Unexpected Transportation Security Administration charges dulled the luster of Southwest's fourth quarter profits, but the carrier pledged to fight those charges and remains committed to growing profits by 15% in 2006 as energy costs climb. Net income at Southwest reached $86 million during the fourth quarter, up about 54% from the $56 million logged a year ago. Excluding special items related to Statement of Financial Accounting Standard (SFAS) 133 procedures, Southwest's fourth-quarter profits totaled $98 million.
United yesterday got the green light to move equity with an executive incentive compensation plan for top executives, an action that was criticized by several unions. The bankruptcy judge overruled all the objections to the plan that were filed in the court, deciding that the proposal was reasonable. At the airline's confirmation hearing, Judge Eugene Wedoff said the carrier needs the incentive plan to stay competitive. The plan will divide about 8% of the equity in the reorganized company among several hundred top executives.
British Airways Chairman Martin Broughton yesterday called for the U.S. government to drop the limited foreign ownership proposal that the U.S. Transportation Dept. has drafted, and instead try to push much broader aviation market liberalization through Congress.
Troubled Brazilian carrier Varig used some of the funds received from the sale of its subsidiaries VarigLog and VEM to pay $56 million to its aircraft lessors, tightening its grip on some 40 aircraft entangled in its debt problems (DAILY, Jan. 5).
Gary/Chicago Airport landed $57.8 million in funding from the U.S. Dept. of Transportation boost its presence as the third major airport in the Chicago area. The airport is about 25 miles from downtown Chicago. The approved funding will be spread out over a 10-year period for various projects including runway extensions and railroad relocation.
The third civil airport in China's Tibet Autonomous Region will open for operations next month. Nyingchi Airport is located 2,945 meters above sea level. The airport will have a 3,000-meter-long runway and is expected initially to handle 120,000 passengers a year. The General Administration of Civil Aviation of China is currently testing various systems to be implemented at the Nyingchi Airport.
American parent AMR Corp. yesterday reported a deep $604 million fourth-quarter net loss, including one-time charges, and executives warned of needing higher revenues and lower costs to return to profitability.
The JAL Group requested approval from the Japanese government to extend and increase the fuel surcharge placed on all international passenger tickets issued on or after March 1.
Washington's Dulles and Houston Intercontinental airports will test a U.S. pilot program that creates "a more welcoming environment" for foreign visitors, officials announced this week. The model airport program will feature customized video messages to guide foreign travelers through the U.S. entry process. The project is part of a wider "Secure Borders and Open Doors in the Information Age" program created by the departments of State and Homeland Security to harmonize entry procedures while strengthening security and facilitating travel.
Air Canada next week will start launching the new Thales i4500 inflight entertainment system on its fleet of Embraer 175s and 190s. The system, which is being introduced fleet-wide, features 8.9-inch-wide, digital in-seat monitors and touch-screen controls at every seat. The units will be installed on a progressive basis.
Delta and Northwest filed exemption applications with the U.S. Transportation Dept. to cover their SkyTeam participation. Delta wants to amend its blanket code-share exemption so that KLM is included as one of the carrier's authorized foreign code-share partners [OST-2005-20145].
America West dropped out of the competition for the Los Angeles-San Jose del Cabo, Mexico, exemption, citing "current market conditions." [OST-2005-23498].
U.S. airport operators have won a temporary reprieve from a Transportation Security Administration plan to put them back in charge of some security measures near passenger screening checkpoints.
The Indiana counties of Daviess, Dubois, Knox, Martin, Perry, Pike, Pulaski and Starke on April 2 will move from the Eastern to Central time zone, as part of the U.S. Transportation Dept.'s final rule. The change will take effect as the U.S. switches to daylight saving time. Meanwhile, Carroll, Cass, Fulton, Lawrence, Marshall, Sullivan, St. Joseph, Vermillion and White counties will remain in the Eastern time zone. The transportation secretary holds the authority to make the change under the Uniform Time Act of 1966 [OST-2005-22114].
South African Airways named Jacqui O'Sullivan the new head of corporate communications. She is currently the communications manager of Airports Company South Africa. She will be responsible for internal and external communications, as well as corporate social investment, reporting to Molebatsi Moagi, general manager for marketing and sales.
Seven aviation associations yesterday called for the creation of a formal industry consultation body to advise the European Commission and European governments on security issues.
The winning bid for the acquisition of bankrupt Italian low-cost carrier Volare will be unveiled on Feb. 1, said the company's temporary legal administrator, Carlo Rinaldini. Alitalia appears to be firmly in the lead.
U.S. scheduled airlines employed 437,014 workers in November 2005, down 6.4% from a year earlier, the U.S. Transportation Dept.'s Bureau of Transportation Statistics said yesterday. The biggest drop came at the seven network carriers tracked by BTS. These airlines saw full-time and part-time employee numbers decline by 9% in November to 290,352. The low-cost carrier employment total dropped 2% to 74,299, and regional carriers were unchanged at 59,301 employees.
Continental yesterday reported a fourth-quarter net loss of $43 million -- including special items -- and CEO Larry Kellner predicted a "significant loss" for the first quarter of 2006 as well, prompting a dip in the company's stocks on Wall St.
Charges at the Paris airport system will rise by 5% per year -- inflation included -- between 2006 and 2010, said French Transport Minister Dominique Perben. The increase, which will total 27.6% over the whole period, will be included in a regulation contract to be signed by the French government and airport management company Aeroport de Paris (ADP) before month-end.
