Continental started a special pro-rate agreement with Russian airline Transaero Feb. 1, the carrier confirmed yesterday, but it adamantly denied a news report that it signed a code-share deal with Transaero, Ural Airlines, KrasAir and Air Kazakhstan. "I want to confirm that we do not have, nor have we had any discussions concerning a code-sharing agreement with any of the airlines mentioned" in the Reuters story, said David Grizzle, Continental's senior VP-corporate development.
Lucio Tan, executive chairman and majority shareholder of Philippine Airlines, plans to sell 65% of his stake in the national carrier. Tan, who holds 70% in PAL, also has 70% equity in Philippine National Bank (PNB), having acquired 30% recently. He plans to sell off the entire equity in PNB. Being a majority shareholder in the national carrier, Tan has been the subject of ridicule by several factions because of his connections with the palace.
Intermodal shipping of hazardous materials poses risks that DOT has not dealt with appropriately, according to a DOT Inspector General report issued this week. The Hazardous Materials Program Evaluation team (HMPE) found that DOT does not focus attention on shippers, who "offer the greatest opportunity to improve safety." DOT should work with shippers -- especially infrequent shippers -- to ensure proper classification of hazardous materials.
DOT awarded American the additional U.S.-France third-country code-share opportunity that became available April 1. The carrier plans to operate service to France via Switzerland with Swissair (DAILY, March 22). The three U.S. carriers designated for U.S.-France code-share service -- American, Northwest and United -- may operate six U.S.-third country code shares. In addition to American/Swissair, the authorized partnerships are Northwest/KLM, Northwest/Alitalia, American/Sabena and United/Lufthansa.
American already has added more legroom to 24.7% of its 562-aircraft domestic fleet, with seats removed from 139 aircraft as of yesterday.The configuration of about four aircraft is changed each day.
Airbus said Boeing's claim that its new long-range 777 series has a 16%-20% fuel burn advantage over the Airbus A340-500/600 is "very creative but completely untrue" (DAILY, March 1, April 3). Boeing however, said, "We stand behind the figures. The only way that Airbus can say its fuel burn per seat is anywhere near the 777 is to use an inflated or unrealistic seat count.
While Atlanta Hartsfield Airport already provides a strong competitive advantage for Delta and its growing network, the airline is crafting plans for an aggressive expansion slated to coincide with completion of the airport's massive $5.4 billion capital improvement project. Airport officials are moving forward on a plan that includes a fifth main runway, an international terminal, a south terminal for domestic flights, and a consolidated rental car facility. "Priority number one is the fifth runway," Mario Diaz, deputy general manager at Hartsfield, told The DAILY.
AirTran Holdings first quarter profits fell 5% to $2.9 million, but the results could have been worse as the airline experienced slow January traffic and fuel prices jumped 115%. The profit, slightly below analysts' average estimate, was the company's fifth consecutive profitable quarter before special items. Despite the drop, Chief Executive Joe Leonard highlighted the carrier's "ability to manage controllable expenses." First quarter revenues grew 10.5% to $132.4 million, outpacing the 8.7% increase in expenses.
All Nippon Airways plans to issue 30 billion yen in convertible bonds due in the year 2015. The issue, to be listed on the Luxembourg Stock Exchange, was approved yesterday by ANA's board of directors. The bonds will be issued in denominations of 1 million yen and will mature on March 31, 2015. Details regarding the issue price, convertible price and coupon have yet to be determined. The issue will be signed next week, with a payment date of May 9.
The regional industry continued to grow last year with more passengers and aircraft, according to the Regional Airline Association. RAA said the industry carried 78.1 million passengers in 1999, a 10% increase from 1998, and departures totaled 4.38 million. The average industry load factor was 58.2%, up from 57.4% in 1998. Revenue passenger miles jumped 19% to 20.81 billion. The number of cities in North America receiving regional airline service dropped 5% to 773.
