As Y2K issues drop off the industry radar, airlines have everything to gain by focusing resources and staffing on the benefits of information technology. By the end of 1999, most non-aviation companies, realizing the benefits of electronic transactions, had given "dot.com" and "e-commerce" a top spot in their strategic plans. It is troublesome, however, to watch how slowly airlines and aerospace manufacturers are warming to this powerful tool.
AirTran posted a 6.9% surge in traffic on 2.9% more capacity for December, compared with the same 1998 month, which boosted load factor 2.6 percentage points to 57.8%. Passenger boardings were up 7.6%.
Regional carrier Falcon Royal Air will inaugurate service between Caracas and Coro, Barquisimeto, Aruba and Curacao, using two Beech 1900s, soon to be augmented by three regional jets. The carrier, whose plans were affected by the recent floods and mud slides near Caracas Maiquetia Airport, is managed mainly by former Viasa executives.
US Airways reported a 2.0% increase in traffic last month on 4.7% more capacity, which pushed load factor down 1.7 percentage points to 63.3%. Domestic traffic grew 0.2% and capacity rose 4.7%. International traffic jumped 16.6% and capacity 4.4%. US Airways Express traffic fell 3.2% as capacity grew 3.7%, dropping load factor 3.6 points to 51.3%. The airline completed 98.2% of its scheduled departures for the month, compared with 96.7% in December 1998. Traffic for the 12 months of 1999 was up 0.5%, and capacity grew 4.3%. Load factor fell 2.6% to 70.1%.
Mexico City-based Taesa reported three groups of investors -- one of them from Asia -- are ready to provide $130 million to restructure the grounded carrier's finances, which is one of the 69 conditions imposed by the government to allow it to resume operations. Other major conditions refer to increased safety and maintenance standards, which Taesa has been improving since canceling all scheduled flights Nov. 22 after a crash of one of its DC-9s killed 18 people near Michoacan.
Cape Air and Delta have reached an agreement to give passengers better connections and joint fares for travel to St. Thomas and St. Croix. in the U.S. Virgin Islands. Joint fares give discounts for travelers connecting from Delta in San Juan or St. Thomas to any U.S. Virgin Island Cape Air destination. Cape Air President Dan Wolf called the airline's first year of service from San Juan to St. Thomas "a huge success." The increased flight schedule and alliance with Delta "will provide seamless connections for our Virgin Islands-bound passengers," he said.
Servisair USA, the U.S. subsidiary of French cleaning and airport services group Penauille Polyservices, purchased Cleveland-based Global Ground Services and Tristar Airlines Services' business in Dallas/Fort Worth, the French group said in Paris. Global Ground services, which operates at 17 U.S. airports, owns the brands Aviation Ground Services, World Cargo Services and Global Aviation Fuel.
American Airlines parent AMR Corp. elected Philip Purcell to its board of directors yesterday. Purcell is the chairman and chief executive of Morgan Stanley Dean Witter&Co. "His insights and acumen will be invaluable to our Board," said AMR Chairman Don Carty. Purcell was chairman and CEO of Dean Witter, Discover and its predecessor companies from 1986 to its merger with Morgan Stanley in 1997.
Priceline.com expects to report an operating loss in the fourth quarter, but the shortfall is narrower than in the third quarter due to record revenues. The company achieved record metrics last quarter, adding nearly 1 million unique customers and setting sales records for each of its product offerings, including the sale of more than 700,000 leisure airline tickets. With its most recent customer additions, Priceline.com now has a base of 3.8 million customers.
In Brazil there is a growing number of investors interested in acquiring shares in Embraer, now the world's fourth largest aircraft manufacturer. Embraer, which has an alliance with France's Aerospatiale, recently firmed substantial international orders for its commercial and military products. To cater to new investor demand, the Sao Paulo Stock Exchange, Brazil's number one bourse, is adding Embraer common stock to its leading blue-chip index.
KLM systemwide traffic last month increased 5% on 1% more capacity, which improved load factor 3.3 percentage points to 75.2%. The airline said it was encouraged by an 8% rise in business-class traffic, while capacity was flat. The strongest overall traffic growth -- 15% -- occurred on its Asia/Pacific routes. Passenger traffic was up 1% and capacity 2%, with the strongest growth within Europe. Cargo traffic gained 12% and capacity 1%, producing a cargo load factor of 76.3%. Cargo traffic to Asia/Pacific jumped 22%.
