SAS plans to launch service from Copenhagen to Washington Dulles next May as the first step in the expansion of the airline's intercontinental operations. Starting May 12 the airline will offer five flights per week with a Boeing 767-300, but expects to add a sixth weekly flight June 28.
DOT finalized its tentative decision allocating a U.S.-Egypt third-country code share to Delta, which the carrier plans to use to serve the limited-entry market via Paris under its code-share arrangement with Air France (DAILY, Oct. 23). Delta earlier held one of three such available designations for service with Swissair. Northwest and United are designated for third-country code sharing with respective partners KLM and Lufthansa. (Docket OST-00-6982)
With the strong support of the government, China Aviation Industry Corp. 1 (AVIC 1) has decided to launch a new internationally competitive turbofan-powered regional aircraft. Work on the aircraft started last week. The announcement was made by AVIC I President Liu Gaozhuo during the Zhuhai International Airshow. He revealed that the aircraft would not only be for the China market but would be marketed worldwide. Liu declined to identify the aircraft, saying he is unable for competitive reasons.
TAM and Transbrasil, two of Brazil's Big Four airlines, decided to drop their code-sharing partnership first signed in May. The airlines were code sharing on 28 domestic flights and officials were considering long-term options, including a possible merger. Talks broke down last month, however, and the airlines ended their relationship as of their Nov. 1 deadline.
Carrier Profile - Air New Zealand IATA Reported Operations, Fleet and Employment International Domestic All Services Services Services Worldwide IATA RPK Carrier Ranking 24 N/A 29 Carrier RPK Distribution 90.9% 9.1% 1999 SYSTEMWIDE OPERATING STATISTICS SCHEDULED SERVICES INTERNATIONAL DOMESTIC TOTAL
United wants blanket authority to display Mexicana's code on flights between the U.S. and Canada. The carriers initially plan blind-sector code sharing on Los Angeles-Vancouver and San Francisco-Calgary routes, with Mexicana placing its code on United's flights in those markets, beginning Dec. 2.
Fairchild Dornier, in a bid to be closer and serve its customers better, will open an office in China next month. The office will coordinate sales and product support services for Hainan Airlines and future customers. Fairchild Chairman Chuck Pieper said in Zhuhai that with such a strong potential in China and a firm customer base in HAL, the company is committed to support China and the region. Pieper reckons that opening an office in China is a step toward better things to come.
Frontier Airlines has signed a deal with Chase Merchant Services, LLC to provide Frontier with credit card processing services, transaction processing, settlement and funding. Last year, the airline conducted more than 534,000 bankcard transactions totaling more than $156 million in bankcard volume.
AeroMexico will launch service to its 12th U.S. gateway next month, Ontario, Calif. Starting Dec. 15, the airline will start from Ontario to Guadalajara and Mexico City. The airline also serves Los Angeles and San Diego in California.
KLM's Benelux sales division this week launched KLM Holidays, a new web site for vacation package sales in the Dutch market, for travel from The Netherlands. KLM Holidays claims to be an "e-agent" offering an online selection of holiday packages organized by Dutch tour operators. Booking can be completed on through the web site, www.klmholidays.nl.
U.S. regional airline revenue passenger miles grew 20% to 6.3 billion during April-June 2000, according to the Regional Airline Association (RAA). Load factor increased to 62.3%. Enplanements reached 21.6 million passengers, compared with 19.9 million for the same period in 1999. American Eagle, Comair and Continental Express ranked as the three largest regionals in terms of passenger enplanements.
China has unveiled another first, registering its first aircraft leasing company, Shenzhen Financial Leasing Co. Ltd. (SFL). Set up seven months ago, the company has signed an agreement with the manufacturer of the MA-60, the Xian Aircraft Co., to buy 60 aircraft. The MA-60 is China's latest regional aircraft. As the name suggests, it will seat 60 passengers and is believed to be a replacement for Russian-built Tupolevs and Chinese-made Yuns, which will be grounded after June 2001. The aircraft will be delivered to SFL over five years through to 2004.
