Delta yesterday reported a deep $734 million fourth quarter net loss, including one-time items, but CEO Leo Mullin believes that the carrier has a solid financial foundation that could lead to profitability in the second half of this year. Excluding unusual gains and charges, Delta posted a $486 million net loss, compared with a $79 million profit in the same 2000 quarter. "These results clearly reflect a year of challenges unlike any we've seen in the history of aviation," Mullin said.
Boeing was awarded a $112 million contract to upgrade and support up to four C32A aircraft for the Air Force. The upgrades will use the Connexion by Boeing airborne broadband communication service. Connexion by Boeing is an initiative to bring commercial broadband data services to commercial and executive aircraft, enabling passenger access to e-mail, the Internet, firewall-protected intranet access, e-commerce and television. Operators can get inflight access to aircraft and crew data.
Lufthansa is standing up against plans by the German federal cartel office to set a fixed minimum fare for the airline on the Berlin-Frankfurt route. The airline's Executive VP Network Management and Sales Ralf Teckentrup said, "It is unacceptable that the cartel office should act as a regulatory body on just a single tariff. That would be tantamount to revoking air traffic liberalization."
The Indira Gandhi International Airport in New Delhi has installed the Category 3-A instrument landing system (ILS). The system was set up by Raytheon and enables pilots to land when Runway Visual Range (RVR) visibility falls below 200 meters. The system cost about $9 million. The Delhi airport now operates a Cat 2 ILS, which enables landing if the RVR is 350 meters, with a decision height of 100 feet. More than 300 pilots have been trained on Cat 2 in India, and the aviation department is expecting the pilots to be trained on Cat 3 within a year.
America West Holdings yesterday reported a $60.9 million fourth quarter net loss, including one-time gains and chargers, but CEO Doug Parker declared that the carrier is a "far different airline today than it was 18 months ago." The airline in the same 2000 period posted a $41.7 million net loss. The results include about $48 million of pre-tax federal financial assistance, nearly $9 million of one-time employee benefit expenses and a $2.7 million charge related to aircraft lease terminations.
We'll have to wait a while longer for an FAA chief operating officer to be named, according to Ed Bolen, chairman of the FAA Management Advisory Council. Bolen had hoped a COO could be named by the end of January but now says the process, which "ran into complications," is "taking longer than anticipated" (DAILY, Jan. 16). Bolen declined to predict when a COO will be named.
Universal Air Travel Plan (UATP) approved a deal to provide a one-time fee cut in annual assessments it charges its 24 shareholder owner airlines. "In light of the fragile economic state of the airline industry, UATP initiated many cost-saving measures in the fourth quarter of 2001," said President Richard Crum. UATP, formerly known as Air Travel Card, claims to be the world's first corporate travel payment system. Companies use UATP to manage travel expenses.
Continenal Hub Profile Newark Origin and Destinations, Segment Summary and Top Nonstop Markets Origination and Destination Data 12 Months 12 Months Ended June Ended June 2001 1997 Newark Total (All Carriers) O&D Passengers 19,960,830 18,910,190 5.6% Passengers Per 27,344 25,904 Day Each Way
Switzerland's national carrier yesterday was renamed "Swiss," after Crossair unveiled its new livery and brand at Basel airport. Swiss CEO Andre Dose said Switzerland "wants a new, global, intercontinental airline." The launch of the carrier out of Crossair and Swissair is "a national project." The airline's fleet will be painted white with the Swiss cross in white on a red tail and the "Swiss" logo on the fuselage and engine cowling.
DOT Secretary Norman Mineta underwent hip surgery yesterday at Walter Reed Army Medical Center in Washington, where doctors replaced his left hip with a titanium joint, according to DOT spokesman Chet Lunner. Mineta's return to work is dependent on how "Robo-Sec... gets along with his new parts, "Lunner said.
All Nippon Airways plans to launch a new Premium Economy class of service on its international flights. The new service will be available April 2 on its daily Tokyo-London flight and will be phased in on other European and North American flights. Premium Economy will be offered in addition to its business class, which the airline recently announced will receive an overhaul. The reconfigured aircraft will have 24 seats in premium economy in a 2-4-2 layout.
