US Airways will begin daily Washington National-Bermuda nonstops on July 7, transferring Bermuda service reintroduced April 7 from Baltimore/Washington. The carrier gained DOT approval to initiate Caribbean service at slot-constrained DCA, where post-Sept. 11 security concerns remain even as carriers were authorized to resume nearly all pre-Sept. 11 service as of April 15, over the objections of American and Delta, which wanted domestic service restored before new international "leisure" service was allowed to start. (Docket OST-2001-11152)
GE Engine Services completed the purchase of Unison Industries Inc., which makes and supports ignitions, wiring harnesses, alternators and other engine components. Terms of the deal, which was struck in January, were not disclosed. GE named Bradley Mottier president of Unison.
The Planetary Society received an Aviation Week&Space Technology award for its work on Cosmos 1 and its support of the Pluto mission and another laurel for its organizational efforts toward private planetary exploration.
Pratt&Whitney's first-quarter operating profits fell 6%, from $343 million in 2001 to $318 million this year, while revenue declined 2% to $1.84 billion. Contributing to the revenue dip were reduced profits at P&W Canada, costs in the beleaguered PW6000 program (DAILY, March 22), and fewer large commercial engine spares sales. P&W parent United Technologies Corp. (UTC) posted a first quarter 2002 net income of $467 million on revenue of $6.37 billion.
Middle East Airlines recently became the 39th operator to commit to multiple models in the Airbus A320 family, a DAILY analysis shows. The A320 family boasts 82 operators, meaning 47.5% of them have ordered more than one type.
Airbus selected Triumph Group subsidiary Frisby Aerospace to provide the cargo door actuation system for the A380. The contract includes design, testing, manufacturing and product support, Triumph said.
US Airways CEO David Siegel last week welcomed an agreement with the airline's pilots that would increase regional jet use as "a critical first step" in strengthening competitive positioning on the East Coast. The US Airways Master Executive Council of the Air Line Pilots Association approved a proposal offered April 11 after negotiating a final modification. The agreement permits a scope clause exemption for the use of an additional 70 RJs in exchange for more job protection.
The controversy in Peru's airline sector sparked by a pending April 24 FAA safety inspection reached new levels, as a leading local airline representative urged his government to intervene before union strikes could occur. Carlos Morales, representing the Association of Peruvian Scheduled Airlines (ALAR), told Lima 's daily Expreso that its members might declare a work stoppage April 29 unless they were heard on safety issues because the stakes are so high.
Johns Hopkins Applied Physics Laboratory researchers Thomas Coughlin and Robert Farquhar received an Aviation Week&Space Technology magazine award for the advancement of space science and Tom Krimigis for his contributions to NASA's New Horizons mission to Pluto.
Forrester Research estimates that in the next five years, the annual revenue from online travel will jump to EUR38.7 billion from EUR4.5 billion today. About 2-3% of airline bookings are made through the web today in Europe, compared with 10% in the U.S.
Alaska Air today expands its number of fare "buckets" or categories from nine to 15. "We're going to peel the proverbial onion differently," said Dave Pelter, managing director of revenue management. "This will generate more revenue without increasing expenses."
Lebanon's Middle East Airlines signed a memorandum of understanding with Airbus to buy six A321s. Deliveries will take place in 2003 and 2004. The A321s will seat a surprisingly low 150. The carrier already operates A320s and has committed to A330-200s as well.
Transportation Safety Administration could use some sensitivity training, it appears.At a House Appropriations transportation subcommittee hearing last week, an airport security director testified that TSA demanded he meet mandates on replacing National Guardsmen or face the loss of air service. Airport directors also complained about lack of TSA cooperation. Subcommittee Chair Harold Rogers (R-Ky.) said the committee would "not tolerate a Secret Service dictatorial attitude" by TSA.
Pace of naming federal security directors (FSDs) is off from that touted by Transportation Security Administration Deputy Under Secretary Stephen McHale, who said March 27 that TSA would name about 20 FSDs at the largest U.S. airports within two weeks. Three have been announced during that time, and plans to install an FSD at San Francisco Airport last week have been postponed, according to a DOT spokesman.
America West Holdings reported a deep $358.3 million net loss in the first quarter, largely due to previously announced special charges. The airline took a $272 million write-down of its excess reorganization value account, in line with a new accounting rule (DAILY, March 21). It also took $60 million in special charges for aircraft and engine value impairment and fleet restructuring. Excluding large one-time items, AWA reported a $47.6 million net loss, compared with a $12.8 million deficit last year.
United parent UAL Corp. on Friday posted a first quarter loss of more than half a billion dollars as the airline struggles to bring its costs in line with depressed revenues. While United's financial state is improving, it is occurring at a snail's pace as officials predicted a "significant" second quarter loss as well as a loss for full-year 2002. Including special items, UAL reported a $510 million net loss, compared to a $313 loss in 2001. "Clearly, things are a lot better, but we and the industry have a long way to go," said Chief Financial Officer Jake Brace.
30 years ago April 25, 1972 -- Treasury Secretary John Connally's refusal to allow GAO to audit the government-guaranteed $250 million loan to Lockheed is a "clear violation of the law," Controller General Elmer Staats told the Senate Banking Committee. 20 years ago April 22, 1982 -- Congress' Office of Technology Assessment criticized as "premature" FAA's ATC "rehosting" plan, scheduled to be completed in 1996 at a cost of $250 million, saying it could limit options of future upgrade acquisitions. Five years ago
Alaska Air Group reported a $34.4 million first quarter net loss, slightly more than the 2001 loss of $33.1 million, but officials reported that the traffic rebound exceeded expectations. Revenues were down 3.7% to $497 million, but shrewd cost cutting allowed a 3% expense decline. "Traffic increases at Alaska have been nothing short of remarkable, although yield continues to suffer," said CEO John Kelly. "Horizon is beginning to see significant cost improvements from its new fleet of Bombardier aircraft."
Boeing's projected delivery total for 2003 -- 275 to 300 aircraft -- is less than half its total for 1999 (622), the company's second-best year ever after 1968's 679. Since 1985, Boeing/Douglas annual deliveries have been below 300 only twice, in 1995 (252) and 1996 (272).
Airport company BAA issued its capital investment program on Friday, outlining its spending plans for the three major southeastern airports up to 2013. According to the program, BAA will invest GBP8.1 billion over the next 11 years, based on traffic projections for the period. By 2013 the traffic forecast for the three airports will increase from the current rate of 105 million passengers a year to 153 million passengers a year. By 2013 Heathrow will account for 84.7 million passengers a year, Gatwick 42 million a year, and Stansted 26.3 million.
Air Canada will launch its newly named wholly owned subsidiary ZIP Air this summer out of Calgary. ZIP is the airline's latest low-fare product and it will start service between Vancouver and Calgary, replacing Air Canada. ZIP in the first year will grow to serve markets in both Canada and the U.S. The fleet will be six Boeing 737-200s, growing to 20. All are transferred from Air Canada mainline. It will operate primarily short-haul routes.
Singapore Technologies Aerospace Ltd. (ST Aero) is the top bidder for the assets of Dee Howard Aircraft Maintenance. A San Antonio bankruptcy court must approve ST Aero's $14.2 million bid. Court approval is expected on April 29, ST Aero said. Dee Howard provides services -- including heavy maintenance, modifications, painting, and parts sales -- for a wide variety of passenger and cargo aircraft.
