Alaska Air Group said traffic increased 3% for Alaska Airlines in June to 1.07 billion revenue passenger miles. Capacity rose 1.8% to 1.5 billion available seat miles, lifting the load factor 8 percentage points to 71.5%. Passengers carried was up slightly. For six months, traffic grew 6.4% to 5.7 billion RPMs; capacity 5.3% to 8.4 billion ASMs and the load factor seven points to 67.7%. Passengers carried rose to 6.5 million from 6.2 million.
KLM traffic for June increased 2% on 3% more capacity, which dropped the load factor 0.4 percentage points to 76.9%. The strongest overall traffic growth occurred its Asia/Pacific routes, which jumped 12%. Passenger traffic also grew on routes to Europe, 5%, Middle East and South Asia, 3%, and Africa, 2%. Cargo traffic gained 8% and capacity 6%, producing a cargo load factor of 69.2%. Cargo traffic to Asia/Pacific jumped 19% and rose 4% to the Middle East and South Asia.
Reinstated former Professional Air Traffic Control Organization controllers are angry over their treatment by FAA, sources say. They filed several EEO complaints, as well as law suits based on age and gender discrimination, and they asked the Federal Labor Relations Authority to investigate labor practices at FAA. A new pay plan that "arbitrarily" eliminated pay steps also caused the reinstated controllers to earn as much as $15,000 less than controllers of equal training and experience, the sources say.
Vanguard reported a 43% jump in traffic on 39% more capacity for June, compared with the same month last year, which boosted the load factor 2 percentage points to 71.1%. Passengers flown surged 45%. Year-to-date traffic gained 18% and capacity 12%, lifting the load factor 3 points. Passengers flown grew 22%. The Kansas City-based carrier also is offering a fare sale for travel this fall, starting at $29 each way based on roundtrip purchase. Customers must make reservations by July 16 for travel Sept. 8-Nov. 17.
In Latin America and the Caribbean, 50 airports have been privatized, 78 are being privatized and six more are in the planning stage, according to Robert Aaronson, of Lufthansa Consulting, Los Angeles. Speaking at the Privatex 1999 Exposition last week in Miami Beach, Aaronson said these projects range from mammoth metropolitan airports to small provincial facilities.
Guyana Airways 2000, the country's new national airline, will begin service today after postponing its inaugural flight for several weeks. GA 2000 will operate five nonstops between Georgetown and New York Kennedy, according to Chairman Anthony Mekdeci. GA 2000 was originally scheduled to begin service to Toronto, but a delay in the completion of the regulatory process by Canadian authorities forced the company to postpone the launch. Mekdeci said GA 2000 expects to be able to announce the start of service to Toronto "very shortly."
The Paper, Allied-Industrial, Chemical and Energy Workers (PACE) union on Friday reached a tentative contract deal with Express I Airlines covering the carrier's more than 100 flight attendants. The agreement, which offers enhanced pay and benefits, will go to members for ratification.
- In Federal Register dated June 25...Proposed an airworthiness directive on Boeing 777 aircraft to require certain structural inspections...Proposed an AD on Lockheed L-1011 aircraft concerning certain structural elements.
Passenger compensation for mishandled-baggage will double to $2,500, with biannual adjustments for inflation, DOT said in its proposed rulemaking on raising the U.S. carrier minimum liability limit. "This is particularly important in light of decreasing opportunities for passengers to carry luggage into the cabin."
DOT - Approved, subject to FAA-approved routings, a Lockheed Martin Astrospace charter using a HeavyLift Volga-Dnepr An-124-100 for a one-way flight carrying a Telstar satellite plus containers weighing 75,000 pounds on a Cape Canaveral-Orlando-Cayenne, French Guyana, routing June 28- 30...Approved, subject to FAA-approved routings, an Air Sea Broker charter using an Antonov Design Bureau An-124-100 for a one-way flight carrying 80 tons of automobile parts from Luxembourg to Mexico City on a Luxembourg- Gander-Mexico City-Edmonton routing June 30-July 3...Approved, sub
American may use seven weekly U.S.-Brazil frequencies, allocated to the carrier for New York-Rio de Janeiro service, for Miami-Rio service on a temporary basis, "pending conclusion of a proceeding for long-term allocation of these frequencies," DOT said in an order. American planned to begin the additional Miami-Rio service July 2. Delta sought reallocation of the frequencies based on American's termination of the New York service.
