American Trans Air, the principal subsidiary of Amtran, reported a 4.1% rise in systemwide traffic on 2.1% more capacity for May, compared with the same 1998 month. Passengers carried rose 8% and block hours flown 5.2%. Scheduled service revenue passenger miles gained 15.9% and available seat miles 13.4%, pushing the load factor up 1.7 percentage points. Passengers carried rose 19.7%.
The past year has been stormy for Federico Bloch and Grupo TACA. Literally. Hurricane Mitch was a major event in Central America that damaged the carrier's fortunes, first by its destructive path and a second time by the perception among travel agents that things in the region were worse than they actually were. Some airports were under water, while others were operating perfectly. But tourists stayed away from all destinations for months. "We've had a very unusual year," said Chief Executive Bloch. At the same time, U.S.
A hike in the passenger facility charge would have a disproportionate effect on short-haul air travel and could lead to some carriers dropping service to low-demand communities, the Regional Airline Association (RAA) said in a letter to lawmakers. RAA hand-delivered the protest letters to every member of the House. Twenty-five airline presidents signed the letter. The PFC rate currently is capped at $3 per traveler per segment, up to a $12 maximum, and RAA notes that the $3 fee is the same regardless of the length of the flight segment.
BWIA leased six new Boeing 737-800s and one used 737-700 from International Lease Finance Corp. The 737-800s will be delivered beginning in November through November 2000. Conrad Aleong, president, said the transaction "will result in BWIA International becoming the largest operator of new-generation Boeing 737s in the Caribbean."
House Appropriations Committee yesterday approved a $10.548 billion fiscal 2000 funding bill for FAA that zeroed production money for the Standard Terminal Automation Replacement System (STARS) while increasing development funds. It virtually doubled OASIS funding to keep the automated flight services modernization program on track and pushed for development of a low-cost version of Airport Surface Detection Equipment-3. Also clipped was funding for the Wide Area Augmentation System (WAAS) - from the requested $108.1 million to $102.7 million.
Northwest flight attendants, represented by the Teamsters, will rally tomorrow in Atlanta, Detroit, Memphis, Minneapolis and Seattle demanding the National Mediation Board release them into a 30-day cooling-off period. The union and management are scheduled to resume talks with NMB today and tomorrow. Union membership voted by 99.4% over the weekend to strike if they could not reach a tentative contract deal. The two sides have been in contract negotiations nearly three years.
Sequa's Chromalloy Gas Turbine Corp. subsidiary received a 50% stake in Willis Lease Finance Corp.'s Pacific Gas Turbine Center operation in exchange for contributing "significant working capital," the value of which was undisclosed. Willis and Chromalloy agreed to form a 50/50 joint venture, Pacific Gas Turbine Center LLC, to run the existing operation, with Willis contributing the center's operations and assets and Chromalloy injecting capital. Pacific Gas Turbine Center won FAR Part 145 Repair Station approval from FAA in November and began operating last July.
United warned that second-quarter earnings will be lower than anticipated due to reduced fares from stepped-up competition and weak domestic load factors. The Chicago-based airline expects to earn $2.40 to $2.80 a share in the quarter ending June 30, less than the average First Call analyst estimate of $3.10. Revenue for the quarter and the full year also will fall short, the carrier said, adding that it had difficulties with its April 6 move to Orion, its new yield management system.
Virgin Atlantic yesterday unveiled a new livery that includes the British Union Jack color scheme and a new business-class concept with full-length beds. The airline is adding the British flag colors after British Airways removed them from its aircraft. But BA said over the weekend - before Virgin's announcement - it intends to return the Union Jack to half its fleet.
Vanguard Airlines saw a 4.0 percentage point jump in its load factor for May compared with May 1998, as traffic gained 33% on 27% more capacity. The number of passengers flown grew 39%. Year-to-date, Vanguard had a 12% gain in traffic on 7% more capacity. Vanguard has signed letters of intent for three replacement Boeing 737s due for delivery this month, and letters of intent for three other replacements for delivery later this year.
AlliedSignal signed a definitive merger agreement to pay $13.8 billion in stock for Honeywell, the companies reported yesterday, and the deal could set off a wave of mergers in the aerospace sector, an analyst said. The transaction will create a Fortune 50 company with revenues of $25 billion and a combined market capitalization of more than $45 billion. "The aerospace synergies are dramatic," Michael Bonsignore, Honeywell chairman and chief executive, said in a telephone news conference.
British Midland urged DOT to grant its request for an extrabilateral New York-London Heathrow exemption as a signal of DOT's support for U.S.-U.K. open skies. The carrier wants to operate two daily nonstop roundtrips (DAILY, May 12). DOT's "favorable consideration" of British Midland's application "as well as one of the various pending U.S. carrier extrabilateral requests would send the important and valuable message" that the U.S. is "committed irrevocably" to open skies and is prepared to work "tirelessly" to complete it, the airline said.
