Pilots at USAirways Express regional subsidiary Allegheny Airlines have ratified a new collective bargaining agreement that contains improved job security, scheduling and retirement provisions, the Air Line Pilots Association announced. ALPA said the contract has "considerable furlough protections" as well as provisions "alleviating hardships faced by reserve pilots." Allegheny pilots will keep their benefit pension plan and won increases in the amount the company contributes to 401(k) accounts.
Alaska Airlines said yesterday it was canceling about 10% of its flights because of a slowdown by its mechanics, represented by the Aircraft Mechanics Fraternal Association. "What is unusual is that the airline is not experiencing significantly more mechanical problems," Alaska said. "Repairs, however, are taking an unusually long time to be completed." Most of the cancellations have been at the carrier's primary hub, Seattle, and Alaska said it has been able to accommodate all passengers on other flights. The carrier said it is exploring court action.
Honeywell said net income for the first quarter rose to $105.4 million from $96.3 million in the same period last year, its 17th consecutive quarter of double-digit earnings growth. Sales were up 3.3% to $1.99 billion from $1.92 billion, and operating profit for space and aviation rose to $83.3 million from $70.3 million.
Sen. Byron Dorgan (D-N.D.), a member of the Senate Commerce aviation subcommittee, will discuss air service to small communities, airline competition and infrastructure funding issues on Aviation News Today, to be broadcast Sunday on Washington's NewsChannel 8 at 12:30 a.m. and 1:30 p.m.
TWA this week will begin adding summer flights in 21 U.S. city-pairs and two international markets - a second daily St. Louis-London Gatwick nonstop and a seasonal St. Louis-Paris nonstop. On May 1, TWA will begin service or add frequencies from St. Louis to El Paso, Richmond and Anchorage and on May 15 in Portland-Anchorage, St. Louis-Portland and St. Louis-Vancouver markets. On June 1, the second St. Louis-Anchorage nonstop begins, as well as added frequencies on routes between New York Kennedy and San Francisco, St.
Lufthansa has placed a firm order with Fairchild Aerospace for 60 units of the new 70-seat 728JET regional airliner in a deal worth about $1.6 billion, the manufacturer and airline announced. The carrier, launch customer for the aircraft, also took 60 options. Deliveries are scheduled to begin in 2002. Lufthansa, along with Swissair subsidiary Crossair, had been mentioned for some time as a strong candidate to become the launch customer for the airliner (DAILY, April 2).
Regional jets accounted for nearly one-quarter of regional lift last year in terms of the number of passenger seats, according to statistics compiled by AvStat Associates for the Regional Airline Association in its 1998 annual report. The report is available for $75 from RAA at 1200 19th Street N.W., Suite 300, Washington, D.C. 20036-2422. Top Regional Aircraft 1998 (In Descending Order By Total Seats) Percent of
Lufthansa Group said yesterday its pre-tax earnings for 1998 increased 42% to 2.5 billion deutschmarks (US$1.35 billion) and set a record. Last year's results also were a record. The company also had its best net profit ever, DM1.4 billion ($760 million), up 33%. "Growth in traffic volume continued unabated," Lufthansa said. The results, following a difficult period for British Airways, further established Lufthansa as the healthiest airline in Europe.
TWA and Kuwait Airways filed jointly for authority to operate code-share services between the U.S. and Kuwait, Abu Dhabi, Dubai and Muscat. TWA would display Kuwait's code on flights between New York Kennedy and Los Angeles, St. Louis, San Francisco and Washington, and between St. Louis and Chicago O'Hare. Kuwait Airways holds permit authority to serve JFK - via London and Frankfurt - with four weekly flights, and Chicago with two.
The Irish government yesterday approved a plan selecting American and British Airways as alliance partners for Aer Lingus. An airline spokeswoman said that American and BA have invited Aer Lingus to join the oneworld alliance. The decision means that the Irish carrier will join BA and not fight against it, and that British Midland likely will move closer to non-BA partners. Ireland owns 95% of Aer Lingus and employees own the rest.
LatinPass frequent flyer program, owned by 10 Latin American airlines, has opened membership to all other airlines in Central and South America and the Caribbean. US Airways, TWA and KLM currently are members, and new airlines would have agreements similar to theirs. This year's LatinPass chairman, Federico Bloch, also Grupo TACA chairman, said a number of other airlines in the region have expressed interest in joining the program, but were not prepared to take an ownership stake.
