US Airways, teetering on the brink of bankruptcy reorganization, last week posted a $248 million second quarter net loss. The deficit is far deeper than the $24 million net loss in the same quarter last year but was within a wide range of analyst estimates. Similar to those of other major carriers, US Airways' revenues sank 23.7% to $1.9 billion, which the airline blamed on a weak economy, "intense" competition from low-cost carriers in the Northeast and a drop in business travel.
KLM could announce a major order for Airbus A330-200s at next week's Farnborough Air Show. A spokesman for the airline was quoted as saying, "We are negotiating a good deal with Airbus." The contract is understood to comprise 12 A330-200s. KLM said earlier it would replace its Boeing 747 Classics, 767s and MD-11s with a mix of Boeing 777s and Airbus A330-200s, but the details have not yet been finalized. The order would be one of the biggest so far this year.
OceanAir, Brazil's newest startup, is taking on unusual competition: taxicabs. For $20, the airline will wing passengers between Sao Paulo's two main airports, downtown Congonhas and Guarulhos in the distant outskirts, in 20 minutes. Taxis cost $24.50 and can take as long as two hours, depending on traffic.
Great Plains Airlines last week signed a deal with Fairchild Dornier for four 328 regional turboprops. Deliveries of the 32-seat aircraft will start this summer and continue through the fall, bringing the airline's total fleet to six planes. The carrier went ahead with the acquisition even though it recently filed for a federal $61.5 million loan guarantee (DAILY, July 1). Great Plains plans to use the new turboprops to expand routes to other cities lacking direct air service from Oklahoma, Tennessee, New Mexico and Colorado.
United, after reporting a $392 million second quarter loss, offered little hope last week that its situation would improve soon, as its future is linked to the rebound of corporate America. Including special items, the carrier posted a $341 million loss, smaller than last year's $365 million deficit. For the first six months, the carrier lost $850 million, and the second half of the year portends a turn for the worse.
Atlas Air, predicting a deep net second quarter net loss, last week took delivery of the second of three Boeing 747-400 Freighters that will join its fleet this year. GE Capital Aviation Services (GECAS) is providing financing for the aircraft. The third 747-400F is scheduled for delivery in November and will be financed by Boeing, similar to the first delivery this year.
Alaska Air plans to launch a contest to see which airport station can boost fee collections the most. The aim is to improve service consistency and recoup revenue, believed to be in the millions of dollars, that the carrier says it's "leaving on the table each year" in the form of uncollected fees for ticket upgrades, pet kennels and excess baggage. In 2001, Alaska collected $19.5 million in fees and is aiming for a 25% increase this year.
British Airways and Iberia asked the European Commission permission to extend their alliance, both carriers said Friday. They signed a commercial cooperation agreement covering the British and Spanish markets, as well as Latin America and Asia. Plans include code sharing on routes between the U.K. and Spain, where the carriers would jointly hold a dominant position.
20 years ago July 27, 1982 -- FAA analysis shows that benefits of new air traffic control system exceed expenses, saving the government $24.3 billion in operating costs over the next 20 years. 10 years ago July 23, 1992 -- United will avoid a pull-down of service while sticking to cost-containment strategies put in place in 1988, Chairman Stephen Wolf said, noting that "somewhere along the line we are going to have to develop a cost strategy that is similar" to Southwest's. Five years ago
To list an event, fax information to Donna Thomas at 202-383-2438. (Blue, Bold-faced type indicates new calendar listing.) JULY 23-29 -- 50th EAA AirVenture Oshkosh 2002, Whittman Regional Airport, Oshkosh, Wis., 1-800-564-6322, www.airventure.org JULY 29-30 -- American Association of Airport Executives, National Airport Performance Measurement & Benchmarking Workshop, Providence, R.I., 703-824-0504, fax 703-820-1395, www.airportnet.org
Mexican Interior Secretary Ramon Marin Huerta has called on representatives of 10 rural communities involved in the weeklong protest against construction of Mexico City's new international airport in the Texcoco area to begin talks today to negotiate the questions at issue. The venue of the meetings was moved from the University of Chapingo to the interior ministry.
