Lufthansa expects additional delays at Munich Airport following a decision by air traffic control provider Deutsche Flugsicherung (DFS) to replace the instrument landing system (ILS) for Runway 26L. The project will take several weeks. DFS says the system was found not to have worked properly during the winter months in several cases. Munich already is in the top 10 airports in terms of European ATC delays. During the construction work, Runway 26L will be used only for takeoffs and 26R for landings.
Priceline.com's rapid growth in customers and its first television advertising campaign boosted its first quarter revenue 535% to $313.8 million. Gross margin was 15.6%, the highest to date. Gross profit soared 752% to $49.0 million as the company added nearly 1.5 million new customers, bringing its total to nearly 5.3 million. But the company had an operating loss of $16.3 million and a better-than-expected net loss of $13.6 million. Priceline lost $17.2 million in the same period last year.
LanChile wants to display LanPeru's designator code on its daily flights between Lima, Peru, and New York and Los Angeles. The LanChile flights, operated with Boeing 767-300 aircraft configured for 215 passengers, would provide LanPeru with the first nonstops to New York and Los Angeles from its homeland, LanChile pointed out, adding that the requested authority is consistent with U.S.-Chile open skies. LanPeru filed separately for an exemption to code share on the routes with LanChile. (Dockets OST-00-7271, 7265)
National Airlines increased support for travel agencies this week, including appointment of additional sales managers, the launch of the airline's "travel agents only" web site and opening a new sales assistance center. "We are one of the few carriers to continue offering commissions of 10% with no cap and 12% commission on the total price of our new National Vacations tour packages," said Mark Suman, senior VP-marketing and strategic planning.
Numerous flights to and from Oporto and Faro airports in Portugal were canceled or rerouted yesterday during a 24-hour strike by airport ground emergency crews. According to the Associated Press, several airlines -- TAP Air Portugal, British Airways and Air France among them -- canceled flights at Francisco Sa Carneiro Airport in Oporto 170 miles north of Lisbon. Flight from Faro, 120 miles south of Lisbon, were redirected to Lisbon or the Spanish cities of Seville and Malaga. The strike was scheduled to last until midnight.
Continental filed a federal antitrust lawsuit against United and the Airline Management Council at Washington Dulles Airport to stop "anti-competitive practices and illegal interference" caused by newly installed baggage-sizing templates at the shared X-ray security screening checkpoints. The lawsuit charges that United "conspired" with other airlines in the council to limit competition by requiring all airlines' customers to conform to a "single, restrictive standard" for carry-on baggage at the airport.
British Airways launches a new television advertising campaign yesterday with a tagline characterizing the airline's service as a "revolution in the air." To the sound of the 1960s song "Something In The Air" by Thunderclap Newman, the 60-second spot follows a five year old girl through an airport. Hundreds of passengers from different decades starting in the 1930s to present day stream past her including famous faces like Alfred Hitchcock, John Lennon and Yoko Ono. The cast is supposed to represent the different passengers BA has flown since its inception.
Delta has formed a Customer Advisory Board to provide guidance on programs for passengers with disabilities. Members of the board include representatives from the Paralysis Society of America, the Seeing Eye Inc., Self Help for Hard of Hearing People and American Association for Retired Persons.
FAA said yesterday it is "aware" of the unanimous passage by the Los Angeles City Council of a "non-addition" rule for Stage 2 aircraft at Van Nuys Airport. The rule impacts Stage 2 business jets under 75,000 pounds. Almost all business jets weigh in under this limit. Van Nuys is one of the nation's busiest general aviation airports.
Boeing, in what it called a major boost to spare parts support for European airlines, opened its Amsterdam Service Center near Schiphol Airport. The company also has service centers in Seattle, Los Angeles, Atlanta, London, Dubai, Beijing and Singapore. The new Amsterdam center initially will maintain inventory for about 50,000 types of parts. The center is staffed with experienced logistics employees hired under contract with KLM Cargo, Boeing said.