Continental's Newark hub development included a 22% rise in transcon flying in 1998, and a rise in transatlantic destinations served.With the addition of Amsterdam, Brussels, Zurich and Tel Aviv, Continental serves 17 cities across the Atlantic from Newark, versus four in 1994.
Summary of U.S. Major Carriers International Revenues and Expenses Fourth Quarter 1998 Total Operating % Passenger Freight Revenues Change Revenues Revenues Alaska 30,102,000 27.95 28,831,000 335,000 Latin 30,102,000 27.95 28,831,000 335,000 American 1,196,216,000 (4.13) 1,029,443,000 82,724,000
A decision by the European Joint Aviation Authorities to propose a revision of its rule for long-range operations of small, turbine-powered aircraft has drawn praise from the General Aviation Manufactures Association. While the original JAA proposal required operators to fly an indirect route across the Atlantic, adding to costs, the rewritten rule, produced in consultation with FAA and industry, codifies safe operating practices already employed by industry, said Ed Bolen, GAMA president.
AirTran plans to begin Newark-Atlanta nonstops July 1, nine months later than planned. The carrier, frustrated by its inability to obtain gates from signatory airlines at Newark, found that some gates there are "fully underutilized." The airline appealed to DOT to press the matter with the Port Authority of New York and New Jersey. AirTran announced plans July 30, 1998, to serve Newark-Atlanta beginning in October 1998. But the carrier has been unable to do so despite efforts to obtain gates from several major carriers serving Newark.
Boeing Airplane Services will perform maintenance and modification work on five Kitty Hawk 747s, including pylon modifications for Pratt&Whitney engines, service bulletin updates and scheduled heavy maintenance. The work will be done at the Boeing Modification Center, Wichita. The modification involves replacing and strengthening significant structural engine pylons an wing attach points.
U.S. negotiators received word yesterday that the U.K. "can't make it in June" to bilateral aviation talks agreed to in April by DOT Secretary Rodney Slater and Deputy Prime Minister John Prescott, a U.S. government official told The DAILY. "Now they're saying maybe July," he said. The U.S. has a feeling of "considerable regret" about the news, he said, adding that the U.K. is doing "more of the same" to delay movement toward U.S.-U.K. open skies.
FAA will unveil a tougher line on pilot rest requirements in the next few days, and the decision is expected to cost airlines significantly to comply. Unions representing airline pilots are claiming victory on an issue they have been pushing since a proposed FAA rule was issued in 1995. One union, the Teamsters, questioned whether a lack of enforcement is involved in the crash a week ago of an American MD-80.
Japan's Ministry of Transport is providing extra, on-the-spot safety investigations through June 18 of the nation's 11 scheduled and two charter carriers. The purpose of the checks is to confirm whether the airlines are operating their flights properly and adhering to maintenance schedules under the current trend toward deregulation and intensifying fare competition.
Summary of U.S. National Revenues, Fourth Quarter 1998 Total Operating % Passenger Freight Revenues Change Revenues Revenues AirTran 105,718,024 28.73 101,039,373 0 Aloha 53,144,232 (4.52) 162,729,059 5,292,829 American Trans Air 198,678,657 13.25 126,283,935 0
Dallas Airmotive and Stage III Technologies' hushkit for Rolls-Royce Spey 511-8 engines has cleared a crucial hurdle standing between it and FAA certification, Airmotive reports. Company engineers demonstrated to FAA that the installed kit does not change the performance level of the engine. The next step is noise certification flight tests at Dallas Love Field in July. The system includes a mixer/ejector exhaust suppressor and a cascade reverser.
TWA's International Association of Machinists union (IAM), which recently agreed to extend a 30-day cooling-off period, will begin casting ballots tomorrow on what TWA is calling its last, best offer. IAM, which did not return calls to The DAILY yesterday, recommended that membership reject the deal. Results of the vote are expected by the end of June or early July, said a TWA spokeswoman. The union said it will take no job action until the votes are in, and some members said they did not believe claims by management that a strike would ruin the airline.
TWA exercised an option for eight Raisbeck Commercial Air Group Stage 3 Standard Gross Weight (SGW) hushkit systems, Raisbeck reports. TWA, which was the launch customer, holds options for 31 sets, including the current order. Raisbeck says orders and options stand at 153, spread equally among the four modifications it offers. These are the Boeing 727-100, 727-200 SGW, 727-200 Increased Gross Weight (IGW) and -200 Heavy Gross Weight (HGW) mods. TWA plans to receive the first kit this month and the eighth airplane by November.
