LanChile Cargo launched flights to its fourth U.S. gateway last weekend with the introduction of Boeing 767-300 freighter service to Houston. LanChile says it is the only carrier offering scheduled cargo service from Texas to the southern part of South America. The carrier will launch its service with weekly direct flights from Houston to Buenos Aires, with continuing service to Santiago, Chile. Flights depart on Sundays using the 767-300s, which have a 55-ton capacity. "We see great potential with this new service," said Claudio Silva, VP-North America.
America West named Thomas Weir VP and treasurer to oversee all of the company's treasury activities. Weir joins America West from Airbus of North America, where he worked 12 years in a variety of financial management and customer finance positions, most recently as director-sales finance. Before joining Airbus, Weir held treasury and financial management positions with Saab Aircraft of America.
Air Canada and Mexicana asked DOT to amend their authority for Mexico City-Chicago-Toronto/Montreal/Ottawa/Winnipeg service to include additional points in Canada and any points in Mexico, via any points in the U.S. The carriers want to code share on Air Canada service between Montreal, Toronto, Ottawa, Winnipeg, Edmonton, Vancouver, Calgary and Halifax via any U.S. points -- on a blind-sector basis -- to any Mexican points served by Mexicana. (Docket OST-00-6815)
Swissair and Sabena will reduce travel agents commission payments to a 5% base from 8%, effective Feb. 1, saying the move is in "in line with steps taken by other airlines." All Swissair and Sabena tickets issued in the U.S. to the carriers' destinations will earn agencies a 5% base commission rate with a maximum payment of $100 for roundtrip tickets and $50 for one-way tickets. The new commission structure will apply to all tickets issued, including miscellaneous charge orders, and prepaid ticket advices purchased on or after Feb. 1.
The United States Travel Agent Registry (USTAR) and the Canadian Standard Travel Agent Registry (CSTAR) jointly filed emergency petitions at DOT and the Canadian Transportation Agency to stop carriers from abusing industry ticketing procedures to collect fees, taxes and surcharges.
Nav Canada reported first quarter revenues of $229 million, which it said were derived primarily from user fees. Revenues for the quarter, which ended Nov. 30, were $13 million lower than in the first quarter of the previous year "due to reductions in user charges ranging from 7.5% to 13.7%," the company said. Operating expenses of $178 million were $3 million lower. "Increases in employee compensation and training have been more than offset by cost-reduction initiatives," Nav Canada said.
U.S. National Carriers Productivity In Revenues And Expenses Per Employee Third Quarter 1999 Total Total Operating Operating Revenues Expenses Total (000) (000) Employees AirTran Airlines 143,483 113,913 2,974 Aloha 59,923 59,516 2,406
Mumbai-based Jet Airways is looking at acquiring a fleet of as many as 20 regional aircraft. India's largest privately owned airline wants to use the aircraft to set up a regional network that would feed its hubs in Mumbai and Delhi and connect cities, such as Calcutta and Chennai, with secondary airports. Chairman Naresh Goyal says he sees "a lot of smaller aircraft coming in" and is "definitely looking at regional jets." Currently, Jet Airways flies 25 Boeing 737s -- Classics and Next Generation models -- and three ATR 72-500s.
Sabre Holdings reported that its fourth quarter net earnings, excluding special items, grew 72% to $42 million, compared with net earnings of $24 million in the same 1998 period. While the profit was in line with analyst expectations, overall revenues for the quarter fell 5.4% to $540 million. As anticipated, revenues from the information technology unit dropped 24% due to the completion earlier in the year of conversion work on the US Airways outsourcing contract.
Meridiana's largest stakeholder plans to sell his 79.3% share in the Italian regional airline to enable the carrier to grow its network. The Aga Khan, the founder and owner of the private carrier, is no longer involved in the operations of the carrier, according to a statement and said he wants the carrier to grow and possibly attract a European alliance partner. The company's employees own 16.6% of the carrier. Meridiana named Lloyds and KPMG in Milan as advisers to the airline on the sale.
American Trans Air plans to add new nonstop service between Los Angeles and Cancun, beginning May 14, and additional nonstop service between Maui and Los Angeles, beginning May 13. The new Maui service adds a sixth weekly roundtrip between Los Angeles and Hawaii. Initially, for the Los Angeles-Cancun service, weekly nonstops will be offered on Sundays through Sept. 24.
Midwest Express Holdings reported an 8.8% drop in fourth quarter earnings to $7.5 million on a 54.7% jump in fuel expenses during the period. Revenues rose 19.3% to $115.2 million but could not keep pace with the 23.7% increase in total operating expenses. "It was a difficult quarter, primarily because higher fuel prices lowered earnings $0.20 per share," said Chief Executive Tim Hoeksema. Unit costs grew 6.4% at Midwest Express Airlines and 4.6% at Skyway Airlines.
