DOT issued a consent order concerning deceptive advertising published by AeroMexico in The Dallas Morning News and other newspapers from Nov. 9, 1998, through Dec. 8, 1998. The carrier's advertisement did not state clearly and in close proximity that the fares were one-way tariffs requiring roundtrip purchase subject to certain restrictions.
Dragonair is studying adding long-haul routes outside the region to compete with Cathay Pacific, according to China National Aviation Co. (CNAC), Dragonair's controlling shareholder. Dragonair's plans are in the preliminary stage and it has yet to place an order for long-haul aircraft. The airline operates regional services between Hong Kong and China, Japan and Southeast Asia.
Sabena will sell its 11.2% stake in Belgian low-cost airline CityBird, the smaller carrier said yesterday in Brussels. Sabena said it is reducing its stake in CityBird because the investment "failed to deliver enough return." A Sabena executive also acknowledged that the operation was prompted by a "loss of confidence in CityBird ever since a row erupted between the companies in April. Sabena launched an arbitration procedure against CityBird when it found out that the small airline intended to start a route to Kinshasa.
Association of European Airlines Traffic March 1999 March 1999 Passenger Data % % Pts. RPKs Change ASKs Change Load Change (Mil) 99/98 (Mil) 99/98 Factor 99/98 EUROPE 10,213.0 6.7 16,067.1 5.9 63.6 0.5
Thomson Training and Simulation, a wholly owned subsidiary of Thomson-CSF, has secured two flight simulator deals in Asia - for Gulf Air (GA) and China Eastern Airlines (CEA). The contract with GA is for a major modification of the carrier's Airbus full-flight simulator, preparatory to conversion to an Airbus A330-200, paving the way for the airline to maximize utilization of the equipment for training. The contract includes installation of Crew Resource Management Systems on the airline's A320, Boeing 767 and A340/A330 simulators.
UPS yesterday took the lead in Latin America by acquiring all assets of Challenge Air Cargo for an undisclosed sum. UPS will become the largest air cargo and express carrier in Latin America once the transaction closes. The move leapfrogs UPS into markets that otherwise would take years to develop; Latin America is one of UPS's fastest-growing divisions. Terms of the transaction were not revealed. Both UPS and Challenge are private companies. The acquisition was not a total surprise.
American and Tower Air told DOT Delta's application for 14 U.S.-France frequencies that become available April 1, 2000, should be rejected in light of Delta's announced strategic alliance with Air France. American also seeks 14 frequencies, while Tower wants two (DAILY, June 17). American now holds authority for 42 weekly flights and would hold 56 if awarded all the frequencies it requested. Delta has 28, which would increase to 42. Air France holds 176 U.S.-France frequencies, which Tower noted will soon grow to 190.
FlightSafetyBoeing (FSB) and Korean Air yesterday signed a flight training partnership that will give the carrier's pilots improved training, an issue the airline wanted to address following several accidents that prompted questions about its safety commitment. The five-year, $30 million contract, which the airline called "groundbreaking," includes FSB checks of pilot proficient every six months. FSB will provide management, instructors and check pilot expertise under a program designed by Delta.
The Israeli government has blocked El Al from bidding for Balkan Air, which expects to announce a winner in its 75% sale tomorrow. Israel's Zeevi Group and closely held Arkia Israel Airlines plan to invest $100 million in Balkan Airlines and are close to beating the other bidders, including El Al, in the government's sale. El Al officials said the government's latest move reinforces its argument that state ownership prevents El Al from competing with local airlines, such as Arkia.
Carl Albert, chief executive officer of Fairchild Aerospace, will speak today at a luncheon meeting of the Aero Club of Washington at the Capital Hilton hotel. Cocktails begin at 11:30 a.m. and lunch will be served at noon.
United yesterday named Rono Dutta president, completing its changing of the guard that culminates next month with Chairman Gerald Greenwald's departure. As of July 13, when current President Jim Goodwin is elevated to chairman and chief executive, Andrew Studdert becomes executive VP and chief operating officer and Douglas Hacker adds the executive VP title to his role as chief financial officer. Greenwald called the restructuring "more than the usual shuffling of corporate titles and offices that often accompanies changes at the top.
American is undertaking a "top-to-bottom review" of inflight operations after discovering "some similarities" in accidents and incidents during the past six years, according to Executive VP-Operations Bob Baker.
Iberia's May traffic rose 1.8% to 2.79 billion revenue passenger kilometers, and freight volume gained 3.1% to 61.7 million ton kilometers. The airline carried 1.82 million passengers, down 4.5% from the same month last year, and its load factor fell 2.8 percentage points to 67.2%.
Used Aircraft Deliveries Carrier # Type Engines Previous Operator AeroCaribe 1 Jetstream 32 TPE331-12UAR-704H Corporate Flight Air Caracibes 1 DO 228-202 TPE331-5-252D Air Guadeloupe Air Nova 5 Beech 1900D PT6A-67D Air Alliance Air Tahoma 1 CV-580 501-D13D Canair Cargo Airtlines of 1 EMB-110P2 PT6A-34 Flight West South Australia
Continental and American can move forward with multi-billion dollar airport improvement projects at Newark and New York Kennedy following yesterday's approvals from the Port Authority Board of Commissioners. The group approved massive improvement projects worth about $1 billion each that will give American a new 57-gate terminal at JFK and Continental 12 widebody gates at Newark. The vote was scheduled earlier this year but was put on hold because of a dispute between New York Gov. George Pataki and New Jersey Gov. Christine Todd Whitman.
Olympic Airways employees staged a demonstration last week, including calls for a 24-hour strike, to protest the government's decision to hand over management of the airline to a subsidiary of British Airways (DAILY, June 24). They demanded that the deal be scrapped, with the pilots union fearing that BA's Speedwing subsidiary will take action to "shrink the company" and cut jobs. The country's largest labor union also opposes the government's policies on the grounds that they could undervalue the carrier.
Singapore Airlines' expatriate pilots flying the Airbus A340-300s are unsure of their future at the airline following Boeing's offer to buy the carrier's 17 A340s and replace them with Boeing 777 IGWs, starting in 2002. Expatriates told The DAILY in Singapore that they expect to be offered command of the 777s, but not everyone would accept it because it would mean a salary reduction. "Those who do not accept the offer would have to leave.
Rocky Mountain Helicopters, a leader in air medical services, ordered six EC 135 and four AS 350B3 helicopters, American Eurocopter reported. Rocky Mountain operates 82 aircraft at 52 hospitals in 29 states and Puerto Rico.
AAR Corp. fourth quarter sales increased 10.4% to a record $245.6 million, and net income rose 10.5% to $11.7 million, also a record. For the fiscal year, sales rose 17.4% to $918 million and net income 16.9% to $41.7 million, both records. Revenues grew 22.7% to $416.2 million for the Aircraft and Engine division, 12.9% to $376.3 million for the Airframes and Accessories Group and 14.6% to $125.6 million for the Manufacturing Group.
Atlantic Coast Airlines management may start phasing out its 19-seat turboprops beginning next year.To replace this capacity, the airline told Deutsche Banc Alex. Brown analyst Susan Donofrio that it is considering purchasing either the Fairchild Dornier 32-seat regional jet or the 37-seat Embraer RJ. An aircraft order could be placed by yearend.
Air Line Pilots Association, in its union journal Air Line Pilot, says the industry in recent years has taken steps that "should allow us to continue safe operations (of the 737) for the short term....In the long term, however, we agree with the NTSB that the 737 must have a 'reliable redundant rudder activation system.'"
