Vanguard Airlines reported third quarter revenue of $35.5 million, virtually unchanged from the $35.4 million in the third quarter 1999. The company showed a net loss of $4.7 million, which CEO Jeff Potter said were disappointing, but in line with expectations. Results were "significantly impacted by increased competition on key routes and the ongoing impact of higher fuel prices," he said. During the quarter it remained committed to Kansas City and launched changes that have lead to improvements in reliability and on-time performance.
Florian Hamm, a Lufthansa Boeing 737 captain, was named head of Lufthansa Flight Training (LFT). He replaces Rolf Kiess. Hamm has flown the 737, DC-8 and 747. Since 1996, Hamm served as managing director of SunExpress, a charter joint venture evenly owned by Condor and Turkish Airlines.
Travelbyus.com this week was the first site to launch ITA Software's low-fare search engine for public use. Travelbyus.com now claims it can offer its 2,700 travel agency members a "significant competitive tool" for airfare shopping and booking. ITA Software also will provide the search engine for Orbitz, the airline-owned travel site expected to launch in June.
Congressional sources have told the FAA that its plans to ration new flights at New York's delay-prone LaGuardia Airport next year and institute slot lotteries is contrary to the intent of AIR-21, which is now law. One source yesterday even went so far as to say that FAA would be violating the law. The rule states that FAA shall provide slot exemptions for new entrants and for service to small hubs and non hubs. FAA is aware of congressional staff opposition. FAA briefed airlines last week and Congress this week.
German construction groups Hochtief and IVG last week ended a long legal battle and decided to build Berlin's new international airport together. They are now jointly the one and only bidder left in the race. The aim is to jointly offer to buy Berlin's airports and to construct and operate Berlin Brandenburg International airport (BBI). The former competitors must now seek approval from German and European Union competition authorities.
FAA certified the Boeing 777 powered by new derivative GE90-94B engine following a 20-month program that included 275 hours of flight tests and 1,500 hours of ground tests. The engine is rated at 94,000 pounds thrust and will power the 777-200ER. The first GE90-94B powered 777 will be delivered to Air France this week.
Continental's Independent Association of Continental Pilots (IACP) wants to begin contract talks in May, 14 months early, IACP said yesterday. IACP President Pat Burke, in a Nov.
The European Commission yesterday approved the joint venture between BT and Amadeus. The global distribution system and the British telecommunications operator intend to "develop and deliver a comprehensive pan-Asia/Pacific travel services portal." The European competition watchdog approved the deal under its so-called "simplified procedure," under which uncontroversial deals are cleared automatically after a one-month delay.
Continental and Northwest said the federal antitrust trial involving both airlines in Detroit has been postponed until Thursday while the carriers continue negotiations concerning their tentative settlement. After two weeks of negotiations, on Nov. 6 Northwest announced a preliminary agreement to sell Continental about 6.7 million Continental Class A stock shares Northwest held for $450 million in cash (DAILY, Nov. 7). After the new deal is finalized, Northwest will retain 7% of the voting interest in Continental and less than a 5% equity stake.
Greece will issue a formal call next month for a renewed attempt to find a private investor for the ailing flag carrier Olympic Airways, said Greek Transport Minister Christos Verelis. In an interview published Monday by Greek daily Ta Nea, he said, "Our consultants are currently preparing a package...that will be attractive to the market." Verelis indicated that the Greek government already had received expressions of interest. The formal decision is expected "three or four months" after the tender.
Top 50 International Markets For Nonstop Travel To/From The U.S. 12 Months Ended March 2000 Onboard Share of Carrier Passengers Total U.S. Departures 1 London, Heathrow 10,306,892 7.7% 47,647 2 Tokyo, Narita 9,485,097 7.1% 48,988 3 Toronto, Pearson 7,942,228 5.9% 100,701
French Transport Minister Jean-Claude Gayssot said Paris' third airport would be operational around 2012. The exact location is still under discussion, but the French government recently agreed in principle to build a third airport. "This decision is aimed at being put in practice with the start of operations around 2012, perhaps in 2013 or 2015", said Gayssot.