US Airways said miles earned in its Dividend Miles program will not expire if the member has any type of qualifying account activity during a 36-month period, part of enhancements to the frequent flyer program that began Jan. 1. Qualifying account activity applies to miles earned on flights, Dividend Miles Visa card use or through any Dividend Miles partner programs, including airline, hotel, car rental, telecommunications and miles redeemed through the program.
Alaska Air's traffic rose 2% in December to 990 million revenue passenger miles. Capacity was up 4.9% to 1.42 billion available seat miles, dropping load factor 1.9 percentage points to 66.5%. Passenger boardings declined slightly. For full-year 1999, however, the airline's traffic rose 4.4%, outpacing the 3.2% capacity increase. Subsidiary Horizon Air's December traffic grew 9% and capacity 11%, depressing load factor 1.1 points to 64.5%. Passengers carried surged to 422,800 from 418,200.
Emirates will launch new service to Bahrain from Dubai Jan. 25, adding the last Arab Gulf Cooperation Council (AGCC) destination to its network. For the first week of service, Emirates will operate six flights. From February 1 to March 25, the schedule will increase to 11 flights a week. March 26-Oct. 28, Emirates will fly twice a day to Bahrain. The airline also will start services to Sydney and Entebbe, Uganda, March 26 and 29, respectively, and will receive five more Airbus A330-200s and one more Boeing 777-300s.
Atlantic Southeast has named Richard McAdoo VP-corporate safety and compliance. He was formerly director-flight safety and quality assurance for US Airways.
Atlantic Coast Airlines will expand its United Express service to Savannah/Hilton Head and Chicago O'Hare on Jan. 31. ACA will offer a total of four flights each day from Chicago to Savannah and three return flights, an increase from the previous two per day. United Express Savannah-Washington Dulles service will remain in effect with a new schedule of three daily flights. ACA Chairman and Chief Executive Kerry Skeen said the demand for the Savannah/Hilton Head-Chicago service has been overwhelming since it was introduced in May.
Contrary to Alitalia's fears, KLM paid the Italian carrier 100 million euros to finance a joint hub at Milan Malpensa Airport, Alitalia sources confirmed yesterday in Rome. The Italian government's decision to freeze the buildup of traffic at Malpensa last month was said to threaten the alliance with KLM. Suspension of the plan to concentrate flights at Malpensa "will seriously jeopardize the results expected in 2000," said Alitalia's board in a statement released Dec. 24.
Skymark Airlines plans to launch international service by mid-2001, the carrier said yesterday. The Japanese low-cost carrier hopes to start this year with charter flights between Fukuoka, Japan, and Seoul and Guam that would become scheduled service next year. Skymark currently flies three routes -- Tokyo-Fukuoka, Osaka-Fukuoka, Osaka-Sapporo -- with two Boeing 767-300ERs, and it plans to acquire several more 767s by yearend.
Cyprus Airways and Northwest told DOT they oppose action on United's request for U.S.-Cyprus code sharing with Lufthansa prior to action on the Cyprus Airways/Northwest request for similar rights. United told DOT that Cyprus would approve third-country code sharing on a reciprocal basis (DAILY, Dec. 13). Cyprus Airways and Northwest had wanted to begin code sharing between Amsterdam and Larnaca/Paphos on Dec. 15 (DAILY, Nov. 5).
America West again placed last in DOT's on-time arrival rankings in November, the fifth month in a row it has has held the lowest spot among the 10 largest U.S. carriers. In the DOT Air Travel Consumer Report, America West posted an on-time arrival rate of 69.1%, far below TWA's top ranking 89.7%. Northwest came in second with 88.1%, followed by Delta's 83.7%. America West also had the most passenger complaints in November -- 6.29 per 100,000 passengers -- compared with less than one for Southwest, which continued to have the lowest rate.
Royal Jordanian posted a 4.8% rise in revenue passenger kilometers in September, and its year-to-date traffic increased 1.9%. Freight volume fell 6.5% for the month and 15.1% for the first nine months of 1999. The airline's passenger count rose 6.2% in September to 115 million and reached 953 million for the year-to-date.
Office of Inspector General said it is opening a review of FAA's aircraft safety research and development program at the request of Congress. FAA spends about $45 million a year on the program, which includes safety research in areas such as advanced materials, fire safety and crashworthiness. About half the budget, $22 million, is devoted to aging aircraft.
