Northwest and Air China applied at DOT to expand their U.S.-China code share by adding six points in China, available April 1 under the bilateral. Northwest wants an exemption to serve Chengdu, Nanjing, Qingdao, Shenyang, Xiamen and Xian from the U.S. under code share with Air China from Beijing and Shanghai. Air China requested authority to display Northwest's designator code between Beijing and Shanghai and the six additional Chinese points, which would receive their first online service from a U.S. carrier.
Boeing Airplane Services last month delivered two MD-11s that were converted to freighters. One went to Korean Air and the other to China Eastern Airlines. The Korean Air aircraft is the first MD-11 to be modified at the Wichita Modification Center. Boeing recently took delivery of two more MD-11s for cargo conversion for Gemini Air Cargo. One aircraft will undergo reconfiguration at Israel Aircraft Industries' facility, as was the China Eastern aircraft.
For the first time in more than four decades, Los Angeles and Havana will be linked by nonstop flights, beginning in April. Cuba Travel Services has been awarded authority on this route, both as charter operator and seller of travel services, and it plans to start with one nonstop flight a week for passengers who are eligible to travel to Cuba according U.S. government regulations. Until December, when flights were inaugurated from New York, the only U.S. gateway to Cuba was Miami.
United and Austrian Airlines have asked DOT for reciprocal code share rights. Austrian will end its alliance with Delta March 25, and United and Austrian intend for their arrangement to be effective March 26. The carriers want authority to display each other's designator codes between any points in their home country and points in the other carrier's homeland, nonstop or via intermediate points; between any points in their home countries as part of U.S.-Austria code-share services, and between points in either the U.S. or Austria and points in any third country.
SAS developed a new service that will allow flight reservations to be made using a Wireless Applications Protocol (WAP)-based mobile telephone system. The airline said a group of selected corporate customers has been chosen to test the new service during a trial period. The service provides access to the SAS timetable, opportunities to check real-time flight status for SAS aircraft, and details of customers' frequent flyer accounts.
Northwest yesterday reported a fourth quarter profit of $29 million, far better than the same 1998 quarter when it posted a $181 million loss due to the September 1998 pilots strike. The airline, showing a net margin of 1.1%, was "significantly affected" by higher fuel prices, according to Chief Financial Officer Mickey Foret. Northwest's average fuel cost per gallon during the quarter jumped 25.1% to 62.69 cents. Its profits exceeded analyst expectations, but were far less than in the same 1997 period when the carrier earned a record $105 million.
Freight customers are less tolerant of the 3% fuel charge that FedEx is imposing beginning Feb. 1 than they are of the 3.5 domestic air price increase UPS will put into effect on Feb. 7, according to a survey by Bears Stearns analysts. "Although UPS would eventually charge freight customers more than that of their counterpart, the customers were more accepting of their list price increase structure," said Edward Wolfe, managing director, and Thomas Wadewitz, research associate.
Northwest has deployed AD OPT's Altitude Pairing crew scheduling system worldwide, the software company said. Northwest initially deployed Altitude Pairing in April 1997.
Government of Honduras in March will review bids for the improvement and management of the country's four international airports -- Tegucigalpa, San Pedro Sula, La Ceiba and Roatan, a project worth $150 million. Among eight potential bidders is the consortium that manages San Francisco Airport.
Mesaba Holdings reported a record fiscal third quarter net income of $7.9 million for the three months that ended Dec. 31, 1999. Total operating expenses jumped 21.5% to $89.4 million from $79.4 million. Total operating revenue rose 25.4% to $101 million. Mesaba saw a 63.7% gain in operating income to $11.6 million. Wages and related costs were up 3.8 cents per available seat mile and fuel 1.2 cents per ASM. Paul Foley, who took over as Mesaba's chief executive Oct.
Pegasus has leased 757-200ERs to first-time customers LTU International Airways and Mexicana as well as existing 757 customers National Airlines of Las Vegas and TWA.
