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.
China market expansion plans that were to be broached by top U.S. officials meeting with their Chinese counterparts on Friday in Seattle would make frequencies held -- but not used -- by Chinese carriers available for their U.S. partners, sources confirmed. Delta and American would, under such a regime, gain access through respective partners China Southern and China Eastern.
Bangladesh could become a U.S. opens-skies partner "once safety issues are resolved," Alan Larson, under secretary of state told the U.S.-Bangladesh Business Council. FAA is committed to work with the civil air authority to meet international standards, he said. The U.S. is Bangladesh's largest investor, with more than $700 million in the past decade or so.
Litton Industries said Friday it will explore the sale of its Advanced Electronics Group, which consists of 12 divisions that make up Litton's navigation and electronic warfare businesses. The group, which includes airborne avionics systems, inertial navigation, electronic warfare, night vision equipment and laser systems, generated $1.6 billion in revenue in fiscal year 2000 and has about 9,500 employees. Litton Chairman Michael Brown said each of the businesses in the group is "sound and have good business potential."
Air traffic at Hamburg was busier than usual the past two Sundays when two swarms of honeybees buzzed the airport in an effort to keep tabs on air quality, according to the airport's newspaper. The honey and wax produced by the tiny flyers serve as bio-indicators of toxic substances in the air, which so far remains pure.
DOT tentatively granted Delta rights to serve Egypt via Paris under code share with SkyTeam partner Air France, selecting Delta's proposal over American's bid for limited-entry, third-country code-share rights with former Delta market partner Swissair via Zurich. Under the U.S.-Egypt bilateral, the U.S. may designate three carriers to serve Egypt under third-country code shares. Northwest/KLM and United/Lufthansa hold designations; Delta was designated under its now-terminated code share with Swissair.
DOT granted Air Jamaica's request to amend its foreign permit application to substitute Boston for San Juan, Puerto Rico, as one of the 10 U.S. points it may serve. The carrier wanted an extrabilateral exemption to serve the market; subsequently the government of Jamaica removed San Juan and San Francisco from its list of designated U.S. points, adding Boston and Houston. (Docket OST-00-7787)
Air Canada is considering launching a separate, international cargo carrier, CEO Robert Milton told The DAILY. While a decision to go forward has not been made, Milton pointed out that "Canada has no cargo players in the international game" and Air Canada "could do something as early as next year." The company would look at Beoing 747 freighters.