Air China has signed a five-year agreement with Pratt&Whitney for the maintenance of the carrier's JT9D-7R4 engines. Under the deal, P&W to provide maintenance and overhaul services worth more than US$50 million for the airline's Boeing 767-200 and 747-200 fleets. P&W would provide the services at its engine and overhaul center in Connecticut.
Aircraft Maintenance&Engineering Corp. (AMECO) in Beijing wants to raise revenue received from third-party work outside China from the current 18% to 30% by 2003. According to AMECO General Manager Walter Heerdt, the majority of its revenue is derived from work done for joint venture partner Air China, while 20% is from services provided for Chinese domestic carriers. AMECO is a joint venture set up in 1989 between Air China, which holds 60%, and Lufthansa Technik, which has 40%.
Galileo International said it has selected J.P. Morgan as its financial adviser "to explore and evaluate possible strategic alternatives," including, but not limited to, "a leveraged buyout or sale to a strategic buyer." The Rosemont, Ill.-based company first indicated that it was considering an LBO Oct. 20.
Delta and AeroMexico jointly requested authority for blind-sector U.S.-Japan code sharing, under which Delta would display AeroMexico's code on nonstop flights from Los Angeles to Tokyo and Nagoya. AeroMexico requested special authorization commingle its Mexico-Japan traffic in order to carry from Mexico traffic with a final destination in the U.S. together with traffic bound for Japan. The carriers plan to begin the Tokyo service Dec. 1. The Nagoya service would start April 1, when Delta begins serving the route nonstop.
Austrian Airlines' board today is expected to promote Fritz Feitl to be the third member of its senior management group. Feitl currently heads subsidiary Tyrolean Airways. Sources say Feitl eventually will succeed Herbert Bammer and Mario Rehulka, who currently serve as Co-CEOs. The company is in turmoil because of troubled subsidiary Lauda Air. Bammer, Rehulka, Feitl and Lauda have clashed several times in recent weeks, accusing each other of incompetence.
Avianca is working with Colombian securities authorities for an initial public offering in local stock exchanges for $100 million. The move would improve the airline's finances, which have deteriorated in the recent national economic recession, and allow it to seek a suitable strategic alliance with a major carrier. Parent company Bavaria S.A. has been guaranteeing Avianca's immediate domestic and international obligations while the long-term financial restructuring is accomplished.
Ryanair remains the most successful no-frills airline in Europe after its net profit yesterday soared 45% to 63.4 million euros. Total revenues grew 37% to 265.9 million euros, boosted by increased yields and the strength of the sterling against the euro. The airline's traffic grew 323% -- more than its 25% target -- as the carrier opened 10 new routes and added five new Boeing 737-800s. Ryanair's profit grew despite a 30% increase in operating expenses due to increased staff, a doubling of fuel expenses and airport costs associated with its growth.
U.S. airlines have contributed nearly $6 million to national political parties and individual campaigns in the 1999-2000 election cycle, according to the latest figures available from the Federal Election Commission, with nearly twice as much going to Republicans as Democrats. Airlines are supporting the two major party presidential candidates in nearly the same proportion, with campaign contributions of $176,210 to Republican George W. Bush and $60,125 to Democrat Al Gore recorded thus far.
Canadian carrier Royal Airlines this week began offering additional daily Toronto-Montreal roundtrip service, bringing the total number of daily flights on the route to eight. Royal offers the service Monday through Friday.
DOT made final its selection of American for designation in the U.S.-Ukraine market, which the carrier will serve via Zurich with Swissair. American received the 3.5 frequencies necessary for daily third-country code-share service in the limited-entry market (DAILY, Aug. 14). American will serve Kiev, also served under third-country code shares by United, Northwest and Delta. Four U.S. carriers may serve the market from as many as four European points.
Fuel Cost and Consumption U.S. Majors, Nationals and Regionals September 1999 to August 2000 Total Total Cost Cents Per Gallons (Dollars) Gallon 1999 September Domestic 1,167,794,158 651,126,842 55.757 International 451,615,699 284,513,895 62.999
