A senior DOT official said yesterday that the White House has withdrawn its directive on an interagency and intermodal transportation system policy review. The directive would have established a working group to develop a national transportation plan (DAILY, Jan. 23).
Midwest Express's net income fell 67.2% in the fourth quarter 2001, versus the same period in 2000, resulting in a loss of $2.1 million. CEO Timothy Hoeksema said the Sept.
Origination and Destination Data 12 Months 12 Months Ended June Ended June % 2001 1997 Change Atlanta Total (All Carriers) O&D Passengers 26,724,870 21,978,960 21.6% Passengers Per 36,609 30,108 Day Each Way Average Fare $161.13 $149.73 7.6%
Boeing yesterday reported 2001 net earnings of $2.83 billion as revenues rose 13% to $58.2 billion from $51.3 billion despite two major events that hit its commercial operations -- the company's largest segment -- hard. Year-over-year earnings rose about 33% from $2.1 billion in 2000. The lasting effects of the weak air transport market will slam near-term revenues, the company cautioned. Boeing cut its projection for 2002 revenues by $1 billion to $54 billion and said that 2003 revenues will dip further, to about $52 billion.
Honeywell was selected by Airbus to provide the flight management system for its A380 aircraft. Honeywell anticipates the contract will generate revenues of more than $200 million over the next 20 years, including aftermarket sales.
FAA is calling for more closely tracking life-limited aircraft parts but says it will allow a number of options, including the use of existing record keeping to prevent outdated parts from entering service on an aircraft. The rule, released last week, comes at the direction of Congress, which feared that old, used-up parts continue to be installed on aircraft.
Rockwell Collins reported net income of $48 million for the first quarter ended Dec. 31, down from net income of $60 million in the same period a year earlier. Sales declined by 4% to $563 million. Clay Jones, CEO, cited the weakness in the commercial aerospace market in releasing the results. Commercial Systems, which provides aviation electronics and inflight entertainment products, reported a 15% decline in sales to $326 million.
Reaching mandated security levels at airports remains a huge concern and will require more funding and collaboration between airlines, airports and lawmakers, according to testimony before the House Transportation aviation subcommittee yesterday. DOT Inspector General Kenneth Mead told members that the lack of 100% positive bag match on connecting flights remains a huge concern, and he wants to see a pilot program established to gauge whether it could be done without any significant disruption to travel.
U.S. and Hong Kong aviation negotiators ended three days of talks in Washington with an agreement to meet Feb. 27-March 1 in Hong Kong for another round of formal negotiations aimed at liberalizing the bilateral, according to a DOT spokesman. Negotiations were conducted in a good atmosphere, he said, and covered a full range of subjects. "Now that Hong Kong has put a modest proposal on the table, the real battle is going to take place between the U.S. airlines in trying to determine the shape of the U.S. counterproposal," an industry source told The DAILY yesterday.
Brazilian carrier Varig, advancing its strategy of raising money to help lower debt, will form a maintenance, repair and overhaul subsidiary and look to sell parts of it to third parties. Varig Engineering and Maintenance (VEM) will include the company's 4,000 existing maintenance and engineering professionals and 49 facilities throughout Latin America, including its widebody maintenance base in Rio de Janeiro and narrowbody base in Porto Alegre.
Charter operator Vacation Express recently launched a hub-and-spoke route system through Orlando Sanford Airport and is planning further expansion. The program started Dec. 21 and the carrier reported that its flights are operating with loads close to 90%. This year, the company plans to operate six dedicated Boeing 737s with its own logo and livery.
DOT will seek high-tech solutions using a systems approach to making aviation secure, DOT Secretary Norman Mineta and Transportation Security Administration head John Magaw yesterday assured the U.S. Conference of Mayors, whose annual meeting in Washington focused on homeland security. Mineta, a former mayor of San Jose, assured the group that DOT is "up to the challenge" of completing the process of launching the TSA by Nov.
Congress after the attacks of Sept. 11 did the airlines a huge favor -- it shelled out $5 billion taxpayer dollars to ensure that the industry, a critical sector of the U.S. economy, would survive. Now the question is, what will the airlines do in return?
An Airbus facility in Nantes, France, began work on the first A380 yesterday, cutting metal for a wing-to-fuselage joint and making a carbon-fiber part for the debut plane's center wing box. Final assembly of the first A380 is slated to begin in October 2003 in Toulouse.
United opened its new, $35 million cargo facility at Los Angeles Airport. The 12.2-acre facility will serve as the carrier's West Coast freight gateway. The project is part of a $300 million upgrade program that includes a new federal/customs facility, expansion of Terminals 7 and 8, and an upgrade of the baggage area.
SH&E was recently awarded several airport-related assignments from organizations in the U.S. and Europe. The firm's Boston and London offices will direct the assignments. Some of its new clients include the European Commission, Los Angeles World Airports, North Carolina Department of Transportation, San Diego Association of Governments, State of North Dakota Aeronautics Commission, and the Louisiana Airport Authority.
United's mechanics, represented by the International Association of Machinists, are expected to vote within 10 days on United's contract proposal, as recommended by the Presidential Emergency Board. IAM International spokesman Frank Larkin said the three labor representatives on United's board recommended sending the proposal out for a vote. United said earlier this week that it had reservations with the detailed recommendations in the PEB report, but it decided to accept them so it could settle the contract with its IAM District 141M.
Signaling a shift in its air policies, India is considering a proposal to raise the foreign equity cap in the aviation sector to 49%. Currently, India does not permit foreign equity in the aviation sector. This move is considered to be the fallout of the withdrawal of Tatas, the last remaining bidder for a stake in Air-India. Earlier, India desperately tried to attract at least six foreign airlines in its attempt to sell off the shares of the airline.
Avianca, Colombia's No. 1 airline, its subsidiary, Sam, and No. 2 Aces will start implementing their carefully phased process toward merger on May 20. As of that date, itineraries will be integrated so passengers may fly on either airline without the need to have their tickets endorsed by the other. To ensure minimum empty seats on some routes, frequencies will be cut and passengers may use either airline. For the time being, there will be no physical changes in aircraft, and the three carriers will continue using their respective trademarks and liveries.
Atlantic Southeast will begin offering a fifth daily nonstop Atlanta-Augusta, Ga., flight Feb. 10 with a Canadair Regional Jet. The new flight replaces service that was operated with a Brasilia turboprop.
Air Transport Association Office of Economics said yesterday that ticket prices in December declined by 14.6% on domestic flights and by 13.8% on international flights, compared with a year earlier. ATA said overall ticket prices and traffic volume were down 8% in 2001 from 2000 levels, with passenger revenues off 15% for the year. Capacity was down by 4% in 2001, ATA Chief Economist David Swierenga said.
France's ailing Air Lib this week started two daily MD83 services from Paris Orly Airport to Algiers Houari Boumediene Airport in an effort to restore its profitability. The former Swissair unit was the first French carrier to fly to Algeria since the hijacking of an Air France Airbus at Algiers Airport in 1994 by a fundamentalist Muslim commando. Security issues in Algeria dominated the talks that led to the relaunch of the route after Algerian authorities refused to let the airline carry out its own security checks at Algiers airport.
Financial constraints have postponed the construction of the proposed third runway at Kansai Airport (KIA) in Izumisiano. The Ministry of Transport in Tokyo and the Osaka Prefecture government had agreed to postpone the 7 billion yen project to reclaim land from the sea for the runway. This was due to the high cost involved and the pressure to reduce the cost. The proposed 1,700-foot third runway is supposed to be positioned at an oblique angle to the other two runways.
