Virgin Express's traffic for February increased 14.1% on 8.5% more capacity, which raised the load factor 3.5 percentage points to 71.7%. Charter block hours rose 56.9%. The airline flew 203,542 passengers, up 20.7%.
-- In Federal Register dated March 5...Superseded an airworthiness directive on British Aerospace BAC-111 aircraft concerning inspections of the flight deck canopy...Issued an AD on Boeing 757 aircraft concerning the ram air turbine deployment actuator. -- In FR dated March 8...Issued an AD on Boeing 737 classics requiring inspection of the elevator tab push rods...Proposed to supersede an AD on McDonnell Douglas MD-80 series aircraft concerning operations during icing conditions.
The joint statement filed by American and the City of Chicago objecting to DOT's tentative selection of Delta's Atlanta-Rome proposal for U.S.-Italy frequencies available April 1 (DAILY, March 2) suffers from "wild assertions" and unsubstantiated material, Georgia and Atlanta parties told DOT in support of Delta. They noted that unlike Chicago, proposed by American, and Philadelphia, proposed by US Airways, Atlanta is not a gateway to Italy.
Swiss regional carrier Crossair reported operating revenue of more than 1 billion Swiss francs (US$680 million) for the first time in its history, and a 47% jump in net profit for 1998 compared with 1997. Shareholders will receive a 15% dividend for the year, up from 10%, while employees will benefit from a further profit-linked bonus payment. Total operating revenue for the year amounted to CHF1.01 billion ($686 million), with a net profit of CHF63.5 million ($43.2 million), compared with CHF43.2 million ($29.4 million).
American says all 650 of its aircraft are equipped with automatic external defibrillators and enhanced medical kits. American says the defibrillators have saved four passengers since the program started in July 1997. The medical kit, which may only be opened by a physician, contains medications to treat cardiac arrest, epileptic seizure, asthma or bronchitis, and other conditions.
American will scale back growth plans in the coming months because of the negative financial effects of the February pilot sickout, Chairman Don Carty told employees Friday. The carrier will grow "at a somewhat more cautious pace than we originally planned," he said, adding that 1999 profitability has been "damaged" by last month's disruptions. Part of the reduced schedule is related to overtime flying, an ongoing sore point with its pilots that was present before February's upheaval.
Canadian Airlines reported an 11.3% jump in systemwide traffic on 3.8% more capacity for February 1999 compared with the same 1998 month, which raised the load factor 4.6 percentage points to 68%. Canadian flew 1.3 billion revenue passenger miles and 1.9 billion available seat miles. Domestic RPMs dropped 0.3% to 359 million on 5% fewer ASMs, 536 million, boosting the load factor 3.2 points to 67%. International RPMs grew 17.8% to 828 million and ASMs 8.7% to 1.2 billion, pushing the load factor up 5.3 points to 69.2%.
United, as part of its plan to eliminate "C" scale wages for administrative and passenger service employees, has reached an agreement with its Air Line Pilots Association and the International Association of Machinists to make certain changes to pilots' wages and IAM employee work rules in 2000. United will increase Shuttle pilot pay rates to the same level as mainline 737 pilots, the company said. The increase will be effective April 12, 2000, or at the ratification of a new collective bargaining contract. United will eliminate the "C" scale wage for U.S.
US Airways' pilot union leadership has approved an interim tentative Shuttle contract that includes no-furlough protection for current Shuttle pilots and increases their pay and the final average earning cap of their retirement plan for pilots born on or before July 1, 1941. It details Shuttle flying that can be performed by mainline pilots in accordance with their contract. The interim deal applies until a final merged seniority list and a final merged employment agreement are completed.
Delta pilots can expect to receive within 10 days a comprehensive review of all contract negotiations with the airline since 1976, part of their preparations for contract talks with the carrier. Union leadership is sending out the Delta Pilots' Contract History to make sure rank-and-file members have a reference source for completing the Contract 2000 questionnaire, which they'll receive a week after the history.
