TRAFFIC DATA FOR FEBRUARY 2000 RPMs Change ASMs Change In From In From Load Airline Billions 3/99 Billions 3/99 Factor America West 1.64 +9.8% 2.31 +5.3% 71.1% Delta 10.00 +6.1% 13.05 +4.1% 76.6% Mesaba 0.15 +27.7% 0.25 +24.2% 60.3%
US Airways expects to report a $140 million increase in jet fuel expenses for the first quarter, Chief Financial Officer Tom Mutryn said in an employee publication. Jet fuel spot prices in New York ended last week at 0.87 per gallon, up 5% from the beginning of the week and up 91% year over year, according to Deutsche Banc Alex. Brown. However, crude oil futures for May traded down 25% from a nine-year high of $34.13 on March 7.
American Helicopter Society elected Chuck Vehlow, VP and general manager-Army Programs/Military Rotorcraft at Boeing Helicopters, chairman and John Murphey, president of Bell Helicopter Textron, president.
SAS board will make a final decision next month about setting up SAS Cargo as a separate unit. Airline sources said the new unit almost definitely will be formed. SAS Cargo would become a wholly owned subsidiary and could be set up by yearend or in early 2001.
Pratt&Whitney's expansion of its aftermarket services business "is priority number one," said Karl Krapek, chief operating officer of United Technologies. Although P&W said publicly that it foresees aftermarket services growing to $2 billion by 2003, Krapek told The DAILY recently he has internal projections which double that number. "Today, we only do 8% of our [own engine] overhauls," he said. "We need to do more."
Promulgation of Stage 4 noise regulations is a major uncertainty facing the airline industry in the new few years, according to Morten Beyer&Agnew, which is sponsoring a conference on the issue and on the continued operation and values of existing jet aircraft. The conference is scheduled April 19 at the Ritz-Carlton Hotel, Pentagon City in Arlington, Va. MBA said ICAO's Noise Scenarios Group plans to release next January its recommendations for actual Stage 4 levels.
All Nippon Airways will lease three Boeing 767-300ERs to start its new regional carrier in January. ANA President and Chief Executive Kichisaburo Nomura told The DAILY that the carrier initially will offer flights to major Chinese cities and that a decision on a launch date for Southeast Asian services would be made in March 2001. The carrier, which has not been named, is forecast to reduce ANA's overall operating costs.
Galileo International has completed acquisition of Toronto-based Terren Corp. Terms of the deal were not released. Founded in 1979, Terren develops client-server software for business databases, data communications and information management with a concentration in the North American leisure tour operator and wholesale market. Terren's packages enable tour operators and wholesalers to manage their business processes from beginning to end with assistance in financial services, accounting, travel and hospitality, retail operations and marketing services.
CFM International's Project Tech56 swept wide chord fan blade has successfully completed full-scale blade-out rig testing with "outstanding results." This is a three-year technology acquisition program to look at potential new and derivative engines and provide upgrades to CFM56 engines. CFM ran the rig with a full set of swept fan blades at speeds above the CFM56-7 redline. A blade-out test involved setting a charge on a blade and detonating the charge to determine how the engine, fan containment and other blades would react.
European Regions Airline Association is pushing hard to ensure the European Commission takes all modes of public transport into consideration when it formulates consumer protection laws. ERA, responding to the EC's proposed passenger rights document, said it fears airlines will bear the brunt of consumer legislation, and it wants generic consumer protection laws that do not target airlines. ERA also insisted that proposed initiatives undergo a cost/benefit analysis.
Brazilian airline Vasp paid the first installment of its total debt of 80 million real Friday after the country's airport authority threatened to ground its flights. According to Reuters, Vasp paid 1.1 million real (US$630,000) in overdue airport rental fees and charges on the last possible day before the authority was planning to take action against the carrier. It was at least the second time that Infraero came close to canceling Vasp's flights because of unpaid debt.
U.S. airline investigations of code-share partner safety means that "if we find something, we are obligated to come forward with it" because of the danger of litigation, says American Vice Chairman Bob Baker. Most investigations have shown "quality" carriers, he says, but "the time is coming" when a problem situation will arise."We have a lot of teams everywhere."