FAA Administrator Jane Garvey and JetBlue Chairman and Chief Executive David Neeleman head the list of industry leaders scheduled to speak at the 72nd Annual American Association of Airport Executives Conference May 21-24 in Baltimore. Also slated to speak are Sen. John Rockefeller (D-Va.) and Wall Street investment broker Frank Cappiello.
Lucent Technologies lured Boeing Chief Financial Officer Deborah Hopkins away as executive VP and CFO, effective immediately. She replaces Donald Peterson, who is now chief executive officer of the new Enterprise Networks Group. Hopkins came to Boeing as senior VP and CFO with much fanfare on Dec. 14, 1998. She led Boeing investor relations and corporate development and was chairman of Boeing Capital Corp., which provides financing and leasing. According to Boeing's 2000 proxy statement, Hopkins received $1.25 million in 1999.
The fiscal 2001 U.S. transportation appropriations, which includes FAA funds, should be one of the early money bills to clear the House next month.An early decision House and Senate appropriators will have to make is how to translate the budget resolution's division of funds into ceilings for appropriators. Although House and Senate appropriators work from the same budget resolution, their subcommittee ceilings are not always the same.
Qantas plans to increase domestic airfares by an average of 3.5% following cost increases of nearly 6% over the past two years. Qantas Deputy Chief Executive Geoff Dixon said the hikes would be the first general fare increases since May 1998, and would take effect May 3. "They are designed to offset the overall rise of 5.7% in our costs over that period, including fuel, aeronautical, airport and employment expenses," Dixon said. "Productivity gains and cost controls have helped to absorb increases to this stage."
China Airlines soon will decide on the aircraft type to replace its Airbus A300B4 and A300-600 fleets. It already grounded its A300B4 fleet of six, two of which have been sold. The other four are in storage in the U.S. The carrier has 12 -600s. According to CAL President Sandy Liu, the airline would need more than 18 new aircraft. "Increase in capacity requirement would also have to be taken into account," he said. "The carrier's management team is currently evaluating the A330 and the 777," Liu said.
US Airways management plans to begin negotiating with its pilots May 18 on a "much larger deal" for as many as 400 regional jets "to remain a vibrant carrier," said Chief Executive Rakesh Gangwal. The airline recently won pilot approval to operate 70 RJs, but Gangwal told analysts last week the airline has been in discussions with manufactures "about delivery positions in the second half of 2001." US Airways also is interested in partnering with new commuter airlines. "Today Delta has the advantage, but we will ultimately catch up in the process," he added.
UPS reported a 62.9% jump in first quarter earnings on a 23% gain in international export package volume. Including a $139 million gain in non-recurring items, the company posted a net income of $813 million.
Lufthansa Group is interested in privatization of airports in Paraguay. Paraguay's minister of public works, Jose Alberto Planas, announced that Lufthansa is involved in privatizations of Silvio Pettirossi and Guarani airports and has offered a non-reimbursable credit for $89,000 to be invested in facilities studies.
Malaysia Airlines will buy the A340-500 for its Kuala Lumpur-Los Angeles route and another U.S. route offered after delivery in 2003, The DAILY has learned. It could not be determined how many aircraft will be ordered. The -500 order will be part of a huge order that will include the A320 family to replace the 45 Boeing 737-400s and four 737-500s.
Cargolux of Luxembourg reported an after-tax profit of $30 million for 1999, which it described as a "difficult year" for the company and the cargo industry. Revenues increased 11% to $644 million and ton-kilometers rose 21%. Tons carried rose to a record 377,550. Four new Boeing 747-400s were added during the year, some replacing leased aircraft and increasing capacity by 20%. New service to China, Australia and New Zealand was introduced.
Superior Air Parts appointed Tisha Stratford marketing coordinator; Pat Begansky to regional distribution supervisor for Dallas territory and Pete Whitaker to territory sales manager for North Texas.
Japan Airlines upgraded its group revenue forecast Friday, highlighting gains on the sale of shareholdings, but lowered its group profit outlook for the period ending March 31 due to higher fuel prices. JAL expects revenue 20 billion yen higher than originally forecast and an expected operating profit of 47 billion yen, 7 billion more than forecast in June 1999.
