Airport and Airway Trust Fund -- Income Statement October 1, 1999 - October 31, 1999 RECEIPTS (Revenues) October 1999 Revenues: Excise Taxes (Transferred from General Fund): Liquid Fuel other than Gas 43,367,000.00 Transportation by Air, Seats, Berths, etc. 314,892,000.00 Use of International Travel Facilities 64,346,000.00
Sen. Ron Wyden (D-Ore.) has asked FAA Administrator Jane Garvey to update him on progress with deficient aircraft repair stations. The request comes in the wake of questions raised about horizontal stabilizer problems in the Alaska Airlines MD-80 crash and recurring General Accounting Office reports critical of FAA oversight of airline repair stations. Wyden, a member of the Senate Commerce aviation subcommittee, sent the letter last week.
Malaysia Airlines is evaluating the Boeing 737-600/700/800 and the Airbus A320 family to replace its fleet of 737-400/500s, which are expected to be phased out, starting in mid-2001. The aging Fokker F50 fleet also is on the way out. The airline evaluated several replacement options but has made no decision. According to MAS Senior VP-Aerospace Development Sitahm Nadarajah, the airline is considering a mixed fleet of Boeing and Airbus equipment.
Southwest said that more than 25% of its January passenger revenues came through its Internet site, and it expects revenue from online bookings to exceed $1 billion by yearend. Internet booking revenues for the fourth quarter 1999 exceeded $250 million, up more than 140% from fourth quarter 1999. The airline yesterday revealed its Internet revenues for the first time, noting that based on published reports Southwest's Internet traffic, purchases and visitors exceed those at other airlines.
Summary of U.S. Major Carriers International Traffic August 1999 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (miles) (000) Change Alaska 62 1.52 1,117 68,863 0.94
FAA, operating under a budget shortage since fiscal 2000 began Oct. 1, continues to search for ways it can save money and is considering pulling funding for as many as 86 contract air traffic control towers. An agency spokesman confirmed that FAA is considering a number of cost-saving options "including the cuts in the contract tower program" but stressed that no final decision has been made.
Priceline.com is deep into negotiations with four major European airlines that will lead to the launch of a European joint venture for the successful Internet company this year. Priceline.com executives are completing the details of a 50/50 joint venture between Priceline.com U.S. and a Dutch company that is expected to bring about an aggressive global expansion of Priceline's patented "name-your-price" concept.
Airport&Airway Trust Fund, the U.S. repository for aviation taxes, rose to $12.7 billion as of Oct. 31, 1999, according to Treasury Department data (see Page 7 for summary). The unspent balance grew 55% since it was $8.2 billion in November 1997 (DAILY, Feb. 2, 1998).
British low-cost carrier Go has launched a complaint in front of the European Union against Lufthansa because of alleged anti-competitive behavior. Go Chief Executive Barbara Cassani accused Lufthansa of matching prices, capacity and flight times on the Munich-London Stansted, which Go is giving up. Cassani told The DAILY, "We are losing more money on the route than we can afford." She said Lufthansa's behavior is unparalleled in Europe.
The U.S. Secretary of Commerce Alan Larson was expected today in Buenos Aires for talks with Argentine President Fernando de la Rua, including the latter's postponement of an open skies agreement signed last year. The delay was to gain time to fix financially troubled Aerolineas Argentinas. This has sparked a local debate between those who oppose open skies in favor of nationality and control of carriers and those who favor it as the only way for Argentinian companies to establish marketing alliances with U.S. firms.
United is restructuring its Asian operations by shifting control of all sales to Hong Kong from Tokyo. The biggest surprise was the sudden departure of VP-Pacific South Don Curran, who has been replaced by Jim Brennan, VP-Pacific North. Brennan will oversee United's operations in the Pacific South region, including Australia, China, Hong Kong, Singapore, India, Thailand, Korea and Japan. A successor for Brennan will be announced later.
American sustained damage to two aircraft during the weekend, and the carrier was forced to cancel more than 120 flights due to thunderstorms and high winds at Dallas/Fort Worth, Chicago O'Hare and elsewhere. The aircraft sustained damage when the wind hurled baggage carts across the tarmac and into aircraft. American canceled 67 flights due to damage. Bad weather forced more than 30 flights to be diverted as well.
