TWA plans to install 42-inch, flat-screen, gas plasma televisions at 12 Ambassadors Club locations by yearend. The televisions will broadcast DIRECTV programming, featuring CNNfn business news and other programs. TeamGroup has begun installation of monitors in the carrier's lounges, including those at hubs and focus cities. TWA will have two televisions in each facility, dedicating one to CNNfn.
Lauda Air, despite protests by main shareholder Austrian Airlines, is proceeding with the sale and leaseback of five aircraft to free 1.1 billion Austrian schillings in cash. The financially struggling carrier is expected to lose at least AUS650 million (US$40 million) and is in danger of bankruptcy, according to Austrian. Lauda's financial year ends Oct. 31. Austrian, which owns 36% of Lauda and has an option for another 30%, has initiated an independent audit of Lauda's finances.
Members of Continental's Independent Association of Continental Pilots this week are considering whether they want to pursue merging with the Air Line Pilots Association. ALPA President Duane Woerth this summer spoke with IACP's board about membership, and last week ALPA's board overwhelmingly approved a resolution to work toward bringing together all pilot groups in the U.S. and Canada (DAILY, Oct. 20).
Dragonair plans to acquire two passenger-version Boeing 747-300s or - 200s and convert them to freighters. The airline currently operates with one wet-leased 100-ton capacity -200F model with three-times-weekly services to Manchester via Dubai and Amsterdam, launched in July. Because of difficulty in securing rights at London Heathrow, Dragonair settled for Manchester, which is cheaper for the airline's operations. CEO Stanley Hui said the airline will have five freighters by early 2002, noting that cargo operations will be a major focus.
Starting Oct. 29, KLM will add three more weekly flights on the Amsterdam-Kuala Lumpur route, making it a daily service. Together with Malaysia Airlines' daily flight, the 14 weekly flights, using Boeing 747-400 would be a code-share service between the two carriers. In an expanded agreement, MAS will operate code-share services with KLM beyond Amsterdam to Stockholm, Gothenburg and Malmo, Sweden; Oslo and Sandefjord, Norway, and Copenhagen and Helsinki.
A team of Russian consultants, whose work is proving crucial to freeing up more air space for civil use, is visiting the U.S. for the first time with assurances from the Russian government that it is ready to cooperate in the effort. Double Eagle Consulting, of Moscow, also is working closely with Dennis Cooper, FAA's senior representative for Russia and the CIS.
Rep. Bud Shuster (R-Pa.), who called 1999 "the year of aviation" and this year succeeded in enacting legislation committing all revenues and interest from the Airport and Airways Trust Fund to aviation, could become the next chairman of the House aviation subcommittee, congressional sources said last week. At first glance, the change seems a step down for Shuster, who heads the parent Transportation Committee. But it could be his best option in the next Congress, assuming Republicans retain their majority in the coming elections.
Swiss regional Crossair is considering cutting 200-300 jobs and retiring aircraft to cut costs and capacity by early next year. The move is prompted by the decision of the carrier's pilots to reject an agreement its own union recently reached. Crossair has lost SF6 million (US$3.4 million) in the first six months of the year and as been among the airlines hit hardest by higher jet fuel prices and the unfavorable dollar exchange rate. Crossair made clear that it is not willing to agree to any more demands its pilots have.
China Airlines posted revenues of NT$20.24 billion (US$671 million) for the first nine months of its fiscal year ended Sept. 30. This represented an increase of 22.5% from the same period last year. The month of September also brought a jump in revenue of 34.9% to an all-time high of NT$6.55 billion. For the first nine months, CAL generated a pre-tax profit of NT$2.74 billion, exceeding the original annual forecast of NT$2.25 billion. According to a CAL spokesman, the carrier will revise its financial forecast this year if international oil prices stabilize.
Halifax, Nova Scotia-based Royal Airlines said it will create 60 jobs and add two daily nonstop Halifax-Toronto flights with connections to Winnipeg and Vancouver. CEO Michel Leblanc said the move is part of Royal's "evolution as the leading discount scheduled carrier in Eastern Canada." Royal will establish a permanent pilot base and among the jobs created will be positions for 24 pilots, to be hired by yearend, Leblanc said. The remaining positions will be flight attendants and administrative support staff.
