The fiscal 2000 supplemental appropriations bill that cleared Congress June 30 provided $19.7 million for National Transportation Safety Board emergency expenses associated with the investigations of EgyptAir Flight 990 and Alaska Airlines Flight 261 accidents. These funds, the conference report said, will compensate for wreckage location and recovery facilities, technical support, testing and wreckage mock-up. Since enactment of the bill, the report noted, Egypt has agreed to reimburse NTSB for wreckage location and recovery.
Swissair plans to integrate a "substantial amount" of its training services in a newly created subsidiary, Swissair Training Center AG. The new company will begin operations Jan. 1, 2001, and will focus on pilot and flight attendant training. The new firm also plans to lease out aircraft simulators and become "a leading provider" of training services in Europe. During the first year of operations, Swissair Training plans to generate revenue of 60 million Swiss francs with a total staff of 160.
SkyMall has secured equity funding of approximately $5 million through a private placement. The funding will be used for working capital requirements. SkyMall will issue approximately 2.5 million shares of common stock at $2 per share. SkyMall is best known for its inflight catalog, which is available on more than 70% of all U.S. domestic airlines.
Venezuelan Minister of Infrastructure Alberto Esqueda met last week with local airline leaders seeking a solution to the ongoing financial crisis at Avensa/Servivensa. The country holds a 20% share is the carrier. The government concluded that Avensa needs $50 million to continue operating domestic routes and $100 million for international restructuring.
U.S. airline pilot hirings continue to break records, with 1,647 hirings in May, according to Atlanta-based AIR Inc. National carriers were responsible for the bulk -- 528 pilots -- followed by majors at 398. At this rate, there will be 19,150 hired this year versus 15,747 in 1999. Pilots on furlough rose, however, after Tower Air stopped operating.
First generation turboprops are finding new life in the freighter market, according to a study by BACK Aviation Solutions. The study says turboprops are increasingly being converted to freighter service for companies such as Federal Express and UPS. Four first-generation turboprops are currently active in the freighter fleet -- the Fokker 27, Metro, Convair 580 and Beech 1900C.
The top 10 U.S. carriers canceled 3.4% of scheduled domestic flights in May, up significantly from 2.5% in April, according to DOT's Air Travel Consumer Report. United was highest by a wide a margin at 8.7%, followed by America West, 3.9%, while Southwest was lowest, 0.9%. TWA had the second-best cancellation performance with 1.7% and it canceled the fewest flights, 391. United canceled nearly 6,000 flights during May alone, which it attributed to weather problems, crew shortages and air traffic.
After several months of delays, Atlantic Coast Jet expects to get FAA approval to start service in mid- to late-July and should be carrying people for money "shortly thereafter," the carrier reports. Delays in its certification process forced ACJet to re-tool its start-up schedule. ACJet is a subsidiary of Atlantic Coast Airlines Holdings Inc. and will launch as a Delta Express operation. ACJet received its DOT certificate authority in late January, giving it the right to carry passengers and hoped to have its FAA technical operating certificate by April.
Net income for the 10 U.S. majors for the second quarter is predicted to fall 4% to $1.5 billion from $1.6 billion a year ago, according to Deutsche Banc Alex. Brown. Atlantic Coast, Continental, Northwest, and United are the most likely positive earnings surprise candidates, however, due to better-than-expected unit revenue trends, said analyst Susan Donofrio. She estimates full-year net income for major airline to increase 1% to $4.1 billion.
Canadian and Air Canada will begin merging their frequent flyer programs in 2001. Effective Jan. 1, all outstanding Canadian Plus points will be fully converted to Aeroplan miles on a one-to-one basis. The two are sending notices to 3 million Canadian Plus members, whose miles will remain valid until yearend.
American selected Art Technology Group's (ATG) Dynamo Product Suite as the future platform for its redesigned AA.com web site in order to boost its personalization, publishing and marketing features. "A key factor in our choice of the ATG Dynamo product was its well-developed personalization engine that supports the user-focused direction of AA.com," said Scott Hyden, managing director of interactive marketing.
Virgin Atlantic Airways claims it is the first airline to enable passengers to receive calls through their mobile phone number while in flight. Branded as "Earth Calling," the new phone service was developed by British Telecom. The service allows passengers to charge their air-to-ground calls to their account, and allows them to receive mobile calls while in flight. Several local mobile phone operators have signed up for the service and will issue Mobile Connect Cards to their subscribers.
Boeing could launch the proposed 747X within six to nine months, CEO Phil Condit told foreign journalists in Seattle. Boeing is trying to secure between 10 and 30 firm orders for the aircraft prior to the launch. Condit said he "would love to have three airlines" launch the 747X, but made clear that Boeing also could go ahead with the 747X with a single launch customer. The 747X development is expected to cost Boeing $4 billion, Condit said.
Construction begins today at Denver International Airport on a $54 million, 500,000-square-foot cargo operation dubbed "WorldPort." Located on 100 acres of airport property, the operation is expected to create 1,500 jobs and bring in $1.3 million in additional rent for DIA, making it the "unquestioned cargo leader from Chicago to the West Coast."
Express I Airlines made changes to its route structure, including new markets and intrastate service. Express will add service to Tri-Cities, Tenn., from Memphis three times daily with Saab 340s on Sept. 11. It will begin intrastate "Capitol Service" using Saab 340s between Memphis and Nashville with continuing service to Knoxville. Express will upgrade two of four daily Memphis-Chattanooga flights to CRJs Oct. 1.
TWA will introduce Trans World Express regional jets to three markets, including new service into Jackson, Miss., by partner Chautauqua. On Sept. 10, TWE will serve St. Louis-Jackson with two daily roundtrips and a third added Oct. 10. It will phase RJ service into Cincinnati and Shreveport Aug. 10 and by Sept. 10 will offer five roundtrips daily to Cincinnati and three to Shreveport.
The Swiss-German dispute on the noise of aircraft that approach Zurich airport by flying over German land has taken such proportions that Chancellor Gerhard Schroeder and Swiss President Adolf Ogi addressed it in person last week in Zurich. In May, under pressure from local residents, Germany revoked the accord that allows aircraft to fly over German territory as they approach Zurich Kloten Airport, which is near the Swiss-German boarder.
DOT made the day for several small carriers when it announced slot winners last week for new flights from Washington National (DCA). Exemptions were granted after a long-fought battle led mainly by Sen. John McCain (R-Ariz.), chairman of the Senate Commerce Committee, whose hometown airline, America West, won six slots -- four for Phoenix and two for Las Vegas.
Orders for regional turboprop aircraft have dwindled from 212 in 1995 to 39 last year, according to Morten Beyer&Agnew. Orders for regional jets over the past few years rose to 1,195 as of last April. Meanwhile, turboprops are being phased out by the majors as the RJs are delivered, which is causing a softening in the current market for used surplus turboprops, MBA says. MBA sees a "particularly strong" future for "young and highly efficient" Dash 8s and Saabs.
American Airlines Cargo is increasing its fuel surcharge on Aug. 3 to "offset the continuing increase in fuel prices." The surcharge will increase by five cents per kilogram from origin point in the U.S. to all international destinations where it is permitted.
NTSB last week formalized recommendations to FAA on runway incursions that stem from a public meeting the board held June 13 to explore what it calls a growing safety issue for the traveling public. NTSB is recommending that FAA require a ground movement safety system that will prevent runway incursions at all airports with scheduled passenger service.
