Northwest unveiled expansive plans yesterday to launch the largest single service expansion in its history with a 25% service increase at its Memphis hub, beginning in June. While the carrier expects an additional fourth afternoon bank of 45 flights will appeal to business travelers traveling through Memphis, the airline is facing an uphill battle as it has lost traffic and market share at the airport over the past three years, The DAILY has learned.
With a new brand image that cost it $2.5 million, BWIA is planning a public stock offering for March or April with help from Price-Waterhouse Coopers, so that U.S. stock market investors will have the option of buying and selling BWIA shares. The revamped carrier rebounded from a $17 million loss in 1997 to a $9 million profit in 1998, tempered by a loss of $6 million last summer due to the influx of cheap charter flights.
British Airways' pretax loss for its fiscal third quarter improved from last year and beat analyst expectations, but the carrier still suffered from transatlantic overcapacity and a "glut" of low-fare competition in many of its markets. A stronger British pound also hit the carrier and its large foreign exchange levels. BA's pretax loss was #60 million (US$96 million), down from a #75 million loss a year earlier. Revenues improved 3.2% to #2.2 billion (US$3.5 billion), but passenger load factor fell 1.0 percentage point to 66.8%.
BOEING 757-200 AND 777 SYSTEMWIDE AIRCRAFT UTILIZATION PER DAY THIRD QUARTER 1999 B757-200 AMERICA WEST AMERICAN CONTINENTAL DELTA Number of Aircraft Operated 13 102 32 101 Total Fleet Operations Departures 55 313 92 445
NASA has awarded a contract for development of a "Weakly Ionized Gas Shock Wave Modification System."By electrifying the air near an aircraft surface with a weak charge, the shock wave is pushed back from the surface, reducing the effect of the shock wave. This could reduce fuel consumption, increase speed, reduce heating and allow longer flights, NASA hopes.
World Airways' string of losses grew longer in the fourth quarter as the carrier reported a net loss of $2.9 million, 15.1% larger than last year's deficit, leading the carrier to predict further losses this year. For full-year 1999, the carrier posted a $7.6 million loss, a 30.9% improvement over 1998 results.
New York and Boston are among the focal points Atlantic Coast Airlines may have for Delta when it launches Delta Connection service in the spring, ACA Chairman and Chief Executive Kerry Skeen told analysts in New York last week. Skeen stopped short of saying ACA is committed to serving the routes. Although analysts predict the airline will fly Delta service to those cities, Skeen said, "It's too early to tell where they will be flying," then hedged with "maybe New York and Boston." ACA will announce its first O&D cities in May and two more later.
Vanguard Airlines will lose two top executives this month when Chief Financial Officer William Garrett and VP of Marketing and Planning Russell Winter resign from their positions. Garrett accepted a position with Gemini Air Cargo as its new CFO.
Jet fuel spot prices in New York ended last week at $1.14 per gallon, down 8% from the beginning of the week but up 229% from a year ago, according to Deutsche Banc Alex. Brown. Crude oil is trading at more than $28 per barrel.
Delta and US Airways are moving closer to launching redesigned Internet sites.Delta has been beta-testing its new design and will unveil it Thursday. US Airways does not have a firm date for its new site launch, but Salomon Smith Barney analyst Brian Harris said it is expected in the next three to six weeks. US Airways receives roughly 9% of its revenues over the web, which Harris said is roughly twice that of other large airlines.
National Air Transportation Association launched a grassroots campaign Friday to get senatorial support for FAA general fund spending. A coalition of aviation groups plans a news conference Wednesday to show solidarity in securing "adequate funding for FAA." NATA noted that congressional efforts have been "hindered" by differences in how to fund aviation programs.
Benjamin O. Davis Jr., American By Benjamin O. Davis Jr. tells the personal story of a high-ranking Afro-American military officer and the ostracism he endured during his career, as well as the positive changes in race relations made after WWII that opened opportunity to all officers.
FAA said Friday it will levy a $93,000 fine against the Port Authority of New York and New Jersey for allegedly violating safety regulations in its operation of Kennedy Airport. FAA said the alleged violations stem from the failure to correct in a timely manner discrepancies found during FAA's airport certification inspection in mid-1999. FAA said the timetable for clearing the discrepancies was outlined in its letter of correction to the Port Authority.
Air Canada plans to invest C$23 million in a maintenance facility at Montreal Dorval, creating up to 200 new jobs at the Dorval technical center and upgrading existing facilities for third-party maintenance services for Boeing 767 and Airbus A330 and A340 aircraft. President and Chief Executive Robert Milton said, "The payback for Air Canada will be reduced costs, greater efficiency and the ability to generate more revenues from third-party maintenance contracts."
DOT tentatively found Cardinal Airlines fit for scheduled service. The startup carrier plans all-first-class service from its Melbourne, Fla., base to major U.S. East Coast points, with initial service planned to Baltimore using two DC-9 aircraft configured for 112 passengers. Cardinal has contingency plans to begin reduced operations of two daily roundtrips in the market with one airplane if "only part of its current offering is sold." The carrier would require $9.11 million in additional funds to operate two aircraft and $6.6 million to operate one.
In Federal Register dated Feb. 1...Issued an airworthiness directive on Bombardier DHC-8 aircraft requiring inspection of switches for the propeller control system...Issued an AD on certain Boeing 747 aircraft requiring inspections of a main entry door frame...Issued an AD on Rolls-Royce Trent engines requiring inspections of shaft splines.
Airbus confirmed last week that the list price for the A3XX-100 will be $212 million and that the design achieves a 15% reduction in direct operating cost per seat from the Boeing 747-400. To date, Airbus says it has invested nearly $600 million in the 555-seat aircraft, and Senior VP of Commercial John Leahy said the carrier hopes to secure launch customers by yearend. "We are talking with carriers around the world to see if this is the right time to launch," he said.
British Airways expects to report a disappointing loss when it reveals financial results today. Although BA has hedged more of its fuel requirements than many European carriers, it still will be affected by rising prices and a drop in overall traffic. One bright spot is the carrier's business traffic, which appears to be improving.
Senate Budget Chairman John McCain's (R-Ariz.) stunning win in the New Hampshire Republican presidential primary ensures he will remain outside any lead role in House-Senate FAA budget negotiations. This is similar to last fall, when he was absent as well. A congressional source said McCain talks to his committee staff daily about ongoing business.
Midway Airlines posted a fourth quarter net profit of $1.1 million, down more than 68% from the same 1998 period, when it earned $3.5 million. The carrier was slammed by rising fuel costs, increased competition at its Raleigh/Durham hub and a "Y2K-related revenue shortfall." Revenues for the quarter rose 4% to $57.9 million.
British Airways plans to add a second daily flight between London Gatwick and Atlanta, beginning April 1. BA will operate its morning departure with Boeing 767s and its noon flight with a 777. Delta is the only other carrier operating nonstop service on the route with twice-daily service.
Northwest is looking at folding Express I into Mesaba as one possible strategy to grow the carrier, Mesaba CEO Paul Foley said. He told analysts, however, that a more likely scenario would be to bring 44-seat RJs into Mesaba's fleet.
British Airways expects to report a disappointing loss when it reveals financial results today. Although BA has hedged more of its fuel requirements than many European carriers, it still will be affected by rising prices and a drop in overall traffic. One bright spot is the carrier's business traffic, which appears to be improving.