Iberia said recently that its passenger load factor rose 1.7% to 74.8% in June, compared with the same month of 2001, while total passenger numbers fell 7% to 2.21 million from 2.38 million. Over the whole of the first half, Iberia's traffic fell 3.1%, compared with the same period of 2001, as the Spanish carrier entered into a drastic cost-cutting program after the Sept. 11 attacks. Iberia also felt the effects of a general strike in Spain, on June 20, as well as air traffic controller strikes in neighboring countries throughout June.
Virgin Blue recently set a record for the longest Boeing 737-700 flight on a nonstop run from Maui to Christchurch, New Zealand. The 737, equipped with Aviation Partners Boeing winglets, flew the 5,016-mile trip in 10 hours and 34 minutes at an average cruise speed of Mach 0.77, landing with a 50-minute fuel reserve. "The winglets gave us approximately 5% additional range and the important benefit of a higher initial cruise altitude," said Virgin Blue Flight Operations Technical Manager Steve Knudson.
US Airways is scheduled to resume concession talks with the International Association of Machinists today. Two weeks of talks recessed Wednesday with no agreement. The two parties still disagree over the value of specific concessions proposed by the airline, IAM said.
America West Friday reported an $8.5 million second quarter net loss, much narrower than last year's $42.5 million deficit thanks to its new fare structure and strict cost control. Excluding the recognition of additional federal grant money it received, AWA recorded a $9.9 million net loss. The results were better than analysts anticipated. AWA said it produced a "nominal" net profit in June and a "modest" $1.4 million operating profit for the quarter.
Virgin Atlantic today at London Heathrow plans to take delivery of and name its first Airbus A340-600. The 311-seat aircraft will then be flown to the Farnborough Air Show and demonstrated in an aerial display. The aircraft is expected to start revenue service on the London-New York route July 29. The second -600 will be delivered at the end of August and likely operate on the London-Tokyo route.
Bearing Inspection Inc. named David Heminger president and CEO. El Al named Amos Shapira president. Innotech Aviation appointed Jeff Flack regional sales manager-U.S. Southeast. Nav Canada appointed Neil Wilson VP, general counsel and corporate secretary. Rolls-Royce is losing Finance Director Paul Heiden, who is leaving to join engineering group FKI. The enginemaker has not yet named a replacement. UBS Warburg airlines analyst Andrew Barker left the transport analysis team but will remain with the firm.
Southwest continues to drive customers to its web site, reporting that 46% of its revenues were booked online in the second quarter. Delta last week said about 18% of its revenue came from online channels and half of that was on Delta's own web site. About 14% of American's revenue came from online sources, officials said.
New York jet fuel spot prices ended last week at $0.73 per gallon, up 2.8% from the beginning of the week and up 2.0% from a year ago, according to Deutsch Banc Alex. Brown.
Singapore Aircraft Leasing Enterprise (SALE) recorded a profit of US$47.5 million for the year ended March 31, an increase of 14.8% from the previous year. Revenue grew 13% to US$155.6 million. During the year, SALE added 14 aircraft to its fleet, including three new Airbus A320 family narrowbodies and one new Boeing 777-200ER, all of which were placed with airlines on delivery. It acquired more A320s from airlines in purchase and leaseback transactions, as well as one A330-300 and two 737-800s. The company has a total of 39 aircraft.
Air France and Aeroflot plan to sign a bilateral code-share agreement tomorrow in Paris to cooperate on the Paris-Moscow route. Aeroflot code shares with CSA Czech on the Moscow-Prague route, but officials report there are no plans for Aeroflot to join SkyTeam in the near term.
Canadian Transport Minister David Collenette last week extended the government's indemnification for third-party aviation war risk liability for "essential aviation service operators" in Canada. The initial provision of an indemnity was announced Sept. 22, 2001 and extended once until its expiration July 19. Under the most recent extension, the indemnity program will be in effect July 20-Sept. 17.
FAA Administrator Jane Garvey told Congress the agency is "looking hard at what it can do" to prevent flooding at Houston Intercontinental Airport's air traffic control center after recent heavy rains caused it to close. Rep. Nick Lampson (D-Texas) told Garvey the control center has been flooded about four times in the past three years. Garvey agreed the flooding is "a chronic problem" for the control center.
The Swiss Pilots Association warned it could launch a strike at Swiss International Air Lines if the new Swiss carrier fails to harmonize pilot pay and work rules retroactively. The union represents about 1,000 former Crossair pilots now flying for the successor company under their old pay deal.
