America West this quarter may record special charges of nearly $350 million due to reorganization costs and a new accounting rule relating to intangible assets. The largest charge will be a write-down of its excess reorganization value (ERV) account. A new accounting rule states that the ERV must be tested for impairment at least annually and written down "as necessary." America West's ERV account had a balance of $272 million as of December 31.
Austrian Airlines' passenger total for February fell 2.2% to 541,451. The carrier said load factor edged up slightly to 68.5%. Total capacity was cut 9.9% year over year.
American and Continental yesterday launched an interline electronic ticket agreement that will enable passengers to use a single e-ticket when their itineraries include travel on both carriers. The deal also will make it easier for both airlines to rebook passengers in case of irregular operations. Under the new arrangement, passengers can rebook by going to an AA or Continental ticket counter and presenting a picture ID and an e-ticket receipt from either airline.
The International Association of Machinists reacted angrily yesterday to an announcement by the Aircraft Mechanics Fraternal Association (AMFA) that it will begin another bid to wrest away representation of mechanics and related workers at United. IAM is accusing AMFA of trying to take members' dues away by filing for yet another representation election. AMFA's announcement comes about a week after United's mechanics signed off on a new deal. AMFA National Director O.V.
Boeing yesterday unveiled a 737-900 outfitted with at least nine different new technology packages that it will be testing for application to future aircraft programs. The company will be assessing the new technology for its value in enhancing safety, augmenting air traffic capacity and improving fleet efficiency.
Northwest yesterday became the fourth U.S. major airline to eliminate its base commission payment to travel agents issuing tickets in the U.S. and Canada. Northwest's new structure takes effect immediately and applies to all tickets, miscellaneous charge orders and pre-paid tickets. The change will affect tickets issued for both domestic and international travel. Northwest's structure for tickets issued outside the U.S. will not change. Northwest joins Delta, American and Continental, which have already cut base commissions.
Hawaiian last week began new nonstop Seattle-Maui service, the only airline to provide a daily direct flight in the market. Service is aboard new Boeing 767-300ER widebody aircraft. The service complements Hawaiian's Seattle-Honolulu flights.
Delta CEO Leo Mullin, on the same day he predicted his company would lose $350-380 million in the current quarter, warned that the industry's ability to thrive is "seriously threatened" by higher taxes, security screening hassles and a broken collective bargaining process. In a speech entitled "Living on the Edge," Mullin told the International Aviation Club in Washington that while all U.S.
Boeing Capital Corp. yesterday filed a prospectus with the Securities and Exchange Commission for the issue of up to $1 billion of corporate bonds. Banc of America Securities and Incapital will act as joint lead managers and lead agents of the InterNotes program. InterNotes are medium-term notes offered in $1,000 increments and are issued by corporations and offered for sale to retail investors.
Delta Connection has adjusted its flight schedules between Atlanta and Albany to provide more convenient travel options, the airline said last week. Changes include an earlier evening departure from Albany and new afternoon and evening departures from Atlanta. Service is operated by Atlantic Southeast Airlines.
JetBlue plans to offer 5.5 million shares of common stock in its upcoming initial public offering, according to a revised prospectus filed yesterday. The airline hopes to raise $132 million in the IPO based on its stated IPO price of between $22 and $24 per share. The shares will be traded on the Nasdaq market under the symbol "JBLU."
Engine Alliance partner Pratt&Whitney signed a memorandum of understanding with Techspace Aero for Airbus A380 engine work. The Belgian company, part of the Snecma group, will design, develop and produce low-pressure compressors for the GP7000. Techspace has worked with P&W on several programs, including the PW4000.
Icelandair this week took delivery of a Boeing 757-300. The carrier currently operates nine 757-200s and one 757-200 freighter. With the addition of the 757-300, Icelandair becomes the first carrier in the world to operate all models of the 757 simultaneously. Icelandair also becomes the first airline to operate a dual-class 757-300 in the European market. Icelandair will begin operation of its new 757-300 on the route from Reykjavik to Copenhagen and London.
American and America West this spring plan to launch redesigned web sites. American said its site has undergone a complete redesign and will feature a "fresh look," a new booking engine, improved navigation and search functionality this. America West is now testing a new online booking engine that uses ITA Software, instead of the GetThere engine that is currently in use.
TRAFFIC DATA FOR FEBRUARY 2002 RPMs Change ASMs Change In From In From Load Airline Millions 2/01 Millions 2/01 Factor AirTran 354.9 +3.2% 561.5 +13.0% 63.2% American Eagle 286.1 +9.6% 496.0 +1.2% 57.7% Atlantic Southeast 212.1 +31.1% 338.4 +24.0% 62.7%
In its effort to make the divestment of Air-India and Indian Airlines more attractive to investors, the Indian government is considering several new options, including a one-time write-off to wipe off the huge losses suffered by Indian Airlines in the past two years. Another option is to reconsider the Disinvestment Commission's report on the two airlines.
Treasury Department's Office of Foreign Assets Control (OFAC) in 2001 approved 96.6% of the requests for air travel to Cuba by means other than the regularly scheduled charter flights between the U.S. and Cuba, according to the U.S.-Cuba Trade and Economic Council (USCTEC). OFAC received 20,328 applications and issued 19,637 licenses in 2001 to individuals and organizations. The licenses allow travel to Cuba through third countries.
FAA this week mandated flap track inspections and modifications on some 1,100 U.S.-registered 737 Classics. The work, recommended in December 1982 and June 2000 Boeing service bulletins, includes visual, ultrasonic and eddy current inspections of certain parts for corrosion and cracking. Damaged flap tracks must be replaced immediately, while parts determined to be airworthy must be replaced in as little as 24 months, depending on the plane's age. Cost of the checks and flap track replacements is estimated at about $1,500 per plane, FAA said.
European Aerospace, Defense and Space (EADS) company posted its first annual net profit this week, largely thanks to the contribution of Airbus. Net profit rose to EUR1.37 billion (US$1.2 billion) up from a EUR909 million ($802 million) net loss in 2000 -- the year of the creation of EADS, in which the company's accounts included EUR1.44 billion ($1.3 billion) in hedging charges.
Warren Buffett, the financial icon who chairs Berkshire Hathaway, Inc., said the fractional aircraft business did not turn a profit for the company last year, but he is still high on the concept. In his annual report to Berkshire Hathaway shareholders, Buffett said the company's NetJets fractional ownership program "sold a record number of planes last year" and also showed a gain of 21.9% in service income from the management fees and hourly charges. "Nevertheless, it operated at a small loss, versus a small profit in 2000.
Last month's failure in the long line of unsuccessful U.S.-U.K. open-skies negotiations left in its wake not only disappointed antitrust immunity applicants, but also an important international aviation policy question: whether the U.S. can or should grant antitrust immunity without obtaining open skies from the affected foreign country.
FLEETWATCH - AIR BERLIN and AIR EUROPA FleetWatch Air Berlin Aircraft March March 1997 2002 737-400 8 5 737-800 0 23 TOTAL 8 28 Air Europa Aircraft March March 1997 2002 737-300 10 3
German regional carrier Eurowings has continued its impressive growth pattern in 2001 in spite of the economic downturn and its switch from KLM to Lufthansa. The airline carried 11% more passengers and boosted revenues by EUR50 million to EUR450 million, according to CEO Friedrich-Wilhelm Weitholz. Eurowings had to completely realign its network, after Lufthansa took a 24.9% stake in the company early last year and integrated it into a system of regional carriers, including subsidiary Lufthansa CityLine.
