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.
Southwest converted options for six 737-700s into orders,with deliveries planned in 2000. Greg Crum, director of flight operations, said Southwest is saving about 7% in fuel consumption with the next-generation 737s. Maintenance checks also are faster, he said.
AOPA President Phil Boyer says FAA got it wrong in its new Aerospace Forecasts when it said the growth of general aviation is driving the agency's workload. According to Boyer, FAA said at its Commercial Aviation Forecast Conference the commercial segment is growing much faster and is putting pressure on the air traffic control system.
Dragonair is temporarily suspending weekly service to Tianjin, China, and twice-weekly flights to Ningbo, China, effective May 1. The airline said demand, already lower on the routes, has been declining steadily. Hong Kong-based Dragonair said demand is strong in two other areas, however. It introduced a fourth daily flight to Shanghai and a third weekly to Phnom Penh. The reduction affected 1% of Dragonair's schedule.
Planners at the Central Japan International Airport Co. say development is proceeding on track to open an offshore airport near Nagoya by 2005. The facility, which would be Japan's third 24-hour airport, would relieve near-capacity Nagoya Airport, which has a single runway and no room for growth. Work has begun on the project, but in a break from past high-cost, high-fee airport developments in the country, the government-run airport firm vows to plan early for lower costs and a cheaper infrastructure.
Societe Nationale des Chemins de Fer (SNFC), the French railway company, will step up its efforts to promote intermodal transport from Paris Charles de Gaulle Airport, where a high-speed train (HST) station is located. SNCF already has agreements with United and Lufthansa providing for the sale of joint air/rail services under a single code. Similar arrangements with American and Air France are due to follow soon. SNFC said it will offer similar agreements to all interested carriers.
KLM does not oppose "the introduction of environmental levies such as a fuel tax or ecotax, provided that we are given a level playing field worldwide," the carrier's president, Leo Wiijk, told a "Greenport 99" conference yesterday in Amsterdam.The "Thinking Green" conference was organized by Airports Council International and Schiphol Airport.
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.
