-62 capability. Singapore Airlines has introduced business class on its A310 fleet. The newly configured aircraft carry 12 first-class passengers, 36 busi ness class, and 140 economy class passengers. The Australian Govern ment has announced an inde pendent review into Austra lia's international air freight services. The review will exam ine whether non-scheduled operators should cater for any scheduled capacity shortfalls for the transport of non-,: manufactured produce. Singapore Airlines is step ping up its "percentage cater ing" policy to cut back on food wastage. The carrier is prepar ing fewer meals than there are passengers, on the basis that not everyone wants to eat. If there is a shortage the flight crew are encouraged to surren der their own meals. An SIA spokesman said there had been' no complaints by passengers. The British Airports, Authority's three London airports passed a milestone in May by handling a total of 45, million passengers or the first time in a 12-month period. Air France has launched a second weekly flight to Beijing leaving Paris on Fridays with a stop to Delhi. FLIGHT International, 27 July 198
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