Air Canada posted a net profit of C$3 million (US$2.1 million), an improvement from last year's first quarter net loss of C$26 million. But without a share sale and a foreign currency transaction the carrier would have lost money in the quarter. Air Canada sold 35% of its interest in Equant N.V., which gave it a pre-tax gain of C$42 million, and took advantage of market conditions to purchase 3 billion Japanese yen debt, which gave it a pre-tax gain of C$13 million.
China Northwest Airlines leased two A320s from International Lease Finance Corp. The aircraft, powered by CFM56 engines, were delivered over the past two weeks.
With the recent introduction of charter service between Taipei and Guam and the scheduled startup of cargo flights between Taipei and Sydney and between Taipei and Europe via India, China Airlines predicts that its air transportation capacity will grow by 10% this year while actual volume will increase by 12%. The passenger load factor for 1999 is expected to exceed 71% with the cargo load factor topping 85%. At the same time, unit cost is expected to fall by 4% and unit yield to increase by 8%.
National Transportation Safety Board Bar Association endorsed a bill in the Senate aimed at curtailing FAA's "extensive use of its emergency authority to immediately revoke FAA airman, air carrier and other certificates" (DAILY, April 1). The "Hoover Bill" - S.722, introduced by Sen. James Inhofe (R-Okla.) - has received support from every major segment of the aviation community. Backers are expected to offer it as an amendment to the FAA reauthorization bill, which could be before the Senate in May.
House Transportation Committee sources say Chairman Bud Shuster's (R-Pa.) AIR-21, the five-year FAA authorization that would greatly expand aviation accounts and take trust funds off budget, is on the House Republican leadership's schedule for House floor action in two weeks. Shuster's 123 House co-sponsors, within 95 of an absolute majority, led the leadership to promise him a floor vote on his bill in return for not trying to earmark funds in the congressional budget resolution.
MedAire unit MedLink will provide inflight medical consulting services by telephone to Alaska Airlines and become the medical controller of automated external defibrillators the carrier plans to install in its fleet by August. MedLink serves 17 airlines, including US Airways, Southwest, TWA, British Airways and Virgin Atlantic.
Delta asked DOT for an exemption to engage in scheduled combination service between points in the U.S. and Tbilisi, Georgia, which it intends to serve under code share with alliance partner Austrian Airlines. With DOT approval, Delta would "institute first U.S. flag service [in] a relatively thin market that otherwise receives only very limited service," the carrier said. U.S.-Georgia service is governed by the 1990 U.S.-USSR bilateral, which lists Tbilisi as a point that may be served by U.S. carriers.
Singapore Airlines and SAS over the weekend began a strategic alliance and reciprocal frequent flyer privileges. The carriers have signed a strategic cooperation agreement, effective May 1, which followed an initial pact last October. In addition to schedule coordination and frequent flyer promotion, the carriers will cooperate in marketing, cargo services, catering, engineering, information technology, staff training and joint purchasing. SAS and SIA plan to begin code sharing at the end of October.
KLM and Alitalia deny recent reports of alliance delays and say they intend to finalize their strategic agreement on schedule, before Oct. 1. KLM said the alliance is "pioneering unprecedented and uncharted terrain in the airline industry."
Prudential Securities thinks the next commercial aircraft order cycle will begin around 2003 but questions whether Boeing will be ready. "We believe immense work remains to be completed over the next two to three years to restore Boeing's cost structure" to the point that it can earn satisfactory returns by the time the next cycle begins, Prudential says.
World Airways Friday reported a net loss of $2.7 million for the quarter ended March 31, slightly smaller than the $3 million loss it reported in the same quarter a year ago. Revenues declined to $65.3 million from $69.2 million. The operating loss broadened to $2.2 million from $1.6 million.
AEI named Steve Morrison managing director-U.K. Aircraft Technical Publishers and Professional Aviation Maintenance Association named William Fern, assistant maintenance supervisor for R.O.P. Aviation in Teterboro, N.J., recipient of the PAMA/ATP Maintenance Technician Award and George Townson, consultant to Chester County Aviation in New Jersey, recipient of the General Aviation Service Technician Award. Amadeus named Mel Trudeau VP-commercial development. Commander Aircraft named Carl Gull VP-customer relations and training.
Airports Council International-North America praised U.S. officials for persuading the European Union to delay implementing a rule banning hushkitted aircraft operations, part of a deal that most industry groups, including ACI-Europe, criticized last week for a variety of reasons (DAILY, April 30). ACI-NA President David Plavin said the U.S. should use the coming year to take a more aggressive position on resolving noise concerns.
LanChile posted a net profit of $31.8 million during the first quarter despite difficult traffic trends in South America. The profits were up 45.9% and included a $13.1 million gain from the airline's sale of a portion of its stock in industry telecommunications firm Equant Corp. Details of LanChile's results will be unveiled this week. The initial figures were made public at the airline's annual meeting in Santiago.
TWA has created a distribution planning group within its marketing department that will focus on Internet and electronic sales. Keith Bounds has been named VP-distribution to lead the department. The division will plan and implement the airline's electronic systems development support for yield management, airport operations and reservations sales.
Frontier Airlines will begin service June 14 to Portland, Ore., with two daily nonstop flights. The carrier will offer connections via its Denver hub to Atlanta, Baltimore, Boston, Chicago, Dallas/Fort Worth, Minneapolis, New York and Omaha. Frontier will launch service with its 19th 737, leased from CIT Leasing Corp.
American said Friday it is "very encouraged" by progress in contract talks with the Association of Professional Flight Attendants. The airline said it has tentative agreement on all non-economic issues, and both sides agreed to move the talks to Washington and asked the National Mediation Board to provide guidance on pay and retirement issues.
A scholarship fund in the name of Arnold Lewis, former editor of The Weekly of Business Aviation and a contributing editor of The DAILY's Regional Aviation supplement, who died April 21, has been established at Embry- Riddle Aeronautical University with initial pledges of $500 each from John Zimmerman, president of Aviation Data Service, and Edward Stimpson, vice chairman of the General Aviation Manufacturers Association. The McGraw-
United Technologies Corp. named Karl Krapek the company's new president and chief operating officer. He succeeds George David, who will remain chairman and chief executive. Krapek, 50, had been head of the Pratt&Whitney unit. Louis Chenevert, 41, will take Krapek's place at P&W. He was the unit's executive VP.
America West flight attendants, represented by the Association of Flight Attendants, Friday ratified a five-year contract that will increase wages by 35% over the life of the contract and provide per diem expenses for the first time. The pact ends more than four years of talks and sets up a grievance procedure. Airline President William Franke said the settlement "addresses the key concerns of the work group and the company.
The House Science Committee yesterday gave voice-vote approval to the FAA research&development requests of $648 million for fiscal year 2000 and $675 million in fiscal 2001. Before passage, the panel approved amendments that would permit research on structural aircraft systems and earmark at least $1.5 million in '00 and $2 million in '01 for innovative methods of using concrete in the design, construction, rehabilitation and repair of rigid airport pavements.
Delta will provide more than $1 million for American Red Cross disaster relief under a three-year "Signature Partnership" agreement with the charity. The carrier supports Signature Partnership organizations through corporate sponsorship, the Delta Foundation and employee contributions.
United Express affiliate Atlantic Coast Airlines is offering a range of special fares to promote the expansion of its own and senior partner United's Washington Dulles service. The off-peak one-way fares, available to 40 destinations from Dulles and pegged as low as $39 with none higher than $69, are part of a campaign called "Pick a City. Any City." The promotional fares are available for roundtrip travel only and include a Saturday night stayover.