FedEx yesterday announced an agreement to acquire American Freightways for $28.13 per share, or about $1.2 billion, including debt and payable in cash and FedEx stock. The acquisition will allow FedEx to reach further into the regional freight market. Joint revenues of American Freightways and FedEx-owned Viking Freight will reach more than $1.6 billion. "This acquisition is a perfect fit" that "neither business could capture as a stand-alone," said FedEx CEO Fred Smith. American Freightways will make FedEx stronger in the Midwest, South and Northeast.
Avianca will operate the following additional flights: three-times a week, non-stop Barranquilla-Miami; twice a week, non-stop Medellin-New York (JFK); three times a week, Cali-Miami; and once a week non-stop, Cali-New York.
Prime Minister of Antigua and Barbuda, Lester Bird, stated last week that his government was ready to support a merger between start-up Caribbean Star, based on Antigua, and financially ailing LIAT to ensure Antigua remains an aviation hub. LIAT Chairman Wilbur Harrigan said he would consider an offer from Caribbean Star for a majority stake in LIAT.
Pilots at US Airways, miffed by the failure of United's board to pass a merger amendment guaranteeing that it will honor US Airways' pilot contract, have filed an expedited grievance in hopes of spurring United management into action. The pilots, represented by the Air Line Pilots Association, want guarantees that if the merger goes through United will honor the terms of their contract. US Airways' board passed the amendment at its meeting in September, but United's board did not act on it at its Oct.
AIRCRAFT TRANSACTIONS FOR JULY 24 - AUG 1, 2000 Seller/ New Type / Previous Operator Owner Engine Operator Bombardier Comair First Union Canadair National Bank RJ/ CF34-3A1 Bombardier Atlantic State Street Canadair
Delta has installed a new route planning system from the Kiehl Hendrickson Group called Planet. The Planet system forecasts market share, revenue and profitability consequences arising from assumed changes in airline flight networks, demand conditions, competitive structure and other market dynamics. The system will improve the airline's capability to model economic implications of route expansions, flight scheduling, code-sharing scenarios, hub redesigns, competitive actions and other strategies.
Sources in Lima and Santiago yesterday report that the rift between LanChile and LanPeru is getting worse. Last week Lima's Chamber of Commerce requested arbitration on the contract for LanChile's Boeing 767-300 use by LanPeru. LanPeru's 51% owner, Peruval, alleged that LanChile has been carrying cargo in the belly of its 767s between Miami and Lima without sharing revenues with LanPeru.
U.S.-Argentina open skies, stalled by shifts in the Argentine government and the fortunes of Aerolineas Argentinas, might proceed as phased liberalization, U.S. officials confirmed.The U.S. awaits a formal response on a proposal to add 14 frequencies during 2001 and to "pin down other elements of a transitional agreement" including code sharing, said a senior U.S. official.
Northwest plans to accelerate installation of eKiosk's Internet workstations into 20 existing and new WorldClubs airport lounges in the U.S. More than 50 additional kiosks will be installed throughout the U.S. Northwest and eKiosk expect to complete installation in the first half of 2001. EKiosk offers both wired and wireless ports, and claims to lead the public Internet industry in high-speed, broadband connection options. Travelers can hook up laptops, notebooks, palmtops and other handheld devices to the Internet through the devices.
U.S. and European Union representatives will present oral arguments on the U.S. hushkit complaint before the International Civil Aviation Organization in Montreal beginning today. The U.S. filed a brief under Article 84 at ICAO on March 14 after it was unable to convince the European Commission to suspend its rule that would ban in April 2002 hushkitted aircraft not registered in Europe by May 4. Today's hearing will address the EU's procedural objections on jurisdiction and authority of the U.S. complaint. The U.S.
Boeing said yesterday that a surge in orders this fall has pushed net total orders for commercial jetliners above 15,000. Last month GE Capital Aviation Services confirmed a 74 airplane order including orders for 59 new 737s, five 777-200ERs and 10 longer range Boeing 777s. Nearly 500 commercial jet orders have been placed so far in 2000, Boeing said.
