Aviation Industry Stock Performance January 2002 Closed Closed Monthly Change Majors Ticker 1/31/2002 12/31/2001 ($) (%) Alaska Air Group ALK 30.660 29.100 1.560 5.4 America West (Class B)AWA 3.960 3.500 0.460 13.1 AMR AMR 24.940 22.300 2.640 11.8
The Senate last week approved the appointment of John Magaw as under secretary for the DOT Transportation and Security Administration. Magaw received an interim appointment from President Bush after the Senate recessed without taking formal action, despite overwhelming support from the Senate Commerce Committee.
British Airways is looking at more job cuts and possibly aircraft delivery deferrals after Europe's largest airline posted a deep loss for the quarter ended Dec. 31. The airline did not disclose more specifics as it was finalizing its "Future Size and Shape" review due later this month. CEO Rod Eddington denied that the airline planned to set up a low-cost operation at London Gatwick Airport to compete with EasyJet and Ryanair.
Finnair is leasing six new Airbus A319/320/321 aircraft from ILFC. The aircraft will be delivered in August and September 2002, January, February and September 2003 and April 2004 on 10-year leases. They are powered by CFM56 engines.
National Air Transportation Association is asking FAA to go slowly in implementing domestic Reduced Vertical Separation Minimum because the costs of modifying older turbine-powered aircraft equal as much as half their value. NATA VP Jeb Burnside said that while he supports RVSM implementation, "our chief concern is that current economic and operational considerations warrant a cautious approach" in implementing domestic RVSM, in 2004.
Francisco Sanchez, DOT assistant secretary for aviation and international affairs during the final six months of the Clinton administration, today announces his candidacy for mayor of his hometown of Tampa in 2003. Sanchez was outpolled by several potential opponents in a mid-November survey of likely voters -- three-quarters of whom were undecided.
Priceline.com last week reported a $1.3 million net loss for the fourth quarter, far less than the $105.1 million deficit in the same 2000 period. Excluding one-time items, the company posted a $3.3 million pro forma net profit in the quarter compared with a 2000 net loss of $25.0 million. "Priceline performed well in the fourth quarter, achieving year-over-year growth in revenue and pro forma earnings, despite continuing weakness in airline retail pricing and, consequently, in our airline ticket bind rate," said President Jeffery Boyd.
KLM reported a EUR94 million (US$82 million) loss in the quarter ended Dec. 31, less than expected by analysts. In the same period of 2000, KLM posted a EUR4 million profit. The airline expects operating losses that totaled EUR76 million to become worse in the fourth quarter. KLM has cut 6% overall capacity.
GE Capital Aviation Services leased four Fairchild Dornier 728JETs from its order book to CSA Czech Airlines. The operating leases will begin in 2003 and 2004.
Cyprus Airways yesterday confirmed plans to expand into the Greek market. The Cypriot carrier said it was considering serving international routes out of Athens and entering into a commercial alliance with another carrier to serve the domestic market in Greece. The project is expected to be unveiled in the coming weeks. In the meantime, the Greek government is struggling with the privatization of ailing flag carrier Olympic Airways, for which a final decision, due Jan. 31, was again delayed yesterday.
San Diego Airport is using an automated system that controls and tracks maintenance worker access to tools through biometrics. The system, developed by San Diego-based Vistant Corp., uses computerized cabinets linked to a biometric fingerprint reader. Workers with jobs to do in the airport's secure areas identify themselves to the system via the reader, and choose the tools they need -- such as screwdrivers, utility knives and drills -- on a touch-screen. Individual drawers containing each tool open automatically.
Continental said yesterday it is halting further pilot furloughs to minimize pilot training and costs at Continental Express as a result of the flow of pilots to Continental Express under a flow-through agreement. Under this agreement, furloughed Continental pilots have the option to work as pilots for Continental Express. This caused furloughs of Continental Express pilots. A previously announced furlough of 100 Continental pilots scheduled to begin in March now will not occur.
Regional carriers continue to make growth plans and remain optimistic about the future of the economy and the industry, according to speakers at last week's Raymond James Growth Airline Conference in New York. Raymond James analyst James Parker said about $1 billion worth of business has shifted to regionals and continues accelerating because of Sept. 11. He predicted that fixed-fee contracts are not likely to be substantially altered, even if a major partner goes bankrupt.