Talks between Boeing and its Society of Professional Engineers in Aerospace (SPEEA) recessed without a resolution to the strike that is now in its third week. No further talks are scheduled. Boeing delivered nine aircraft in February, Boeing said, compared with 47 in February 1999 and 33 in February 1998. While Boeing says the strike is not hurting operations, SPEEA denies the claim. Boeing and SPEEA were in negotiations for three days with a federal mediator. Boeing spokesman Peter Conte said negotiators offered new ideas, but SPEEA rejected them.
The lapsed Airport Improvement Program has put more than $1.2 billion in airport projects on hold, according to a survey conducted jointly by the American Association of State Highway and Transportation Officials and the National Association of State Aviation Officials. The survey found that at least $425 million in additional projects are in danger of being canceled this year if AIP is not restored. "This is unconscionable given our country's aviation needs," AASHTO Executive Director John Horsley said.
Delta is equipping its fleet with more than 400 new solid state cockpit voice recorders, L-3 Communications said yesterday. The company will supply Delta with its 120-minute FA2100 CVRs with installation to begin next March. Delta plans to retrofit its entire fleet over the next 11 months. Charles Grouse, L-3 president, said the new CVRs meet FAA regulatory requirements of Jan. 1, 2005, with their two-hour minimum recording capacity.
Austrian Airlines will move to Terminal 1 at New York Kennedy March 26 from its current location in Delta's Terminal 3. Delta recently said that former partners Swissair and Sabena will leave its terminal March 25, when Delta ends its code-share flights with the airlines.
US Airways, in an increasingly tense 30-day cooling-off period with flight attendants that ends March 25, will be placed on negative CreditWatch with negative implications if there is a strike and the airline suspends operations as threatened, Standard&Poor's said. Higher fuel prices also are hurting US Airways and driving down its stock price. Shares have lost 75% of their value from their all-time high in 1998 of $80.
Airborne Express launched new service to Phoenix Sky Harbor Airport Friday with its growing fleet of Boeing 767-200 cargo aircraft. The twinjets are the first 767s converted from passenger configuration under a special FAA type rating. The 767-200 will provide a 35% increase in cargo-carrying capability for Airborne, compared with its DC-8s. "The operating cost will be 14% less than Airborne's DC-8's," said VP Bob Kelly said.
Belgian carrier Sabena ordered four more Airbus A340-300s, to be delivered in 2001 and 2002, Airbus said yesterday. Sabena operates four A340s, eight A330s and 12 A320 family aircraft, "all of which share similar flight decks, systems and fly-by-wire flight controls," Airbus said. Airbus says these attributes give carriers scheduling flexibility and save in crew training and aircraft maintenance. Cathay Pacific signed an agreement to lease a new A340-300 from International Lease Finance Corp. for five years.
Boeing Chairman Phil Condit and GE Chairman Jack Welch today are expected to announce a go-ahead on the 777X program. GE is the sole supplier of the engine for the ultra-long-range jet, and its aircraft leasing company is expected to be a launch customer.
Tower Air denies it is filing for bankruptcy despite rumors that the airline was headed to bankruptcy court on Friday and claims that creditors may have pulled engines from six 747s sitting at a JFK hangar. Tower spokesman Howard Cannon said the bankruptcy rumors are "not true...Things are still viable at this point." Tower attorney Steven Gelband said, "Tower is not filing for bankruptcy at this time and has no plans to." The airline's November earnings showed a net $1 million loss for the third quarter 1999 and an 8.2% decline in revenue (DAILY, Nov. 9).
Rockwell Collins Government Systems named Ronald Hornish VP-integrated applications and navigation systems, Gregory Churchill VP-business development and Steven Nieuwsma VP-engineering.
The FAA reauthorization conference still is stalled on the issue of increased aviation spending, congressional sources say. This is the same issue that broke up the fiscal 2000 conference last November, although key senators maintain that the FAA conference is not dead for the year. The sources could not provide any signs of progress. Commerce Chairman John McCain (R-Ariz.) designated Sen. Slade Gorton (R-Wash.), chairman of the Senate Commerce Committee's aviation subcommittee, to chair aviation negotiations while McCain pursues his presidential bid.
Emirates will launch new service from Dubai to Milan April 1 and double its frequency to Rome to six flights a week. Milan, the second Italian city served by Emirates, will receive three weekly flights from Dubai, via Rome. All flights will be operated with new Airbus A330-200s, configured for two service classes.
