SYSOPS, the Maryland-based company that developed the Avops system Pro Air used to pay travel agents, says it is not to blame for the airline's failure to pay commissions in a timely manner. Pro Air Chief Executive Kevin Stamper said in November that the airline could not get the system to work, causing Pro Air to miss payments to travel agents (DAILY, Nov. 15). Scott Hawkins, SYSOPS managing director, told The DAILY that the software was not to blame and after it was altered to Pro Air's specifications, "all Pro Air had to do was write the checks."
FAA soon will require U.S. airlines to complete a safety audit of foreign airline partners in order to gain future code-share approval. DOT and FAA unveiled the department's plan for reviewing the safety procedures of foreign-carrier code share partners at a press conference this week in Chicago. The expected announcement calls for DOT guidelines for U.S. carriers to "work with their partners to ensure that similar levels of safety are being applied," FAA Administrator Jane Garvey said. The plan requires a "formal safety audit performed by the U.S.
U.S carriers are expected to slow "top-line growth unless they can leverage their brands in a meaningful e-commerce ventures," form profitable international alliances or tap outsourcing opportunities, according to Merrill Lynch. Several carriers now are focusing on electronic commerce for potential growth, analyst Candace Browning said.
The National Research and Development Plan for Aviation Safety, Security, Efficiency and Environmental Compatibility, released Monday by the Clinton administration, is an "important first step toward an integrated approach to civil aviation R&D," the Aerospace Industries Association said yesterday.
American Chairman Don Carty yesterday pushed for the carrier to be awarded new slots to China. Speaking in Chicago, Carty spoke of benefits for American's Boeing 777 service from its Chicago O'Hare hub to Beijing and Shanghai. "There is so much more potential for more interaction between China and the rest of the world," he said. Carty expressed concern that the new routes will be awarded to cargo carriers. "International commerce requires human contact," he said.
DOT called its international aviation conference a success yesterday as the two-day meetings produced a statement on the accomplishments of the summit in addition to a "declaration of next steps." DOT Secretary Rodney Slater said in his closing remarks the discussions concluded that the "future evolution of a post-open skies aviation environment is likely to advance on a broad front, in many directions, rather than down a single path." He also noted that movement beyond open skies is likely to take place "in phases." The participants in the Aviation in the 21st Centu
UPS, citing growth in air express, yesterday said it will accelerate deliveries of new Airbus A300-600 freighters. UPS next year will take delivery of seven instead of four A300s. UPS is to get the first of 30 A300-600s on firm order next July, with deliveries through June 2004. UPS has options on another 30. UPS said in its third quarter financial results that average daily overnight air delivery volume rose 14.6% and international export volume rose by 22.1%.
Air Canada and American parent AMR Corp. are in discussions over AMR's future role in Canadian Airlines following Canadian's announcement that its board would recommend shareholders accept Air Canada's C$92 million buyout proposal. Canada's transport Minister David Collenette has endorsed Air Canada's bid. Canadian's board has asked shareholders to tender their shares by 5 p.m. today, the time at which Air Canada's offer expires.
U.S. GDP is forecast to grow 3.7% in 2000 and Merrill Lynch analyst Candace Browning estimates that airline traffic will grow 4.7% and net profit will jump 13% to $4.8 billion.While this is still below 1998 record income levels, we believe that it is impressive, as it would rank as one of the best years in airline history, she said.
Cheap Tickets Inc., a discount airline ticket retailer, is predicting that an ongoing fare war in the airline industry will impact its fourth quarter results. "The fare war began in the latter part of September when the airlines began aggressively discounting published fares and has continued into December, reducing the price advantage of our non-published fare business," said Chief Executive Michael Hartley.
FlightSafety Boeing Training International LLC will acquire two additional new Boeing 717 flight simulators. The first device will be ready for training in May 2001 and the second in the fourth quarter of 2001.
The National Research and Development Plan for Aviation Safety, Security, Efficiency and Environmental Compatibility was released yesterday by the White House's National Science and Technology Council and by DOT Secretary Rodney Slater. The new plan redefines the roles of FAA, NASA and the Defense Department, as well as the National Science Foundation, the EPA and the National Weather Service in developing aviation goals.
US Airways reported a 6.6% increase in traffic last month on 6.3% more capacity, which pushed load factor up 0.2 percentage points to 69.4%. Domestic traffic grew 4.6% and capacity rose 6.4%. International traffic jumped 23.8% and capacity 5.3%. US Airways Express traffic was up 1.4% as capacity grew 2.8%, dropping load factor 0.8 points to 58.9%. the airline completed 97.7% of its scheduled departures for the month compared to 98.5% in November 1998.
