DOT told U.S. and foreign carriers that DOT regulations require them to carry liability insurance that covers damages related to Year 2000 computer problems.
FAA said it will temporarily expand airspace restrictions and enhance airport security in the Washington area today during the 50th anniversary NATO summit. Unless authorized by air traffic control, flight operations will be temporarily prohibited below 18,000 feet within a 10-nautical-mile radius of Washington Reagan Airport and Andrews Air Force Base.
A U.K. High Court has ruled that the European Council regulation on passenger liability is in conflict with the Warsaw Convention, according to Pierre Jeanniot, IATA director general. IATA, which brought the suit, has "long opposed unilateral action by the European Union to deprive airlines of their treaty rights," Jeanniot said. Justice Jowitt of the High Court ruled that the EU regulation impedes the performance by member states of obligations owed to non-member states that are parties to the convention.
Amtran Inc., parent company of American Trans Air, reported a record first quarter net income of $16.5 million, up 33.4% from the first quarter 1998. Amtran has had record earnings in its last five quarters. Amtran reported an operating income of $29 million, up from $23.4 million. Earnings per diluted share were $1.22, up 19.6%. Total operating revenues rose 21.2% to a record $277.9 million, and scheduled service revenues jumped 22.4% to $144.3 million. Charter service revenues climbed 13.8% to $107.3 million. Total operating expenses grew 20.9% to $249 million.
U.K. Deputy Prime Minister John Prescott appointed Roy McNulty to the board of the Civil Aviation Authority (CAA) as chairman of the U.K.'s air traffic control organization, National Air Traffic Services (NATS). McNulty will resign as chairman of Shorts Brothers plc at the end of the month but will remain chairman of Shorts Missile Systems until yearend, although he will not participate in business involving Lockheed Martin. Prescott reappointed CAA Chairman Malcolm Field for a three-year term starting June 1.
Northwest, United and Federal Express, the U.S. carriers designated to serve China, are proposing 15 new U.S.-China frequencies immediately and 17 next year, each nearly double the number available under the amended bilateral. DOT invited the carriers to compete for the eight frequencies added this year and the nine provided as of April 1, 2000. The department will be able to designate a fourth carrier in the market and allocate 10 more frequencies on April 1, 2001 (DAILY, April 9).
China agreed to buy three corporate jets worth $65 million from Bombardier, according to news reports. China is said to plan to take delivery of the aircraft in June, November and December 1999 for use in northwestern China.
America West Holdings Corp. subsidiary The Leisure Company has agreed to acquire National Leisure Group, a national retail leisure travel company based in Woburn, Mass. NLG is a subsidiary of Cendant Corp.
In light of the recent crash of a Korean Air MD-11 cargo plane in Shanghai and a lack of confidence on the part of the Korean government, 29 senior executives at and above managing VP rank have handed in their resignations, including Korean Air's founder and Chairman Choong-Hoon Cho. He will be replaced by current President and Chief Executive Yang-Ho Cho, who will be responsible for external relations for the airline. Korean Air has appointed Yi-Taek Shim, who has been with the airline since 1972, as the new president and chief executive.
British Midland Chairman Michael Bishop said he is more optimistic than a few weeks ago about U.K.-U.S. bilateral talks. Speaking at a briefing in London, he said the slot situation at London Heathrow has changed following a recent court ruling in favor of slot sales. "I think it is going to ease the situation. If the bilateral were to be brought in incrementally, I believe there are enough willing sellers around to satisfy the U.S.
Air Pacific, the small, Fiji-based carrier partly owned by Qantas, expects to report a record financial year for 1998 when it releases its numbers next month. The carrier will post profits that are "multiples better than past years" and the best in its history, according to Chief Executive Michael McQuay. In an interview with The DAILY, McQuay said the airline has a new lease on life after recovery from high costs and a bloated structure.
DOT tentatively said that upon achieving open skies with Chile it will grant antitrust immunity to the American-LanChile alliance. (Docket OST-97-3285)
Air Canada's Canadian Auto Workers have ratified a three-year agreement effective April 1. CAW represents the airline's 3,840 customer sales and service agents in Canada.
