Mesa Airlines hopes to announce further orders for up to 60 regional jets in the next few weeks and is headed toward growth that will eventually put it in the league of a major airline, CEO Jonathan Ornstein told analysts last week in New York. Speaking at the Growth Airline Conference sponsored by James Parker of Raymond James&Associates, Ornstein said the order likely will comprise a mix of 50-, 70-, and possibly even 90-seat RJs, but no decision has been made yet.
Air Afrique today begins a 14-month effort aimed at stabilizing, restructuring and privatizing the carrier, under the leadership of consultant SH&E. The two-month initial plan is intended to assess deficiencies and create new business and financial restructuring plans, stabilizing the carrier's cash situation and making its operations more reliable. Funding for the effort is provided by the World Bank.
Northwest signed a six-year agreement with Unisys Corp. to manage certain information technology operations for the airline. Based on projected usage, the agreement could be worth as much as $45.2 million in revenue. The Unisys deal includes managing hardware and systems software on site at the Northwest Data Center facility and support functions provided from the Unisys Service Center, both located in Eagan, Minn. Unisys has supplied both hardware and software to the carrier for nearly 40 years.
U.S. Major Carriers Latin Share of Service Second Quarter 2000 Total Revenue Departures Alaska 2,491 America West 978 American 24,038 Continental 11,159 Delta 4,262 United 3,647 US Airways 1,982 Total 48,557
United and its Air Line Pilots Association continued easing the way for a potential merger with US Airways last week when the two sides signed a letter of agreement guaranteeing certain pilot protections. United and its ALPA Master Executive Council on Friday agreed on issues of pilot pay protection, early retirement, provisions addressing retiree replacement and furlough protection. The agreement also ensures that if American takes on US Airways 757s, US Airways pilots will fly them and any aircraft American acquires from US Airways for the DC Air operation.
SkyWest Friday reported a third quarter net income of $12.6 million, down 7.8% from the same 1999 period, largely due to an inordinate number of canceled flights. Operating revenues rose 11.5% to $130.9 million, and expenses were up 18.4% to $115 million. Operating income dropped 21.5% to $15.8 million. Unlike most other regionals, SkyWest suffered no losses due to increased fuel prices because its fuel requirements are hedged under the United and Delta contracts, and with fuel surcharges SkyWest was able to offset any variance.
Pedro Cerisola y Weber, Mexico's new transportation secretary, said last week that in mid-February, he will submit to authorities a preliminary study on the location of Mexico City's alternate international airport. The remaining two candidates are Tizayuca, in the neighboring state of Hidalgo, and Texcoco, in the state of Mexico.
U.S. Major Carriers Atlantic Share of Service Second Quarter 2000 Total Revenue Departures American 6,467 Continental 4,377 Delta 7,328 Northwest 3,069 TWA 1,333 United 5,585 US Airways 2,143 Total 30,302
Rockwell Collins named Mark Harris VP-maintenance operations, Scott Gunnufson VP-business operations and Ken Peterman director-communications systems marketing for Rockwell Collins Government Systems.
China Airlines' deal to buy China Cargo Airlines (CCA), in principle sealed last year, was rejected by the Civil Aviation Administration of China because the Taiwanese carrier did not make the necessary applications for approval from the relevant Chinese authorities. There has been no progress in current negotiations, but both parties are eager to close the deal.
Regional Airlines will fly 1,203 regional jets by 2003 on behalf of major carriers, according to airline analyst James Parker of Raymond James&Associates. Parker estimates that Delta will have the most at 357 thanks to its partnerships with Atlantic Coast, Atlantic Southeast, Comair, SkyWest and Trans States. Continental's Continental Express will place second with 236 RJs and American's Eagle operation will fly in third place with 202.
Alaska Airlines' parent Alaska Air Group Friday reported a deep fourth quarter loss of $28.9 million, largely because of soaring fuel prices and higher maintenance costs. The group's deficit was greater than lowered analyst expectations as the carrier paid an average fuel cost per gallon of $1.18, up 47.0% from last year. As a result, operating expenses jumped 21.7% to $586.7 million and unit costs soared 20.0%. Maintenance costs also hurt the bottom line, rising 41.0% from last year.
Boeing plans to close its Renton, Wash., 737 and 757 final assembly lines and relocate the production to its sprawling Everett facility, saving about $1 billion a year, Business Week will report in its Feb. 5 issue. The shutdown could take up to seven years to complete. Boeing issued a statement late last week saying no decisions had been made. The company's Senior VP and President of Commercial Airlines Alan Mulally tomorrow will address the Bear Stearns aerospace conference.
A DC-3 carrying tourists, including six Americans, crashed last Thursday into a small town in southern Venezuela, killing all 24 people on board and injuring three people on the ground. The Rutaca Airlines flight crashed just after taking off from refueling in the city of Ciudad Bolivar. According to eye witnesses, the aircraft appeared to experience mechanical trouble and was trying to return to Bolivar, when it lost altitude rapidly and crashed in the suburban area of Peru Vie, exploding immediately in a ball of flames.
Moody's Investors Service Friday placed its rating for SAirGroup under review for a possible downgrade, prompted by the company's senior management shake-up and an expectation that its medium-term earnings "will be weaker than originally expected." Moody's said its review will focus on management's new strategy to return the group's airline business, including the international interests, to profitability and positive cash flows.
In a bid to attract foreign carriers back to Pakistan's four international airports -- Lahore, Karachi, Peshawar and Islamabad -- the government is offering a host of incentives. According Ashraf Farook, an official of the Civil Aviation Authority (CAA), fuel cost at Pakistan airports is lower than most competitive rates in the Middle East. Ashraf said reduced rates for landing and ramp charges for foreign carriers are being standardized with fees paid by flag carrier Pakistan International Airlines. In the past, foreign airlines paid one rate and PIA another.
AIRCRAFT TRANSACTIONS FOR NOV 9 - NOV 10, 2000 Seller/ New Type / Previous Operator Owner Engine Operator Boeing SAS SAS Boeing 737-800/ CFM56-7B26 Boeing Korean Air Korean Air Boeing 777-200ER/
British Midland will add "International" to its name when it unveils its rebranded livery Feb. 1, according to photographs obtained by The DAILY. The carrier's new livery features a lower-case "bmi" on the tail above a stylized light-blue Union Jack. A large "bmi" appears just aft of the forward passenger door. The fuselage is blue and white, with red winglets and red-and-white nacelles.
Away.com has launched a "weekend getaways" section of its site, powered by last-minute travel online company Site59.com. Within the new section, last-minute travelers have access to weekend travel and entertainment packages, most of them including airfare, rental car and hotel. Site59.com's airline partners include Delta, Continental and American.
Sun Country will expand its Washington Dulles service Feb. 1, offering coast-to-coast travel to Los Angeles, San Diego, San Francisco and Seattle with one stop in Minneapolis/St. Paul.
