JetBlue will show its first profit this month after six months of operations, says CEO David Neeleman. Cost per available mile are on-track and will be below 6 cents by yearend, with yields in the 10- to 10.5-cent range. JetBlue's load factors of 70%-plus are well above the 50% breakeven point, he said yesterday in Montreal.
U.S. Major Carriers Latin Share of Service First Quarter 2000 Total Revenue Departures Alaska 3,020 America West 1,248 American 23,758 Continental 11,184 Delta 4,063 United 3,821 US Airways 1,602 Total 48,696
United formed its internal team of employees this week to begin planning for its proposed mammoth merger with US Airways. CEO Jim Goodwin appointed Chris Bowers, senior VP-North America, to head the group of roughly 20 people, who met for the first time on Tuesday. The cross-functional group is based in Chicago and has been charged with "creating a transition plan to deliver the full benefits of a combined airline," a spokeswoman said.
FAA seeks nine people to serve on an Aircraft Repair and Maintenance Advisory Committee it is establishing. As specified in the AIR-21 FAA reauthorization legislation passed earlier this year, FAA needs three members of labor organizations representing aviation mechanics and one individual each representing air cargo carriers, passenger air carriers, aircraft repair facilities, aircraft manufacturers, on-demand passenger air carriers/corporate aircraft operations and regional passenger air carriers.
The Southwest Airlines Pilots Association (SWAPA) has filed a grievance against Southwest for firing the two pilots involved in the March 5 landing mishap at Burbank Airport, Calif. The Boeing 737-200 from Las Vegas slid off the runway onto a road, hit a car and narrowly missed a gas station. Fifteen of the 142 people on board suffered minor injuries. Southwest fired the two pilots after an internal investigation, said Southwest spokeswoman Linda Rutherford.
British Airways' premium traffic grew 7.8% in July as its overall load factor climbed 1.6 percentage points to 78.4%. Total traffic rose 0.6%, outpacing a 1.5% drop in capacity. Most of the cuts occurred on transatlantic and European routes, where capacity fell 3.4% and 2.6%, respectively. Mainline load factor rose in all regions and its total 78.4% load factor is the highest mainline monthly load factor since August 1996.
British low-fare airline Go expands its route network for the winter timetable from its London Stansted base. The airline, a fully owned subsidiary of British Airways, said it will introduce service to Glasgow Nov. 1 with four daily flights, Tenerife Sept. 27 with four weekly frequencies and Lyon Dec. 15 with five weekly flights. The airline also will increase frequencies to Alicante, Spain, and Faro, Portugal, from three to four weekly and daily flights to Naples, starting Oct. 29. Go will come back to Munich with a daily flight Sept. 14.
A Japan Airlines Boeing 747 with 280 passengers arrived in Havana from Osaka to inaugurate regular flights from Japan to Cuba under an agreement between JTB, Japan's largest travel agency, and the Cuban Ministry of Tourism. The agreement initially provides for four monthly direct flights carrying up to 350 passengers. Last year, some 4,000 Japanese tourists visited Cuba.
Midway Airlines returned to profitability in the second quarter, but its net income fell 63% from the 1999 period to $1.5 million. Operating income also was down -- 60% to $2.8 million -- resulting in an operating margin of 3.8%. Revenue for the quarter grew 33% to $73.9 million, but the carrier faced high fuel prices and a significant increase in crew training costs. Fuel expenses skyrocketed 136% to $11.1 million.
United plans to offer new seasonal weekend service between Chicago and Aruba, beginning Nov. 11. The new United service will provide nonstop flights every Saturday until Dec. 9. From Dec. 16 until April 7, United will offer two weekly nonstops on both Saturday and Sunday. Flights will be operated with Boeing 757s in a two-class configuration.
FAA, noting that the aviation industry is producing fewer new products but adding more changes to older products, such as aircraft and engines, has scheduled public meetings to explain a new rule recently issued to deal with this trend. The first meeting, Sept. 20-21, will be held in The Netherlands in support of a Joint Aviation Authorities proposal to help commenters better under the issue. The second will be Oct. 3-4 in Kansas City. FAA last June 7 issued amended type certification procedures for changed products.
