LTU International Airways plans to launch one weekly nonstop flight between Toronto and Dusseldorf, Germany, on May 3 and add a second frequency May 22. The service will be operated on Mondays and Wednesday with Airbus A330-300 equipment.
Austrian Airlines Group for the first time in its history carried more than 8 million passengers. The three airlines, Austrian, Lauda and Tyrolean, transported 8.04 million passengers last month, a 5% gain from December 1998. Load factor was 69.3%. The group offered 12.2% more capacity and 10.4% more revenue passenger miles.
COPA Airlines finalized plans to acquire four Boeing 737-700s as part of its international and regional expansion plans from its Panama City hub. The aircraft deal was backed by the U.S. Export-Import Bank, which is providing $113 million in long-term guarantees for the aircraft and two spare CFM engines. "This is the largest transaction ever authorized by Ex-Im Bank for a company in Panama," said Bank Chairman James Harmon. The latest transaction is more than double the previous record, a $60 million financing of a gas turbine export in 1994.
Continental posted a 67.9% January load factor, the second highest January load factor in its history, and 0.1 point below the record set last year. Revenue passenger miles climbed 7.3% from the same 1999 month and available seat miles rose 7.3%, which pushed load factor down 0.1 percentage points. Domestic traffic gained 2.1% and capacity 1.2%, raising load factor 0.6 points to 68.3%. International traffic grew 16.5% on 18.5% more capacity, dropping load factor 1.1 points to 67.3%.
If Congress wants to shift air traffic control from the FAA to a user-funded corporation, it should try it gradually and in a limited air traffic environment, such as oceanic ATC, DOT Inspector General Kenneth Mead suggested yesterday. Mead told a combined hearing of the Senate Budget Committee and Senate Appropriations transportation subcommittee that the advantage of trying out privatizing oceanic ATC is that the traffic load is comparable to commercial ATC, such as Nav Canada and Air Services Australia.
SAirGroup and the Portuguese yesterday reached agreement on the partial privatization of TAP Air Portugal. Under the deal, SAirGroup takes a 34% stake in TAP, already a member of the Swissair-led Qualiflyer group. SAirGroup declined to disclose the size of its investment.
The National Mediation Board has ordered US Airways and its flight attendants, represented by the Association of Flight Attendants, back to the bargaining table next Tuesday. Talks recessed Jan. 27. An AFA spokesman said the two sides remain "very far away" from reaching a bargaining agreement.
Air Canada reported record operating income of C$503 million (US$349 million) for the year ended Dec. 31, 1999, an improvement of C$359 million from 1998 and C$135 million from 1997. The 1998 results were lower due to a pilot strike, which grounded flights for 13 days in September 1998. Removing the estimated impact of this strike, operating income improved $109 million, or 28%, and net income increased C$74 million. "In 1999, Air Canada achieved its highest operating income in the company's 62-year history," said Chief Executive Robert Milton.
Alaska Air Flight 261 flew in an inverted position during its tragic descent, according to a preliminary review of the cockpit voice recorder. NTSB Chairman Jim Hall said the recording reveals a discussion of a problem in the trim system of the MD-83. The pilots diverted to Los Angeles Airport and the trim problem worsened, he said. The pilots reported difficulty controlling the plane but arrested the descent.
Boeing's engineers and other technical workers have agreed to continue working with the company to avert a strike despite the rank-and-file's rejection of the second contract offer Tuesday. Society of Professional Engineering Employees in Aerospace (SPEEA) leaders have agreed to attend a meeting at the government's request on Monday in Seattle led by Richard Barnes, national director of the Federal Mediation and Conciliation Service.
Fairchild Aerospace said SolAir, Naples, Italy, signed a letter of intent to purchase two 328JETS and two 728JETS. SolAir, a new carrier, plans to begin operations next year from Naples Capodichino Airport, using the 32-seat aircraft until it gets the larger aircraft in 2003.
Delta and Air France plan to offer daily, nonstop code-share service from Paris Charles de Gaulle to both Lisbon and Porto, Portugal. The service will be provided on Air France-operated aircraft, beginning March 1. Delta cooperates on flights with TAP-Air Portugal from New York Kennedy and Newark to Lisbon but expects to end that relationship "as it continues to build its global alliance with Air France."
