Southwest will pay its 25,000 eligible employees more than $138 million in profit sharing, its largest payout yet. The employee sharing plan, based on pre-tax profits, "plays a significant part in making employees true participants in Southwest's success," said Chief Executive Herb Kelleher. Profit sharing grew to $138,336,916 in 1999, representing 14.1% of eligible salaries. From 1992 through 1999, each Southwest employee received an average of 10.6% of his eligible salary in profit-sharing payments.
The European Union's hushkit regulation "will enter into force on May 4, as planned," said a spokesman for European Transport Commissioner Loyola de Palacio yesterday in Brussels. However, the EU is "willing to discuss" the aspects of the ban that are most damaging to non-European nations, he said. Starting May 4, European airlines will no longer be allowed to add hushkitted aircraft to their fleets.
Legend, yet to begin service following a hard-fought battle to fly from Dallas Love Field, wants 20 New York LaGuardia and 24 Chicago O'Hare slots as a new entrant, urging DOT to "make granting slots to new entrants a priority." The carrier told DOT it will begin operating "at the end of this month" with five daily roundtrips to Los Angeles, four to Washington Dulles and one to Las Vegas.
Boeing, Lockheed Martin, Raytheon and BAE Systems will announce details of their combined business-to-business e-commerce venture this morning in New York. The companies have been working with California-based Commerce One to develop a powerful unnamed portal that aims to create an open electronic exchange for buyers, sellers, customers and suppliers in aviation and aerospace.
Japan Airlines will introduce its new in-house "Finance Center" April 1, part of JAL Group financial restructuring for about 80 subsidiaries and affiliated companies. The airline hopes the new treasury system will help it trim interest-bearing debt by 50 billion yen by March 31, 2003, to a debt level of about 350 billion yen. Other savings in the debt reduction plan will come from deferral of aircraft deliveries and asset sales. A 50 billion yen reduction in interest-bearing debt will save JAL 600 million yen per year in total interest payments.
The South African Civil Aviation Authority issued the Operating Certificate Part 121 to startup African Star Airways, the privately held international scheduled airline of South Africa. African Star, the country's first majority black-owned airline, plans to operate flights between Johannesburg and London and Munich. Last month, the South African government formally designated ASA as the second South Africa designated scheduled carrier for passenger and cargo transport for the U.K. and Germany. The airline has already won approval from the U.K.
Thai Airways will invest US$135 million over the next three years to improve inflight facilities and entertainment in first- and business class on 40 widebody aircraft used on intercontinental routes. In addition, Thai will launch Bangkok-Mumbai flights on May 15, offering four services a week using Airbus A330 aircraft.
DOT yesterday granted through April 16 Virgin Atlantic's request for summer Chicago O'Hare slots, a move a U.S. industry representative called an "unprecedented action" designed to keep pressure on the U.K. to negotiate. "We must engage the British on expanded access at Heathrow," he said. DOT Secretary Rodney Slater is "acting strongly [and] with resolve," he said, adding, "I hope he sticks to his guns."
Northwest in June will start new nonstop jet service from Memphis to Charlotte, San Diego and Des Moines, and Northwest Airlink carrier Express I will begin to deploy its new 50-seat regional jet fleet on two routes that were previously served by turboprops. Northwest on June 1 will offer new daily service to San Diego and Des Moines, and on June 15 it will add three daily nonstops to Charlotte. Express I will begin Canadair RJ service to Greenville/Spartanburg, S.C., June 1 and to Mobile, Ala., July 1.
Singapore Airlines, 49% owner of Virgin Atlantic, may figure in the U.K. carrier's plans to launch a no-frills domestic airline in Australia this year, according to industry sources. Analysts said if the worst happens, the move would put SIA into direct -- and possibly hostile -- competition with Star Alliance members Air New Zealand and Ansett. SIA, Ansett and ANZ have commercial agreements among themselves, including several code-share flights. Thai Airways also expressed its concern with SIA's proposed membership in Star.
Fairchild Aerospace has decided to implement several changes to the design of its 728JET. The program will slip by six months but will be back on schedule with the eighth delivery, the company claims. The slippage earlier was understood to be associated only with the relocation of the rear door. But Fairchild now says that it intends to reduce drag, improve wing aerodynamics, increase gross weight and relocate the rear door to allow for another seat row to be installed. Initially, Fairchild said that it left launching customer Lufthansa with a choice.
