US Airways signed a partnership with Thrifty Car Rental offering miles to members of its Dividend Miles frequent flyer program, beginning Aug. 1. Members earn 250 miles on qualifying worldwide rentals, whether or not a US Airways flight is involved.
Delta is offering frequent flyer members bonus miles for travel between the U.S. or Canada and Caracas, Venezuela, Guadalajara, Mexico or Panama City via Atlanta. Business passengers on nonstop roundtrip travel can earn 30,000 bonus miles through Aug. 31, and economy-class passengers earn double miles for nonstop travel to Guadalajara.
Bombardier's 70-seat Canadair CRJ700 regional jet made its international air show debut at Farnborough in the colors of launch customer Brit Air, which is based in Morlaix, France. The aircraft is due to enter service in the first quarter next year. Orders for the CRJ700 total 104 firm sales even before service entry. Options could run as high as another 500, as major regional airlines have signed deals for hundreds of aircraft that will let them select from Bombardier's range of regional jets.
Deutsche Bank has initiated coverage of the integrated express market with a strong buy rating for FedEx and a buy rating for UPS. Airborne Freight, DHL, CNF Transportation, Pittston and TNT were not rated.
Vanguard Airlines yesterday reported a second quarter net loss of $2.7 million, compared with a net profit of $2 million in the second quarter of 1999. Revenues grew 12% to $37.6 million and operating expenses jumped 27% to $40.1 million. CEO Jeff Potter said that while the second quarter was not profitable, the company saw improvements in several areas, including a 9.2% decrease in cost per available seat mile, from 10 cents to 9.1 cents.
Mercury Air Group will acquire a fixed-base operation in Birmingham, Ala., from Raytheon Aircraft Services. The FBO will be the 19th for the Mercury chain.
AirTran has not entered into a partnership with Orbitz, the airline said yesterday. Orbitz CEO Jeffrey Katz last week named AirTran, Vanguard and Spirit as the three low-fare carriers that have signed partnership deals with the company (DAILY, July 21) but an AirTran executive said his airline has signed only a non-binding letter.
A World Trade Organization appeals panel rejected Brazil's claim that regional aircraft rival Canada failed to carry out a previous WTO order to withdraw its export subsidies, while also finding that Brazil itself has yet to comply with a similar WTO order covering its own subsidies, according to separate rulings. Canada's Bombardier regional aircraft portfolio competes with that from Embraer of Brazil.
Airbus plans to reveal orders for at least 200 new aircraft at the Farnborough Air Show this week, highlighted by the first firm commitment for the proposed A3XX by Emirates, signed yesterday. The manufacturer sold 229 aircraft during the six months ended June 30, and CEO Noel Forgeard said the carrier will boost its 2000 orders during the week to put his company "on par" with rival Boeing. Airbus estimates it will have more than 500 new orders this year and gain further market share on Boeing.
Berkshire Securities filed at DOT for an exemption to operate charters to any points in the U.S. from Hamilton, Ontario, Canada. The Canadian carrier told DOT it has been operating commercially for a year, using one leased Challenger 601-3R. (Docket OST-00-7665)
Alaska Airlines' parent Alaska Air Group reported a second quarter profit of $8.8 million, down 79.1% from 1999, largely due to soaring fuel prices and higher maintenance costs. The results include a special charge related to a change in accounting for frequent flyer miles. Excluding the one-time event, the group's results beat lowered analyst expectations as the airline paid an average fuel cost per gallon of 91.2 cents, up 39.3% from last year. As a result, operating expenses jumped 16% to $539 million and unit costs rose 18.5%.
Qantas's proposed 13% acquisition of Malaysia Airlines would boost the airline's cash flow and help reduce its huge debt. According to a senior official in the prime minister's department in Kuala Lumpur, if the offer is lucrative to Naluri Holdings, which holds 29.09% in MAS, there is no reason the government should not approve the sale. The official, who spoke to The DAILY on condition of anonymity, said the acquisition by Qantas would not only help boost the airline's coffers but also reduce its debt of M$9.2 billion (US$2.4 billion).
NASA Langley researchers have developed a "revolutionary new technology" that will predict aircraft wake turbulence on final approach, "so airliners can be spaced more safely and efficiently." The technology is called AVOSS or Aircraft Vortex Spacing System. AVOSS determines how winds and other atmospheric conditions affect the wake vortex patterns of different types of aircraft. It uses laser radar or lidar technology to confirm the accuracy of the forecasts.
Global Airlines, the company that wants to buy TWA, plans to purchase up to 450 StarLiner 100, 200 and 300 series regional jets. Global today will order 250 aircraft worth $4.6 billion, with 200 options worth $3.6 billion.The StarLiner is the brand of 70- and 90-seat jets built by Alliance Aircraft Corp., with first deliveries in 2003.
Boeing said the response of an EasyJet 737-300 on takeoff from Zurich and on landing at London Luton last Monday did not involve the rudder, according to flight data recorder information sent by the airline. Boeing denied a press report that the aircraft began to point sideways on takeoff, saying "that was not the position" of the 737. The aircraft could have experienced a "gust," Boeing said. The FDR "indicated the rudder was performing as it should" on landing, Boeing said.
Insurance settlements totaling at least $262 million have been paid out to the families of the 110 persons killed in the ValuJet crash in 1996, according to court records. Although the amount of settlements is generally shielded by confidentiality agreements, it became public after prosecutors began seeking payment from SabreTech following a trial in which it was found guilty of hazardous materials violations. Ken Quinn, attorney for SabreTech, which no longer exits, said Friday an appeal is planned. "We are awaiting sentencing on Aug. 14," Quinn said.
United's schedule cutbacks will continue into September, but CEO James Goodwin said he is "intensely focused" on reaching contractual agreements with pilot and machinists unions in the near future. "We are negotiating very hard at the moment, and I'm hopeful we'll reach a settlement very shortly," Goodwin told The DAILY.
Deutsche BA CEO Adrian Hunt expects a BA-KLM merger announcement by the end of the month--which may mean this week. As head of the BA subsidiary, Hunt says the impression he gets is that both parties "are getting much more serious" now and he sees KLM as an immensely successful hub operator.
Jetstream and Beech 1900 aircraft are slowly finding their way into Australia's regional market, according to Regional Airline Association of Australia President Alan Terrell. The ample availability of the twin turboprops from the U.S. is appealing to those eyeing increased capacity. Some Jetstreams are making their way into Australia on spec, Terrell said, and their age is making them "pretty cheap nowadays." Australia, with its high costs for licenses, has seen very few startups in the last five years.
Atlantic Coast Jet, which has five 32-passenger 328JETS and firm orders for 45 jet aircraft, Friday received its FAA operating certificate, clearing the way for the Delta Connection carrier to begin service Aug. 1. ACJet will serve Greensboro/High Point/Winston-Salem, N.C.; Columbia, S.C., and Richmond Va., from New York LaGuardia.