U.S. major airlines posted a 5.2% operating margin in the fourth quarter, down 0.9 percentage points due to higher fuel costs, according to Merrill Lynch.If jet fuel had been the same price year-over-year, airlines would have improved their margins to 7.2%. Southwest and Delta had the highest quarterly margins
United's advertising agency Fallon McElligott said this week it will be acquired by the Publicis Group, Europe's largest advertising and communications agencies. Minneapolis-based Fallon McElligot will retain its name and management but said the agreement grants Publicis Group 100% ownership in the company. Financial terms were not disclosed. The Paris-based Publicis Group will act as a holding company, offering two "distinct networks" managed autonomously and independently of each other.
Dublin-based Ryanair, which dubs itself Europe's version of Southwest, expects to continue its profitable climb in the fourth quarter, Chief Executive Michael O'Leary told analysts in New York this week. Speaking at the SunTrust Equitable Securities Growth Airline Conference, O'Leary cautioned investors "not to expect hugely positive earnings." Ryanair will release its earnings Tuesday. Its share prices have jumped 30-40% in the last three months, and O'Leary believes company shares are overpriced at the moment.
NovAtel, Calgary, received an order from Raytheon for six more GPS receivers that will be used as spares for the Wide Area Augmentation System. The company it has delivered more than 200 receivers to the U.S. WAAS, Japanese MSAS, European EGNOS and other WAAS-related programs. NovAtel's WAAS standard and ground uplink system receivers are used to decode the geostationary satellite downlink and provide pseudorange, time and message feedback.
Balkan, Bulgaria's national carrier, plans to introduce flights to New York, Reuters reports. The airline wants to cooperate with Uzbekistan Airways, which flies Boeing 767-300s and Airbus A310s. Balkan has five Boeing 737-300s and -500s, but no suitable long-haul equipment. Uzbekistan Airways could make a stopover in Bulgaria's capital, Sofia. The carriers did not elaborate on when the new service will be launched.
Boeing 747 Systemwide Aircraft Utilization Per Day Third Quarter 1999 B747-100 United Total Number of Aircraft Operated 2 2 Total Fleet Operations Departures 5 5 Block Hours 23 23 Flight Hours 20 20
American yesterday took a strong competitive step by unveiling plans to cut two rows of seats from every aircraft to create a new economy class with greater legroom. The $70 million campaign is called "More Room Throughout Coach" and is aimed at boosting yields and gaining market share, executives said in Washington yesterday. The carrier already has begun work to remove 6.2% of coach capacity by eliminating 7,200 seats in its fleet of more than 700 aircraft.
Dallas Love Field quickly is becoming a powder keg of airline competition. DOT said yesterday it will seek an injunction against further state court interference by Fort Worth at Love Field directed at startup Legend Airlines. At the same time, American, which has fought legally to stop Legend from flying, announced its own plans to operate from Love Field to Chicago and Los Angeles. On Tuesday, the Fifth Circuit of Appeals of New Orleans ruled that DOT had the right to grant Legend authority to operate from Love Field.
A Washington-New York US Airways Shuttle was commandeered yesterday by Vice President Al Gore and his entourage after Gore's plane would not start. US Airways cleared the first six rows of the plane for his team, and the Shuttle became Air Force Two.
House Transportation Chairman Rep. Bud Shuster (R-Pa.) yesterday offered to accept a cap on the general fund contribution of 20% of the budget, below its historical average of 30%. But he said there has not been enough progress in informal talks to justify recalling House-Senate FAA reauthorization conferees. Shuster, chairman of the conference, is in charge of the timetable. The conference has met only once, Jan. 26, this year. Shuster told The DAILY that "a lot of discussions are taking place" informally between the House and Senate staffs.
Delta raised fares without the approval of Japan's Ministry of Transport and will refund the difference to passengers. Following a decision to hike fares on all international services, Delta's Tokyo office raised fares 3% Jan. 26 without filing an application at the ministry. Japan's aviation law requires carriers to file fare changes at the ministry at least 30 days before enforcement. Delta planned to seek ex post facto approval the following week. The MOT said Delta's action constitutes the first illegal fare hike in Japan's aviation history.
DOT Secretary Rodney Slater said yesterday he is "profoundly disappointed" by the lack of agreement on the U.S.-U.K. bilateral despite repeated efforts by the two sides. Speaking to the International Aviation Club and the Aero Club of Washington, Slater said the U.K.'s "unwillingness" to allow restoration of Pittsburgh-London service is "regrettable," particularly when the Pittsburgh market clearly supported the now-ended service by British Airways for years and US Airways is ready to step in. He called the U.K.'s failure to negotiate a new agreement with the U.S.
