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.
Tower Air reported an operating profit of $500,000 for the first quarter of 1999, compared with an operating loss of $9.4 million in the first quarter last year. The net loss was $2 million, or 13 cents per share, down from $7.3 million, or 48 cents per share. Operating revenue increased 4.1% to $100.7 million and operating expenses declined 5.6% to $100.1 million. Chairman and Chief Executive Morris Nachtomi said the results reflect continued progress in Tower's operations.
Airbus Industrie "relies on substantial government support" to take business away from Boeing, which "does not enjoy the same protectionist treatment," according to Rep. William Lipinski (Ill.), ranking Democrat on the House Transportation aviation subcommittee. In a House floor speech on Wednesday, Lipinski said, "This is not right" after disclosure that prospective low-fare startup New Air will buy A320 aircraft from Airbus instead of Boeing 737s, as had been expected (DAILY, April 22).
U.S. Carriers Rental Expense, Fourth Quarter 1998 Major Carriers % Of Total Rental Operating Expenses Alaska 49,634,000 14.38 America West 88,000,345 19.06 American 255,805,000 7.08 Continental 211,985,000 12.54 Delta 255,604,000 7.98 Northwest 145,565,000 6.28
Northwest Chairman Gary Wilson called an early halt to the company's annual shareholders meeting in New York Friday after flight attendants disrupted the meeting. About 75 attendants, represented by the Teamster's union and unhappy with contract talks, picketed the meeting and joined others waiting inside, Northwest said. Rules of order dictated that questions be submitted in advance, but union members yelled and called out questions from the floor. After they refused to sit down, Wilson ended the event.
Cargolux reported year-over-year record results in 1998 in tonnage, revenues and profits. Operating profit was $38.5 million on revenues of $578 million, up 5.2% from 1997. Net profit was $92 million. Tons carried rose to 321,982 from 273,696. Ton kilometers rose to 2.7 billion from 2.4 billion. Cargolux said its 747-400F fleet had daily average flight hours of 15.96. It had six 747-400Fs at the end of 1998, and four more, with Rolls-Royce powerplants, will be delivered this year.
A broad range of radionavigation issues will be the focus of a London conference this year, including design of the European Galileo satellite system and definition of signal specification, and the Johns Hopkins Risk Analysis Study for GPS sole-means/sole service, plus reviews of the report. The conference, Nov. 1-3, is sponsored by the Royal Institute of Navigation and the International Loran Association, which have combined their annual conferences to provide what likely will be the last navigation forum of the 20th century.