Sundstrand board called a special stockholders meeting June 10 to approve the announced merger with Hamilton Standard. The board also declared a quarterly cash dividend of 17 cents per common share payable June 15.
Air Transport Association members' traffic for March rose 4.6%, with domestic growing 4.2% and international 5.5%. Capacity increased 3.6% and the load factor grew to 73.2% from 72.4%. Passenger enplanements gained 2.3% to 44.7 million. Traffic has risen faster than capacity during each of the first three months of the year.
TWA accepted for payment $28.8 million principal amount of its 11 3/8% senior secured notes due April 15, 2003, and $14.5 million principal amount of its 10 1/4% senior secured notes due June 15, 2003. The notes were tendered under a TWA offer to buy as much as $28.8 million principal amount of the 11 3/8% notes and all of the 10 1/4% notes. Holders of 11 3/8% notes tendered $42.3 million principal amount, and TWA bought the $28.8 million principal amount on a pro rata basis.
UniCapital said it has signed two letters of intent to acquire 45 commercial jets for more than $1.5 billion, increasing its portfolio to 70 aircraft. The Orlando-based company said the aircraft include 737s, 757s, 767s, MD-80s, A320s, A300s and A310s. The two transactions are expected to close in May and June. UniCapital has more than 20 airline customers.
Midwest Express flight attendants have voted for representation by the Association of Flight Attendants. Of 360 employees eligible to vote, 204 backed the union. Airline Senior VP David Reeve said the company was disappointed, "but we support and respect our employees' legal right to make this choice." AFA said yesterday it wants to start contract negotiations immediately.
Management of Air-India, citing "an unbearably high rate of interest," has decided to shelve the proposed $100 million securitization deal for its North American ticket receivables and $100 million that was to have been brokered by ABN-Amro Bank, opting instead for a Foreign Currency Non-Resident (FCNR) loan of the same amount, AI officials said yesterday. The securitization deal, set to be brokered by ABN-Amro Bank, was scheduled to have been firmed up earlier this year.
Association of Flight Attendants members held a protest yesterday at FAA headquarters in Washington to "encourage" the agency to pass rules to protect passengers and flight attendants from oversize carry-on bags. AFA says the heavy bags cause "thousands of injuries each year" to flight attendants and passengers. AFA advocates a carry-on bag rule limiting passengers to about 13 pounds.
Northwest, United and Federal Express moved quickly to answer each other's applications for U.S.-China frequencies available now and April 1, 2000, under the amended bilateral. Eight frequencies are available this year and nine next year, and the three carriers, designated for the market, applied last week for nearly twice as many (DAILY, April 23). Northwest, United and FedEx are the only U.S. carriers authorized to serve China, and FedEx, which currently holds four frequencies, complained that it alone lacks daily service to China.
Delta has introduced electronic ticketing on itineraries that include any of its three Delta Connection carriers - Atlantic Southeast, Comair and Sky West. E-ticketing will be expanded to Business Express and Trans States soon.
China Airlines reported a passenger load factor of 71.3% and a cargo load factor of 83.5% for the first quarter of 1999. Based on first quarter results and improving prospects for a continuing economic recovery, a company official said CAL will easily achieve its 1999 targets of NT$62.4 billion (US$1.87 billion) in revenue and NT$1.72 billion (US$51.65 million) in pre-tax profit.
United, which has been building its operation at Los Angeles for a number of years, this week declared LAX an official hub. The statement coincided with the completion of a two-year, $240 million upgrade of its facilities, used by more than 25,000 passengers daily. "For all intents and purposes Los Angeles has been operating as one of our hubs for at least a year," said Mark Liberman, VP-North America, in an internal communique.
U.S. Major Carriers Advertising Expense Fourth Quarter 1998 % Of Total Advertising Passenger Revenues Alaska 5,464,000 1.68 Domestic 4,991,000 1.69 Latin 473,000 1.64 America West 6,301,505 1.36 Domestic 6,285,351 1.39
Boeing said it has bolted new, highly backswept wingtips temporarily on the first 767-400ER to verify installation procedures and ensure that the hardware meets engineering specifications. The new wingtips improve overall aerodynamic efficiency of the wing, providing about the same range as alternative wingtip designs that would lengthen the wingspan by 10 feet, Boeing said. The first 767-400ER is scheduled for delivery in May 2000.
