Alaska Air Group reported a first quarter net income of $20.2 million, or 76 cents per diluted share, compared with $13.1 million, or 56 cents per share for last years's first quarter. Operating revenues grew 10.8% to $461 million on a 9.3% increase in operating expenses to $433 million. Wages and benefits rose 11% to $151.9 million and aircraft maintenance jumped 22.9% to $35.4 million. Commissions increased 4.9% to $23.7 million. Operating income was $28.6 million, up 27.1% from $22.5 million a year earlier.
Aerolineas Argentinas, citing ETOPS (extended-range twin-engine operations) restrictions, yesterday ordered 12 ultra-long-range A340 aircraft, becoming the first carrier in Latin America to select the four-engine aircraft for intercontinental routes. The contract includes six newly launched A340- 600s and a mix of A340-200s/300s. The latter will be phased into service beginning this summer, while the A340-600s will be delivered beginning in 2002. David Cush, chief operating officer of the airline, said the A340-
The House is likely to vote in mid-May on AIR-21, Transportation Committee Chairman Bud Shuster's (R-Pa.) five-year FAA reauthorization plan to boost aviation accounts across the board by drawing more money from the aviation trust funds, committee sources told The DAILY yesterday. Senate Commerce Committee sources were uncertain yesterday about when the committee-approved authorization bill, which emphasizes competition by adding slots at capacity-restricted airports, will go before the Senate.
Delta has named Skip Barnette, former VP of Delta Express and VP of Atlanta Worldport, president of ASA Holdings, effective May 11. ASA will operate as a wholly owned Delta subsidiary following an ASA shareholder meeting on May 11.
Malaysia Airlines is evaluating the Bombardier -8Q 300 aircraft to replace aging F50s operating domestic flights in the two east Malaysian states of Sabah and Sarawak. A MAS senior engineering official told The DAILY that Bombardier is strongly favored. A decision on when to order the aircraft will be made later in the year. Because some of the F50 routes will be taken over by the 737-500s, only seven -8s will be ordered to replace the 10 F50s.
Austrian Airlines began restoring service this week to the Kosovo region in the Balkans. As of yesterday, Austrian resumed roundtrip service between Vienna and Sarajevo, Bosnia and Herzegovina. Service on these routes is aboard Austrian Airlines. On Thursday, service will resume every day except Saturday between Vienna and Banja Luka, Bosnia and Herzegovina, and between Vienna and Mostar, Bosnia and Herzegovina, to be operated by subsidiary Tyrolean Airways.
All Nippon Airways has seen traffic improvements in several international markets from Japan, a signal to the airline that Asia's economic weakness may be dissipating. While the pressure on Japan's increasingly volatile domestic market is not abating, the carrier has shifted routes to lower- cost subsidiary Air Nippon in a move that it expects to assuage concern over lower yields. Business travel into Japan has continued strong, buoyed ironically by a flood of U.S. bankers seeking to stabilize Japan's financial markets.
Even though the specific 737 rudder malfunction most likely involved in the USAir 427 and United 585 crashes and the Eastwind 517 incident "appears to have been eliminated by the redesigned servo valve," the National Transportation Safety Board "remains concerned that other rudder system malfunctions might potentially lead to rudder reversal or hardover conditions." The board said Boeing "acknowledged that a rudder hardover on the 737-NG [next generation] during the most critical phases of flight - takeoff and/or landing - would be catastrophic." The board again issue
FAA last week dedicated its National Airport Pavement Test Facility at the FAA Technical Center in Atlantic City, N.J. The $21 million facility, the first of its kind, is the result of a cooperative effort by FAA and Boeing. FAA said the facility will accommodate full-scale loading tests, representing current and future transport aircraft landing gear loads and configurations. "The technical data generated from work conducted here will shape future airport pavement design standards," FAA said.
The Philippine Securities and Exchange Commission (PSEC) may have rejected Philippine Airlines' (PAL) latest rehabilitation plan, but Chairman Lucio Tan's strong links with the president's palace will see the national carrier through the storm. The rejection is the second from PSEC in four months. Tan, who has strong ties with President Joseph Estrada, has the support of the palace for PAL to continue flying. Tan supported Estrada in his campaign for the presidency two years ago.