Changan Airlines of central China ordered three Q400 Dash 8 turboprop aircraft from Bombardier Aerospace. The $60 million sale is the first for the new 78-seat regional aircraft in China.
U.S. Space Command said yesterday it will conduct Y2K compliance testing of the Global Positioning System on four days through mid-May, beginning today. The test involves a single on-orbit satellite and will not interfere with GPS users, the command said. During the tests, the clock on the satellite will be moved forward to specific dates to be tested in a Y2K environment. Before moving the clock forward, the satellite will be temporarily set "unhealthy," so GPS receivers made in accordance with manufacturing specifications will not be able to use its signal.
Rep. Jerry Moran (R-Kan.), a member of the House aviation subcommittee, will appear on Aviation News Today, to air Sunday on Washington's NewsChannel 8 at 12:30 a.m. and at 1:30 p.m.
Rep. William Lipinski (D-Ill.) used a letter to his House Transportation Committee colleagues outlining the terms of the U.S.-China aviation pact (DAILY, April 9, 15) to seek their co-sponsorship for his Aviation Bilateral Accountability Act, which would "require congressional approval of all U.S. bilateral aviation agreements." Lipinski, ranking member of the aviation subcommittee, told fellow members that "aviation agreements are trade agreements that determine the amount of access the U.S. will have to foreign markets.
TWA reported an operating loss of $37.6 million and a loss before extraordinary items of $21.6 million for the first quarter of 1999, an improvement from the $68.7 million loss incurred in the same quarter last year. The loss per share before extraordinary items was 42 cents. Operating expenses dropped $31.9 million to $802.2 million, lowering the cost per available seat mile (CASM) to 9.57 cents from 9.67 cents. CASM for the first quarter was impacted by an increase of $14.6 million in aircraft rentals.
Security precautions for the NATO summit in Washington will restrict access to the downtown area in which Aviation DAILY is published. Because of this, there may be delays in delivery of print issues on Friday, April 23, and Monday, April 26. The DAILY's Regional Aviation supplement, which appears on Fridays, will not be published this week. On Friday and Monday, readers may access The DAILY at the Aviation Week Newsletters web site, http://www.awgnews.com, by using the username aviation_daily and the password airline.
DOT should not entertain Sioux City's Chicago O'Hare slot request in the absence of an application from an eligible carrier willing to operate the services, United told DOT. The community applied for four slots for nonstop service (DAILY, April 7). United said a survey of its commuter carriers found that the shortage of slots at O'Hare makes service to Sioux City infeasible. If restrictions are modified or eliminated to make more slots available, nonstop commuter service to Sioux City could be restored, the carrier said.
Washington Dulles-based United Express affiliate Atlantic Coast Airlines reported increases in net profit (before the effect of an accounting change) and operating revenue for its first quarter ended March 31, compared with the same quarter in 1998. Net profit (before the accounting change) rose 26.1% to $3.8 million from slightly under $3 million, while operating revenues jumped 25.7% to $73 million from $58.1 million.
Arnold Lewis, 60, veteran aviation journalist, died unexpectedly April 21 at his home in Fredericksburg, Va. Lewis, for many years editor to The Weekly of Business Aviation, was a contributing editor for Business&Commercial Aviation magazine and The DAILY's Regional Aviation supplement; early in his career, he was a reporter for the Wichita Eagle. The family will announce a memorial service at a later date.
TWA Chairman Gerald Gitner said yesterday the carrier is upgrading its 767 fleet in a deal with GE Capital Aircraft Services (GECAS), which will provide it with three leased 767-300ERs this year and next. The three 767s are in addition to one new 767-300ER on order for delivery in August. TWA has sold and will lease back from GECAS five 767-200s that it will continue to operate until the larger aircraft arrive.
Aero Club of Washington luncheon on Tuesday, April 27, at the Capital Hilton will feature Jack Schofield, chairman and CEO of Airbus Industrie of North America, as speaker. His theme will be "The Flagship of the 21st Century - The Next Big Airplane." For reservations, call 1-800-322-3761, out of state 703-327 7082.