American continues to repaint the 136 TWA aircraft operating in its system. As of Jan. 28, 23 aircraft have the AA livery and 30 have the TWA interim livery.
FAA proposed a civil penalty of $70,000 against Sturdisteel Co., alleging violation of hazardous materials regulations stemming from a shipment of eight 2.5-ounce aerosol cans containing a flammable gas, offered improperly to Federal Express. The shipment was not prepared in accordance with regulations for air transport. Employees at FedEx's sorting facility in Memphis discovered the shipment leaking, FAA said.
FAA this week went on line with its User Request Evaluation Tool (URET) at three en route centers -- Memphis and Indianapolis, where it replaced prototypes, and Cleveland. URET, the final stage of Free Flight Phase 1, was rolled out at the Kansas City en route center in early December, replacing a prototype system, and will be deployed at the Atlanta, Chicago and Washington centers this spring, according to an FAA spokesman.
Detroit is about to edge out Memphis as Express 1's largest hub, the result of the carrier downsizing its Saab 340 fleet and continuing to build its fleet of Canadair Regional Jets. Express 1 VP-Marketing Phil Reed said he expects Detroit to become the largest hub sometime in June. CEO Phil Trenary told The DAILY that the airline will take delivery of 22 CRJs this year, 20 of which will be split between Detroit and Memphis. Detroit eventually will have 23 CRJs and Memphis 15.
Iberia is "totally committed to the oneworld alliance," a company spokesman said this week. He stressed that comments by Chairman Xabier de Irala quoted in agency reports were taken out of context. In the reports, Irala was quoted as saying that Iberia would have to renegotiate the alliance deal if American and British Airways could not get approval for their alliance.
Singapore Airlines has taken possession of two Boeing 747-400s from the administrators of Ansett in Melbourne that were leased to the Australian carrier in 1999 for three years. The aircraft are sitting idle outside SIA's engineering hangar at Changi Airport in Singapore
United and Delta seek additional frequencies for third-country code-share service in the U.S.-Turkey market, which Continental wants to enter (DAILY, Jan. 4). Under the U.S.-Turkey transitional open-skies accord, two additional designations -- for a total of seven -- as well as 14 more frequencies -- for a total of 49 -- become available April 1 for U.S. carriers. The three carriers seek a total of 28 frequencies in response to DOT's notice on the pending frequency availability, which will prompt a frequency allocation proceeding.
Cebu Pacific Air (CPA) has been designated as the second flag carrier of the Philippines. With an aging fleet of 12 DC-9s and two Boeing 757-200s, the airline has been granted rights by the Civil Aeronautics Board (CAB) in Manila to operate international flights to Japan, China, South Korea, Singapore, Malaysia, Thailand, Guam, Australia, Taiwan and Indonesia.
American has relaunched its telephone check-in service, part of its plan to streamline the airport experience. The service enables Executive Platinum, Platinum and Gold AAdvantage members to check in by making a phone call and then proceeding directly to security and gates.
Boeing is putting together a supplier team to help it define the performance and economic and environmental requirements of the Sonic Cruiser concept. The company plans to announce technology team members during this first half of this year. This first round of supplier selections will not include decisions on design or manufacturing work.
Sabre this week launched its new "Credit Manager" product to help airlines and travel agencies cut costs and reduce fraud. Credit Manager is two offerings -- Card Security Code (CSC) and Enhanced Standalone Authorization. CSC is a credit card authentication technology for fraud situations, such as the purchase of travel through the Internet. Enhanced Standalone Authorization is a new Sabre technology that cuts fees airlines pay to credit card groups to settle tickets through the Airline Reporting Corp.
Goodjet, a no-frills startup, plans to launch service between Gothenburg, Sweden, and Nice as well as to Paris, according to Swedish daily Dagens Industri. Service is scheduled to start in April. Scandinavia has been a target region for expansion of established low- fare airlines EasyJet, Go and Ryanair.
Hundreds of existing air accords between European Union member states and third countries may become obsolete if the European Court of Justice (ECJ) rules, as expected, that the bilateral air agreements between individual EU member states and the U.S. are contrary to EU law.