Top 20 City-Pair Markets Nonstop Daily Daily Rank Market Miles Passengers Revenue 1 Atlanta - New York/Newark 756 2,241 $335,420 2 New York/Newark - Orlando 947 1,506 $154,669 3 Boston - New York/Newark 183 1,380 $157,384 4 New York/Newark - Washington 217 1,208 $130,310
Star Alliance plans to launch the first business-to-business e-commerce portal for the airline industry, allowing users to purchase supplies online later this year. The exchange, intended for use by all airlines, claims to offer the "most comprehensive selection of aircraft technical parts and services and general business supplies available to airlines on the web." Because it will serve all airlines, non-Star members will be invited to join.
Lufthansa's new e-commerce unit signed a letter of intent with MarchFirst yesterday to design and market its new web site. The two expect to sign a five-year, "multi-million dollar" contract by the end of April. MarchFirst is the new global Internet services company created by the merger of Whittman-Hart and USWeb/CKS.
National Airlines reaffirmed to DOT its "continuing interest" in obtaining five Chicago O'Hare slots and said it would apply separately for six beyond-perimeter slots at Washington National. The carrier wants to operate nonstops from DCA to its Las Vegas base and three daily O'Hare-Las Vegas roundtrips.
Failure of a transformer sparked a power outage in the air traffic control tower Monday night at Washington National Airport, causing 12 aircraft to be diverted, 20 flight cancellations and two arrival and two departure delays. FAA said the flight interruptions could have been worse but for the 7:45 p.m. time of the failure. The transformer, owned by the Metropolitan Washington Airports Authority, provided power to two elevators used by controllers.
ACI 1999 Top 100 Worldwide Cargo Airports Ranked By Total Cargo Total % Change Airport Cargo 99 vs. '98 1 Memphis 2,412,905 1.9 2 Hong Kong 1,988,838 20.2 3 Los Angeles 1,951,942 4.9 4 Tokyo, Narita 1,841,572 12.5
Alaska Airlines, following up on plans to beef up its safety efforts following the crash of an MD-80, yesterday advertised in the Wall Street Journal to fill the position of VP-safety.
Britax Aircraft Interior Systems has begun construction of a manufacturing facility for aircraft seating. The South Wales facility will produce a range of premier-class and first-class seating, as well as the newly launched "flying" beds, and supply many major airlines.
Singapore Airlines has dismissed media reports that it is close to making a decision on the Airbus A3XX. Speaking to The DAILY, SIA Deputy Chairman and Chief Executive Cheong Choong Kong said the airline is far from making a decision. Media reports had quoted senior Airbus Industrie officials as saying that the airline was close to finalizing plans for the superjumbo aircraft. Cheong said buying the A3XX is an expensive exercise and the evaluation process is lengthy. He described the reports as mere speculation.
Aeromexico has received authority to operate its own scheduled flights between Las Vegas and Hermosillo, Mexico, as well as code share with Delta in the market.
Malaysia Airlines engineers will continue to refuse to attend to an Airbus A330, whose cargo hold is being corroded by hydroxy quinolene. The believed-toxic substance was spilled during MAS Flight 85 from Beijing to Kuala Lumpur on March 15. The airline's staff wants engineering management documents about what the chemical is.
ACI 1999 Top 100 Worldwide Passenger Airports Ranked By Total Passengers Total % Change Airport Passengers 99 vs. '98 1 Atlanta 77,939,536 6.1 2 Chicago, O'Hare 72,568,076 0.1 3 Los Angeles 63,876,561 4.3 4 London, Heathrow 62,263,710 2.6
Air Alliance, an affiliate of Air Canada, has launched daily nonstop Toronto-Grand Rapids service. The carrier will offer three nonstop flights every business day, using Beech 1900D aircraft. Members of Aeroplan, Canadian Plus and United's Mileage Plus programs will receive double bonus miles when traveling on the route through Aug. 31.
