Alaska Airlines forecasts a $9 million jump in security costs for 2002, including $5 million to expand security around catering trucks. The airline says it will lose $49 million in revenue due to the impact of security costs on ticket prices.
Continental last week reported that its January unit revenues are between 14% and 16% lower than the same 2001 month because of yields. January's results may come in slightly worse than December's 14.3% year-over-year decline. Continental's January traffic fell 9.5% on 13.3% less capacity resulting in a 70.1% systemwide load factor.
American CEO Don Carty blasted DOT's proposal to condition antitrust immunity for AA and British Airways on the unreimbursed divesture of 16 weekly roundtrips in the U.S.-London Heathrow market as "arbitrary, capricious and inconsistent with the very antitrust principle cited by the department" to support its decision.
PATCO President Ron Taylor is worried that if NATCA succeeds in its lawsuit to overturn FAA's contract tower program, "our 20 contract tower guys will be out on the street." Since FAA is "no longer hiring" PATCO members, "this means our guys will have been fired twice." Taylor says he wonders if "NATCA is trying to put PATCO out of business."
NTSB is close to approving a revised final report on the October 1994 American Eagle/Simmons Airlines ATR 72 accident near Roselawn, Ind., and will concede that, contrary to the board's original conclusions, evidence from previous ATR icing incidents did not clearly foreshadow a Roselawn-like event. The new version will not conclude that ATR and French regulators failed to act on obvious ties between a series of ATR 42 icing incidents and the Roselawn accident, sources told The DAILY.
Mexican startup Azteca Airlines, in a effort to capitalize on the growing importance of the U.S.-Mexico border for business, shopping and tourism, inaugurated nonstop service from Mexico City to El Paso, Texas, using Boeing 757-700s configured for 135 passengers. Azteca CEO Marcos Shuster said the carrier will soon expand services from Mexico to Laredo, Texas, and Albuquerque, N.M., via Chihuahua, and later to Dallas, San Juan, P.R., and Panama. New domestic routes will open in the near future to resort destinations Mazatlan, Puerto Vallarta, Merida and Cancun.
At a stormy stockholders meeting last week in Brasilia, the majority shareholders of Transbrasil, grounded since December for financial problems, elected travel entrepreneur and promoter Michel Tuma Ness as the carrier's new president, ending the one-week tenure of Dilson Prado da Fonseca, whose proposed purchase of the carrier was blocked by judicial and commodity control authorities for alleged outstanding business and personal debts.
Atlas Air Worldwide last week reported a fourth quarter loss of $8.1 million, compared with net income of $31.2 million a year earlier. Operating revenues rose to $283.8 million from $223.7 million, while operating expense increased to $265.1 million from $154.5 million. For the year, the company lost $62.9 million, versus net income of $85.3 million the previous year. Atlas took $44.9 million in aircraft impairment charges related to parking six Boeing 747-200s. The amount represents the estimated decline in fair market values following the Sept.
Midwest Express is eyeing a federal loan guarantee, but CEO Timothy Hoeksema admitted recently that he's not comfortable with the idea of the government's taking a stake in the company. He noted, however, that offering a stake probably will not be necessary since his airline has good collateral. A decision on the loan guarantee could come in a few weeks, he said.
A meeting by Peru's civil aviation authorities to explain to carriers the new open-skies agreement being implemented with Chile has generated considerable flak. Airlines, who attended the event as observers, complained that they had no vote on the question. John Eliot, president of Peru's Civil Aviation Association, said, "If open skies is supposed to promote tourism, do many tourists come to Peru or do more Peruvians travel abroad? Will LanChile promote Cusco, Pucallpa and Tarapoto instead of resorts in its own country?
Boeing named Pamela Drew VP-engineering and information in the Phantom Works advanced research and development division and Joyce Tucker VP-global diversity.
The Greek government again delayed a decision on the sale of national carrier Olympic Airways to Integrated Airline Solutions. A government spokesman said a final decision, which was due Jan. 31, would be made today. The government expects IAS to place a EUR102 million deposit to show its financial clout.
One of the largest union organizing drives in airline history went down in defeat when Delta's 19,000 flight attendants Friday overwhelmingly turned down a four-year effort by the Association of Flight Attendants. Sharon Wibben, Delta senior VP-inflight services, said 71% of the carrier's flight attendants "chose to reject union representation." AFA President Patricia Friend said the carrier employed tactics of "fear and intimidation" to win the election. She said that Delta used the events of Sept.
Fernando Dozo, acting president of the Argentine Airline Association which includes domestic and international carriers, warns that unless the Central Bank lifts the ban on foreign cash transfers, the airlines operating in Argentina will have to suspend services. At stake is $180 million paid annually on aircraft leases.
Philadelphia Airport recently opened a new $15 million ramp control tower designed to coordinate gate movements at the US Airways hub. The 207-foot high tower is the first complete phase of the airport's new $450 million International Terminal, scheduled to open this fall. The tower includes more than 7,000 square feet of space, including four operational floors, the largest of which provides positions for 23 ramp controllers.
20 years ago Feb. 9, 1982: Reagan administration fiscal 1983 FAA budget request of $3.9 billion, up 30% from 1982's estimated $3 billion, depends on passage of an aviation tax hike and using $2 billion from the aviation trust fund, more than double the $800 million in fiscal 1982. 10 years ago Feb. 3, 1992: FAA announced approval of its first PFC program -- which AAAE notes airports have waited 18 years to use -- authorizing Savannah, Ga., airport to collect a $3 PFC to finance $39.5 million in improvements. 5 years ago
Cibao Airport serving Santiago and the northeast resort region of the Dominican Republic will open March 15. Northwest and American Eagle plan direct flights from San Juan, Miami and New York. American also is interested in opening this new route for heavy tourist traffic.
United and the government of Guatemala have renewed for an additional five years their contract for joint operation of passenger, cargo and airmail services. United called this step a demonstration of the excellent relations between the two countries and support by Guatemala for open skies.
Antonio Mata, new CEO at Aerolineas Argentinas, plans to merge its domestic subsidiary Austral with the parent company. "This we'll have just one airline and a common brand," he said last week in Madrid. Due consideration will be given to both shareholders and workers toward the common aim of achieving major savings.
Continental this week applied for seven U.S.-Ghana frequencies, to be used under code share with KLM; Continental would place its code on KLM's Amsterdam-Accra flights. The transitional U.S.-Ghana open-skies accord does not restrict designations but limits frequencies available to U.S. carriers for third-country code sharing. Of 22 frequencies available through March 31 -- five more become available April 1 -- 15 are unused, Continental noted. (Docket OST-02-11434)
