AirTran this week signed a fuel-hedging agreement covering about 15% of its estimated fuel consumption through September 2004 at a rate below $22 per barrel. Combined with prior fuel-hedging transactions, roughly 25% of the airline's fuel needs for the second quarter are hedged, at a rate less than $21 per barrel. "As a leading affordable carrier, AirTran Airways is always looking for ways to contain costs, thus ensuring that our passengers do not see higher ticket prices due to operational or maintenance surcharges," said Chief Financial Officer Robert Fornaro.
Midwest Express is "severely hurt" by the spike in jet fuel prices so far this year, according to Warburg Dillon Read analyst Michael Stellwag, but the carrier should turn a "modest profit" for the first quarter.Fuel prices for the airline were roughly 80% higher in the first quarter than a year ago, and the "lingering effects" of insufficient aircraft simulator training time are still hampering the company's capacity growth, he said. These problems should improve in the second half of the year, and its yields are the "lone bright spot."
Sen. James Inhofe (R-Okla.), a frequent critic of the Clinton administration, has praised the State Department for filing an Article 84, a dispute resolution mechanism, with ICAO over the European Union's non-addition rule that would ban by April, 2002, hushkitted aircraft not registered in Europe by May 4. In remarks last week, he said the filing will allow the U.S. to demonstrate that the EU hushkit resolution is not in accordance with international noise standards set by ICAO. He said the regulation has hurt U.S.
Delta Connection carrier Comair requested gate facilities at Dallas Love Field yesterday to begin regional jet service to Delta hubs as early as June. All service would be provided with 50-seat Canadair regional jets, and the airline plans to name specific routes at a later date. "Service is contingent upon obtaining operating approval and facilities at Love Field," said President David Siebenburgen.
Royal Jordanian Airlines signed a US$7.8 million, three-year contract with SITA this week to provide a fully managed information technology infrastructure that will enable the airline to standardize its desktop IT services across its network. SITA said the new system will support Royal Jordanian's future e-commerce plans and "improve its network access speed, efficiency and reliability worldwide."
BWIA and Air Jamaica continue to strive for a larger share of the Caribbean market -- the latter has applied to operate from Jamaica to Trinidad with a stopover in Barbados, using Airbus A320s and A321s. This lucrative route is currently served daily with stopovers in Antigua and Barbados by BWIA, which said it is "not disturbed" by facing competition from its major rival in the region. Separately, DOT granted BWIA new one-year authority to conduct service between Trinidad and Tobago and Atlanta and to co-terminalize Atlanta with its other U.S.
America West applied at DOT to code share with Continental on Newark-Shannon/Dublin flights, with the service to begin "as soon as possible." Continental currently flies nonstop Newark-Dublin twice daily, with continuing service to Shannon using Boeing 757s. The requested extrabilateral authority would benefit travelers from the West Coast, America West said. Aer Lingus code shares with Delta in an extrabilateral exemption, in which DOT noted that Ireland indicated that it would approve similar applications.
European Union transport ministers, meeting yesterday in Brussels, confirmed a proposal to shield non-EU countries from the effects of the EU hushkit regulation that is due to go into effect May 4. But "there is no agreement [with the United States] as such," said Transport Commissioner Loyola de Palacio. The proposal "is the basis for a possible agreement, and it appears that we could make headway on that basis...in the next few days," she said.
The 26th Presidents Club worldwide for Continental and the first for its strategic partner Copa has opened at Panama's Tocumen Airport. A 5,844-square-foot lounge and ancillary services located in the terminal's second floor, it features seating for 102, an eight-person conference room, six work stations equipped with credit card phones and dataports for computer hook-ups. Continental operates two other Presidents Clubs in Latin America -- in Mexico City and San Juan.
Santa Maria, Calif.-based Pacific Skyway will expand service in the spring, most likely to Sacramento, San Jose and Oakland. The carrier also will add service from Santa Barbara and San Luis Obispo to Sacramento and San Jose and offer three roundtrips daily to Las Vegas, said President and Chief Executive David Baskett.
