Virgin Express posted a net loss of 53 million Belgian francs (US$1.4 million) for the fourth quarter of 1998, improving on the BEF 74 million loss in the year-earlier period. For 1998, the airline earned BEF 47 million ($1.3 million), far lower than the BEF 497 million in 1997. Revenue increased 15% to BEF 2.36 billion ($63.6 million) for the quarter and 14% to BEF 10.5 billion ($282 million) for the year. The load factor for the December quarter rose 4.4 percentage points to 72.1%, indicating that breakeven is still higher.
Boeing Co. named several officials to new financial positions to increase focus on business planning, said Debby Hopkins, chief financial officer. Robert Stone, formerly assistant treasurer, was named to the new position of VP-financial planning and analysis. Laurette Koellner, formerly VP-general auditor, was designed VP and corporate controller. Gale Andrews, director of internal audit at Boeing Commercial, will succeed Koellner.
Southwest said yesterday it will add 48 flights to its schedule in June, July and August. The list includes 20 new nonstop flights between cities that previously had no such service.
Singapore Airlines yesterday confirmed earlier speculation and announced plans to buy 50% of Ansett Holdings for A$500 million (US$320 million) from News Limited. The purchase is subject to several conditions, including Air New Zealand's pre-emptive right to buy the shares. SIA did not acquire shares of Air New Zealand, which owns the other 50% of Ansett.
Rep. James Oberstar (D-Minn.), ranking Democrat on the House Transportation and Infrastructure Committee, will speak at an International Aviation Club luncheon April 13 at 12:30 p.m. at the Hyatt Regency Hotel, Washington, D.C.
SkyWest, operating as United Express, will launch service April 4 between Seattle/Tacoma and Spokane, Wash., with six daily roundtrips. The carrier also will increase its service between SeaTac and Yakima, Wash., to seven daily roundtrips from the current six. SkyWest will use its 30-passenger Brasilia turboprops.
Regional jets are gaining popularity fast, but turboprops will retain a significant portion of the market for at least the next 20 years, especially in developing countries, industry officials told the FAA Aerospace Forecast Conference in Washington yesterday.
Legend Airlines President Allan McArtor told the Aero Club of Washington yesterday that major carrier oligopolies, lack of competition and a focus that's shifted away from consumers are just a few of the evils that have stalled deregulation. McArtor asserted that DOT does not need more regulations to control the airlines, it needs to use the power it already has. "Our industry doesn't need guidelines so much as our Congress and the DOT need the guts to take firm action....The DOT must interpret and enforce interstate commerce laws.
United's machinists and pilots unions said yesterday they are pleased with the appointment of James Goodwin as chairman and chief executive. UAL Corp.'s board yesterday elected Goodwin, a United employee of more than 30 years, to succeed Gerald Greenwald, effective in July. The Air Line Pilots Association and the International Association of Machinists praised Goodwin's experience and honesty.
Royal Brunei Airlines will purchase new aircraft to replace aging equipment and expand its fleet. Chief Executive Sheikh Jamaluddin said RBA has ordered two A319s to replace two F100s for regional routes and will refurbish its four 757-200s. RBA has six 767-300s, and an evaluation of new widebody aircraft for long-haul routes to Europe is in progress. Sheikh declined to identify the candidate aircraft, but The DAILY was told that the choice is between the Airbus A340 and the Boeing 777.
Delta said yesterday it is selling 119 727-200s that the new owner will convert to freighters. The carrier said it has reached an agreement with Pratt&Whitney to sell the aircraft and up to 39 spare engines over the next six years as they are retired from its fleet. Pratt is working with Republic Financial Corp. of Denver on marketing the aircraft after they are converted. Engines not required in the conversion will be used to satisfy airline requirements for JT8D-15/15A support.
China Airlines and EVA Airways are reported to be conducting talks with potential partners for separate projects to manage air cargo terminals planned at Taiwan Chiang Kai-shek Airport following privatization of the air cargo industry. As the two carriers were said to be finalizing their short-lists of prospective partners, sources in Taipei said the most likely candidates are Cathay Pacific and Singapore Airlines. Officials at both CAL and EVA declined to comment.
"The demand for aviation services may so completely overwhelm us" that growth may be stifled, Sen. Jay Rockefeller (D-W.Va.) said at the annual FAA commercial aviation forecast conference this week in Washington - a theme echoed by FAA Administrator Jane Garvey and House Transportation Committee Chairman Bud Shuster (R-Pa.). Rockefeller, new to the position of ranking member on the Senate Commerce aviation subcommittee, said decision-makers should "not just do the minimum" and should not put off making difficult decisions affecting aviation.
