Standard&Poor's downgraded its ratings of US Airways yesterday to reflect a "persistent weak operating performance and a very aggressive financial policy." The current outlook for the carrier is "stable," but the senior unsecured debt was downgraded an additional notch yesterday, to triple-'C'-plus from single-'B.' The downgrade was made because secured debt has "increased materially," relative to the airline's asset base, placing unsecured creditors "in an effectively subordinated position." Despite the losses and substantial aircraft delivery commitments, S&
AeroInfo Systems of Canada announced a partnership with Embraer of Brazil to implement an advanced Collaborative Reliability Management System. Embraer will use AeroInfo's CRMS to create fully digital aircraft maintenance programs by enabling its 15 international partners to participate online in the company's next-generation regional jets. Fully digital maintenance programs will enable Embraer to bring new aircraft designs to market faster by reducing the amount of time needed for regulatory approvals.
Simplified Passenger Travel technology, or smart cards, is rapidly approaching reality, but it may require an industry-wide joint venture subject to antitrust laws, Joanne Young, an attorney at Baker&Hostetler, told an IATA Legal Symposium this week in San Diego.
In Brazil, TAM has invested $1.5 million to start online ticketing, and it expects to complete the investment by yearend. Varig has been selling tickets online since 1998 and will invest $100,000 this year to improve its home page. Varig estimates electronic revenues of $5 million this year. Transbrasil will introduce online booking in February, and VASP will follow in March. Each carrier estimates annual revenues of $2 million.
Ryanair yesterday reported a 33% increase in fiscal third quarter profits, earning a record 12.6 million Irish punts (US$15.7 million) thanks to an increase in average yields and the strength of the U.K.
DOT is on track to fill its long-vacant career deputy assistant secretary for aviation and international affairs position this month, sources tell The DAILY.Four candidates are Paul Gretch, DOT director of international aviation; Susan McDermott, assistant director, DOT office of international aviation; Arnie Levine, managing director at GKMG and former DOT director of international transportation, and Mary Walsh, FAA assistant chief counsel.
Nexttrip.com Travel entered into an "ePartner agreement" with GetThere.com to launch its full service travel site to consumers before the end of the month. GetThere.com's ePartner booking engine powers several top-ranked travel sites, including Trip.com and Uniglobe Online. GetThere.com will provide a complete booking engine to Vancouver-based Nexttrip.com. Nexttrip.com also said Robert Gregory has joined the company's board.
U.K. aviation negotiators, under pressure following a U.S. congressional proposal of possible sanctions against the U.K. late last week, offered the U.S. a "monumental proposal" that the U.S. side rejected, according to a U.S. aviation source. Reports in the U.K.
Sabena and Air Littoral, both members of the Qualiflyer alliance, have signed a code-share agreement, under which Sabena will place its code on all Air Littoral-flights except Nice-Geneva and Marseille-Zurich services, which are code-shared with Swissair. Sabena plans to serve Marseille and Nice with Air Littoral's code on its own flights at a later stage. Air Littoral operates 39 aircraft on 220 daily flights.
Talks between Boeing and its Society of Professional Engineering Employees in Aerospace (SPEEA) continued yesterday with the help of Richard Barnes, director of Federal Mediation and Conciliation Services, but SPEEA was poised to strike today if the two sides failed to reach an agreement. SPEEA Executive Director Charles Bofferding declined comment on the potential for a deal, but noted that the union was prepared to hold a strike rally at 10 a.m. PST.
The Clinton Administration's proposed aviation user fees, amounting to $965 million in the fiscal 2001 budget request sent to Congress on Monday, "are as dead as they can be," a spokesman for House Transportation Chairman Bud Shuster (R-Pa.) said yesterday. Shuster, the spokesman added, doesn't favor imposing new taxes. The DAILY erroneously reported Feb. 8 that Rep. Shuster was pleased with the user fees increase. He is opposed to the user fees, the spokesman continued, because "he doesn't think imposing new taxes is the way to go."
BWIA will begin service between Boston Logan Airport and Bridgetown, Barbados and Port of Spain, Trinidad. On Feb. 11, twice-weekly nonstop service begins between Boston and Barbados, continuing to Trinidad.
A KLM spokesman confirmed that the Dutch airline's alliance with Alitalia will be "under serious threat" if the Italian government does not solve Milan Malpensa's multiple problems "in the next few months." The long series of mishaps that followed the opening of Malpensa Airport strongly affected Alitalia, which announced "drastic measures" to cut costs. Yesterday, KLM Chairman Leo van Wijk said that "the overhanging uncertainty" regarding Malpensa "impacts the core of the alliance."
GE Aircraft Engines and CFM International last year won 57% of the total engine orders for commercial aircraft with more than 100 seats. The companies claimed victory yesterday, noting that they received 1,166 firm engine orders, down 22% from 1,499 engines in 1998. "Despite a flat industry volume, we are pleased to have expanded our installed engine base by more than anticipated in 1999," said President James McNerney.
American Trans Air will begin nonstop Seattle-Boston and Seattle-Chicago Midway service May 7. The airline is offering introductory fares starting at $99 each way.
BOEING 757 AND 777 AIRCRAFT OPERATING COSTS THIRD QUARTER 1999 DOLLARS PER BLOCK HOUR B757-200 AMERICA WEST AMERICAN CONTINENTAL DELTA Crew Cost $420 $709 $554 $562 Fuel&Oil 712 585 584 484
Lufthansa will expand its regional network, Team Lufthansa, with the beginning of the summer schedule. Cirrus Airlines, based in Saarbrucken, will fly from Saarbrucken and Mannheim to other German cities and possibly some foreign destinations, operating Dornier 328s under the Lufthansa code. Team Lufthansa includes Augsburg Airways, Rheintalflug, Contact Air, Cimber Air and Air Littoral.
Crossair's traffic grew 11.1% in 1999 for a total of 5.99 million passengers. The load factor declined by one percentage point to 54.6%. Of the 5.99 million passengers, 2.16 million were flown on behalf of Swissair. The carrier expects to issue financial results in March.
America West unveiled a new look yesterday for its Internet web site that it claims will provide easier and faster navigation. "Based on feedback received from customers, the site's content has been entirely reorganized under a new drop-down menu," the carrier said. The airline also speeded up response times and improved the site's reliability. The America West web site accounts for 4% of total revenues, while 11% of revenues came from Internet bookings in general. This spring, www.americawest.com will switch to a booking engine managed by GetThere.com.
Alitalia launched its Internet booking site in the U.S. yesterday, using the GetThere Exchange software platform. "There is an excellent opportunity to extend our reach globally," said Khursheed Palkhiwala, VP of marketing. Other airlines using the GetThere.com product include United, Northwest, All Nippon Airways and Air New Zealand.
Japan Airlines has formalized an agreement with Cuba's government tourist agency, Cubanacan, to operate a series of charter flights from Osaka to Havana in August with a technical stop at Vancouver, using 350-passenger Boeing 747s. This operation will coincide with Japan's vacation period, and JAL is ready to upgrade it to regular scheduled service depending on future demand.
Continental added online ticket purchasing capability for customers in Canada and the U.K. to its web site. In addition to English-language sites for Canadian and British travelers, the site includes language-specific sites for France, Spain and Japan.
TWA gained initial two-year exemptions for service to Bermuda from St. Louis and New York LaGuardia. The carrier plans seasonal service -- and the only nonstops on both routes -- daily from LaGuardia and twice-weekly from St. Louis, using MD-83s. (Dockets OST-99-6431, 6799)
