Business aircraft manufacturers will produce nearly 4,900 business aircraft worth $62.4 billion between 1999 and 2008, the Teal Group predicted in its annual World Military and Civil Aircraft Briefing, issued yesterday at the Paris Air Show. The forecast notes an 800 aircraft-unit improvement over last year's prediction of 4,100 aircraft valued at $53 billion between 1998 and 2007.
WestJet Airlines' traffic gained 48.4% in May and capacity 38.5%, boosting the load factor 4.7 percentage points to 70.6%. Year-to-date, the Calgary, Alberta-based carrier reported a 47.6% jump in revenue passenger miles on 43.8% more available seat miles, growing the load factor 1.8 points.
Northwest seeks a DOT exemption to integrate certificate authority for two routes between the U.S. and Asian points, including behind, intermediate and beyond points, to "maximize its operational flexibility." The carrier wants to integrate its authority on Route 129, between points in the U.S. and Japan/Philippines/Hong Kong/Thailand/Malaysia/Indonesia/Taiwan/Korea/Singapore, and Route 378, between points in the U.S. and China. (Docket OST-99-5831)
Vietnam Airlines suspended flights to Moscow because of a drop in traffic. The carrier operated one weekly Ho Chi Minh City-Hanoi-Moscow flight that carried 1.1 million passengers through May, a 3% increase from last year. "Russia is a destination that has become highly unprofitable," a spokesman said.
Mexicana is expanding services to and from Los Angeles July 8, offering a sixth nonstop from Los Angeles to Mexico City and a second daily flight between Los Angeles and Los Cabos. Mexicana will add a daily nonstop to Leon and one daily direct flight to Cancun. The carrier has a code-share arrangement with United at Los Angeles.
Atlanta-based Atlantic Southeast Airlines, a wholly owned subsidiary of Delta, reported a 14.5% rise in traffic on 17.4% more capacity in May, which forced down the load factor 1.4 percentage points. Passengers flown gained 5.3%. Year-to-date traffic climbed 18% and capacity 21.4%, lowering the load factor 1.5 points. Passenger boardings grew 11.4%.
In skirmishes leading up to tomorrow or Thursday's House vote on taking the aviation trust funds off budget, three chairmen of major House committes warned in a letter to Republicans that AIR-21 would cut into the planned Republican tax reduction.Transportation Chairman Bud Shuster (R-Pa.) sent four "Dear Colleague" letters this year pushing AIR-21, warning sharply in the last one against "disinformation" on AIR-21.
Midway Airlines ordered 15 Boeing 737-700 aircraft with options for 10 more. It also will lease two 737-700s from GE Capital Aviation Services. The aircraft, to be delivered between 1999 and 2002, will be used to add capacity in the carrier's major markets. Steve Westberg, chief financial officer, said the 737s are expected to cost about the same to operate as the F100s, "gaining us the equivalent of 30 free seats per trip." Other orders announced in Paris:
In an eleventh-hour move designed to improve chances for House passage of AIR-21, the Transportation Committee bill that would take aviation trust funds off budget, Chairman Bud Shuster (R-Pa.) will offer a manager's amendment on the House floor that will delay the bill's elimination of slot restrictions at Chicago O'Hare and New York Kennedy and LaGuardia airports, committee sources said. The move is intended to sway votes in the New York and Illinois congressional delegations when the House votes, probably on Thursday.
Major carriers face a situation of "be careful what you wish for" in the Justice Department's recent antitrust enforcement action against American, Patrick Murphy, DOT deputy assistant secretary, told the American Bar Association's Air and Space Law Forum in Chicago. Carriers, which opposed DOT's proposed competition guidelines as reregulation, said government action on competition in the airline industry should be initiated by Justice, which filed an exclusionary behavior suit against American.
Garuda received approval for $281 million in financing from the U.S. Export-Import Bank for 11 Boeing 737s that the carrier had been leasing for $346 million. The airline signed a deal to purchase 17 Boeing aircraft in 1996, and took six 737s in 1997 and five in 1998. When the economic crisis hit the region and local traffic plummeted, however, the airline determined it could not afford the remaining six aircraft.
Sun Country Airlines has booking capabilities through Worldspan and Sabre computer reservations systems, the carrier said yesterday. The airline will offer booking capabilities through the Amadeus system within the next month. Passengers also can book through the carrier's Internet site. Officials said the airline will pay travel agencies commissions of 10% plus overrides based on volume.
