General aviation sales brought in $2 billion in billings for the best third quarter in the industry's history, General Aviation Manufacturers Association President Ed Bolen said yesterday. Shipments, at 684 units, reached their highest level since 1984. Billings year-to-date total a record $6.3 billion, and shipments are up 16.3%. Deliveries were up across the board. Turboprop deliveries through September were up 36.3%, turbofan 15.2% and piston 13.8%. Exports increased 11.2% to 444 units, although export billings declined 20.7% to $1.44 billion.
Atlantic Coast Airlines reported a 26.7% gain in revenue to $115.4 million in the third quarter, but net income dropped 68.1% largely due to soaring fuel costs and United's operational problems. The carrier's earnings fell short of analyst expectations, with net income of $2.7 million, including a non-recurring tax credit of $1.4 million and a $5.2 million charge to retire seven leased Jetstream 31 19-seat turboprops. The carrier's operating margin dropped 6.5 percentage points to 9.5% as ACA paid $1.11 per gallon of fuel, nearly 50% more than in the 1999 period.
Air Canada yesterday posted operating income of C$259 million, C$30 million more than in the year-earlier period. It was the first quarter for which Canadian Airlines was included in Air Canada's financials. Air Canada combined its third quarter 1999 results with Canadian's as a basis for comparing third quarter results. Partner United's problems over the summer also had an impact, with traffic falling off 10-12%. By September, traffic began to return and is now stable, Air Canada said.
Charting a long-term course for U.S. aviation policy domestically and globally is the top priority for Francisco Sanchez, two months and counting into his late-term appointment as DOT assistant secretary for aviation and international affairs. In an interview with The DAILY, Sanchez outlined ambitious plans that would carry DOT forward well into the next administration. "Creating the best public policy" is what guides his decision-making process. "I'm not here to win a popularity contest." If his decisions occasionally upset affected parties, "so be it," he said.
Billings, Mont.-based Big Sky airlines launched service this week to Carlsbad, Roswell and Hobbs, New Mexico. Service is aboard 19-seat Fairchild Metro III or Metro 23 aircraft.
Nav Canada reported revenues for fiscal 2001 ending Aug. 31 at C$909 million, C$24 million lower than fiscal 1999. Nav Canada invested C$102 million in a number of capital projects -- compared with C$123 million in 1999 -- including C$26 million relating to its C$300 million investment in upgrading the air traffic control system infrastructure.
Biman Bangladesh Airlines has leased an additional DC-10-30 from Pegasus Aviation. The carrier intends to increase its size before privatization. It offers 16 domestic and 102 international flights.
Mesaba yesterday reported net income for the second quarter of $8.8 million, a 20.3% increase. Expenses climbed 13.4% to $101.7 million. Unit costs remained flat at 13.4 cents per available seat mile. Mesaba said it focused on cost control during the quarter. The company has no exposure to rising fuel costs because of its contracts with Northwest.
Wuhan Airlines, a Chinese domestic carrier, will lease two Boeing 737-800s for eight years from CIT Aerospace. The aircraft will be delivered in March and June. Wuhan will follow a China directive to phase out Chinese-made Yuns and Russian-made Tupolevs by July 1 for safety reasons. Wuhan operates four Y-7s, two Y-5s and six 737-300s.
The French government is scheduled to announce today whether it is launching the construction of a third airport in the Paris area. Earlier this month, Air France Chairman Jean Cyril Spinetta spoke out in favor of a third airport, which has been under discussion for six years. "Parisian airports will be saturated one day," he said. Charles de Gaulle "will function with four runways for a few dozen years and Orly is limited."
Aer Lingus may have to cut 20% of its flights tomorrow, as its clerical staff are planning to hold a four-hour strike over pay and conditions. Thirty-five flights will be canceled and 17 will be rescheduled. The strike, its second this month after a one-day shutdown Oct. 17, will involve check-in and boarding staff, reservations staff, travel shops and workers at the company's headquarters. "Disrupting customers in this fashion at a bank holiday weekend is senseless," said an Aer Lingus spokesman.
Enginemakers General Electric and Pratt&Whitney recently took aim at third-party parts suppliers by recommending that FAA tighten the rules governing agency-granted parts manufacturer approvals (PMAs). GE and P&W cited growing safety concerns as the foundation for their call to beef up regulations.