Hotwire.com will launch publicly today after two months of beta testing. The site, which has $75 million in funding, will use its customer service focus to attract incremental leisure travelers. Hotwire is backed by six U.S. major airlines and the Texas Pacific Group.
Hawker Pacific Aerospace yesterday signed two landing gear service contracts with Xiamen Airlines and Ethiopian Airlines. The contract terms for each agreement are five years, during which the HPA will provide landing gear overhaul services for both airlines' fleets of Boeing 757s. HPA performs overhaul and repair services for more than 23% of all 757 aircraft flying worldwide. The work for this program will be shared between HPA's Sun Valley, Calif., and London facilities. Total revenue for these two programs is more than $3 million.
Airline reservations agents will have to inform consumers that lower fares may be available over an airline's web site or via e-mail offers, DOT stated in an order issued Friday. "Travel agents are only required to quote the lowest fare they are authorized to sell," DOT said, dismissing a complaint and request for rulemaking.
Despite a drop in revenue by 39.4%, China National Aviation Corporation (CNAC) posted a profit of US$17.7 million for the first six months, ended June 30, an increase of 55.2% over the same period last year. CNAC attributed the profit to the healthy performances of Dragonair and Jardine Airport Services. Jardine alone contributed US$17.58 million. CNAC, an airline investment arm of CAAC holds 43% stake in Dragonair and 40% in Jardine.
Midwest Express saw high jet fuel costs squeeze the bottom line, as net profits fell 61% to $4.3 million in the third quarter. Fuel costs soared from $14.3 million a year ago to $24.4 million in the most recent quarter. The company has not hedged fuel in the fourth quarter or beyond. Revenue grew 9.7% to $127 million CEO Timothy Hoeksema called the results "disappointing," noting that the company "did not deliver satisfactory results, either financially or operationally." Midwest's cost per available seat mile grew 13.8% due to higher fuel prices.
Emilio Cabrera, newly appointed CEO of Aerolineas Argentinas last week, didn't waste any time implementing a business rescue plan to save the carrier from bankruptcy with a $650 million capitalization. According to DAILY affiliate AvNews Latin America&Caribbean, Cabrera is a trusted associate and management troubleshooter of SEPI Chairman Pedro Ferraras. As a hard-line executive, Cabrera has straightened out other SEPI-controlled enterprises.
Sixty percent of passengers who flew on European regional carriers last year were business travelers with almost half paying full-fare, according to a European Regions Airline Association survey. In the first six months of 2000, turboprops were used at a rate of more than 2,300 hours annually, and turbofans surpassed the 2,700 hours annual marker for the first time. On the down side, only 56% of flights departed on time between January and June.
Avensa and Aserca have announced that joint projects toward an eventual merger have been canceled, after a six-month cooperative agreement. The merger was expected to boost the financial prospects of both airlines.
DOT continues to mandate that CommutAir serve Utica, N.Y. The department issued an order requiring the carrier to continue essential air service through Nov. 17. CommutAir told DOT in June that it wished to suspend the unsubsidized service to Newark via Syracuse, effective Sept. 20. Utica receives no air service other than from CommutAir, whose enplanements have fallen sharply. Startup hopeful Legacy Airlines, based in Utica, "temporarily" withdrew its application, filed under the name Oneida Airlines.
Air Line Pilots Association may have a tough time keeping Canadian's pilots in the union, putting a snafu into ALPA's goal of uniting all pilots in the U.S. and Canada. Canadian's 1,200 pilots are preparing to vote in a representation election with the Air Canada Pilots Association, which has 2,400.
Air France was obliged to cancel about 100 flights on Friday because of a strike staged by four secondary cockpit crew unions, the French carrier said. Long-haul flights were not affected, said an Air France spokeswoman. The four minority unions are in conflict with Air France over working time reduction. The stoppage was scheduled to last until today. Syndicat National des Pilotes de Ligne (SNPL), the majority union, did not join the strike, because it signed an agreement with Air France on Sept. 28.
