The year 2001 was notable for the progress made by industry and government in the widespread sharing of safety information, including an FAA decision in October to protect information collected under airline Flight Operational Quality Assurance (FOQA) programs and the recently concluded meeting of the Global Aviation Information Network (GAIN), at which several advances were announced.
Mesa Air last week reached an agreement with lessors to finance up to 20 64-seat CRJ-700s and 84-seat CRJ 900s scheduled for delivery beginning this spring. Mesa has orders for 40 CRJ-700 and 900 aircraft, which will be operated on behalf of America West.
FAA said that it has refined the Nexcom ground system acquisition strategy and will conduct one-on-one discussions of the changes Jan. 22-25. The discussions are aimed at providing potential offerors with an updated program strategy for a rapid development effort and a subsequent full-scale development program. Companies that want to participate should be limited to prime contractors and their teams "who have demonstrated capabilities to perform all tasks" required by the program, FAA said. It asked the companies to forward their requests by Jan. 15.
Mainline carrier losses in 2001 were the regional airline industry's gains, with majors turning over significant numbers of available seat miles (ASMs) to regional partners, according to statistics from BACK Aviation Solutions. BACK examined nonstop routes operated by six majors in January 2001 and included markets where both mainline and regionals provided service or where mainline provided service in January. 2001 and only regionals were providing service in January 2002. It also looked at routes where mainline jet service has been reduced or disappeared
Boeing has delivered the last of 30 717s to American. TWA had placed an order for 50 and optioned another 50, 15 of which had been delivered when TWA declared bankruptcy. The new company, TWA Airlines LLC, then took 15 more. No more deliveries are scheduled to American, Boeing said. American has parked 12 717s as part of its 20% capacity reduction. The airline is negotiating with Boeing on its overall fleet strategy, including the prospects for its 18 operational 717s and any future deliveries.
An airport advisory group in South Carolina is considering plans to close down two general aviation airports, consolidating them into a new facility. An airport advisory committee for Horry County has called on Delta Airport Consulting to conduct an FAA-funded study of the county's airports as part of long-range aviation planning, and is considering Delta's plan to replace two airports.
Alaska Air expects its cash position to drop nearly $90 million this month due to payments on currently deferred transportation taxes and incremental lease payments on Horizon Air's new regional jets. As of Dec. 31, 2001, the airline had about $660 million of cash and short-term investments, including $150 million from its credit facility and $80 million from the federal government, according to a securities filing.
FAA, taking an expected next step in an ongoing program, issued revised operating limits on certain Pratt&Whitney PW4000s with high-pressure compressor (HPC) "cutback stator" configurations and authorized a new test that, when passed, clears engines that have surpassed the limits for return to service.
Delta's operations returned to normal on Friday after it was forced to cancel more than 1,300 flights over a three-day period due to a rare southern snowstorm. The storm hit the country's busiest hub earlier than expected and was heavier and lasted longer than predicted. As a result, Delta last week stranded thousands of passengers in Atlanta that will result in an unexpected financial cost to the carrier.
The mission assigned to the Air Transportation Stabilization Board (ATSB) "inevitably means it will play a significant role in shaping the industry's future whether it wants to or not," according to Standard&Poor's. The ATSB is aware that its actions could include prolonging overcapacity or preventing consolidation, S&P says.
Air Europe last week became the first airline in Spain to operate a 737-800 with winglets, Boeing said. The carrier leased the airplane in November from Tombo Aviation. The airline plans to install the winglets on all its 737-800s. Juan Hidalgo, president, said the winglets can reduce fuel burn up to 4% on flights longer than 1,850 kilometers and the aircraft will be used on routes from the Canary Islands to Europe.
Aerospace Industries Association elected Marshall Larsen, president and chief operating officer of Goodrich Corp., chairman and Vance Coffman, chairman and CEO of Lockheed Martin Corp., vice chairman. John Douglass was re-elected president and CEO and George Copsey secretary-treasurer.
Global air freight traffic, which grew about 8% in 2000 but declined 5% in the first six months of 2001 and even further after Sept. 11, will fall 7-10% this year, according to the Air Cargo Management Group. This means 2002 traffic will be about the same as 1999 levels, and "we will have lost three full years of growth that will be hard to regain," ACMG says in its latest study.
America West on Friday made an aircraft lease payment of about $23 million. Earlier in the week, the carrier announced it was deferring $72 million of EETC lease payments after it was granted federal loan guarantees. The airline said it expects to make the remaining $49 million of deferred payments within the "applicable grace period." The $445 million loan, of which $380 million is to be guaranteed by the government, is expected to close by mid-month (DAILY, Jan. 3)
Association of European Airlines Traffic November, 11 Months 2001 November 2001 Passenger Data % % Pts. RPKs Change ASKs Change Load Change (Mil) 01/00 (Mil) 01/00 Factor 01/00 EUROPE 8,352.3 -14.7 15,063.0 -11.2 55.4 -2.3 NORTH AFRICA/MIDDLE EAST
Global air freight traffic, which grew about 8% in 2000 but declined 5% in the first six months of 2001 and even further after Sept. 11, will fall 7-10% this year, according to the Air Cargo Management Group. This means 2002 traffic will be about the same as 1999 levels, and "we will have lost three full years of growth that will be hard to regain," ACMG says in its latest study.
Jeffrey Malehorn, 40, was named CEO of GE Capital Global Financial Restructuring. Glen Messina, 40, was named VP and chief financial officer of Card Services at GE Capital. Roger Sager, 51, became VP-marketing and sales at GE Aircraft Engines.
Air Europe last week became the first airline in Spain to operate a 737-800 with winglets, Boeing said. The carrier leased the airplane in November from Tombo Aviation. The airline plans to install the winglets on all its 737-800s. Juan Hidalgo, president, said the winglets can reduce fuel burn up to 4% on flights longer than 1,850 kilometers and the aircraft will be used on routes from the Canary Islands to Europe.
40 years ago Jan. 8, 1962: Three U.S. majors -- Delta, Northwest and Pan Am -- made a creditable financial showing in 1961, according to a Forbes review concluding that the industry was "sick" with overcapacity, overcompetition and jet transition costs. 20 years ago Jan. 12, 1982: DOT scheduled meetings to discuss with carriers serving overcrowded DCA ways to shift service to Washington Dulles or Baltimore to achieve a "balance of use" of the three airports. 10 years ago 10 years ago
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British Airways on Friday warned that yields will remain down due to sharp discounting, though overall revenue is exceeding its low expectations. The airline's traffic in December was down 10.4% on 12.5% less capacity. The reduction in traffic comprised an 18.3% decline in premium traffic and a 9.2% fall in non-premium traffic. Passenger load factor of 68.6%, up 1.5 percentage points. Cargo, measured in cargo ton kilometer, fell by 16.1%.