Pegasus Aviation ordered 23 hushkits from FedEx to support its growing portfolio of 727 lease aircraft. The order brings the total number of kit orders by Pegasus to 44, making it FedEx's largest hushkit customer. The latest order will provide Pegasus a combination of lightweight and heavyweight Stage 3 kits to support varying takeoff weights and engine combinations.
...Jim Robinson, Fairchild Aerospace president, said the closely held company is in a "quiet period" before it goes to either the debt or equity markets for $400 million-$700 million to help finance the $1.2 billion 728JET program. He declined to say whether it would be a debt or equity offering. The program will require $400 million for product development and $300 million in inventory and working capital. Investment in the 42- to 44-passenger 428JET, which has been slipped to early 2003 due to 728JET demands, will be financed through cash flow.
Airlines operating at Hong Kong Chek Lap Kok Airport want airport authorities to eliminate or reduce the HK$39 (US$5) levy charged to the carriers for every departing, arriving or transit passenger using the terminal building. The fee is in addition to the airport tax of HK$100 (US$12.80) paid for every departing passenger. Three airline officials who spoke to The DAILY on condition of anonymity said the levy is affecting their yield. "How can the airport authority charge the airlines for passengers using the terminal?" one official asked.
American and its Allied Pilots Association recessed mediated talks Tuesday evening over the Reno Air acquisition dispute and will resume them again in April. American said the two sides made progress in three days of discussions that began on Sunday outside Washington with mediator George Nicolau. Both sides have agreed not to discuss the negotiations while they are continuing. APA on Tuesday and Wednesday hosted the semi-annual meeting of the oneworld alliance's Flight Crew Coalition (DAILY, March 23).
FAA has successfully completed testing to make sure that its Leased Interfacility NAS Communications System (LINCS), which provides air traffic controllers much of the information they need to separate aircraft, will operate properly in 2000, the agency said yesterday. The system connects mission-critical radar, radio, computer and weather-reporting sites to ATC facilities. FAA said more than 5,000 components were upgraded to make the system Year 2000-ready, including 3,750 monitoring systems and 800 network switching systems.
British Airways franchise partner CityFlyer Express is adding another ATR 72 to its fleet in April. With the arrival of two more British Aerospace Avro RJ100s from August, plus its five ATR 42s, the London Gatwick-based airline will be operating a total of 18 aircraft on its European network this summer. CityFlyer plans to phase out its smaller ATR 42s over the next two to three years as it builds up its Avro RJ fleet.
Air France will open a reservations center next month in Wembley, near London, to handle calls from the U.K. and Ireland. In June, it will cover Germany, Austria, Belgium, Italy, Spain and Switzerland, answering in five languages. Air France considered three sites in Europe and chose London for its multilingual service ability.
Northwest said a claim in Minnesota Planning's report that Northwest carries 81% of passengers at Minneapolis is misleading because the figure includes connecting traffic (DAILY, March 24). Northwest says the correct figure is about 62%.
U.S. Major Carriers Fuel Analysis By Carrier Year Ended Third Quarter 1998 Fuel Percent of Cost Fuel Cost Expense Total Operating Per Gallon Per ASM (000) Expenses (Cents) (Cents) Alaska Domestic 271,376 21.2% 50.91 0.91 Latin 20,468 23.1% 49.80 0.80
Fairchild Aerospace has selected CASA of Spain to build the wing and empennage for the new 728JET family of large regional jets. The state-owned company previously built the wing for the Saab 2000, now out of production. CASA, it is said, is considering teaming with ATR on its proposed 70-seat AIRJET. Fairchild also has selected the team of AerMacchi of Italy, a long-time supplier, and France's Hurell-Dubois to produce the nacelle for the GE CF34-8D turbobans. Fairchild will produce the fuselage itself at its plant in Oberpfaffenhofen, Germany...
ATR in a recent seven-day period delivered a record seven new turboprop aircraft to four customers, the Franco-Italian partnership reported. Tarom of Romania took delivery of four ATR 42-500s; Air Dolomiti of Italy received one ATR 72-500; Cimber Air of Denmark one ATR 72-500, and Arkia of Israel one ATR 72-500. Separately, ATR said its Asset Management unit placed 11 used ATR aircraft with eight carriers in Europe, South America and Africa during the first quarter of 1999.
DOT issued a show cause order tentatively allocating to United the 67 additional Chicago-London roundtrip frequencies available for the summer season, choosing United over American as the best way to "increase the opportunity for effective competition" in the market. All of United's proposed service is to Heathrow Airport, and DOT said the best use of the frequencies would be to maximize competition there.
