Former DOT Assistant Secretary for Aviation and International Affairs Charles Hunnicutt called on the U.S. to scrap its old, outdated agreements adopted under the 1944 Chicago Convention and push for a single global aviation market. Speaking at the International Airline CEO Conference this week in Miami, Hunnicutt said the U.S. and other governments should "replace international regulation with more competition" and eliminate the "thousands of isolated bilateral aviation markets" that have been created over the decades.
Continental will slow its rate of planned growth from 9% to 6% for 2000, Chairman Gordon Bethune told the Society of Airline Analysts yesterday in New York. Chief Financial Officer Larry Kellner said the airline will retire two DC-10s from its fleet early and change aircraft utilization. Continental spokeswoman Sarah Anthony said the airline has a flexible fleet plan that has enabled it to grow at a high or low rate to develop its hubs. "Our hubs are now at the right levels, so there's no need to continue growing at a rapid pace," she said.
US Airways yesterday began MetroJet service at Chicago Midway offering five daily nonstop roundtrips to Washington Dulles and four to Baltimore. The airline is offering low advance-purchase tickets starting at $67 one way to Dulles and $70 to Baltimore.
Air France has leased two new A340-300s, two new A319s and one new 777-200IGW with GE90 engines from International Lease Finance Corp. in a $450 million deal. The A340s are to be delivered in December 2000 and April 2001, the A319s in March and April 2000 and the 777 in April 2001.
Jurgen Weber, chairman and chief executive of Lufthansa, will speak at the monthly luncheon meeting of the International Aviation Club May 20 at the Capital Hilton Hotel in Washington. Cocktails begin at 11:30 a.m., and lunch is served at 12:15 p.m. Reservations should be addressed to Joanne Young, Baker&Hostetler, 1050 Connecticut Ave. N.W., Suite 1100, Washington, D.C. 20036.
US Airways passenger service employees, represented by the Communications Workers of America, have asked the National Mediation Board to step in and help them resolve remaining issues in their first contract negotiations with management. The union represents 10,000 passenger service employees that include airport ticket, baggage and gate agents, reservations personnel, US Airways Club representatives, special assist agents and city ticket office agents. Contract talks have been under way since December 1997.
United and Atlantic Coast Airlines today will introduce hourly all-jet service between New York LaGuardia and Washington Dulles. The new service is part of United's plan to increase its hub operation at Dulles by 60%. Together with ACA, United will offer 16 flight segments per day in the market.
Air Canada and Star Alliance partner SAS have launched nonstop Toronto- Copenhagen service. The five-times-weekly service cuts existing air travel time on the route by as much as three hours and offers connections to and from points throughout eastern Canada, Scandinavia and Eastern Europe. Members of Air Canada's and SAS's frequent flyer programs traveling the route until June 15 will receive double bonus miles.
Midway Airlines Corp. yesterday reported record first quarter results and its 10th consecutive quarterly profit. Excluding a $575,000 after-tax charge related to retiring three aircraft, Midway had operating income of $8.2 million, up 25% from the year-earlier quarter, and net income of $4.6 million, up 19%. Revenue was up by a lower percentage - 9%, to $55 million - so the operating margin grew to 15% from 13%. Revenue per available seat mile grew 8.6% to 14.3 cents, yield 6.6% to 22.5 cents and cost per ASM 7.6% to 12.7 cents.
Worldspan extended for two years, with an option for a third year, the agreement by which StaffMark provides temporary staffing in administrative, light industrial, technical and other support areas. StaffMark has provided more than 800 temporary employees for Worldspan during the past three years.
US Airways said yesterday it has reached a deal with Indianapolis-based Chautauqua Airlines, one of its nine US Airways Express carriers, to operate 10 Embraer 145 LR 50-passenger regional jets under the US Airways Express banner. The first two aircraft are scheduled to be placed into service in July, and the remaining eight will be placed into service every other month between September 1999 and the end of 2000.
Midwest Express said travel agencies using the Amadeus computer reservations system can now offer electronic ticketing for Midwest Express and its subsidiary, Skyway Airlines. The carrier said it will begin phasing in e-ticketing this month for agencies using the Galileo CRS.
Relaxing U.S. foreign ownership restrictions would require "almost global" reciprocity, Will Ris, American VP government affairs, said yesterday at the 8th annual international aviation symposium at Phoenix.This would entail an agreement with a market "at least as big as the EC [European Commission]," he said, and "the EC has closed that door."
The devaluation of the Brazilian real, which led to a massive drop in the currency and a 40% decline in international travel, has affected aircraft manufacturers in varying degrees. Boeing, which last year recorded a large order from now-struggling Varig, has been hit the worst, as the carrier asked Boeing for changes in delivery dates of several new aircraft. "Boeing has made a long-term cooperation agreement with Brazilian carriers, and that's the type of action we need to support our customers," said John Ferren, Boeing VP-sales for the Americas.
Aviation Industry Stock Performance, April 1999 Closed Closed Monthly Change Symbol 4/30/99 3/31/99 ($) (%) Alaska Air Group ALK 44.063 47.500 (3.437) (7.2) America West (Class B) AWA 20.875 19.063 1.812 9.5 AMR 1 AMR 69.813 58.563 11.250 19.2 Continental (Class B) CAI.B 43.188 38.000 5.188 13.7
Alaska Airlines said yesterday it is restoring a relatively normal schedule after canceling roughly 200 flights last week because of a work slowdown by its mechanics, who are represented by the Aircraft Mechanics Fraternal Association (AMFA). Although the airline was not experiencing significantly more mechanical problems, repairs were taking an unusually long time to be completed, the airline said (DAILY, April 30). The mechanics' contract became amendable in August 1997. Mechanics elected AMFA representation last summer.
Continental will change its stock symbol today for its class B common stock from CAI.B to CAL, and will change its symbol for its class A common stock from CAI.A to CAL.A.
Mexicana seeks a DOT exemption of at least two years to engage in scheduled combination service between Acapulco and Miami, to be operated with 727-200 aircraft configured for 150 passengers. (Docket OST-99-5585)
Rockwell Collins Flight Dynamics said FAA granted certification for its head-up guidance system for the Boeing 737-800 and the Boeing Business Jet. For the latest approvals, Flight Dynamics completed validation of the HGS with sensors for instrument and microwave landing systems and the Global Positioning System
TNT, which provides mail, express and logistics services, said it will start a cargo airline, to be called TNT Airways. TNT said the move will increase the speed, flexibility and efficiency of its express network. All existing airline activities will be brought under one umbrella in Liege, Belgium, site of TNT's European Express Center hub. TNT, which operates 33 aircraft, said TNT Airways will begin operations in the fourth quarter and become fully operational by 2002. The company plans to acquire 14 A300s over the next three years to replace 727s.
New Air projects an operating loss of $5.6 million in its first year of operations but expects to be in the black during its last five months, according to pro forma operating and income statements in the certificate application the carrier submitted Friday to DOT (DAILY, May 3). With investments totaling $128.2 million committed by Dec. 31 - nearly $32 million has been paid in so far - New Air estimates $14.8 million in pre-