Irish pilots union IMPACT called a one-day strike at Aer Lingus for Feb. 11 to protest compulsory redundancies, the union said last week. The union said an overwhelming 475-to-14 majority in a poll taken last week prompted the action. Cash-strapped Aer Lingus seeks to cut employment, but IMPACT opposes what it calls a "macho management" that "refuses to explore alternatives to compulsory redundancy."
AirTran is likely to be back in the black by March, CEO Joseph Leonard said last week. He told analysts in New York that the company should show a profit in the second quarter and for the full year, and that it will grow by 20% this year. AirTran is scheduled to retire six DC-9s and take 12 Boeing 717s, but Leonard noted he would like to retire 14 DC-9s and boost the delivery of 717s to 20.
Aircraft Owners and Pilots Association President Phil Boyer complained to Homeland Security Director Tom Ridge about the "last-minute" ban on all VFR flights within 25 nautical miles of Washington, D.C., on Jan. 25 during the President's State of the Union address. Boyer also complained about last-minute airspace restrictions for the Olympic Winter Games and of security actions for events such as the Super Bowl and the World Economic Forum in New York.
Continenal Hub Profile Houston, Bush Origin and Destinations, Segment Summary and Top Nonstop Markets Origination and Destination Data 12 Months 12 Months Ended June Ended June 2001 1997 Houston, Bush Total (All Carriers) O&D Passengers 11,250,090 9,493,870 18.5% Passengers Per 15,411 13,005 Day Each Way
Air Canada's low-fare subsidiary Tango is adding 14 new routes to its summer schedule. On May 1, it will add Kelowna-Toronto, Winnipeg-Edmonton, Quebec City-Montreal-Winnipeg, Quebec City-Toronto and Fredericton-St. John-Toronto.
Additional flights at DCA beyond Phase 3 of resumption of services will not appear on DOT's agenda until after March 1, when the third stage of Phase 3 begins and service permitted is expected to reach 77% of pre-Sept. 11 operations, according to an industry source, who quoted DOT as saying no flights would be added "for the foreseeable future."
Alaska Airlines Chairman and CEO John Kelly plans to relinquish his day-to-day operational role at the carrier as part of a broad management reorganization plan announced last week. Under the plan, Kelly, CEO at Alaska since 1995, will remain chairman, president and CEO of the parent company, Alaska Air Group, in addition to chairman of its subsidiaries, Alaska Airlines and Horizon Air. The company named Bill Ayer to the CEO position of Alaska Airlines in addition to his current title of president.
The Canadian government last week announced plans to extend its indemnification for third-party aviation war risk liability for "essential aviation service operators" in the country. The initial provision of an indemnity for a period of 90 days was announced Sept. 22 and expired Dec. 21. The government next issued a 45-day extension that expires today. Transport Minister David Collenette last week extended the indemnity, on the same terms and conditions, for a second 45-day period until March 21.
Illinois Aviation Hall of Fame inducted Gene Seibert, director of Southern Illinois University Carbondale's Air Institute and Service from 1960 to 1976.
Senate confirmation of President Bush's picks for two top DOT posts remains stalled by holds placed on the nominations by Sen. Joseph Biden (D-Del.). "It's no secret" that Biden is blocking Senate action, Emil Frankel, Bush nominee for assistant secretary for transportation policy, told The DAILY. Also in limbo is the nomination of Jeffrey Shane for associate deputy secretary, although sources at DOT say they hope progress will be made this week on moving both nominations.
United parent UAL Corp. reported a deep fourth quarter loss of $308 million, including one-time items, due to depressed revenues, and officials see little improvement in the first half of the year. Excluding the second federal grant payment and gains related to Cendant's acquisition of Galileo, United reported a $640 million fourth quarter loss. The deficit was significantly narrower than analyst estimates because of the airline's ability to slash expenses.
FAA plans to release its draft requirements for the Local Area Augmentation System within two weeks and allow 30 days for comment. The updated draft will reflect changes resulting from the latest inputs, FAA said. It hopes to release the final version by the end of March. Once the final draft is released, interested parties will have 45 to 60 days to submit proposals.