The North Atlantic has been "deteriorating," pressuring yields and profits at several carriers, according to Merrill Lynch. European airlines rely on transatlantic operations for a greater percentage of revenue than U.S. carriers. KLM may post lower June quarter earnings, partly because its Atlantic division represents 31% of total revenue. Financially depressed British Airways' Atlantic unit is 19%. Delta leads U.S. airlines with 14.4%, followed by Continental, 13.4%, American, 12%, and United, 10.3%.
Members of the Professional Airways Systems Specialists passed out leaflets to travelers at 50 or more major airports last Friday about holiday travel delays asking the public to "tell the FAA to stop taking shortcuts affecting travel," according to PASS President Mike Fanfalone. "Our members try to advise the FAA on necessary repairs and proper testing of systems, but they just ignore us in a rush to meet 'deadlines,'" he said. "If the FAA will not listen to its own experts, our only choice is to take our concerns to the American public.
Philippine Airlines Executive Chairman Lucio Tan has sold his property in Hong Kong worth US$2.2 billion to keep PAL in operation. The money will not be channeled into PAL immediately, however. Tan told The DAILY that he sold the property to send a message to the airline's creditors that he is ready to carry on the flight. "Selling my property means I am ready to see the airline through the storm. It is better to fight than not to fight," Tan said. He said his main aim is to put PAL back where it belongs. His assets are said to be worth more than US$5 billion.
Delta named Sharon Wibben senior VP-In-Flight Service, the carrier's flight attendant operation; Edward West senior VP-strategy and business development, and B.J. Smith director-pilot training and standards.
America West's Air Line Pilots Association unit Master Executive Council is tackling the issue of pilot fatigue with a new survey. The results will be used in ongoing talks with the company's crew resources about pairing construction. Members are preparing to mail back their Contract 2000 surveys, the results of which will be used for opening negotiations later in the year.
European Commission ruling on the United-Lufthansa-SAS alliance is more likely to be delayed until the new commission is seated, following the June 30 resignation of Martin Bangemann, EC commissioner for industrial affairs and information technology. Bangemann announced he would join Telefonica, a Spanish telecom company, and his defection makes the current EC's status appear more strongly as a "caretaker," according to European sources.
Failure of Congress to fund the $17 million FAA fiscal 2000 request for the Global Positioning System aeronautical band is "potentially serious" in that it could deny civil users, including airlines, the modernized service the satellites provide, an FAA spokesman said Friday. The money would fund the addition of two civil frequencies to the GPS. Both the House and Senate Appropriations committees zeroed out the $17 million request in the fiscal 2000 budget. The Senate committee did not explain its cut.
Europe's small independent carriers continue to thrive thanks in part to the "gross inefficiencies of the flag carriers," says Mesa Chief Executive and Virgin Express Chairman Jonathan Ornstein. He predicts that smaller independent airlines will have to consolidate to survive, and majors will be forced to improve operating efficiencies or go out of business. "So much of the inefficiency is deeply embedded in the system...the days of serving champagne and caviar and charging $800 for a one-and-a-half hour segment are gone."
American posted a 4.5% increase in June traffic, compared with the same 1998 period, and a 4.4% gain in capacity, but the results were hampered by problems with the nation's air traffic control system. "Our June traffic results spotlight a busy summer for the entire industry, but we would have seen stronger growth numbers in June had the nation's air traffic control system not had so many problems," said Chief Executive Don Carty. The airline's systemwide load factor edged up 0.1 percentage points to 73.8% last month.
