L-3 Communications CEO Frank Lanza, 74, died suddenly on June 6. No cause was identified. In what would prove to be his final interview, Lanza told Aviation Week & Space Technology June 1 that the company has had "a succession plan in the works for about two years." An unnamed designee was in place to take over the board, but no one was designated to be CEO, he said. Lanza built the discarded defense electronics units of the old Loral Corp. into a major defense and homeland security company that is on pace to reach $12 billion in sales this year.
Aeroflot posted a 10% increase in net profit for 2005, in spite of significantly higher fuel prices. The airline's net profit totaled $189 million, up from $172 million. Revenue rose 18% to $2.5 billion. Aeroflot's fuel bill increased by 61% and fuel now accounts for 31% of total operating costs, up from 26% a year earlier. Aeroflot plans to place a major order for either the Boeing 787 or the Airbus A350 but, like other carriers, is awaiting further details on the A350 program before making a decision.
UPS will launch the first all-cargo service in the El Paso-Chihuahua, Mexico, market in August pending regulatory approval. The carrier is seeking an exemption from the U.S. Transportation Dept. to launch Boeing 757 freighter service on Aug. 14 [OST-2006-24977].
Airbus should boost production of the Airbus A380, Emirates President Tim Clark told The DAILY at the IATA general meeting in Paris. Instead of producing one aircraft a week as currently planned, the manufacturer should look at "one every three to four days," he says. Clark expects many airlines to place additional orders for the A380 next year, once launch customers Singapore Airlines and Emirates begin operating the aircraft.
US Airways' reported a 25% unit revenue jump in May even though traffic and capacity fell in the East and West networks. For America West-operated flights in the West, revenue passenger miles were down 4.1% from the same month last, which was more than the 2.6% capacity drop. The passenger load factor for May was 80.5%, down from 81.8% in May 2005. For US Airways mainline-operated flights, RPMs fell 8.2%, less than the 12.9% capacity drop. The passenger load factor in the East was 79.9%, compared with 75.9%.
Northwest said its May load factor rose 3.5 points to 85.9%, with mainline load factor growing 2.9 points to 86.5%. Consolidated traffic dropped 5.6% on a 9.4% capacity cut. Mainline traffic was also down 5.6%, and capacity declined 8.7%.
United plans to eliminate its five daily flights at Chicago Midway in September, deciding it was more important to focus its attention on the O'Hare hub.
United set a new May record when its load factor for the month increased two points to 83.8%. System traffic was up 4.5% on a 2.1% capacity hike, while domestic traffic grew 5.9% on a 4.5% capacity increase. Domestic load factor rose 1.1 points to 83.5%. Northwest said its May load factor rose 3.5 points to 85.9%, with mainline load factor growing 2.9 points to 86.5%. Consolidated traffic dropped 5.6% on a 9.4% capacity cut. Mainline traffic was also down 5.6%, and capacity declined 8.7%.
The House Appropriations Committee on Tuesday evening approved a transportation spending bill that boosts FAA's FY2007 funding well beyond the Administration request and reverses a proposed cut to airport spending.
Midwest Airlines is sending a request for proposal this week to five or six regional airlines to fly 50-seat regional jets under the Midwest Connect brand. The airline is seeking bids from carriers to fly up to 25 planes, a Midwest spokeswoman said, and expects to make a decision about forging a new relationship with a regional carrier this summer.
After settling its differences for at least two years with pilots and flight engineers unions (DAILY, May 16), Aerolineas Argentinas now faces more potential labor trouble from the ground employees union (APA).
The Homeland Security spending bill passed by the House includes $6.3 billion for the Transportation Security Administration but rejects a White House-proposed passenger fee increase.
Capital Cargo will have more time to ensure it gets approvals to launch all-cargo flights between Toledo, Ohio, and Saltillo, Guadalajara and Monterrey, Mexico, after the U.S. Transportation Dept. extended the dormancy period to Sept. 12 (DAILY, May 24). The waiver is the second dormancy extension the carrier has received for the routes. Capital originally won the exemptions in December and the dormancy period was to end in March (DAILY, March 7).
Air traffic services provider Airservices Australia for the first time will perform work outside its home country as part of a recently won contract to install an air navigation system at the under-construction Bacolod Airport in Silay City, The Philippines. The company will manage the installation of navigation systems, including engineering, procurement, commissioning radio navigation aids, air traffic control, telecommunications and meteorological systems.
JetBlue's latest Embraer 190 market -- Nashville, Tenn. -- pits the carrier and its new plane against 50-seat regional jets flown by Delta. JetBlue is launching three daily flights in the market Aug. 31. Delta is scheduled to offer two daily roundtrip flights flown by its subsidiary Comair from JFK to Nashville in September.
Toronto Pearson Airport is the most expensive facility in the world to land a Boeing 747 or Airbus A230, barely edging out Japan's Tokyo Narita and Osaka Kansai airports, according to a new report by the Vancouver-based Air Transport Research Society (ATRS). ATRS surveyed 134 airports and 14 airport groups worldwide on productivity and efficiency, unit cost competitiveness, aviation user charges levels and financial performance.
ANA plans to start flying new Boeing 777-300ERs on its Tokyo-Washington Dulles route starting July 1 that will feature new business- and first-class seats.
FAA has given Chicago Midway Airport a $15 million grant to build runway safety buffer zones for aircraft that overrun landings. The project was spurred by a Southwest 737 that skidded off the runway at Midway Dec. 8, killing a child in a car on the ground (DAILY, Dec. 13). The Chicago Airport System's Dept. of Aviation plans to kick in $25 million of its own money to fund the $40 million project.
Lin Zuoming was named president of China Aviation Industry Corp. I, the largest of China's state-owned aerospace research and manufacturing groups. He was an AVIC I VP for five years and before that general manager of Shenyang Liming Aero-Engine Group Corp. Lin is a representative to the National People's Congress and an Alternate member for the Chinese People's Congress Central Committee.
American plans to return 19 leased Boeing 757-200s to owners when their leases begin expiring in January 2007, the airline says in an internal memo. The 757s are all ex-TWA, and they boost operating costs because they have different configurations than the other 124 757s in American's fleet. The move will also save the airline about $50 million a year in leasing costs, the memo says.
Northwest's General Counsel Barry Simon plans to resign from the airline June 30 for health reasons. Simon was diagnosed with cancer about 18 months ago and has decided to leave Northwest "to dedicate his full attention to his family and his continuing battle with the disease," the carrier said. Simon joined Northwest in October 2004 after a career at Continental, where he was senior VP-in- ternational. The carrier did not name a replacement.
San Diego County's Regional Airport Authority (SDCRAA) is one step closer to building a new airport when it chose Miramar Marine Corps Air Station as the site after more than a decade of wrangling. The plan, approved by a 7-2 vote, now goes before county voters as a ballot measure in November 2006. The Miramar site would house a projected 3,000-acre, $7.3 billion facility with plans to open in 2020.