Calgary-based WestJet Airlines said yesterday it will develop a hub in Hamilton, Ontario, offering service to Winnipeg and Thunder Bay beginning March 9, and to Ottawa, Halifax and Montreal by mid-summer, subject to airport negotiations. WestJet President and Chief Executive Stephen Smith said the airline will be the first to offer service from Hamilton to Thunder Bay and Winnipeg. WestJet saw "a window of opportunity" in Eastern Canada, "and we're the first to move into it," Smith told The DAILY.
Virgin Express named Laurent Jossart chief financial officer. Jossart was formerly CFO at CityBird Holdings. Virgin also named Neil Burrows, a former inspector for the U.K. Civil Aviation Authority, director-flight operations and Hugo Lucke director-customer services. Ignace Bral was appointed Virgin's legal counsel and Yves Panneels communications and public relations manager.
Mexico City-based Air Monarch Cargo S.A., which operates domestic all-cargo charters with one leased CV-580, mainly on the Mexico City-Monterrey route, has applied to expand its services to the U.S.
Air Canada said yesterday it will proceed with the consolidation of its regional airline subsidiaries Air Nova, Air Ontario and AirBC. Joseph Randell, president and chief executive of Air Nova and interim president of Air Ontario and AirBC has been appointed president of the merged entity.
United Technologies Corp.'s 1999 earnings grew 19% to $1.5 billion from $1.3 billion in 1998. The 1999 results include a $650 million after-tax gain on the sale of its automotive unit, which UTC said was more than offset by restructuring and other charges. Earnings for the fourth quarter grew 21% to $362 million before restructuring and other charges. Quarterly revenues were $6.5 billion, up 9%, and for the year $24.1 billion, up 6%.
Boeing Chairman Phil Condit yesterday said net earnings for 1999 were up 106% and the company could announce "easily before Farnborough" a go-ahead on a stretched 777. There has been a "lot of interest" in the 777X, and I continue to be very positive about it." He said Boeing also sees "renewed interest in the 747, which I see as very positive." Boeing "will likely increase production rates" on the 747 toward yearend or early in 2001, he said. There is "not nearly the kind of near-term interest" in the 747X as there is in the 777X, he added.
United and American felt the effects of mushrooming fuel prices and plunging December traffic but still managed to surpass analyst expectations with fourth quarter profits. United parent UAL Corp. posted a 22% improvement in fourth quarter earnings yesterday on surprisingly strong record revenues. UAL earned $230 million, compared with $189 million a year ago, topping analyst estimates. The profit excludes a one-time charge related to a write-down of two non-operating Boeing 747-200s and a one-time gain on a partial sale of its Equant holding.
Travel agents in Latin America and the Caribbean and some government agencies are reacting strongly to the latest commission cut to 6% by several U.S. and Latin American airlines, including Varig (DAILY, Jan. 19). In the Dominican Republic, the Civil Aviation Board flatly rejected American's decision and ratified its own Resolution 96 of June 1, 1988, fixing commissions at 10%.
GetThere.com said yesterday that Air New Zealand joined the roster of airlines using the company's GT Exchange platform for Internet travel booking. GetThere.com's list of airline customers includes United, Northwest, America West and All Nippon Airways.
Metropolitan Airports Commission (MAC) has approved a new lease agreement with airlines serving Minneapolis-St. Paul Airport (MSP) that includes provisions that will "foster a more competitive environment for new-entrant airlines." The lease runs through 2010 and features agreements on gate use and funds allocated for airport expansion and noise mitigation. One provision will maintain seven gates on short-term leases, which MSP said will help new entrants. MAC will be able to cancel the lease on short-term gates after 90 days.
China's imminent entry into the World Trade Organization (WTO) will exert pressure on the country's 35 airlines, especially those offering regional and international services, to be more competitive as they face stiffer competition from foreign carriers, according to a senior official at the Civil Aviation Administration of China. Xu Rong Xu, in a paper prepared by CAAC, forecasts widening foreign involvement in aircraft maintenance and reservations systems.
Randy Rademacher has been named president of Comair Holdings and Comair, a Delta Connection carrier. Rademacher succeeds David Siebenburgen, who became president and chief executive of Delta Connection. Rademacher previously was senior VP-finance and chief financial officer of Comair Holdings.
