Air New Zealand extended its code-share relationship with Air Canada and Canadian Airlines on several routes this week. Canadian will code share between Auckland and Honolulu on three ANZ flights, and ANZ will code share on three Canadian flights between Honolulu and Vancouver and between Honolulu and Toronto. Beginning June 10, Air Canada will carry the ANZ code on its daily flights between Los Angeles and Vancouver.
House Transportation Committee ranking Democrat James Oberstar (Minn.) yesterday warned DOT Secretary Rodney Slater that the United-US Airways merger could touch off a wave of consolidation among airlines that could lead to three carriers controlling 85% of U.S. traffic. Oberstar, widely considered the leading aviation authority in Congress, urged Slater to determine whether such a result would be in the public interest.
Thai Airways International has received the green light from its board to buy two Boeing 747-400s pending approval from the cabinet. This is part of the State Enterprise Plan for the period 2001-2005, which also was approved by the board during a meeting last week headed by Vice Chairman Supachai Phisitvanich. The board also told Thai to establish guidelines for the effective use of the New Bangkok International Airport in Nong Ngu Bao.
Virgin Express's situation worsened in the first quarter as the carrier posted a deep pretax loss of 13.8 million euros due to a strong U.S. dollar, compared with the euro, and soaring fuel prices. The airline had a 3 million euro net loss in 1999. Total revenues grew 10.5%, reaching 59.8 million euros as block hours flown rose 15%. The carrier said traffic continues to increase, but it is seeing "a pattern of customers booking closer to the day of departure." As a result, its load factor dropped 5.3 percentage points to 65.5%.
Atlas Air, following Evergreen International Airlines' lead, filed for reallocation U.S.-Ecuador exemptions held by Kitty Hawk International. Kitty Hawk, which filed for bankruptcy this month (DAILY, MAY 2), has not operated service on the route since at least early January. Kitty Hawk said it does not object to reallocation of the three frequencies, saying it has "no intention" of re-entering the U.S.-Ecuador market. Amerijet said it is "keenly interested" in the market and is considering filing once DOT makes the exemptions available.
Air France's net profit soared 42% for the year ending March 31, thanks to strong cost control and unit revenues that climbed 3.4%. Beating analyst estimates, Air France earned 354 million euros (US$330 million) on 10.3 billion euros ($9.6 billion) in revenue, up 13.5% from the year before. The airline highlighted its alliance with Delta and a cost-savings plan that cut 3 billion francs in expenses. "Our remarkable commercial performance this year endorses the profitable growth strategy implemented over the last two years," Chairman Jean-Cyril Spinetta said.
Lufthansa's regional division, CityLine, will introduce a two-class product across its system, starting in July. The airline, wholly owned by Lufthansa, says it wants to make its inflight product more similar to Lufthansa's.
Newly renamed regional aircraft manufacturer Fairchild Dornier is expected to announce a major deal for its 728JET program at the Berlin air show next week. According to industry sources, GE Capital Aviation Services (GECAS) is close to signing a firm order for about 25 aircraft, plus an equal number of options. Fairchild Dornier says it "neither confirms nor denies" the deal. However, Fairchild Dornier CEO Chuck Pieper revealed that Fairchild Dornier wants to announce an order from a customer just outside New York.
The Association of Asia Pacific Airlines (AAPA) will lead a safety drive in the region to reduce controlled flight into terrain (CFT) and approach and landing accidents (ALAs). The initiative follows a request by the U.S.-based Flight Safety Foundation (FSF.) CFTs and ALAs are the most common type of air accident in the industry. Leroy Keith, AAPA technical director entrusted with the task, will prepare a paper for recommendations to be made to the association's flight operations and safety working group on a course of action.
Mesa continues to suffer the "adverse consequences" of higher pilot training costs with the introduction of more Embraer regional jets, especially as its pilot turnover hovers near the 30% level, according to Merrill Lynch research. Mesa incurs about $19 million per year in training costs, or roughly double what it would cost in a "normal" pilot turnover year, said analyst Michael Linenberg. Mesa flies 32 RJs and has another 100 on order or option.