H.R. 1000 - introduced March 4 by Rep. Bud Shuster (R-Pa.) - to amend Title 49, U.S. Code, to reauthorize programs of the FAA and for other purposes. Committee on Transportation and Infrastructure.
Aircraft-backed securities are among the more promising financial products available to the aviation industry, according to Moody's VP Mark Tuminello. Between 1995 and 1998, $9.5 billion in leases and loans were securitized in public and private markets, compared with less than $1 billion before 1995. Portfolio growth among aircraft lessors is fueling both the increase and new approaches.
General Electric said its new CF34-8C1 turbofan completed its initial test flight on March 10. The engine, installed as an auxiliary powerplant under the port wing of GE's Boeing 747 flying testbed, will power Bombardier's new 70-passenger Canadair Regional Jet Series 700.
H.R. 985 - introduced March 4 by Rep. Elton Gallegly (R-Calif.) - a bill to amend Title 49, U.S. Code, concerning the treatment of certain aircraft as public aircraft. Referred to the Committee on Transportation and Infrastructure.
H.R. 1030 - introduced March 9 by Rep. Michael Forbes (R-N.Y.) - to establish a commission to study the airline industry and recommend policies to ensure consumer information and choice. Committee on Transportation and Infrastructure.
Canadian government officials claimed an "overwhelming victory" in the export-subsidy battle with Brazil before the World Trade Organization. The final WTO ruling, issued Friday, found that Brazil's ProEx interest-rate-equalization program fails to meet acceptable trade practices and that two Canadian programs - Technology Partnerships Canada and the Canada Account - also did not pass muster. The two governments have 90 days to eliminate the programs or appeal.
Joel Klein, head of the Justice Department Antitrust Division, said Friday that DOJ does not consider Northwest's placement of its 51% of Continental's voting stock in a voting trust for six years to be a "satisfactory answer to the long-term competitive concern." Justice has filed suit to block the alliance.
An apparent writeoff at Airbus took a 1,199 million French franc (US$199 million) bite out of Aerospatiale profits in 1998, the French aerospace company reported. Aerospatiale said Airbus's contribution to earnings fell from a profit of 1,131 million francs ($187.7 million) in 1997 to a FF68 million ($11.3 million) loss in 1998 resulting from a sharp increase in operating provisions - FF650 million ($107.9 million) more than in 1997 - due to customer risks, and a FF600 million ($99.6 million) jump in independently financed research and development.
FAA Administrator Jane Garvey testified this week that FAA will have "the first cost information available this summer" to support the previously authorized overflight fees which the agency has been unable to collect. DOT Inspector General Kenneth Mead said, however, that a reliable cost accounting system will not be fully implemented until 2001 or later. Oceanic cost information and en route airspace (high altitude) cost information will be available by yearend, an FAA spokesman said.
World Trade Organization is scheduled to issue its final decision in the Brazil/Canada export subsidies dispute today. However, the decision will not be made public until next month, after it has been translated and distributed to all member nations.
SkyWest has selected Newcourt Capital, a corporate finance unit of Newcourt Credit Group, as financial adviser to arrange lease financing for 50 Bombardier Regional jet Aircraft. SkyWest placed firm orders for 25 and options for another 25 in a deal that could have a value of $560 million (DAILY, Jan. 25).
The Clinton administration's attempt to jump on the airline passenger rights bandwagon met a lukewarm response yesterday from the Senate Commerce Committee when sponsors of the Airline Passenger Fairness Act, S.383, said their version does a better job of protecting consumers. DOT General Counsel Nancy McFadden outlined at a hearing of the committee the administration's initiative, which would require airlines to disclose to DOT their policies for dealing with problems such as flight delays and cancellations.
Summary of U.S. Major Carriers International Revenues and Expenses Third Quarter 1998 (In Dollars) Total Operating % Passenger Freight Revenues Change Revenues Revenues Alaska 18,617,000 28.41 17,831,000 105,000 Latin 18,617,000 28.41 17,831,000 105,000