As part of ongoing bankruptcy proceedings involving Mexico's grounded Taesa (DAILY, March 10), a federal judge ruled the carrier's former employees should be terminated. But Angel Celorio, the workers' union representative, said the ruling is subject to a decision by the Federal Mediation and Arbitration Board. He added there are unofficial reports that British Airways and Continental are interested in reviving Taesa, but negotiations cannot start until the civil aeronautic authorities are ready to renew the airline's certification.
European Transport Commissioner Loyola de Palacio pledged to "come up with proposals in June for the extension of passenger rights," after her meeting with European Union Transport Ministers yesterday in Brussels. The European Commission is considering introducing the mandatory payment of compensation to passengers in case of excessive delays. "Obviously, we would have to adopt a set of directives" (EU laws), de Palacio said.
Fedex, announcing its new Internet service, said air cargo and parcel sales in Mexico are expected to rise 20% this year. The company currently moves 220,000 pounds of cargo daily.
Varig will soon increase its fleet from 82 to 90 aircraft through acquisition of widebody equipment for long-haul international flights and standard equipment for domestic service. The cost of the former is estimated at $80 million per aircraft and of the latter at $30 million.
Rep. Anthony Weiner (D-N. Y.), whose New York City congressional district borders on Kennedy International Airport, has introduced a bill in the House that would direct the DOT secretary to prohibit the commercial operation of supersonic transport category aircraft that do not comply with Stage 3 noise levels.
Summary of U.S. Major Carriers International Revenues and Expenses Third Quarter 1999 Total Operating % Passenger Freight Revenues Change Revenues Revenues Alaska 20,897,000 12.25 20,121,000 191,000 Latin 20,897,000 12.25 20,121,000 191,000 American 1,382,021,000 (1.51) 1,212,988,000 84,572,000
Japan Airlines' pilots staged an all-day strike yesterday demanding a pay increase, but the carrier said the action had no effect on international and domestic passenger flights. The union also planned to strike today if its demands were not addressed, which could result in flight disruptions. The JAL Cockpit Crew Union has 1,320 members and represents pilots below the rank of captain. The JAL Cabin Attendants Union has 1,095 members.
FAA is expected to issue a final rule today requiring terrain awareness and warning systems on turbine aircraft seating six or more passengers. Many carriers already voluntarily decided to equip with the systems, although industry officials opposed the inclusion of aircraft operated under Parts 91 and 135. The rule will go into effect in one year and then will have a four-year compliance period.
DOT granted Kuwait Airways an exemption to serve Orlando as a co-terminal point for its Kuwait-Frankfurt-New York services. The carrier plans to place its designator code on TWA flights between New York and Orlando. The department approved TWA's request for the code-share authority. (Dockets OST-99-5589, 5590)
House transportation appropriations subcommittee Chairman Frank Wolf (R-Va.) upbraided the FAA in a hearing last week for appearing reluctant to stand by an FAA safety inspector arrested at Washington Dulles on March 7 while inspecting a United aircraft. Wolf was "really disappointed in the management at Dulles," he said. The inspector, Joseph Gore, was arrested inside the plane, humiliated and searched three times, Wolf said. Asked if Gore had done anything improper, FAA Administrator Jane Garvey said she did not have all the facts to respond.
Argentina's Minister of Infrastructure, Nicolas Gallo, in New Orleans Monday for the annual general meeting of the Inter-American Development Bank, said his government has put the open-skies agreement with the U.S. on hold because "it jeopardizes the majority of Argentines," according to Buenos Aires daily La Nacion. However, Argentina will negotiate with other member countries of Mercosur (Brazil, Paraguay and Uruguay) a regional open-skies agreement, and also sponsor the creation of a committee to handle bids for relevant infrastructure projects.
Varig is holding two initial public offerings in Brazil to capitalize two new subsidiaries -- Varig Participacoes Transporte Aereo, which will control regional carriers Rio Sul and Nordeste, and Varig Participacoes, a holding company for Sata, Tropical Hotel Chain, Amadeus computer reservations system and others.
Alaska Airlines has named a former NASA official and a former NTSB official to lead what it called a "comprehensive safety audit of all aspects of the airlines operations." John Kelly, chairman, said, "I have asked them to go beyond just a traditional audit of records and procedures to ensure we maximize the benefit of their safety expertise." Jack Enders, former manager of Aviation Safety Research at NASA and vice chairman of the Flight Safety Foundation, will oversee the audit team.
