Delta expects to post a fourth quarter net loss of roughly $500 million excluding one-time items due to continued effects from the Sept. 11 attacks. The loss would be in line with analyst expectations and would follow a net profit of more than $18 million in the same period last year. Capacity for the quarter is estimated to be down 12% from 2000, according to a recent securities filing.
Crossair's board has approved a long-term business plan presented by CEO Andre Dose. The plans have the airline adding 52 aircraft, half of them widebodies serving long-haul routes. The approval comes with strings attached, however. It is subject to planned cost cuts being successfully implemented and a favorable outcome of a referendum in the canton of Zurich.
The sale of a majority stake in Olympic Airways to Integrated Airline Solutions Consortium, an Australian company, has entered the final stage and a decision is expected by Jan. 31. Privatization adviser Credit Suisse First Boston said the talks had made "satisfactory progress." The Australian consortium, backed by Olympic Airways pilots and Greek businessmen, became the sole bidder for Olympic in December.
Emergency $180 million aid package approved by Mexico's congress for airlines to hurdle their ongoing crisis excluded AeroCalifornia, Aviacsa, Allegro and Aerolineas Internacionales. Jointly, they owe about $100 million to government agencies for fuel, airport services and back taxes. Individual negotiations are going on to restructure these debts for eventual participation in the aid program.
Continental has taken delivery of the first of 15 Boeing 757-300s it will receive through 2005. The aircraft has 24 first-class seats and 186 seats in economy. Cargo volume is up over the 757-200 by nearly 40%. The 757-300s are powered by Rolls-Royce RB211 engines.
Visionics Corp. has received new orders for nine FingerPrinter CMS live scan systems from seven airports. It valued the orders, including maintenance, at $350 million. Installation is expected to be completed by the end of the month at Albuquerque, Burbank, Cincinnati, Dallas Love Field, Harlingen, Texas, Knoxville and Wichita.
Canada's Transport Minister David Collenette appointed Guy Delisle of Calgary as a full-time member of the Canadian Transportation Agency. Delisle will begin his five-year term Jan. 8. Since 1998, he has served as senior counsel and temporary member of the National Energy Board. The Canadian Transportation Agency is a quasi-judicial body established under the Canada Transportation Act.
The FAA has approved two runway development projects at Cincinnati/Northern Kentucky Airport, projects which studies show will allow 28% growth of operations in good weather during the next 10 years. An all-new 8,000-foot runway in the plan will allow for simultaneous operations of what would be three north-south runways (18/36). A 2,000-ft. extension of an existing east-west runway (6/27) to 12,000 feet will help the airport qualify for nonstop flights to Asia, a long-time goal.
The European Commission has cleared a EUR125 million loan guarantee that the German state of North Rhine Westphalia has granted to LTU International Airways. LTU was close to bankruptcy when its main shareholder, SAirgroup, collapsed in October. The airline will have to find new investors in the coming months.
Southwest's market capitalization at the end of 2001 -- $14.1 billion -- is more than all the other major and national U.S. carriers combined. Nine major airlines and five nationals have a combined value of just $13.4 billion (see chart, page 8). AirTran's and Frontier's market cap are each higher than US Airways' and America West's. United is worth just $736 million.
America West's stock price has soared more than 50% since it received approval for $380 million in federal loan guarantees, a move that staved off any near-term threat of bankruptcy. The airline's stock closed at $3.93 per share yesterday, up more than 12% on the day and up 60% since Dec. 28, the day loan guarantees were approved. If the airline defaults on the loan, the government is not only liable, it could end up owning more than 33% of America West shares.
Rep. James Oberstar (D-Minn.), ranking member of the House Transportation Committee, warned Kirk Van Tine in his new position as a member of the Air Transportation Stabilization Board to be wary of attempts to use the federal loan guarantee program to encourage airline mergers. In a Dec.
The proposed merger of Hawaiian and Aloha likely will result in a multi-year fleet transition centering around new Boeing narrowbodies, according to Greg Brenneman, CEO of the proposed combined carrier. Aloha's older 737-200s likely will be replaced when the leases expire. Hawaiian is taking delivery of new 717s.
The proposed merger of Hawaiian and Aloha likely will result in a multi-year fleet transition centering around new Boeing narrowbodies, according to Greg Brenneman, CEO of the proposed combined carrier. Aloha's older 737-200s likely will be replaced when the leases expire. Hawaiian is taking delivery of new 717s.
Air New Zealand plans to withdraw the third Bae-146 jet from its domestic fleet effective Feb. 10. The move will affect the current services operated by Mount Cook Airlines from Christchurch to Rotorua and Queenstown. It follows the recent removal of two 146s on Dec. 10, which were replaced by a Boeing 767-200 that was reallocated from international routes. ANZ's VP-Regional Airlines Howard Jellie said the 146s had been brought into the fleet after the collapse of the Qantas New Zealand operation to cope with increased domestic demand.
Expedia delayed a shareholder vote in its proposed deal with USA Networks. The acquisition was slated to be addressed at Expedia's annual shareholder's meeting but was postponed due to Vivendi Universal's recently announced plan to acquire USA Networks' entertainment assets.
AAR and Air France Industries have formed a joint venture, Spairwise, to provide full component management support to Airbus A320 family operators in North and Central America. Spairwise will provide spares, component repair, logistics management, pool access and flexible financing. The operation will be based in Atlanta. AFI is the maintenance business unit of Air France.
LanPeru started offering nonstop service between New York Kennedy and Lima, Peru, as part of a code-share agreement with LanChile. The flight operates with LanChile's Boeing 767-300, three days per week. LanPeru is a Peruvian company in which LanChile holds a partial ownership. The carrier said it is a member of oneworld.
United this quarter plans to launch a new cabin and flight deck security-training program. Officials said the program would focus on how crewmembers should evaluate and respond to potentially threatening situations. Once approved by FAA, the first phase of training for pilots and flight attendants will introduce techniques to maintain onboard safety for crew and passengers. The second phase will give flight attendants hands-on practice in these techniques. All flight attendants and pilots will participate in Phase One, the airline told employees.
DOT, in the week of Dec. 17, met four legislatively required, 30-day deadlines on implementing the Aviation and Transportation Security Act and is on track to meet upcoming deadlines, including the Jan. 18 date for screening all checked baggage, senior DOT officials said yesterday. DOT officials tasked with leading the Go-teams put together by DOT Secretary Norman Mineta said 100% percent screening of checked bags would be achieved by a variety of methods.