Alitalia plans to replace six Alitalia Express ATR 42-300s with six Embraer ERJ-145 regional jets, and took options for 10 more, the company said yesterday in Paris. The aircraft most likely will be flown on the Rome-Milan and vicinity routes, said Alitalia spokeswoman Marta-Marie Lotti. Alitalia Express operates nine ATR 42-300s and four ATR 72-210s.
Spirit Airlines hopes to open two gates at Detroit Metro Airport by late November. The airline paid "cash on the barrelhead" for the gates, said Vice Chairman Mark Kahan, noting that no passenger facility charge funds or bonds were used for the gates.
TWA's International Association of Machinists union, which represents about 16,000 employees at the airline, recommends that its members ratify a tentative contract agreement reached over the weekend. IAM leadership encouraged the rank-and-file to reject the company's "last, best offer," made last week. With the deal headed for certain defeat, TWA management came forward with an 18-month tentative agreement that IAM called a "substantial improvement."
American Aircarriers Support obtained a five-year, $20 million contract from Amerijet International to maintain, overhaul and repair JT8 engines on its 10 727s.
Delta signed a multimillion dollar license agreement for a software service from CimLinc, which will provide a new shop-floor maintenance, repair and overhaul system for the carrier. The first production implementations of Shop Excellerator MRO are expected by midyear with usage extending to 5,000 Delta mechanics. CimLinc President John West says the agreement with Delta is a milestone in the company's "vision of all-digital shop-floor work execution throughout the aerospace industry.
Average One-Way Fare by Stage Length Small Hub Airports to All U.S. Domestic Destinations In Dollars, Year 1998 Stage Length (Miles) 0 to 250 to 500 to 1,000 to Small Hubs 249 499 999 1,499 Akron/Canton CAK $134 $153 $109 $139 Albany ALB $127 $180 $194 $140
Northwest Airlines Cargo has named Don Cullis to the new position of VP-global sales. Cullis was most recently VP of air freight and highway services with The Clipper Group. His first job will be to allocate space on a newly acquired 747-200 freighter. Northwest's ninth freighter will join the schedule Sept. 1, providing capacity increases for China, pending DOT approval, Hong Kong, Taipei, Osaka, Chicago, San Francisco and Seattle.
Bombardier unveiled a partial cabin mockup of its proposed BRJ-X regional jet in the 90- to 115-seat class, saying it will launch the Continental business jet with 75 letters of intent and another 25 for its Flexjet fractional ownership program.
Crossair yesterday became the launch customer for two new jets in the growing Embraer family, in a move that is a blow to Fairchild Dornier's desire to produce its own larger regional jets (DAILY, June 11). Crossair will undertake an entire fleet revision during the next seven years under a 7.9 billion Swiss franc (US$4.9 billion), 200-aircraft order, the largest ever placed for regional aircraft. Crossair will purchase - and Embraer will build for the fist time - the ERJ-170, with 70 seats, and the ERJ-190-200, with 108 seats.
US Airways inaugurated long-fought-for Charlotte-London Gatwick service Saturday evening with a full flight and praise for Sen. Jesse Helms (R-N.C.) from Larry Nagin, executive VP-corporate affairs and general counsel. "Sen. Helms led the way in standing up for competition and for the rights of U.S. consumers and businesses. We would not be here today but for his efforts." Helms, in attendance at the service launch, in turn praised DOT Secretary Rodney Slater, Secretary of State Madeleine Albright and U.K.
Executive Jet's order for 50 of Raytheon Aircraft's new Hawker Horizon business jets, plus options for 50 more, gave the manufacturer the largest business jet transaction in its history. The deal for the composite fuselage aircraft, valued at $2 billion, was announced Sunday at the opening of the Paris Air Show. Executive Jet is scheduled to accept delivery of its first Horizon in 2002. The order continues a string of large fleet orders by Executive Jet to provide lift for its growing list of NetJets fractional ownership customers.
InVision Technologies, citing high turnover of personnel in airport security firms, has expanded the availability of training options for operators of its CTX 5000 explosives detection systems. InVision also enhanced its "train the trainer" courses and made available training materials for use by independent training firms. InVision will continue to offer its internally developed operator training courses directly to customers and will maintain support development of third-party training resources.
