Canadian Airlines is "very confident" that its secured bondholders will approve its debt restructuring plan despite an informal vote last week indicating they would reject it. The company has made "tremendous advances" in creditor negotiations, a spokeswoman said. The official vote will take place May 26 and, if approved, will go through June 15.
U.S. Carriers Commission Expense Fourth Quarter 1999 Major Carriers % Of Total Commission Operating Expenses Alaska 17,826,000 4.56 America West 24,838,690 4.77 American 245,067,000 6.30 Continental 119,117,000 5.93 Delta 166,937,000 4.64
Delta and Continental continue sparring over the need for a comparative selection proceeding for seven U.S.-Colombia frequencies, with Delta pressing its case for an expedited decision for its new-entrant proposal. Each carrier charges the other with inconsistent arguments, compared with its position in past cases. Delta said DOT's present "express articulation of expedited route case policies... and Continental's own recent arguments clearly indicate that the case should be resolved using expedited show cause proceedings."
Despite worsening delays at Europe's airports, the European Regions Airline Association (ERA) reported its members experienced 10% growth in 1999, double the growth rate at major carriers on intra-European routes. However, only 58% of flights departed on time, and only 79% of flights departed within 15 minutes of schedule. ERA said sector time during 1999 was "consistently inflated far above the 1998 level to an average 1.5 hours" while sector distance increased a minimal 2 kilometers to 519 kilometers.
Canadian Airlines' secured bondholders voted informally this week to reject the airline's proposed debt restructuring plan, but analysts say it is likely the airline will reach an 11th-hour deal. Secured bondholders voted against the plan and unsecured creditors threatened to sue, according to Canadian media reports. Under the proposal, the value of secured bondholders' bonds would go to C$162 million from C$175 million. Canadian analyst James David of Warburg Dillon Read Inc.
International Lease Finance Corp. said yesterday it is in "advanced discussions" with American Trans Air for the lease of a "substantial number of new Boeing single-aisle aircraft." Details are expected to be released next week.
Iberia's pilots intend to fight to recover their seat on the company's board. Sindicato Espanol de Pilotos de Lineas Aereas (SEPLA) confirmed yesterday in Madrid that it would use "all legal means and union actions at its disposal" to get their representative, Jorge Caballero, back on the board. A spokeswoman said a strike would be "the last resort." A general shareholders meeting reshuffled the company's board April 26 in preparation for privatization.
United and five other major airlines crossed competitive alliance borders yesterday to form a new potentially powerful Internet business-to-business purchasing portal. The as-yet-unnamed venture will operate in direct competition with a similar buyer-driven e-commerce exchange launched by the Star Alliance this month. Breaking away from its partners, United will not participate in the Star Alliance Internet exchange, instead choosing to partner with American, Air France, British Airways, Continental and Delta.
Fairchild Aerospace yesterday delivered the first of 25 328JET 32-passenger regional jets on order to Atlantic Coast Jet. The order was placed by parent company Atlantic Coast Airline Holdings last September, along with 30 options, to support ACJet and the Delta Connection. The options can be used for the 44-passenger 428JETS. Fairchild Aerospace valued the contract, with options, at $730 million.
American told DOT that its decision to serve Dallas Love Field under the same DOT ruling that allowed Legend's service should not be a reason to award Chicago O'Hare slots to Legend.
U.S. Carriers Maintenance Expense Fourth Quarter 1999 Major Carriers % Of Total Maintenance Operating Expenses Alaska 42,563,000 10.89 America West 80,921,092 15.53 American 513,938,000 13.21 Continental 211,381,000 10.52
LOT Polish Airlines, facing opposition to its proposed expansion of U.S.-Poland rights from Tradewinds, which wants summer charter authority, told DOT that the "Polish Civil Aviation Department is prepared to authorize" Tradewinds' request to operate three weekly New York/Chicago-Warsaw flights. LOT wants DOT approval of its request to add service points and increase its code sharing with American once Tradewinds provides required information to the Polish authority.
The airlines operating in Spain publicized their aggravation with Spanish airport and air traffic authority Aeropuertos Espanoles y Navegacion Aerea (AENA), following the massive delays that occurred during the Easter break and the media hype surrounding the issue of overbooking. Asociacion de Lineas Aereas (ALA), which represents 58 Spanish and international airlines, issued a statement earlier this week in Madrid, denying "the impression conveyed by AENA according to which airlines exploited overbooking and avoided paying compensation" to passengers.
