UniCapital Corp. reported a net loss of $887,000 for the first quarter compared to net income of $10.9 million the same quarter a year ago. The loss resulted from a revised business plan including a decision to reduce trading-related sales of commercial aircraft. As of March 31, UniCapital had equity of $823 million. The company last week acquired 36 aircraft from GE Capital Aviation Services (DAILY, May 7).
AirTran President Robert Fornaro assumed the additional duties of chief financial officer to fill the vacancy created by Richard Schroeter, who is leaving the company.
US Airways reported a 0.5% decline in traffic for April on 3.5% more capacity, lowering the load factor 3 percentage points to 74.7%. The carrier flew 2.4% fewer domestic revenue passenger miles on 2% more available seat miles. International traffic jumped 14.4% and capacity 16.9%. Passenger boardings fell 3.4%. Year-to-date RPMs grew 0.7% on 3.1% more ASMs, reducing load factor 1.7 points.
Vanguard Airlines reported the highest April load factor in its history - 71%, up 3 percentage points because of an 18% jump in traffic and a 13% rise in capacity. Passenger boardings climbed 24%.
More than a million U.S. workers are in jobs supported by tourism, according to Commerce Secretary William Daley. Some 95% are employed by businesses that are small and medium-size enterprises, he says, "the backbone of our economy."
Boeing 727 and 737 Systemwide Aircraft Utilization Per Day, Fourth Quarter 1998 B727-200 American Continental Delta Number of Aircraft Operated 78 22 129 Total Fleet Operations Departures 263 85 649 Block Hours 632 219 1,139
DOT Secretary Rodney Slater intends to "hammer out an agreement" with the U.K., DOT Acting Assistant Secretary for Aviation and International Affairs Brad Mims said last week in Phoenix. U.S. and U.K. aviation representatives will meet for "informal talks" May 19-20 in London.
FAA and the National Air Traffic Controllers Association have reached agreement on tighter controls on a program under which agency employees ride free in the jump seat of airliners. There had been criticism in the Congress and the media that the Familiarization Training Program was being misused. The changes, which take effect May 31, limit trips to six per year, one of which can be an international trip to persons working international departures and oceanic airspace.
American Eagle filed with DOT to discontinue its five daily Dallas/Fort Worth-Longview Gregg County Airport roundtrips. The Essential Air Service route has been unprofitable despite efforts by the airline and local officials to increase traffic.
Kellstrom Industries' revenue for the first quarter increased 172% to a record $79.1 million from $29.1 million. Operating income rose 147% to $15.7 million and net income increased 143% to $7.1 million. Zivi Nedivi, president, said the company entered the year on a "very strong footing."
National Air Transportation Association elected Charlie Priester, president and chief executive of Priester Aviation, chairman, and Linda Barker, VP and part owner of Business Aviation fixed-base operator in Sioux Falls, S.D., vice chairman.
-- In Federal Register dated April 30...Issued an airworthiness directive on certain Douglas MD-11 aircraft concerning inspections of a certain bracket and clamp under the floorboards in the lower center cargo compartment. -- In FR dated May 4...Superseded an AD on certain Fokker F28 aircraft concerning inspection of the skin and stubwing structure...Issued on AD on Aerospatiale ATR 42/72 aircraft concerning procedures for operating in severe icing conditions.
United Shuttle is introducing its "two-end operations" boarding and deplaning process in many of its West Coast markets. Two-end operations will expand May 17 to Spokane, Boise and Reno and on June 7 to Medford and Portland, Ore., San Diego and Santa Barbara. The Salt Lake City port authority has yet to approve two-end operations for United Shuttle and the carrier will not introduce the process in Denver at this time because it is not compatible with United's facilities there. Two-end operations enable passengers to board and deplane using the front and rear doors.
The National Mediation Board has released TWA and its 16,000 member International Association of Machinists into a 30-day cooling off period that began midnight Friday. NMB proffered arbitration, which was rejected by IAM, according to a flight attendant spokeswoman. If the two sides do not reach agreement after 30 days, the union can strike. Both sides are free to continue with mediation during the period. IAM represents TWA flight attendants, mechanic and related employees, as well as ticket and reservation agents.
Boeing named Virnell Bruce VP-communications for the government relations office in Washington, D.C., and named Walter Skowronski VP-finance and treasurer, a new position.
US Airways Air Line Pilots Association negotiating committee and management have reached a tentative deal on a section of the contract that will provide supervisory pilots ALPA contractual pay and work conditions for the first time. The Master Executive Council is holding a special meeting on Thursday to consider whether to ratify the deal.
The U.K. Defense Ministry has introduced its LINK UP program, designed to keep military pilots in service longer and ultimately help them secure second careers in the civil sector after their military service ends, the ministry reported last week. LINK UP encourages pilots to extend their stay in the armed forces in return for a contribution of up to #10,000 (US$16,369) to the cost of obtaining a civil air license.
AB Airlines Chairman Brian Deal said the carrier is in "detailed discussion with Boeing regarding the brand-new 717-200." Deal said the Stansted-based carrier "next year could become one of the first operators in Europe of the 717." The 717 is a "perfect replacement" for the carrier's BAC-111s and has no equivalent competition for ACMI (aircraft, crew, maintenance, insurance) operations. The carrier last week took delivery of a third 737-300 leased from Boullioun Aviation.
