Atlantic Southeast Airlines is close to making a decision about where to open its third maintenance facility. CEO Skip Barnette said last week that the company will decide by yearend whether to build at Fayetteville, Ark., or Baton Rouge or Alexandria, La. The airline has its primary facility in Macon and another in Texarkana.
China Southern last month became the first Chinese carrier to operate Guangzhou-Hong Kong-Singapore and Guangzhou-Bangkok-Kuala Lumpur. Both routes will be operated three times a week, the first with Airbus 757s and the second with 757s or Airbus A320s.
American's political action committee has contributed $315,684 to congressional candidates in the 1999-2000 election cycle, more than any other airline PAC, an examination of Federal Election Commission records through late October has revealed. Not surprisingly, Rep. Bud Shuster (R-Pa.), the powerful chairman of the House Transportation Committee, was the top beneficiary of airline PACs' generosity even though he will have to step down as chairman in the next Congress, which starts in January.
Spirit Airlines flight attendants last week voted for the Association of Flight Attendants as its representational union. Of 350 eligible voters, 249 returned ballots, giving AFA a 71% victory. AFA filed a petition for election with the National Mediation Board Aug. 11.
Dragonair signed a contract with Singapore Airlines to purchase two Boeing 747-300 Combi airplanes and convert then into full freighters. The 747s will be converted by Take Aircraft Engineering Co. (TAECO) in Xiamen, China, with parts kits supplied by Boeing Airplane Services. While Dragonair currently operates one wet-leased 747-200F, the 747-300 Special Freighters will be the first cargo aircraft the airline owns. "Cargo operations is a major focus for Dragonair, and adding these airplanes to our fleet is an important step for us," said Dragonair CEO Stanley Hui.
Animal-related complaints, recently added as a category to DOT's Air Travel Consumer Report, did not garner any responses during August and September. The pig that flew first-class aboard a US Airways Philadelphia-Seattle flight last month, wreaking havoc in the cabin, likely will be among the first complaints recorded in the new category.
Calgary-based low-cost carrier WestJet yesterday reported net earning for the third quarter 2000 of $10.4 million, up 72.9% from the same period 1999. Operating margin rose to 19.2%, compared with 17.7% for the third quarter 1999. Revenue per available seat mile increased to 22.8 cents from 22.6 cents despite an increase in average stage length. Cost per available seat was up to 15.0 cents from 14.0 cents, primarily because of higher fuel prices, acceleration of depreciation on its 737-200 series aircraft.
The Regional Airline Association last week elected Andy Price, president of Commutair Airlines, as chairman of the association. Price replaces SkyWest CEO Jerry Atkin. Tom Moore, president of Atlantic Coast,was elected vice chairman and Skip Barnette, CEO of Atlantic Southeast, was elected treasurer.
Mexicana applied at DOT for an exemption for Mexico City-Ontario, Calif., service. The carrier plans to begin serving the route March 15, operating six weekly roundtrips under a single flight number via Guadalajara, which it holds an exemption to serve from Ontario. Mexicana would operate the flights using Airbus A320 aircraft configured for 150 passengers. (Docket OST-00-8200)
The tentative settlement deal between Continental and Northwest won the praise of the Justice Department yesterday, likely concluding the federal suit against the two carriers and the bitter dispute that ensued. After numerous proposals from both airlines over the past 10 days, Northwest agreed to sell Continental about 6.7 million Continental Class A stock shares Northwest held for $450 million in cash. After the new deal is completed, Northwest will retain 7% of the voting interest in Continental and less than a 5% equity stake.
Canada's Transportation Safety Board (TSB) is close to issuing more recommendations stemming from its probe into the September 1998 crash of a Swissair MD-11 near Halifax, Nova Scotia, the board's top official said last week in Montreal. "We will have more safety recommendations, hopefully within the next few weeks," said TSB Chairman Benoit Bouchard, hinting that the suggestions could be significant -- "It could be surprising what we come out with." He declined to elaborate on what TSB is planning to issue.
