KLM's net earnings for the March quarter fell 24.4% yesterday to 456 million Dutch guilders (US$221 million). Revenue declined 3.5% to NLG 3.04 billion ($1.47 billion) Cash flow more than doubled to NLG 1.3 billion due to KLM's sale of stock in partner Northwest. "The economic backdrop in 1998 had a negative impact on our business results," the airline said. KLM faced Asian economic weakness, more competition on European and North Atlantic routes and fallout from labor troubles at Northwest.
United will reward Mileage Plus members with frequent flyer miles when they use their Mileage Plus First Visa or MasterCard. Participating Mileage Plus Shopping merchants determine the mileage value of transactions, allotting one to 10 miles per dollar, which is added to the mileage normally awarded by First Card. For example, a $75 Mileage Plus First Card purchase with Lillian Vernon awards the shopper 750 miles.
Pan Am International flight Academy has completed an agreement to acquire Reflectone Training Centers, near Washington Dulles and St. Louis. The assets, previously owned by the British Aerospace North America Division, include four Level C simulators for a BAe 146, two J41s and a J31/32, and long-term leases on both facilities. Plans are under way for an immediate expansion of the Dulles facility, the academy said.
Aviation Distributors reported revenues for the year ended Dec. 31 were $28.4 million, a decrease of 27% from the $38.9 million the previous year. The company recorded a net loss of $5.8 million, compared with a net income of $404,490 the previous year. The revenue drop is due to reduced access to credit while the company was restructuring.
Emirates' passengers leaving Dubai can check into a brand-new departure terminal at Dubai Airport. The terminal is located to the east of the existing departures building, directly adjacent to the Dubai Duty Free Warehouse on the upper level. Emirates is the first airline to use the new facilities, part of the US$540 million expansion at Dubai undertaken by the Department of Civil Aviation. By September, all other airlines will have moved into the new facility, which will offer 213 high-tech passenger check-in counters.
U.S. Department of Justice's Antitrust Division has set up an e-mail address, [email protected], for comments on its lawsuit against American and AMR Corp. DOJ's web page links to the complete text of the complaint. The division has a similar e-mail link for its case against Microsoft.
Aircraft Mechanics Fraternal Association National Director O.V. Delle Femine is calling the National Mediation Board's decision to delay AMFA's right to represent Northwest mechanics "irresponsible procrastination." AMFA in November won the right to represent Northwest's more-than-9,000 mechanics with a 5,160-3,905 vote, taking representation away from the International Association of Machinists (DAILY, Nov. 23). IAM challenged the results and NMB claimed a review of the challenge turned up grounds for a field investigation that would take several months (DAILY, Feb.
U.K. Civil Aviation Authority will extend current pricing levels at BAA's airports into a sixth year to avoid a possible clash with the official announcement regarding Heathrow's Terminal 5. CAA set the present charging formulas in 1996 for five years - April 1, 1997, to March 31, 2002. This week's decision, using powers guaranteed by the Airports Act 1986, will lock in the formulas until March 31, 2003.
Singapore Airlines has chosen BSMG Worldwide as its public relations agency in the U.S. BSMG will conduct media relations, special events, marketing alliance promotions and Internet publicity.
US Airways' flight attendants yesterday claimed victory after Chairman Stephen Wolf turned down a controversial 500% bonus that the company's board planned to award him and Chief Executive Rakesh Gangwal. The board approved the plan for 28 other company executives. Wolf and Gangwal came under fire from the Association of Flight Attendants because of the huge compensation packages both received in 1998. Wolf said the company's philosophy is to offer salaries below those of its competitors and to give incentives based upon performance.
Sabena has kicked off a major promotion in the U.K. by slashing fares from London Stansted to more than 25 destinations in Europe. The Belgian airline introduced flat roundtrip fares of #140 in economy and #290 in business class. The offer is valid for travel through Aug. 15, with bookings closing June 16. Destinations include Sabena business and leisure routes served from London, via Brussels, to Barcelona, Florence, Frankfurt, Malaga, Munich, Marseilles and Nice.