FAA on July 27 authorized production of Raytheon's ASR-11 airport surveillance radar before completing operational tests and evaluation (OT&E) and while acknowledging that the radar continues to have target detection and false alarm problems. The problems were uncovered by the Air Force late last year and FAA tests in late June showed that many of them still exist. The Air Force authorized production before multi-service OT&E testing started. Military testing is now under way at Eglin Air Force Base, Fla.
Cabotage and foreign ownership are tough issues, but they "aren't show stoppers -- and they shouldn't be," DOT Deputy Assistant Secretary Brad Mims told the ABA Air and Space Forum in Montreal yesterday. Those topics were part of recent talks with APEC members which could likely result in "success in short order" on a multilateral pact, he said.
Air Algerie took delivery of its first Boeing 737-800, one of seven, plus three 737-600s the carrier ordered in July 1998 to replace 727s and 737-200s. That order was followed by an order for two more 737-600s last year.
Mesa Air Group has entered into negotiations with an aviation-related company to sell certain assets of its Raytheon/Beech 1900D America West Express operation based on Phoenix. Mesa on Monday said it would return up to 31 1900Ds to Raytheon. Disposition of the Phoenix-based aircraft would be incremental to the earlier announcement.
President Clinton yesterday announced the recess appointment of Francisco Sanchez as DOT Assistant Secretary for Aviation and International Affairs. Sanchez was Special Assistant to the President and Chief of Staff to the Office of the Special Envoy at the Americas at the White House. Sanchez will be responsible to Secretary Rodney Slater for analysis, development, articulation and review of policies and plans for aviation and international transportation.
American Aircarriers Support Inc., said its lenders have extended a forbearance agreement while they negotiate a new credit agreement, which it expects to announce shortly.
National Air Transportation Association has called for FAA to recognize the difference between large- and small-airplane emergency evacuation requirements when the agency considers implementing National Transportation Safety Board recommendations. NATA told FAA it should maintain the current standards for both on-demand air charter and scheduled commuter operations under Part 135. The NTSB has made 20 recommendations to FAA related to the evacuation of commercially operated airplanes.
Japan Airlines established an international Internet portal, www.japanairlines.com, that provides links to every JAL site around the world. The new site provides a map of the world and the regions the airline serves with corresponding links to JAL web sites. Among the sites included is the airline's North American address, which has been redesigned for greater ease of use, the airline said. JAL launched a separate web site -- Asia Infoport -- offering destination information aimed at business and leisure travelers.
With its acquisition of Canadian Airlines complete, Air Canada yesterday reported a C$70 million improvement in its second quarter operating income to a record C$224 million (US$150 million). Net income was C$118 million ($79 million), nearly double the C$64 million for the same quarter in 1999. The results do not include Canadian Airlines data. Air Canada's revenue rose by C$347 million or 21% and operating expenses grew C$277 million or 19%. Jet fuel expenses grew C$90 million. Domestic passenger revenue gained 17% and U.S. transborder revenues were up 25%.
Coalition for a Global Standard on Aviation Noise named an advisory board of chief executives of 30 aviation organizations to guide it toward the goal of a new aircraft noise standard by September 2001. "The noise issue has the potential to disrupt not only the aviation industry itself but the entire global economy if it is not addressed," said coalition Chairman Gerald Baliles. The advisory board designees will meet monthly to discuss and receive advice from coalition staff.
American Airlines Cargo said yesterday it will defer a previously announced five-cents-per-kilo fuel surcharge increase scheduled to take effect today. The company said that despite the continued increase in fuel prices, it is taking the action to "remain competitive in the present market environment." Domestic and international fuel surcharges now in place will remain in effect.
A General Accounting Office report concludes commercial airlines are complying with noise regulations at Washington National Airport and there are no big problems, although FAA and the Metropolitan Washington Airports Authority acknowledge they do little more than spot-check that airlines are obeying the rules.
Association of European Airlines Traffic May, 5 Months 2000 May 2000 Passenger Data % % Pts. RPKs Chg ASKs Chg Load Chg (Mil) 00/99 (Mil) 00/99 Factor 00/99 EUROPE 11,834.9 11.2 17,880.9 4.4 66.2 4.1
