Air Canada's operating loss narrowed dramatically in the fourth quarter, although its full-year operating profit dropped to C$114 million, compared with $191 million in 2005. The fourth-quarter operating loss of C$5 million was a C$86-million improvement from a year earlier. Based on strong revenue growth, Air Canada CEO Montie Brewer felt confident enough to declare this was "one of the strongest fourth quarters in Air Canada's history."
US Airways told the U.S. Dept. of Transportation Friday it intends to apply for authority to fly U.S.-China nonstops, beginning in spring 2008, and it asked DOT to conduct a full competitive proceeding for the service.
You can now register online for AVIATION WEEK events. Go to www.aviationweek.com/conferences or contact Lydia Janow, 212-904-3225 or 800-240-7645 ext. 5 (U.S. and Canada only) FEB. 14-15 -- Defense Technology & Requirements Conference, National Press Club, Washington, D.C. APRIL 17-19 -- MRO 2007 Conference & Exhibition, Cobb Galleria, Atlanta, Ga.
FAA says its new commercial air tour rule will cover more operators and will require improved passenger briefings and more safety equipment for over-water flights. Private pilot flight experience is increased from 200 to 500 hours. The rule will increase oversight and "help us identify and address operational trends that could lead to accidents," the agency says.
The Aircraft Owners and Pilots Association tells its members FAA intends to "increase fuel taxes fourfold" in a new agency funding proposal due this week. While FAA says it will mostly exempt general aviation operators from user fees that will be imposed on airlines, AOPA believes the agency will recommend some fees for GA flights in restricted airspace.
Open Air, a Cirrus SR22 operator and newly certificated as a Part 135 carrier, is taking reservations for air taxi flights from its base at Montgomery County Airpark, Gaithersburg, Md. Fares range from $420 to $525 per flight hour and top out at $595 per hour if limousine service is included. Parent K&R Aviation of Rockville has acquired five three-passenger Cirrus SR22s, each equipped with the Cirrus Airframe Parachute System.
Countering U.S. arguments to the World Trade Organization, the European Union argued Friday that the after-effects of the 9/11 attacks and Boeing management blunders can explain most of the poor financial results U.S. regulators are blaming on Airbus subsidies.
SAS Group boosted operating revenue 9.5% in 2006 and generated a US$166 million income, but decided not to issue a dividend for they year because it still views its financial situation as too precarious. Group president and CEO Mats Jansson, who took over in January, says that "the result reported for 2006 is a good sign," but he adds income remains "too low."
The energy team at Raymond James is revising its quarterly fuel forecast for 2007 to $57, $62, $67, and $70, down from previous estimates of $63, $66, $69 and $70 per barrel. Incorporated in those estimates is a $14 per barrel crack spread assumption to covert those prices to a jet fuel equivalent.
Boeing's commercial aircraft head Scott Carson believes the current strong aircraft sales cycle shows no sign of fading, and should regather momentum as U.S. and European legacy carriers begin to place orders.
U.S. Transportation Secretary Mary Peters says she will highlight liberalization of the U.S.-China aviation agreement when she makes an official visit to China this spring. "It is clear that the market could support much more service, so we are redoubling our efforts to liberalize our aviation agreement with China," Peters says.
Big Sky will suspend the service it operates to Pocatello, Idaho, effective March 20. The airline operates unsubsidized service to Pocatello, but increased fuel costs and insufficient traffic prevent Big Sky from operating profitably there. The U.S. Transportation Dept. allowed the suspension because the community will still receive air service through SkyWest's Delta Connection flights to Salt Lake City [OST-2006-26708]. -ARS
Southwest last week named its third major airport with a significant legacy carrier presence in a year when it declared its intention to launch service from San Francisco this fall. The move follows the launch of service from Denver a year ago and Washington Dulles last fall. Both airports, as well as San Francisco, are United strongholds.
Tapps Michael Heil, most recently director of the Center for Space Studies and Research at the Air Force Institute of Technology, to become its new president and CEO.
U.S. negotiators Friday agreed with their European Union counterparts that the current U.S.-EU air services pact is "unbalanced," leading a senior EU official to conclude that the weeklong talks were "productive;" the latest round of open-skies talks ended Friday in Washington.
Boeing expects the first flight of its 787 aircraft to occur in late August or early September, Boeing Commercial Airplanes CEO Scott Carson says. First delivery is still scheduled for 2008.
Names Joseph Lombardo to succeed Bryan Moss as executive VP of its Aerospace business group and president-Gulfstream Aerospace Corp., effective April 9. Moss will become president emeritus-Gulfstream.
SkyWest executives say that while some regional carriers might cut margins significantly to generate growth, "We are not one of them." They note the airline needs to achieve an appropriate rate of return. SkyWest's deal with Midwest to fly 50-seat jets starting in April, is "consistent with other contracts," says SkyWest's management.
JAL intends to upgrade its fleet of freighter aircraft with the addition of new 747s and 767s, to support expansion of its global cargo network. During the airline's next fiscal year - which begins April 1 - JAL plans to retire five 747F-200s. Three 747-400BCFs will be added to the fleet, converted from passenger aircraft. This will give JAL 11 747s, comprising seven -400s and four 747Fs. This summer JAL is scheduled to take delivery of three new 767Fs, boosting its freighter fleet to 14 aircraft by next March.
JAL plans to increase frequencies on the Tokyo-Hanoi route from two to three flights per week from March 25. The existing flights are on Monday and Friday, and the new service will be on Wednesday. This change will allow JAL to offer daily flights on this route, in combination with code-share partner Vietnam Airlines.
Colgan Air was re-selected to operate Essential Air Service at Staunton, Va. The carrier, flying as US Airways Express, will operate 18 weekly roundtrip flights between Staunton and Washington Dulles with 19-seat Beech 1900. The subsidy rate for the new term, which will begin May 1, is $1,389,727 per year until April 30, 2009 [OST-2002-11378].
