American Trans Air is preparing to sign a major aircraft deal tomorrow just as it expands aggressively into business markets including Washington, Boston and Seattle. The Indianapolis-based carrier topped $1 billion in revenues in 1999 for the first time and is working diligently to eliminate costly, older aircraft in its fleet to boost profitability. ATA has the lowest costs of any major U.S. airline. The carrier operates 19 Lockheed L1011s and 24 Boeing 727-200s across its scheduled and charter operations making it difficult to cut costs amid soaring fuel prices.
Three airlines joined the Regional Airline Association, RAA President Debby McElroy announced. Horizon Aviation of Chesapeake, Va., North-South Airways of Atlanta, Ga., and SkyMark of Spokane, Wash., are all startups. RAA's total airline membership is now 60, down two from last year. However, associate membership is at an all-time high of 388.
American is asking the Supreme Court to look at an earlier ruling regarding long-haul service from Dallas Love Field, even though American this week began its own long-haul flights from the airport. As a symbol of a growing problem in the U.S., the carrier wants the court to review a 5th Circuit Appeals Court decision on Love Field, which American says conflicts with other rulings regarding Denver and New York LaGuardia airports.
Air Alliance has launched nonstop service from Toronto Pearson International Airport to Louisville, Ky. Air Alliance will offer service from Toronto to Louisville with three nonstop flights every business day, using Beech 1900Ds. Air Alliance is the brand name of scheduled service operated by Toronto-based Air Georgian Ltd.
The Dornier family wants to put money into the new Fairchild company, Chuck Pieper, Dornier's newly appointed chairman said at the Regional Airline Association conference this week. The family is expected to explore a 5-20% share. Pieper, who said about $350 million in research has gone into the 328JET and 428JET programs, noted he is hoping the Dornier family will invest. The company put about $200 million into the 728JET project and another $200 million for an "unspecified program," he said.
As part of efforts to retain an efficient maintenance crew, Atlantic Southeast Airlines expects to decide within the next 30 to 45 days on where to locate its new regional jet maintenance facility, said President Skip Barnette. ASA has narrowed the choices to Louisiana, Alabama or Texas. "We're looking at something very centrally located," he told The Daily this week at the Regional Airline Association conference in San Antonio. ASA is looking at Lubbock and Amarillo, Texas, and at Baton Rouge, La.
Northwest wants an exemption for Houston-Mazatlan service, with plans to place its code on Continental's nonstops in the market. Northwest filed separately to amend its certificate, requesting that the authority be incorporated therein. Northwest is designated to code share with Continental Express's regional jet service on the route; it seeks to code share on Continental's daily Boeing 737 peak-season service in the market. (Docket OST-00-7323)
Southwest unveiled its new online product for corporate travel managers that will allow them to book tickets and track spending through the southwest.com web site. The product, called "SWABIZ," does not charge any fees and is available immediately. "We see SWABIZ as one of the next logical steps in the continued evolution of our online presence," said Brad Newcomb, a regional marketing director the airline. Trips booked through SWABIZ by authorized company travelers will be posted to the company's travel report within 24 hours of the purchase.
Kitty Hawk said yesterday it has filed for Chapter 11 protection for the company and all its subsidiaries. The filing in Fort Worth seeks a financial reorganization as it attempts to continue operations. The company also announced that Conrad Kalitta has resigned from its board effective April 29 and that it is no longer operating daily scheduled service between Los Angeles and Honolulu, Hawaii inter-island service and weekly service around the Pacific Rim. It suspended international operations late last week (DAILY, May 1).
Air Jamaica code-share partner EC Xpress launched service in the Eastern Caribbean last week. The new regional carrier started service with opening festivities in St. Lucia, its headquarters, and a flight to Barbados and Grenada. In addition, EC Xpress plans to begin service to St. Vincent and the Grenadines on June 5. "We were extremely pleased with our loads and the reception by our customers to our Champagne Service," said President Paul Moreira. "Our advance bookings are very strong." EC Xpress serves St. Lucia, Grenada and Dominica from its hub in Barbados.
Midwest Express asked DOT to reject the Air Carrier Association of America's "misguided and factually contorted" opposition to the carrier's sliding a late-night Washington National slot to early morning for nonstop DCA-Kansas City service. ACAA is wrong in its contention that the carrier does not own the slot or has been treated preferentially in slot-sliding requests -- any carrier could make such a request of DOT, Midwest Express said.