Maersk Air Limited signed a 5.1 million euro three-year contract with FLS Aerospace for the ongoing heavy maintenance of its five Boeing 737-500s. Building on a relationship first established in August 1996, the two companies extended the deal for maintenance of the 737s based at Birmingham, UK. The staggered maintenance program for next year includes four "D" checks and one "C" check, to be completed by October. Maersk Air operates a British Airways franchise routes network from Birmingham to other cities throughout Europe.
Summary of U.S. Major Carriers Domestic Traffic Second Quarter 1999 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change Alaska 3,205 3.14 847 2,714,543 2.80
TWA's traffic soared 19.8% in November, as domestic traffic rose 20.9% and international grew 13.4%. Capacity was up 10.4% overall, with a 5.8% increase in domestic flying and 3.5% growth in international seats. Load factor was 71.3%, up 5.5 percentage points.
AirTran Airways reported a 15.5% rise in November traffic on 3.6% more capacity, which boosted load factor 6.8 percentage points to 65.8%. Passengers flown gained 16.7% to 554,738.
Northwest Airlines systemwide traffic surged 8.7% and capacity 1.9% in November 1999 compared to the same 1998 month, which pushed load factor up 4.6 percentage points to 74.3%. Passenger boardings gained 8.1%. Domestic traffic jumped 9.3% and capacity 1.8%, boosting load factor 4.9 points to 71.1%. International service traffic climbed 7.9% and capacity 2%, which caused a 4.3 point rise in load factor to 79.5%. Pacific scheduled service traffic rose 7% on 2.9% more capacity, pushing load factor up 3.1 points to 79.8%.
Transbrasil's third quarter profit of $22 million dropped 89.1%, from $210 million in the same period last year, according to affiliate Aviation Latin America&Caribbean. The results would have been worse if the airline had not used a $10.8 million income tax deferral to push up profits. The deferral was done "based on projections for taxable results for future fiscal years." The company's net revenue increased last year, as its domestic network grew 22.3% and international network revenue declined 15.9%.
The long-expected decision to liquidate Aeroperu was taken last week in Lima in a vote supported by 80% of the grounded carrier's creditors, among them Mexican holding company Cintra and the Peruvian government. Because of its $170 million in debt, repeated attempts by minority groups to restructure the airline failed. Top Consulting has been appointed as liquidating agent and has been given 10 days to submit a specific liquidation proposal.
Summary of U.S. National Carriers Systemwide Traffic June 1999 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (miles) (000) Change AirTran Airlines 598 24.45 534 319,419 35.92
Delta reported November traffic was up 4.8% on 0.5% more capacity, boosting load factor 2.8 percentage points to 70.7%. The traffic, load factor and passengers carried set records for any November in the airline's history. Domestic traffic gained 4.7% and capacity 2.1%, raising load factor 1.7 points to 69.2%. International traffic was up 5.1% and capacity down 4.9%, resulting in a load factor of 76.6%, up 7.2 points. Delta's strongest international region was Latin America, which had a traffic gain of 24.2% on a 3.2% decrease in capacity.
Swiss regional Crossair is changing its livery effective March 2000, marking the introduction of its new fleet and its 25th anniversary. Crossair is introducing a "highly modern and eco-friendly fleet" with a white fuselage featuring large, dark blue lettering. The tail will be painted in chrome-silver colors and bear a new logo, a white cross in a red field radiating outward. Crossair's existing logo was introduced in 1993 and reflects its closeness to Swissair and its assumption of short-haul charter operations from Balair/CTA.
EVA Air again will serve the Taipei-Sydney route, using its own equipment beginning Feb. 12, when Ansett Australia discontinues flights between the two cities. "EVA has already taken the necessary steps to provide Sydney service ourselves," said K.W. Nieh, EVA's deputy senior VP. "It is an important and popular route, and we want to continue providing the convenient service our passengers have been experiencing." EVA, Ansett and Air New Zealand established code-sharing alliances that became effective with the winter schedule of 1998.
Southwest Airlines reported a 23.9% surge in traffic on 13.9% more capacity in November compared to the same 1998 month, which pushed load factor up 5.7 percentage points to 69.8%. Passenger carried gained 14%. Year-to-date traffic leapt 16% and capacity 10.9%, growing load factor 3 points to 69.4%. Passenger carried rose 9.4%.