Singapore Airlines became the newest and 11th member of Star Alliance on Friday, British Midland will join in June and Mexicana will become the 13th member later this year. The alliance network will then cover more than 800 destinations in 130 countries. By July 1, the its Gold-level frequent flyer members will have access to 500 lounges around the world, from the current 250. In his address in Singapore, SIA Deputy Chairman and Chief Executive Cheong Choong Kong hinted that two more airlines would be drawn into the partnership.
KLM traffic last month increased 5.9% on 2.7% more capacity, which improved load factor 2.8 percentage points to 80.1%. The strongest overall traffic growth -- 16% -- occurred on the carrier's Asia/Pacific routes. Passenger traffic was up 4.8% and capacity 2.9%, with significant increases within Europe. Cargo traffic to Asia/Pacific jumped 23%.
JetBlue Airways finally will introduce its LiveTV inflight programming today after receiving FAA certification last week following a two-month delay. All Airbus A320s will be retrofitted by April 22. Once the system is installed, JetBlue will charge $5 for its use.
Ebookers.com's flight booking services went live last weekend on each of American Online's European online sites in the U.K., Germany and France. The services also will be extended to cover AOL Europe's services and web-based brands in Switzerland, The Netherlands, Belgium, Luxembourg, Austria and Sweden over next two months. The flight booking service is a key part of the exclusive two-year, multi-million dollar agreement between ebookers.com and AOL Europe.
Venezuela's financially ailing Avensa/Servivensa and Aserca signed a letter of intent on Friday to merge in the next six months. In the meantime, Avensa will attempt to straighten out its finances, restructure operations and update labor relations, according to a series of conditions set forth by Aserca. In the near term, according to Avensa Chief Executive Wilmer Castro, the airline will "cease to be a 'corporate diaspora' made up of 36 micro enterprises, which was the main cause of our financial crisis, and become a corporation in the classic mold."
Momentum in the Senate has shifted against a bill sponsored by Senate Majority Leader Trent Lott (R-Miss.) and six others that would suspend the 4.3-cent-per-gallon tax on aviation fuel if prices rise too high. On a 65-35 non-binding vote, the Senate voted to take the jet fuel tax cut out of the budget resolution. While the issue is not over, Lott mainly wants "a debate about energy."
SAirGroup's President and CEO Philippe Bruggisser says he is "fully confident" in the management team of the group's regional subsidiary, Crossair, Europe's largest regional carrier. The airline's president and chief executive, Moritz Suter, has come under intense pressure in the process of an ongoing dispute with Crossair's pilots union, Crossair Cockpit Personal (CCP). Several sources have spread rumors about Suter being replaced by Paul Reutlinger, currently CEO at Qualiflyer member Sabena.
Cathay Pacific signed an agreement with Primex to be the launch airline for the new Emport data system on its fleet of 56 aircraft. The system enables passengers to use their laptop or notebook computers to access e-mail inflight as well as an onboard Intranet. The system will use the existing satellite communication system on Cathay Pacific's network. This high-speed network allows more than 200 passengers to use the system simultaneously, and it operates independently of the inflight entertainment system currently in use on Cathay's aircraft.
AirTran recently signed a new credit card processing agreement with US Bank Merchant Services of Minneapolis. The contract will increase the airline's unrestricted cash balances, provide for technological improvements in processing receivables and lower the airline's costs.
Rolls-Royce expanded its relationship with Precision Castparts unit PCC Structurals Inc., adding seven new engine castings from the supplier. The parts will go on a range of engines, including the V2500, Adour, Pegasus, and RTM322. The deal, which PCC said could be worth $350 million, also calls for PCC to continue supplying castings for Trent 500s, 700s, and 800s and to make them for the new Trent 900.
US Airways' pilot union on Friday voted to ratify a letter of agreement allowing the company to increase by 35 the number of as many as 50-seat regional jets in its fleet. Of the 73.5% eligible voters, 61%, or 2,236 rank and file voted for the agreement and 1,385 voted against. "We are pleased with the outcome of the vote," said an airline spokesman. US Airways ultimately would like to grow to a fleet of 400 regional jets for its US Airways Express system, Chairman Stephen Wolf told The DAILY last month (DAILY, March 27).