Priceline.com yesterday reached an agreement with Amadeus Global Travel Distribution to use Amadeus' international Global Distribution System (GDS) to process ticket purchase requests from customers of Priceline.com and its international licensees. The agreement covers airline ticket purchases made in 140 countries covered by the Amadeus system. The agreement "will further expand the global airline ticket inventories available to Priceline.com," the company said.
Failed British Airways-KLM merger plans may have put U.S.-U.K. open-skies talks on hold, but continued U.S. intractability on key issues continue to stymie progress, Deputy Prime Minister John Prescott said last week as he made public the U.K. government's response to a parliamentary committee report on liberalizing the bilateral. The U.K. expects to resume talks with the U.S. "later this year or early next year," according to the U.K. government's written response to the committee's report. While affirming that it is the "government's aim" to ensure that all U.K.
TRAFFIC DATA FOR OCTOBER 2000 RPMs Change ASMs Change In From In From Load Airline Billions 10/99 Billions 10/99 Factor Alaska 0.88 -1.2% 1.43 -0.6% 61.4% American 9.49 -1.4% 13.57 -2.9% 69.9% America West 1.56 -2.5% 2.31 +3.1% 67.2%
United Services, the airline support division of United Airlines, and H.P.L. Kensington announced a joint venture -- Universal Services -- to provide joint cargo-handling services at London Heathrow Airport. The new company will use empty warehouse space near the airport to accommodate freight for Sri Lankan Airlines and excess volume for United Cargo's operation during peak periods.
Air Transport Association reported that cargo traffic, including mail, freight and express, rose 3.8% in September with international cargo up 8.7% and domestic cargo falling 0.7%.
Comair yesterday began daily nonstop regional jet service between Birmingham and New York LaGuardia with two daily roundtrips. Service is aboard Canadair Regional Jets. Also yesterday, Atlantic Coast Jet started three-times-daily Raleigh/Durham-LGA nonstops using the Fairchild 328JET.
Global Airlines is making another bid for TWA, offering $3.75 per share, which Global said represents TWA's top price over 52 weeks, for up to 100% of the airline's outstanding stock. The offer is worth more than $298 million, Global said yesterday. Global said the offer is valid until midnight Nov. 12, and whether or not TWA management responds it will proceed with an offer directly to the shareholders beginning Nov. 30.
British Airways will put its Go operation on the market, the carrier revealed yesterday as it reported pretax profit that soared 400% to #200 million (US$290 million) on a higher mix of premium passengers and strong cost control. CEO Rod Eddington said the low-cost operation "no longer fits inside British Airways' strategy," given the pressured competition environment in Europe. Goldman Sachs has been appointed to advise the carrier on the sale process.
DOT granted AeroMexico an exemption for Guadalajara, Mexico-Ontario, Calif., service. The carrier plans to serve the market, which currently has no single-plane service, with three weekly roundtrips on weekends beginning Dec. 15, using MD-80 aircraft. (Docket OST-00-8202)
The Civil Aviation Administration of China (CAAC) will continue to allow Air China as the national flag carrier to continue to use landing rights for its international flights. The other two Chinese carriers operating international flights, China Southern Airlines and China Eastern Airlines, will be allotted the rights that Air China does not want. Despite the fact that all three carriers are government-owned, China Southern and China Eastern, which have been profitable, will continue to play second fiddle to Air China.
CIT Aerospace yesterday finalized a deal for 35 Airbus A320 family jets and 15 A330s/A340s, making good on a commitment CIT first made in July. Engine selections were not announced. "We have experienced strong demand for the A320 family and A330-200 aircraft we ordered last year and, in fact, have already placed four of our five A330s," said CIT Aerospace President Jeffrey Knittel. CIT took delivery of its first Airbus aircraft last month -- a CFM56-powered A320 that it is leasing to Air 2000 -- under a deal struck last year.
Virgin Blue plans to start flying between Adelaide and Brisbane on Dec. 15. The carrier will start with two daily flights that will be timed for business travelers allowing a one-day trip. The airline claims the new route will be "welcome news" for travelers in Adelaide because it intends to offer lower fares on the route.