The planned Airbus A3XX will be launched early next year, Philippe Camus, Co-CEO of the European Aeronautic Defence and Space Company (EADS) told The DAILY yesterday in Amsterdam. Airbus has received 32 firm orders for the aircraft, and Camus expects additional orders to come in very soon. Airbus also plans to increase the production rate of widebodied aircraft to eight per month in 2004. In 2002, the manufacturer plans to build more than 400 aircraft.
BFGoodrich Aerospace yesterday signed a life-of-aircraft customer and product support agreement with Pratt&Whitney. BFG will provide customer and product support for PW4000 and JT9D-7R4 nacelles and lower aft pylon fairings for Airbus A310s, A300-600s and MD-11s, including direct spare part sales. BFG currently supports nacelle systems directly to Pratt&Whitney customers, and the new agreement "increases the scope" of those services. Spare nacelle components will be supplied directly to airlines by BFG's Aerostructures Group in Chula Vista, Calif.
Northwest yesterday succeeded in delaying the trial about its proposed acquisition of a controlling stake in Continental while Northwest prepares to present a settlement offer to the U.S. government. The trial was planned to begin today in a Detroit district court, but the Department of Justice confirmed that it has been postponed until Nov. 1. Northwest, which waited for two years to propose a settlement, is expected to make the offer to DOJ and Continental.
AIRCRAFT TRANSACTIONS FOR AUGUST 14, 2000 Seller/ New Type / Previous Operator Owner Engine Operator America West Westjet Aircraft Boeing Airlines 21955 Inc. 737-200Adv/ JT8D-15 Boeing Xiamen Xiamen Boeing
CIT Aerospace signed a US$114 million deal with Korean Air to finance the lease of three Boeing 737-800s. Korean will take delivery of the aircraft next year.
United parent UAL Corp. yesterday released the organizational structure for its separate e-commerce division after 10 months of planning and revealed that the new group will now manage its frequent flyer partnerships. United unveiled plans to create a wholly owned subsidiary in January, and this summer it physically moved the department into another facility (DAILY, Jan. 14, July 5). The subsidiary, now named United NewVentures, will be headed by Chief Financial Officer Doug Hacker and will oversee two business units, United NetWorks and United NetVentures.
ANNZES, the Ansett Australia and Air New Zealand joint maintenance, repair and overhaul effort, welcomes its first third-party customer this week when Sichuan Airlines flies one of its Airbus A320s to Melbourne for heavy maintenance work on Friday. The Sichuan deal, a $1.3 million pact that covers modifications and heavy maintenance on three Sichuan A320s, is the first "major" work the unit will do for a carrier other than its parent carriers.
Delta CEO Leo Mullin told shareholders yesterday that Delta's most dangerous competition is Southwest's invasion of key U.S. East Coast markets. He noted that the airline's stock value has shown little growth due the increased competition on top of high fuel prices, labor negotiations, industry restructuring and the threat of government re-regulation.
With sales of US$20 million to show in its first year of operation, Air Gulf Falcon (AGF) is confident that it has started on a correct note targeting low-cost markets. AGF started operation last year at Sharjah International Airport Zone (SIAZ) in the Middle East by Sheikh Hamad Al-Thani, the founder of Qatar Airways. AGF has two Boeing 747-200s, one 747-100 and two 747-SPs in passenger configuration. It has two freighters -- a 707 and a 727 -- plus a 707 passenger/freighter combi. Two 747-200Fs acquired earlier will be delivered shortly.
The French Bureau Enquetes Accident confirmed that the metal strip that was found on the Paris Charles de Gaulle Airport runway just after the Air France Concorde crashed on July 25 came from a Continental DC-10. The aircraft -- bound for Newark -- took off minutes before Concorde started its takeoff roll. "The technical investigators -- my team -- are now certain, yes, that the strip did indeed fall from that plane," BEA Chief Paul-Louis Arslanian told French radio France-Inter.
In order to gain quick control of Lauda Air, Austrian Airlines is proposing to buy Lufthansa's 20% stake in the financially struggling carrier. Austrian is seeking approval for the move at a meeting of the supervisory board Dec. 11. The decision, which Austrian's co-CEO Herbert Bammer announced in Vienna, does not come as a surprise in the midst of a difficult fight for control of Lauda. Lufthansa declined comment. Currently, Austrian owns 36% of Lauda, Lufthansa holds 20%, founder Niki Lauda has almost 30% and 14% is publicly owned.
