Endorsing a declaration last month by its National Air Traffic Services (NATS) subsidiary, the U.K. Civil Aviation Authority announced last week that an independent review of the nation's aviation infrastructure shows it will be in "good shape" for 2000. The government said it plans to issue advice on the Y2K safety of foreign airlines and airports by Oct. 1 and "will withdraw foreign airline operating permits if necessary." The U.K.
The two U.S. airlines that added the most capacity in the first quarter, Southwest and Continental, showed the biggest load factor gains - 3.7 and 2.5 points, respectively.
American Eagle launched nonstop regional jet service between Madison, Wis., and Chicago O'Hare using 50-seat ERJ145 regional jets. A second RJ flight will begin operating today.
Comair will begin nonstop jet service to Savannnah/Hilton Head and Charleston, S.C., and Jacksonville, Fla., this summer from its Cincinnati base. The carrier will start Savannah service June 1, Charleston flights July 1 and Jacksonville service Aug. 1. Comair President David Siebenburgen announced the new service during groundbreaking ceremonies for improvements to Concourse C and Comair's new corporate headquarters at Cincinnati Airport.
Air New Zealand (ANZ) is weighing whether to exercise its right to buy News Ltd.'s 50% stake in Ansett. ANZ Chairman Selwyn Cushing, who met with Singapore Airlines Chief Executive Cheong Choong Kong last week on ANZ's position, told The DAILY in Singapore that it is too early for ANZ to make a decision. Selwyn said the meeting was constructive, but nothing was concluded. Last month, SIA offered News Ltd. A$500 million (US$322 million) for its 50% stake, but the sale is subject to regulatory approval.
Delta applied for an exemption to operate scheduled combination service between Atlanta and Guadalajara, Mexico, and Delta and AeroMexico asked separately for authority to code share on the route. Delta plans to launch daily nonstops July 1, using a 727-200 with 12 first-class and 137 economy seats, carrying AeroMexico's code from the start. No U.S. carrier is designated on the route, which does not receive direct service currently, Delta said.
LanChile Airlines has added three new nonstop flights per week between Los Angeles and Santiago, Chile, with direct service to Buenos Aires and connections to Cordoba and Mendoza. The new service, beginning July 7, will bring weekly flights from Los Angeles to 10, a 42% gain in frequencies to South America.
FAA acknowledges that it received more than six times its budget requests for fiscal years 1998 and 1999 - $337.7 million vs. $54 million - to correct Year 2000 computer problems (DAILY, April 19). The 1998 request was only $18 million, a spokesman said, but it was made before a centralized Y2K program was put in place. FY '98 funding amounted to $80.7 million. The spokesman said the FY '99 request focused too much on testing Y2K repairs and not enough on implementing them, and this was changed during the year.
The last stage of Iberia's privatization will be completed later than expected. Floating about half of the carrier's capital for public sale will take place "most probably after the summer," a spokesman of SEPI, the Spanish government holding company, said Friday in Madrid. "This is not a delay, as no definite date had been set," the spokesman said, but several Spanish officials announced in recent months that sales to the public would take place by June.
AeroMexico ended service to Lima, effective April 20, with Chief Executive Fernando Flores saying the carrier wants to dedicate its resources to "routes which offer more growth potential." The airline intends to continue service to nine other Latin American and Caribbean destinations.
U.S. Carriers Commission Expense, Fourth Quarter 1998 Major Carriers % Of Total Commission Operating Expenses Alaska 22,524,000 6.53 America West 26,379,829 5.71 American 276,708,000 7.66 Continental 116,382,000 6.88 Delta 208,465,000 6.51
Fedex Pilots Association is preparing to ask members for an increase in dues. "We've been telling you that in order to adequately represent you in dealings with a multi-billion-dollar corporation in implementing this contract, FPA will have to be funded like a major union," VP Wally Huggins told members in a recorded message. He said the rank and file will be able to analyze the budget and approve changes in the dues structure before they are implemented.
Atlas Air said first quarter net income totaled a record $10.2 million, up from $5.3 million in the same period last year. Net income was $2.2 million, including charges of $6.6 million to redeem early 12.25% senior secured notes and $1.4 million due to a change in accounting rules. Operating income was $36.7 million and revenues $137.8 million, also records. Last year, operating income totaled $21.5 million and revenues $79.6 million.
Kaman reported first quarter net earnings of $7.3 million, up from $7 million last year. Revenues were $249.8 million, up from $239.1 million. Aerospace operating profits rose slightly to $10.4 million from $10.2 million on sales of $92.8 million, up from $83.8 million.
So far this year, 3,618 pilots have found jobs, according to Atlanta-based AIR, Inc. There were 1,245 new jobs in March. At the current rate, there will be about 3,300 new jobs at the majors, 4,300 at the nationals and 12,500 overall in 1999. There were 14,143 new pilot jobs in 1998.
Atlantic Coast Airlines has adopted a plan to repurchase up to 5% of its current outstanding shares over the next 12 months, trading on the open market or through private transactions. As of March 31, the company had about 19,509,000 shares outstanding.
Taiwan's First Commercial Bank seized an MD-82 aircraft belonging to financially troubled U-Land Airlines after U-Land failed to make interest payments on outstanding loans. The MD-82, leased to a Philippines-based airline, was in Taiwan to undergo maintenance. U-Land owns two other MD-82s that it uses on domestic routes in Taiwan. In March, the company was threatened with the loss of its operating license by Taiwan's Civil Aeronautics Administration after failing to pay more than NT$25 million (US$750,000) in landing fees and ground service charges.
Thomas Davis, 81, founder and retired chairman of Piedmont Airlines and a charter member of the Aircraft Owners and Pilots Association (106) and the Air Safety Foundation, died April 22.