American today will begin serving its pre-departure beverages in "upscale" disposable plastic cups on its American Flagship, International Flagship and Hawaii service. The airline is complying with FAA regulations requiring all pre-departure items to be stowed before leaving the gate.
Lufthansa CityLine, the healthy and growing regional arm of Lufthansa, intends to more than double its flight crew staff as new regional jets are delivered. The airline, Germany's second-largest, will add 900 flight attendants and 500 pilots during the next four years. Currently, the airline employs 700 flight attendants and 540 pilots. CityLine says it is the only regional in Europe to train its flight attendants at a company-run facility, in Cologne/Porz-Lind. The company requires proficiency in German and English for flight attendants.
US Airways Shuttle is expected to announce this summer that it will offer a real difference in shuttle service by placing Airbus A320s on routes between New York, Washington and Boston.Both US Airways and Delta have used aging Boeing 727s on shuttle services.
House Transportation Committee next week will again mark up AIR-21, Chairman Bud Shuster's (R-Pa.) five-year, $89.1 billion FAA reauthorization bill, raising the likelihood of reductions in the fiscal 2000 funding level, a committee spokesman said yesterday. The cuts would be the first, but probably not the last, in the funding measure that cleared the committee in March without a dissenting vote.
U.S. National and Regional Carriers Traffic, April, 4 Months 1999, (000) April April % 1999 1998 Change Air Wisconsin Revenue Passenger Miles (000) 86,169 53,356 61.5 Available Seat Miles (000) 137,990 85,433 61.5 Load Factor (%) 62.4 62.5
US Airways' Air Line Pilots Association unit says it is not sympathetic to management's problems with regard to crew shortage problems affecting MetroJet operations. ALPA says the airline has had a pilot shortage for about two years, a situation that was aggravated by the retirement of about 325 senior pilots who took an early buyout, but the company has been slow to hire new crew.
Northwest Airlines Cargo and Continental Airlines Cargo will expand their network June 1 for same-day, urgent package shipments to more than 230 U.S. destinations. Northwest's VIP and Continental's QuickPak express products will remain the same, including 30-minute acceptance and recovery times, 100% money-back guarantee and a maximum 100-pound limit. The reciprocal agreement represents Phase One in the carriers' alliance, which aims to deliver a more integrated domestic product line.
Louisville Airport-Standiford Field, Ky., will receive $4.6 million in FAA Airport Improvement Program money, DOT Secretary Rodney Slater said this week. The airport will use the funds to construct runways, acquire land for development and noise compatibility, and provide relocation assistance, DOT said. Slater announced several DOT initiatives as part of Transportation Week observances, May 16-22. Louisville Airport had 3,534 operations in February.
Garuda Indonesia is expected to return to profitability by 2001, according to Lufthansa Consulting GmbH (LCON), hired by the airline to stem the flow of red ink and restructure the carrier. Team leader Walter Prenzler said LCON's priority is to work out repayment terms for remaining debts totaling US$400 million. After registering a loss of US$45 million in 1997, the airline posted an operating profit of US$101 million in the past fiscal year. "The carrier is certainly on the road to where it is supposed to be - profitable," Prenzler said.
Norwegian carrier Braathens posted a net loss of 321 million Norwegian crowns (US$41 million) in the first quarter of 1999, compared with a profit of 11 million crowns in the same period in 1998. The airline projected it will "most probably" end the year with a deficit. Braathens, which holds a 50% market share of Norway's domestic market, blamed its losses on increased competition in the Scandinavian market, now fully liberalized, and on problems linked to the opening of Oslo's new Gardermoen Airport, which opened in October.
Moody's placed its ratings of Atlas Air debt on review for possible upgrade. The review was prompted by Atlas's strong operating results in fourth quarter 1998 and first quarter 1999. The ratings company said it will continue to take into consideration Atlas's success in the "relatively narrow market niche within which it operates, the number of highly specialized aircraft Atlas has placed in service and the use of debt to fund Atlas's rapid growth."
Airbus Industrie will establish an Office of Safety and Technical Affairs in Washington and name former National Transportation Safety Board member John Lauber to head it as VP-safety and technical affairs. Lauber previously was VP-training and human factors at the Airbus Training Center in Miami.
