Dunlop Standard Aerospace Group's seven businesses, ranging from brakes to separators and actuators, are being realigned under a new unit called Dunlop Aerospace to be led by David Johnson.
Air Pegasus, the owner and operator of the District of Columbia's only public use heliport, plans to close the facility at the end of July. The heliport, located one mile south of the U.S. Capitol on South Capitol Street, has been closed to all but Metropolitan Police Department helicopters and a few waivered operations since Sept. 11. "The restrictions imposed on helicopter flights in and out of the District since Sept. 11 make it impossible for us to continue operation," said CEO Alvin Trenk.
Delta Connection carriers Atlantic Southeast Airlines and Comair this week exercised options for two Bombardier CRJ200s and one 70-seat CRJ700, giving Delta Connection six executed options this year. The market value of the latest options is roughly $73 million. Three firm orders for CRJ200s were announced May 14. ASA will operate one CRJ200 and the CRJ700, while Comair will fly the other CRJ200. Delivery of all three jets will occur in September 2003.
Boullioun Aviation Services this week delivered one new Boeing 737-700 on long-term lease to Shanghai-based China Eastern. The aircraft is powered by CFM International CFM56-7 medium turbofans. Boullioun also announced the multi-year lease of one new 737-800 in its first transaction with Hainan Airlines. Boullioun delivered the new aircraft, also powered by CFM56-7 engines, last month. Hainan's fleet has grown to 25 737s, offering service to more than 70 major cities in China.
Funding holdups are thwarting the Transportation Security Administration's efforts to meet congressionally imposed deadlines, DOT Secretary Norman Mineta told House lawmakers yesterday. It was the first time Mineta has admitted that TSA might not meet the deadlines.
AirTran yesterday posted a $5.1 million second quarter net profit thanks to strict cost control. The results were down 61.4% from last year, but management still boasted that the carrier was profitable amid a weak environment and intense competition. The results were in line with analyst expectations as revenues fell 7.3% to $190.6 million. Traffic grew 18.6% on a 23.2% capacity increase. Passenger load factor slipped 2.7 percentage points to 71.3%. The number of passengers carried jumped 10.8%, but unit revenues were down 25%.
Lufthansa will start Connexion by Boeing Internet access trials on Jan. 15, 2003. The airline has equipped a Boeing 747-400 with the system, including wireless LAN for each seat. The aircraft will operate on the Frankfurt-Washington route with the trials scheduled to last three months. Lufthansa will begin installing Connexion on its entire long-haul fleet in October 2003 and start offering it to passengers in early 2004.
Turboprop specialist ATR's new ATR 72 Cargo -- a big-door carrier converted from a former regional turboprop -- is making its first public appearance at the Farborough air show. ATR sees a 10-year market for 850 freighters under 10 tons, split roughly evenly between replacements and fleet growth, and the company expects to sell between 10 and 20 per year.
U.S. major airlines' market share sank more than 16% over the past 11 years, according to new DAILY data, while the market share of low-fare carriers has tripled. Between 1990 and 2001, low-fare airlines' share of domestic passengers has grown from 5.5% to 18%, while major airlines now represent 65.8% of total domestic passengers (see chart on page 7).
Engine upgrade kit deliveries more than doubled to $58 million for GE Aircraft Engines last year, the second year they were offered, and will double again to more than $100 million this year.
Outsize cargo specialist Volga-Dnepr signed a $29.9 million deal with Russia's Aviastar on Monday to begin building an Antonov An-124-100M freighter, the 10th An-124 in the carrier's fleet.
Midwest Express Connection carrier Skyway's pilots, represented by the Air Line Pilots Association, yesterday petitioned the National Mediation Board for "assistance" in their contract negotiations. The request for federal mediation was filed jointly with Skyway management. Skyway's 255 pilots and management have been in talks for a new contract since June 2001 and the current contract became amendable on Jan. 27, 2002.
Spanair recently signed a contract with CAE to train the carrier's pilots at CAE's Madrid training center. The three-year deal is worth about C$15 million and includes an option for a three-year extension. Spanair will join anchor tenant Air Nostrum to train at the four-bay facility. Spanair pilots will start training in November on an Airbus A320 and MD-80 simulator.
Boeing will build a new aircraft seating about 250 passengers, regardless of whether it will be the proposed Sonic Cruiser or a more conventional design, Boeing Chairman and CEO Phil Condit told journalists on Sunday, before the Farnborough Air Show opening.
Virgin Atlantic's first Airbus A340-600 yesterday was named "Claudia Nine" by supermodel Claudia Schiffer at the airline's newly built hangar at London Heathrow. Virgin Atlantic's A340-600s will seat 311 passengers in total, including 50 in Upper Class, 28 in Premium Economy and 233 in Economy. This represents a 25% increase in capacity per aircraft, compared with the airline's A340-300 fleet, which will be replaced by the new aircraft. The aircraft will have up to 40% additional cargo capacity.
The Value Of A Five-Year Term By Jane F. Garvey, FAA Administrator Some have suggested that the term for FAA administrator be seven years. As I near the finish line of the first five-year term, I'm not so sure about seven years, but I definitely agree with the wisdom of Congress to make the position a fixed term. The issues are so complex, the programs so complicated, the stakeholders so diverse, that to develop effective leadership -- and simply get things done -- you need at least five years.
Aeropuertos Argentina 2000 (AA2000), which manages 33 airports throughout the nation, said last week it would continue operating on a dollar basis despite a ruling by federal judge Clara do Pico that all airport taxes and fees should be charged in Argentine pesos. Charging the fees in dollars has meant increasing charges as much as 300% to 400%. AA2000 based its decision on a previous legal ruling that rejected claims by users and consumers in favor of rates in pesos.-LZ
KLM placed a firm order for six Airbus A330-200s and secured purchase rights for another 18 aircraft. The first A330 will be delivered in early 2005. The order, which was expected (DAILY July 22), is part of the renewal of KLM's long-haul fleet replacing Boeing 747 Classics, MD-11 and 767s. KLM also opted for the 777-200 on higher-volume routes. The airline has still to make a choice on the A330 engine.
The European Parliament is expected to demand the enforcement of strict inspection rules for aircraft from non-European Union countries landing at European Union airports, during its plenary session of September 2002. The parliament will be voting on amendments to a draft EU directive on the safety of aircraft from third countries operating at EU airports. Since 1996, the European Civil Aviation Conference (ECAC) countries have been applying a procedure that allows for aircraft suspected of being a safety threat to be systematically inspected.
Chautauqua Airlines parent company Republic Airways Holdings, for the second time this year, lowered its expected initial public offering price to be between $8 and $10 per share. Less than a month ago, the company said the IPO would be priced between $12 and $14 per share (DAILY, June 24).
In the wake of Lloyd Aero Boliviano's increased service from Bolivia to Buenos Aires (DAILY, July 12), domestic AeroSur went international last week with three weekly flights from La Paz to Buenos Aires. It is using 150-seat Boeing 727-200s and marketing all-inclusive three-day, two-night tour packages as low as $449. According to Jimmy Philips, AeroSur's sales manager, the first three flights are sold out. Future expansion is planned to Chile, Peru and Uruguay. -LZ
