FAA yesterday issued four emergency airworthiness directives aimed at preventing possible wiring-related smoke and fires in MD-11 aircraft. One order involves the aft main avionics rack on certain MD-11s. FAA cited an incident in which the automatic and manual cargo door test in the cockpit was inoperative during dispatch of the airplane because of chafed wiring. It said this could result in electrical arcing, smoke and possible fire in the main avionics rack.
Raytheon yesterday reported record first quarter sales of $4.9 billion, up 7% from $4.6 billion during the same quarter last year. Net earnings were $241 million, up 13%, before the effect of an accounting change and $188 million following an after-tax adjustment of $53 million. Raytheon's electronics businesses reported a 13% increase in operating income to $3.7 billion. Raytheon Aircraft Co. reported operating income of $32 million on sales of $500 million, up from $34 million on sales of $459 million.
FAA yesterday proposed to order tests for Pratt&Whitney PW4000 engines to prevent high-pressure compressor surges, a move already underway by Pratt in cooperation with the airline industry. FAA noted that work by the industry and it over the past seven years has "significantly reduced the surge frequency of PW4000 engines, or from a high of one surge per 8,000 flights to about one per 32,000 flights.
British Airways and its International Association of Machinists, in an 11th-hour attempt to avert a strike, have agreed to send a tentative agreement that comprises management's last contract offer to the membership for ratification. IAM spokesman Jim Sprang said that while the company is calling it a tentative deal, "we're calling it a final offer....We'll let membership make the final determination." The vote will take place in the next few weeks.
Silk Air, the regional subsidiary of Singapore Airlines, still is adjusting its operations to the downturn in Southeast Asia's economies. The airline was particularly hard hit because 40% of its capacity was to Indonesia, the country hit hardest by the economic crisis. Although Silk Air has maintained flights to the nine points in Indonesia it serves from Singapore, it has reduced some frequencies and its capacity to Indonesia is down to about one-third of its total.
Calgary-based WestJet reported a record C$14.1 million (US$9.5 million) in earnings before employee profit sharing and income taxes for the year ended Dec. 31, 1998, up 34%. Net earnings rose to C$6.5 million (US$4.4 million) and operating revenues jumped 63% to C$125.9 million (US$84.6 million). The carrier rewarded employees with C$1.7 million (US$1.14 million) in profit sharing. Available seat miles increased 55% and revenue passenger miles 57% during the year. The load factor grew one point to 71.6%.
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.