Nordam Texas was named an approved service center for component repair by Embraer. Components covered by the agreement include radomes, flight controls, composite structures, nacelles and thrust reversers.
U.S. Carriers Labor Expense Fourth Quarter 1999 Major Carriers % Of Total Labor Operating Expenses Alaska 130,263,000 33.33 America West 129,622,380 24.88 American 1,276,204,000 32.80 Continental 496,951,000 24.72 Delta 1,132,491,000 31.46
China Airlines posted a first quarter operating profit of NT$480 million (US$15.7 million) soaring 1,100% from last year's depressed earnings of NT$40 million. Even though the carrier felt the effects of higher fuel prices, earnings were boosted by an 11.7% increase in revenues reaching NT$15.5 billion (US$506.5 million). After-tax earnings were not available. The airline also released audited full-year 1999 results, posting an after-tax profit of NT$2.75 billion (US$89.9 million), a dramatic improvement from a NT$2.19 billion loss in 1998.
LanChile's first quarter profit soared 34.7% to $25.4 million thanks to strong international growth and improved revenue management. Despite a 92% increase in fuel costs, the airline topped analyst expectations, in part because of the recovery of the Chilean economy. The airline's profit comparison excludes the February 1999 sale of a portion of its Equant stake, which generated an after-tax, non-operating gain of $12.9 million. Including the Equant gain, LanChile's profit fell 20% from the 1999 quarter.
Boeing, in its second major business initiative within a month, yesterday announced plans to develop a global communications network that Chairman and Chief Executive Phil Condit said "will change air travel." The system, called Connexion by Boeing, will enable airline passengers to access the Internet, e-mail, television, news, sports and "essentially any form of high data-rate communication today's business or leisure travelers require, in real time at 40,000 feet," Condit said. The new service also will be aimed at corporate jets, U.S.
Boeing's goal during the next three to five years is to move into the top 25% of the Standard&Poor's 500, Chairman and Chief Executive Phil Condit told the Aviation Week Aerospace Finance Executive Symposium yesterday in New York. To do it, the company will need to succeed not only in building and selling commercial and military aircraft, launch vehicles and spacecraft, but in servicing and financing as well. The reason is self-evident: While the market for jetliner sales is $60 billion, the market for servicing those aircraft offers another $60 billion.
LanChile named Juan Manuel Perez its new sales director for North/Central America and Asia. Based at LanChile's North American headquarters in Miami, Perez is responsible for overseeing all of LanChile's sales efforts throughout North and Central America, as well as Asia. Previously with British Airways, Perez was the airline's country manager in Chile and Bolivia.
More than 75% of online travel consumers participate in a loyalty program, but only 22% said it motivates them to increase online purchases, a new survey reveals."Commerce players must not rely on incentive programs to serve as the sole mechanism to drive loyalty," said a Jupiter Communications report that will be released today. "Instead, they must fill functionality gaps or face losing customers to more costly channels or competitors that offer more value."
Air Aruba plans to start daily service to Fort Lauderdale and Orlando from its Aruba hub, beginning July 1. The airline already serves Miami with daily flights in addition to Newark, Baltimore/Washington and Philadelphia with a small fleet of DC-9s and MD-88s.
Icelandair has taken delivery of its first Boeing 757-200, which incorporates interior design elements of the 777 and the next-generation 737. The aircraft features larger, longer overhead stowage bins, curved ceiling panels that offer up to three inches more headroom, and improved interior lighting.
The National Mediation Board has released pilots at Trans States Airlines, represented by the Air Line Pilots Association, and the carrier's management into a 30-day cooling-off period ending at 12:01 a.m. May 27. ALPA International President Duane Woerth said he hopes the cooling-off period triggers "more productive meetings to achieve a settlement before strike deadline." Unresolved issues include pay, retirement and insurance.
A "big drop" in air fares has led to an 8% decline in the cost of leisure travel, according to the American Automobile Association, a finding that conflicts with consumer complaints over higher air fares spurred largely by the increase in jet fuel. AAA's monthly report indicates roundtrip leisure fares decreased nearly 14% in April to an average $227.60, down $35.97 from March.