India's Civil Aviation ministry will shortlist consultants for modernization-cum-expansion projects at 10 of the country's airports in early May, ministry officials said last week. In all, 28 legal and 22 financial consultants representing some of the world's top companies are contending for project contracts at Delhi, Mumbai, Chennai, Calcutta, Bangalore, Hyderabad, Ahmedabad, Amritsar, Guwahati and Panaji airports, they said.
Kiwi International Airlines has reached an agreement with FAA that might give the financially beleaguered airline another chance at life. FAA has agreed to vacate its March 24 order revoking the airline's operating certificate, instead suspending the certificate pending completion of a revalidation review, which it will conduct on an expedited basis. Kiwi was scheduled to appear before the National Transportation Safety Board today, but the hearing was canceled in light of the agreement.
The government of Italy will sell its remaining 54.2% stake in Aeroporti di Roma in June, Transport Minister Tiziano Treu confirmed. The company operates Fiumicino and Ciampino airports, and the government intends to sell 51.2% to private investors and 3% to local authorities. Fears that the privatization might be delayed arose recently, however, because the Italian government faces legal action from Milan's airport company, SEA, and the City of Fiumicino, which protest against the privatization procedure.
U.S. Major Carriers Traffic March 1999 (000) March March % 1999 1998 Change Alaska Revenue Passenger Miles 1,014,000 929,000 9.1 Available Seat Miles 1,470,000 1,370,000 7.3 Load Factor (%) 69.0 67.8 America West
Delta has upgraded 93% of its aircraft interiors during the past 15 months. In addition, it has refurbished 117 of 139 airport facilities, and the rest are due for completion by June.
Pilots scope clause restrictions on regional jet flying are not holding back RJ expansion, the Air Line Pilots Association says. ALPA, responding to a report by Washington consultants GKMG (DAILY, April 15), said "we don't think scope clauses are the problem.
Continental is offering a $498 roundtrip fare for nonstops between Cleveland and London for travel from June 30 to Aug. 31. The special fare covers flights between Monday and Thursday, and Friday-Sunday travel costs $50 more. Continental also is offering introductory fares from several Midwest cities for flights to London via Cleveland. Fares range from $538 for Columbus, Ohio, to $598 for Kansas City.
Alaska Airlines has joined American's AAdvantage program, enabling American, American Eagle, Alaska and Horizon Air frequent flyers to earn and redeem miles on one another's flights. Through June 30, AAdvantage members will earn double miles when they fly Alaska or Horizon Air, and Alaska Mileage Plan members will earn double miles when they fly on American or American Eagle. Miles may be accrued to only one program and cannot be combined or transferred once credited.
The widely followed Cook Political Report says only one of the eight Republicans on the Senate Commerce Committee's aviation subcommittee running for re-election next year, John Ashcroft (Mo.), is in a tossup race. Spencer Abraham's (Mich.) race is rated as leaning Republican, Conrad Burns's (Mont.) and Chairman Slade Gorton's (Wash.) are considered likely Republican, and Bill Frist's (Tenn.), Kay Bailey Hutchison's (Texas), Majority Leader Trent Lott's (Miss.) and Olympia Snowe's (Maine) are considered solid Republican.
Continental's new Newark-Tokyo service was the "biggest surprise in the first quarter," said President Greg Brenneman, and other international sectors have experienced strong traffic and improving financial results. The new Tokyo service has posted revenue 20-25% higher than forecast, and Continental Micronesia load factors and yields also improved. "The Japanese are starting to take vacations," Brenneman said. The Micronesia subsidiary is one of the chief leisure carriers for Japanese tourists to Guam and Saipan.
Continental continues to rely on enhanced equipment trust certificates (EETCs) for aircraft financing and has benefited recently from rock-bottom interest rates unavailable to the carrier three years ago due to its poor financial state. During the first quarter, Continental completed $806 million in EETC financing at an average interest rate of 6.62%.