RAA President Walt Coleman, in charge since 1992, yesterday said he will retire March 30. Coleman has been president of the Aero Club of Washington and serves on several boards.
British Airways continues to look for ways to cut expenses and win back passengers by fundamentally changing its travel agent payment structure. In a bold move, the carrier yesterday said it will cease its current 7% commission payments to be replaced by a "fairer and cleaner" structure. While the specifics were not released, BA plans to institute a three-tier structure, paying agents for the basic service of making a booking, issuing travel documents and collecting the fare, beginning Jan. 1, 2001.
DOT yesterday instituted a proceeding for expansion of U.S.-China air service in 2001. The department will "consider the selection of a fourth U.S. carrier" and allocate 10 additional frequencies that become available April 1, 2001. Incumbents United, Northwest and FedEx and market hopefuls American, Delta, UPS and Polar Air Cargo have applied for a total of 51 frequencies. (Docket OST-99-6323)
U.S Major Carriers Productivity, In Revenues and Expenses Per Employee Third Quarter 1999, In Dollars Total Total Operating Operating Revenues Expenses Total (000) (000) Employees Alaska 478,433 402,592 8,755 America West 538,175 499,328 12,430
U.S Major Carriers Productivity, In RPMs And ASMs Per Employee Third Quarter 1999 Revenue Available Passenger Seat Miles Miles Total (000) (000) Employees Alaska 3,273,801 4,650,722 8,755 America West 4,663,161 6,539,522 12,430
Japan Airlines' domestic route carrier J-Air has ordered two CRJ200 regional jets and placed options on three CRJ aircraft from Bombardier. The airline said the aircraft will cost about $22 million each and the details of the financing have not been announced. The first new aircraft will be delivered in November and the second in March 2001. The J-Air fleet, based in Hiroshima, currently consists of five 19-seat Jetstream 31s serving routes in southwest Japan.
SEPI last Friday agreed to retain American parent AMR Corp. as an 8.5% stake holder in Aerolineas Argentinas. However, a board member of the government holding company, Juan Gurbindo, will become the airline's chief executive Feb. 1, replacing former American executives Diego Cousino and David Cush. According to DAILY affiliate Aviation Latin America&Caribbean, SEPI agreed to funding the Aerolineas temporarily.
United decided to keep its daily New York Kennedy-Caracas service "suspended indefinitely" following the deadly mudslides late last year that closed the main airport. United has been operating its Miami-Caracas flights on an irregular schedule, and a spokeswoman said the airline is "committed to quickly getting Miami service back on a normal schedule." Pending an evaluation of local conditions, the carrier will likely adjust the flight times next week. American and Continental are the other U.S. major carriers offering daily service from New York to Caracas.
Several aviation groups yesterday backed U.S. government plans to file a formal legal complaint against the European Union's rule to limit use of hushkit-equipped aircraft. The Air Transport Association, the General Aviation Manufacturers Association, Aerospace Industries Association and Cargo Airline Association urged the State Department to take action promptly on the issue. They said the hushkitted aircraft meet ICAO noise standards for Stage 3 aircraft.
Legend Airlines received a DOT waiver yesterday that allows it to begin taking payments for reservations before its final FAA certification.The Dallas-based carrier plans to announce its launch cities and advertising tomorrow. Its first four DC-9s are receiving final modification for the service inaugural next month.
Ozark Airlines, a Columbia, Missouri-based startup, starts flight-proving activities today in anticipation of beginning scheduled service in February. The carrier is receiving a "lot of attention and help from FAA," according to President John Ellis.
Tropical International Airways, based in St. Kitts, has requested DOT authority to start scheduled services between Basseterre and Atlanta, Boston, Chicago, Dallas/Fort Worth, Fort Lauderdale, Los Angeles, New York, Orlando, St. Croix and Washington, plus intermediary points at Antigua, Freeport, Nassau, Barbados, Bermuda, Santo Domingo, Grenada, Guadeloupe, Georgetown, Port-au-Prince, Fort de France, St. Lucia, St. Martin, St. Vincent, Trinidad, Providenciales and Porlamar.
Lucio Tan, executive chairman of struggling Philippine Airlines, has acquired a 50% stake of rival private carrier Air Philippines (APP). Tan declined to say how much he paid William Gatchalian, chairman and owner of APP, for the stake, but sources in Manila told The DAILY Tan put the amount at US$156 million. Gathchalian, who in 1998 turned down Tan's request for a 60% controlling stake, now is willing to allow Tan or any other party to buy the remaining 50%. Tan, who has strong links with the Philippine government, will have preference.
