Air Canada named Paul Brotto executive VP-planning and cost management; Peter Donolo senior VP-corporate affairs and government relations, and Doug Port senior VP-customer service.
Air Transport Association wants the Bush administration, DOT, FAA and Congress to focus attention immediately on fast-tracking implementation of infrastructure systems, currently in the works at FAA, to reduce delays and improve gridlock. The group called for investment now, totaling $4.8 billion, in funds already available for aviation.
Sources close to Mexican holding company Cintra report that among U.S. major carriers, American and Delta have shown the most interest in participating in negotiations for the purchase its major assets, AeroMexico and Mexicana (DAILY, Jan. 26). Both mega-carriers have retained teams of local attorneys and lobbyists, who will go into action as soon as the government gives the green light for Cintra's breakup.
Brazil's Embraer said last week that American Eagle is exercising six of 31 options placed in September 2000 when its unveiled the 44-seat ERJ-140. The Eagle order for the jet now stands at 139 firm orders and 25 options, with deliveries to begin in August. Separately, Embraer says it is ready to increase its presence in the military market. Having already booked firm orders from the Brazilian air force for a total of $1.5 billion, Embraer is confident it can increase its global market share from 8% to 30% in five years.
United, despite daunting merger expenses, predicts it will post roughly breakeven earnings per share in 2001 if it is allowed to close its merger with US Airways by mid-year. Speaking to analysts in New York Friday, United Chief Financial Officer Doug Hacker said 2001 will be a "challenge," with the airline expected to spend $400 million in 2001 for merger transition costs.
Sabena will no longer be able to pay its bills at the end of February unless its unions and shareholders accept a radical restructuring, according to CEO Christoph Mueller in a letter to employees obtained by The DAILY. The airline's desperate situation was confirmed by an audit demanded by unions and carried out by International Pilot Services Corp., an ALPA unit.
In Lima, Guillermo de la Torre, general manager for Continental Airlines in Peru, said the U.S. carrier would become even more active in the local market through a code-sharing agreement with Transporte Aereo Nacional de la Selva (TANS). Both companies are making their reservations and billing systems compatible to ease the reciprocal flow of passengers. TANS serves destinations off the beaten path in the Amazon jungles of Peru that are popular with eco-tourists and adventure travelers.
Aviation Industry Stock Performance January 2001 Closed Closed Monthly Change Majors Ticker 1/31/01 12/29/00 ($) (%) Alaska Air Group ALK 32.340 29.750 2.590 8.7 America West (Class B) AWA 12.300 12.813 (0.512) (4.0) AMR 1 AMR 39.090 39.188 (0.097) (0.2)
KLM posted a surprising net profit of 4 million euros ($3.7 million) in its fiscal third quarter ending Dec. 31, up from a EUR17 million loss. Most analysts had expected another loss. KLM said it had success in "containing manageable unit costs." Revenue jumped to EUR 1.8 billion ($1.6 billion), up from EUR1.5 billion. "Traffic revenues are up as a result of a focused network strategy based on conservative capacity growth combined with aggressive state-of-the-art revenue management," said CEO Leo van Wijk.
SAirGroup CEO Eric Honegger yesterday decided to withdraw from the privatization process of struggling TAP Air Portugal. SAirGroup previously agreed to buy a 34% stake in TAP, but after a meeting between Honegger and the Portuguese transport minister, SAirGroup said it would only "guarantee TAP's short-term financial needs." The two airlines will continue their commercial cooperation.
American and TWA this week received DOT authority to allow American's AAdvantage members to earn frequent flyer miles for flights on TWA. DOT also authorized the just-announced plans for reciprocal use of American's Admirals Clubs and TWA's Ambassadors Clubs. Both the frequent flyer and airport club access cooperation began yesterday. Beginning Thursday, March 15, AAdvantage members will be able to use their AAdvantage miles for award travel on TWA flights.
Korean Air has revealed plans to add personal video systems and inflight phone services to its seats in economy class. The new services will be installed on a portion of the international long-haul fleet, starting in February 2002. Korean Air also announced that all new aircraft, including Boeing 747-400s and 777s, delivered after September 2001 will have personal computer power outlet installation expanded to economy class.
American CEO Donald Carty yesterday urged prompt Justice Department approval of its acquisition of TWA and parts of US Airways and DC Air, but Senate Commerce Committee Chairman John McCain (R-Ariz.), clearly unhappy with the merger proposals, said there would be additional hearings into the industry's consolidation plans.
Three U.S. carriers filed for the two U.S.-Israel third-country code-share designations available now, which will prompt a comparative selection proceeding. American, Northwest, United want to serve Tel Aviv from major U.S. markets via European hubs of their respective code-share partners Swissair, KLM and Lufthansa. American wants to start service, via Zurich -- on March 1 "or within 15 days of receiving all necessary" approvals -- from 10 U.S. points.
Two of the launch customers of the new Airbus A380-800 are in discussions with the manufacturer to increase the number of firm orders, Juergen Thomas, special Adviser to the Airbus CEO, said at the European Commission's Aeronautics Days in Hamburg. Thomas refused to identify the airlines; however, Emirates is known to have indicated its interested in more firm orders, while Singapore Airlines is finalizing a decision on a large freighter.
British Airways and oneworld partner Iberia are expanding their code-sharing agreement to cover four cities in Spain served by Iberia subsidiary Air Nostrum. Starting yesterday, the BA code appears on Air Nostrum/Iberia flights between their Madrid hub and the regional cities of Almeria, Murcia, Pamplona and Zaragoza.
Analysts at Septentrio Satellite Navigation of Belgium yesterday reported discovering anomalies in the WAAS signal that had gone undetected by contractor Raytheon and FAA. Septentrio said that "due to the critical nature of this problem, especially for safety-of-life applications, we think this information should be published urgently." Septentrio said it has been in contact with Raytheon engineers, "who told us they found the problem and will have a fix in the 'next couple of weeks.'"
American's recently announced plans to acquire bankrupt TWA for $500 million in cash and $3 billion in airplane leases would give American 190 TWA planes, 175 TWA gates, 173 TWA slots at the four slot-controlled airports -- New York LaGuardia and Kennedy, Chicago O'Hare and Washington National-- TWA's St. Louis hub, and 20,000 employees.
Air Tran's revenue percentage from business travelers grew from 40% in 1999 to 60% last September, according to James Parker of Raymond James&Associates. Parker attributes the rise in business passengers to improved quality of service and image. The company's cash position has also increased -- 49% -- since the end of 1999 to $113 million as of September, and growth outpaced national averages at 9%.
AIRCRAFT TRANSACTIONS FOR NOV 16 - NOV 17, 2000 Seller/ New Type / Previous Operator Owner Engine Operator Airbus Air Afrique ILFC Airbus A330-200/ PW4168A Embraer Crossair AG Crossair AG Embraer ERJ145/
At the recent World Economic Forum in Davos, Switzerland, Brian Tobin, Canada's industry minister, reiterated that his country will keep subsidizing export sales of Bombardier aircraft as long as Brazil supports Embraer with similar incentives. "All we have announced is a copy of the Brazilian program, and we will implement it whenever we see fit." He was referring to recent government loan guarantees for $300 million to facilitate the sale of Bombardier aircraft to Air Wisconsin.
