Air France will suspend its code-sharing agreement with Korean Air for one year, the French airline said yesterday. The decision was made by both companies for commercial reasons, following Korean Air's "image problem," a spokesman for Air France said. Korean authorities recently announced sanctions against Korean Air, following a series of nine serious incidents that affected the airline in the past eight months. Air France and Korean Air's code-sharing operations comprised four weekly frequencies between Paris and Seoul, one of which was operated by Korean Air.
KLM, reporting its earnings today, is expected to show another loss.Merrill Lynch projects KLM to lose 2.09 Dutch guilders per share, 58% worse than the prior year's 1.32 guilders. "Although results in the March quarter may be disappointing, recent traffic growth has been strong, up 2% in April, with Asia passenger traffic up 8%," said Merrill Lynch analysts.
McDonnell Douglas DC-10 Systemwide Aircraft Utilization Per Day, Fourth Quarter 1998 DC-10-10 American United Total Number of Aircraft Operated 13 18 31 Total Fleet Operations Departures 27 51 77
Vaisala Columbus, manufacturer of automated weather observing systems (AWOS), has received FAA approval of its SA20 Strike-Alert thunderstorm sensor for use on AWOS. The sensor can detect thunderstorms within a 30 nautical mile range of the airport. It also provides distance and direction data to the pilot.
Hong Kong International Airport's second operational runway will open May 26, giving Hong Kong a two-runway airport for the first time. Initially, the north runway will open during the 10 a.m.-4 p.m. peak period and during a few other periods as navigation instruments are calibrated and additional maintenance is performed. Despite the new capacity, the airport will continue to operate at the limited maximum of 37 movements per hour. By October, the figure will rise to 40 per hour and the new runway will be rated Category III, allowing operations in zero visibility.
Organizers of a high-level international aviation conference this fall hope to focus the world's attention on the barriers to growth in aviation, chiefly from lack of infrastructure development. The "Global Summit on International Aviation Infrastructure," Oct. 31-Nov. 3 in Washington, is being organized by George Washington University's Darryl Jenkins, executive director of the school's Aviation Institute. The co-chair is Norman Mineta, former House aviation subcommittee chairman and former chairman of the 1997 National Civil Aviation Review Commission.
Airbus Industrie yesterday delivered its 2,000th aircraft since the consortium was established 30 years ago. The aircraft, an A340-300, was delivered to Lufthansa. "Airbus Industrie's goal is to maintain half of the market share for commercial airliners in terms of value," said Noel Forgeard, chief executive. He said Airbus delivered less than 1% of commercial jetliners in 1974, but that share of deliveries grew to 30% in 1998 and will reach 40% in 2000.
Overcapacity in China and a drop in domestic travel has prompted Chinese carriers to explore wet-leasing aircraft to other airlines. China Southern Airlines (CSA) will lease two Boeing 777-200s to Biman Airlines of Bangladesh. The aircraft will be used for the Hadj pilgrimage to Mecca, starting in July. CSA flight services official Zhang Wu said the airline was advised against wet-leases by its maintenance subsidiary because the interior is always damaged by passengers who have never traveled in an aircraft before.
Consumer uncertainty over booking in Year 2000 could cost the top eight airlines $400 million in lost revenues mainly because of "declining credibility of the FAA's efforts to address the Y2K problem," according to a recent study by Denver-based airline industry consultants The Boyd Group. The study, "The Y2K Threat to Air Traffic Control - Airline Shareholders, Airports&Consumers At Risk," says the public is concerned because FAA has been consistently late with major projects. FAA says its safety-related systems will be Y2K-compliant this year.
Senate Judiciary antitrust subcommittee Chairman Mike DeWine (R-Ohio) said yesterday that the panel will decide "in the next few days" whether its planned hearing into anticompetitive practices in the airline industry will focus on American, subject of a Justice Department antitrust lawsuit, or will cover industry-wide practices. The subcommittee wants to hold the hearings next month.
FAA this week issued five short-term recommendations to encourage compatible use of land around airports. The guidelines, part of the agency's Land Use Initiative, aim to explain federal policies and clarify other land-use and noise issues. Airports have become quieter with the approach of FAA's Jan. 1 deadline for converting carrier fleets to Stage 3.
Akron-Canton, Ohio, wants DOT to reallocate slots used by Trans States to the community. Telling DOT that Trans States' Chicago O'Hare service is "substandard" in terms of on-time performance, Akron-Canton asked DOT to withdraw the six slots used by the United Express carrier and "temporarily" reallocate them to the community if the carrier does not exceed a 90% on-time performance for one calendar month within 120 days from June 1. Such an action by DOT would be more effective than assessment of civil penalties, Akron-Canton said.
Air Lanka's revenue passenger kilometers for April jumped 26% and 25.8% year-to-date is up 25.8%. Freight volume was down 6.9% last month. Air Lanka carried 118,680 passengers in April, up 21.6%.
American, stung by a Justice Department lawsuit May 13, anticipated the action for several months. The airline's suit-specific web site to respond to the charges, www.aadoj.com, was registered on March 31.
LanChile announced Friday it will join the oneworld alliance, a move expected after the carrier received antitrust immunity for its pact with oneworld partner American. LanChile becomes the eighth member of oneworld, joining British Airways, Cathay Pacific, Canadian Airlines and Qantas as well as newly announced members Finnair and Iberia. LanChile will join next year, linking its frequent flyer program, customer service and computer systems with all other partner carriers. The airline operates 120 daily flights with 46 aircraft and has been flying since 1929.
British Airways and Iberia will begin code sharing June 17 on 27 routes. Tickets went on sale worldwide last Friday. All code-share services will be non-smoking, in line with BA policy. BA announced it plans to buy a 9% stake in Iberia on Feb. 12.
Bombardier Global Express has received type approval from the European Joint Aviation Authorities, the last major milestone in the program before deliveries begin to customers.
Approved an Airline Brokers Co. charter using a Mexicana 727-200 for 13 roundtrips carrying 150 passengers on a Miami-Holguin, Cuba-Miami routing June 7-Aug.
Nav Canada will reduce its air navigation service fees by $90 million a year, beginning Sept. 1.About 98% of the fees are charged to air carriers. Nav Canada says its fees, which replace the air transportation tax, already have saved airlines 27%. The 33% reduction in September will give airlines a total savings of $255 million per year.
-- In Federal Register dated May 7...Issued an airworthiness directive on Boeing 767 aircraft requiring inspection inside the forward trunnion joint of the main landing gear...Revised a proposed AD on Saab 2000 aircraft concerning inspection of the aileron control cables...Proposed an AD on Embraer EMB-145 aircraft to require inspection of the main landing gear.
Indianapolis-based American Trans Air last month posted a record scheduled service load factor of 79.4%, a carrier spokesman said. Amtran's scheduled revenue passenger miles jumped 14.6% to 537.9 million, compared with April 1998, as scheduled capacity gained 14.1% to 677.3 million available seat miles. Scheduled boardings swelled 18.2% to 419,085.