Swissair, Sabena and TAP Air Portugal yesterday signed an interim and long-term lease for space at New York Kennedy Terminal 4. Swissair and Sabena moved out of Delta's Terminal 3 last weekend. The three Qualiflyer group carriers said they are the first to sign long-term agreements for the terminal. The lease runs through mid-2008.
U.S Carriers Systemwide Market Share at Leading U.S. Airports U.S. Major, National and Commuter* Carriers The Year 1999 Atlanta Enplaned Percent Passengers Market Share Delta 28,291,070 76.18 AirTran Airways 3,033,220 8.17
After entering the Atlanta market only seven months ago, EVA Air Cargo has expanded capacity and added one weekly flight. The new dedicated cargo flight, launched yesterday, EVA Air's fourth into Atlanta Hartsfield. With the added service, EVA Air offers 19 dedicated freighter flights each week between Taiwan and the U.S., in addition to Boeing 747-400 Combi service into some cities.
Delta remains the second largest carrier at Dallas/Fort Worth Airport, but its 4.7 million passengers boarded there last year overshadow other carrier hubs, such as Northwest's Memphis hub (3.3 million) and Southwest at Las Vegas (4.6 million). Delta is larger at DFW than the leading carrier is at 23 of 40 large U.S. airports analyzed (see tables, Pages 7-10).
FAA program officials yesterday declined to guarantee that contractor Raytheon will be able to provide a Wide Area Augmentation System that provides Category 1 approach and landing capability. Carl McCullough, director of communications, navigation and surveillance systems, told reporters, "I really do not know when or if we are going to get to Cat 1.
Aegean Airlines, Athens, has signed an order for two Avro RJ100s for delivery in June and July, taking its fleet to six of the type. The move follows Aegean's purchase of rival Air Greece in December, making it the largest airline in the nation behind Olympic. Air Greece operates two Fokker 100s and three ATR-72s. The RJs will replace the Fokkers, standardizing the jet side of the fleet.
Canadian Airlines Friday asked for and won court protection as it proceeds with its restructuring. The Court of Queen's Bench of Alberta granted the airline's request, which Canadian board members say will not affect its operations or the operations of Canadian Regional.
Airborne Freight named Carl Donaway senior executive VP-air and ground services and Joe Hete president of subsidiary ABEX Air, succeeding Donaway. Jack Cella, executive VP-international, and Ray VanBruwaene, executive VP-field services, are retiring.
DOT granted China Southern Airlines a one-year exemption for cargo service between Shenzhen, China, and the co-terminal points Anchorage and Chicago. The carrier told DOT it plans to serve the route three times a week with a Boeing 747-200 wet-leased from Atlas Air. (DAILY, March 6). (Docket OST-00-7000)
Legend Airlines' female flight attendants will be garbed in haute couture by Dallas designer Judy Ninman, who created a suit with a low-cut jacket and slit skirt. The airline has not announced a revised startup date.
Congressional and FAA sources say the agency will seek a $77 million fiscal 2000 supplemental appropriation. Administrator Jane Garvey tells House Appropriations transportation panel of a $461 million shortfall in operations, but ranking Democrat Rep. Martin Sabo (Minn.) says it doesn't make sense to enhance operations for 2000 when FAA will face the same issue in 2001. FAA has been in a cost-cutting mode for months because of the shortfall.
NTSB Chairman Jim Hall said the strike by professional engineers and technicians against Boeing held up part of the board's investigation of the EgyptAir 767 crash. Hall said wreckage recovery from EgyptAir Flight 990 will resume at the end of the month and the recovery operation will take up to 10 days to complete. The board wants to recover the remaining engine and, if possible, additional flight control components to "ensure that investigators will have access to all available wreckage and information that may assist them in determining the cause of the Oct.
Airbus has reduced delivery delays of A320 family aircraft, which were up to 30 days late as of January.But the situation will not be completely resolved until mid-year. The delays stemmed from a new procurement system at BAE Systems, which makes wings and other components. US Airways' delivery delays now stand at about two weeks and they should be "back on track" by June. "We've been very open with the airlines and nobody has had a problem," an Airbus spokesman said.
China Airlines named Alfred Kupferschmied to the position of VP of operations, effective March 20, in a move "designed to strengthen its management and training as well as to upgrade its flight safety reform program." Kupferschmied worked for 30 years at Swissair and most recently was an operations consultant of Lufthansa Technik.