Sunday's announcement that Emirates will be one of the launch customers for the Airbus A3XX superjumbo gave the program a boost just weeks before the Airbus board is expected to grant production approval.
U.S. Carriers Food Expense Fourth Quarter 1999 Major Carriers Cost Food Per Passenger Alaska 12,050,000 3.66 America West 7,086,336 1.47 American 176,643,000 8.44 Continental 57,576,000 5.23 Delta 107,060,000 4.16
TAM and Transbrasil, two of Brazil's Big Four carriers, agreed Friday on a joint operational alliance to make better use of their respective fleets and flights and cut costs, sources said. The first phase of the cooperation will start with code sharing on the carriers' respective routes, first domestically -- including the Sao Paulo/Rio de Janeiro shuttle -- and then internationally, and develop in scope over six months. At that time, a second phase would cover financial, management, personnel and marketing/sales integration.
Emirates, posting its 12th consecutive profitable year, is preparing to broaden its global network with the help of several long-haul new aircraft, including the Airbus A3XX, but it has no intentions to join a global alliance. "For Emirates, the year represented another decisive step forward towards the airline becoming a global brand," said Managing Director Maurice Flanagan. During its fiscal year ending March 31, the carrier posted a 2.2% profit increase as it focused on growing its fleet and revenue.
Frontier requested four Washington National beyond-perimeter slots to operate two daily nonstops to Denver. Award of the slots -- 12 are available under AIR-21 -- would bring a low-fare new entrant to DCA for the first time in more than 15 years, Frontier told DOT. American Trans Air, however, began DCA-Chicago service recently. Frontier's service would "benefit the largest true east-west hub outside the 1,250-mile perimeter rule." The carrier proposes to begin service Sept.
US Airways flight attendants, represented by the Association of Flight Attendants, AFL-CIO, ratified their new five-year contract yesterday with more than 78% of the valid ballots returned voting "for" the agreement. The vote count was 5,418 in favor and 1,508 against. The agreement provides immediate 5% raises and a 5% signing bonus. The airline now has agreements with all of its major labor groups.
Ozark Airlines has two Dornier 328JETs in service and is considering whether to exercise options on three more. The carrier expects to make a decision by the end of June. President John Ellis said each aircraft will operate up to 11 hours daily as of June 15, Monday through Friday, with a reduced schedule on weekends. Increased utilization reflects a growth in frequencies from Columbia, Mo., to Dallas/Fort Worth and the addition of Joplin, Mo., with four daily flights and three to Chicago.
Aviation Industry Stock Performance April 2000 Closed Closed Monthly Change Majors Ticker 04/28/00 03/31/00 ($) (%) Alaska Air Group ALK 28.750 28.813 (0.063) (0.2) America West (Class B) AWA 14.500 15.438 (0.938) (6.1) AMR 1 AMR 33.813 31.188 2.625 8.4
Saab has a letter of intent with Airbus to take up to a 5% stake in the A3XX program. "The big decision this year is to what extent we will get involved," Michael Magnusson, president of Saab Aircraft Leasing Finance, said at the Regional Airline Association conference yesterday in San Antonio. Saab would participate on a risk-sharing basis, most likely in tooling and engineering.
British Airways today will introduce a new fare structure aimed at business travelers that offers savings up to 50% on full-fare U.K. domestic flights originating from London Heathrow and Gatwick airports. The fares are available from London to Aberdeen, Glasgow, Edinburgh and Manchester, as well as from Belfast and Newcastle to Heathrow. The discounted fares depend on advanced bookings, flexible flight times and overnight stays. By planning a roundtrip five days in advance, customers can buy a flight for up to 40% below full fare.
Traffic volumes are constantly on the rise in Italy, but it is not partly state-owned Alitalia that gains most from it. Small regional carriers have experienced tremendous growth over the past two years, especially in the northern part of the country where Italy's commercial center is located.
The World Trade Organization (WTO) reiterated last week its position that both the Brazilian and Canadian governments stop subsidizing the export of jet aircraft by Embraer and Bombardier, respectively. Friday in Sao Paulo, Henrique Rezinski, Embraer's VP, told the media WTO should not intervene in what is basically a market dispute between two private companies.