A strike by Bolivian airline pilots canceled all domestic and many international flights yesterday, leaving many passengers stranded. According to the Associated Press, the National Pilot Association called a 24-hour strike to protest the entrance of Brazil's TAM in the Bolivian market. The Brazilian carrier received a provisional 180-day license to operate in Bolivia and plans to invest $80 million in the country, the AP reported.
The House Transportation Committee will hold hearings next month on the planned United-US Airways merger, congressional sources said yesterday, becoming at least the second congressional panel committed to conduct hearings on the merger in June. Sources said the Justice Department review of the merger for its antitrust implications is probably under way. This is likely the most comprehensive examination that the deal will face. A lengthy review could sidetrack the merger into a new administration since the Clinton administration expires in less than eight months.
A newly organized Coalition for a Global Standard on Aviation Noise warned yesterday that ICAO's role as the world's single global certification standard for noise could be destroyed by the controversy between the U.S. and the European Union over hushkits.
It's a mega-merger, alright, but it raises far more questions than most such deals because airlines are among those firms that we still view as being "vested with the public interest" even after economic deregulation.
Trans States and its Air Line Pilots Association unit averted a strike over the weekend by reaching an 11th-hour tentative contract deal. The agreement came hours before a 30-day cooling-off period expired at 12:01 a.m. on May 27. Details of the tentative agreement were not released pending rank-and-file notification. The two sides have been in contract talks for nearly two years. Trans States ALPA Master Executive Council Chairman Rick Munson said the agreement "will bring us in line with industry average pay rates.
Lufthansa Technik (LHT) achieved an increase in sales of 9.1% in 1999, with profits rising 29% to 36 million marks (US$17 million). The company says it is suffering from the high dollar exchange rate because some of its contracts are based on marks, but costs are mostly dollar-based. LHT wants to renegotiate the contract with its most important customer, Lufthansa airline, to spread the exchange rate risks more evenly. LHT noted strong demand in the engine overhaul business and the increasingly strong position in the outfitting of VIP aircraft.
Boeing yesterday confirmed that International Lease Finance Corp. has ordered 50 more of its new-generation 737s. This is the second part of an agreement ILFC announced last year to order up to 100 aircraft. Boeing said ILFC has now ordered 387 aircraft in the 737 family and a total of 604 Boeing aircraft.
Japan Airlines' parent company posted a net profit of 19.7 billion yen (US$184 million) last year, down 26% from the year before mainly due to higher fuel expenses. JAL Group's operating income, however, beat analyst expectations, climbing 36.6% to 44.8 billion yen ($418 million) on improved passenger and cargo traffic.
All Nippon Airways and U.S.-based Sun Country Airlines last week signed contracts with telemedicine provider MedAire. ANA is the first airline in the Asia/Pacific region to introduce the 24-hour support services inflight. MedAire's global emergency telemedicine service, known as MedLink, will be available on all ANA-operated international routes beginning June 15. Under the new service, ANA crew members can receive medical support from MedLink's emergency physicians via radio or flight phone at any time and from anywhere in the world.
Airbus likely will give the go-ahead for the planned A3XX at the Berlin air show, which starts June 6. The supervisory board of Airbus, which canceled a meeting that was supposed to take place last Friday, has agreed to meet in Berlin in "early June." It is set to make the final decision in favor of an authorization to offer the aircraft.
Congress's AIR-21 multi-year FAA funding bill was "not an informed judgment," according to Sen. Jay Rockefeller (W.Va.), ranking Democrat on the aviation subcommittee.Last week, he said "luck" was involved because Congress was not galvanized on the issue. Congress still is uneducated on aviation policy, and air traffic delays did little to wake legislators to address the issue, he said.
Legend Airlines has reserved a spot on its web site at www.legendairlines.com to ask the North Texas community to support its bid for slots at Washington National. President and CEO Allan McArtor told The DAILY that obtaining slots will be a tough fight, given the limited number of slots and the large number of airlines coveting them.
