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
First Host and Oceanic Computer System Replacement, a new air traffic control computer system at the New York Enroute Air Traffic Control Center in Ronkonkoma, N.Y., will be dedicated today by DOT Secretary Rodney Slater and FAA Administrator Jane Garvey. The computer is Y2K compliant.
Air Canada and Royal Jordanian will extend their code-share service between Canada and Amman, Jordan from March 28 until Oct. 30, offering five flights a week between Montreal/Toronto and Amman via London Heathrow.
Excerpts from this week's markups by the House Transportation and Infrastructure Committee and its aviation subcommittee of the of the multi-year "Air 21" FAA reauthorization bill will be featured on Aviation News Today, to air Sunday on Washington's NewsChannel 8 at 12:30 a.m. and 1:30 p.m.
DOT, putting teeth to the Clinton administration's airline passenger consumer protection bill proposed Wednesday (DAILY, March 11), will publish in Monday's Federal Register two final rules - both proposed more than four years ago - requiring disclosure by carriers to consumers on code sharing and long-term wet-lease arrangements as well as change-of-gauge services. Comments on information collection requirements are due in 60 days, and the rules become effective 120 days after publication.
St. George, Utah-headquartered SkyWest Airlines posted a 46.3% increase in revenue passenger miles last month to 80.4 million as capacity jumped 42% to 150.8 million available seat miles. As a result, the load factor rose 1.5 percentage points to 53.3%. Boardings skyrocketed 63.7% to 392,737. SkyWest claims to be the fourth-largest regional carrier in the U.S. Feb. 1999 Feb. 1998 2 Mths 1999 2 Mths 1998 RPMs 80,419,523 54,976,934 160,096,820 110,840,754
Outlook on Midway Airlines was lowered to negative from positive by Standard&Poors because of Southwest's entry into Raleigh/Durham, but the impact will not be significant. Midway serves only two of the five proposed Southwest routes - Orlando and Tampa - with F100s, which can be shifted to other routes. Southwest will not compete with Midway on its growing CRJ network catering to high-yield business traffic from the Research Triangle area.
The Taiwanese government will support any move by China Airlines (CAL) to resume flights between Korea and Taiwan that were suspended in 1992 after Seoul opted to recognize mainland China. According to Loo Kum Tze, deputy director of the transport ministry in Taipei, it is up to CAL and Korean Air to initiate the first meeting at the airline level to express their interest in resuming the flights.
Alitalia has signed a contract with ATR to acquire three ATR 72-500s, to be operated by regional subsidiary Alitalia Express. The value of the deal was placed at approximately $50 million. Deliveries will begin in July and continue through the remainder of the year.
As a sign of weakening economic conditions in Brazil, American is ending its New York-Rio de Janeiro nonstop April 30 "because the route was not performing as we would have liked," said spokeswoman Martha Pantin.The carrier still will operate a Miami-Rio nonstop and will replace the New York nonstop with a tag flight after New York-Sao Paulo.
Atlantic Southeast charges walkup, unrestricted coach passengers $3.11 per mile for the privilege of flying roundtrip from Chattanooga to Atlanta, according to an unscientific survey of regional-airline fares posted on the Internet. And that 106-mile trip is on an ATR turboprop rather than a Canadair Regional Jet. Fort Walton Beach-Atlanta is $1.68 per mile. A New York congresswoman recently complained about the fare between Rochester and White Plains; however, that is only 95 cents per mile for the only nonstop service aboard a CommutAir Beech 1900.
Revenue passenger miles increased an average of 30.9% in February for a sampling of 16 of the nation's regional airlines. That compared with an average increase in capacity (available seat miles) of 27.9% compared with the same month a year ago. United Express Air Wisconsin saw traffic jump 78.3% with a 17.2-percentage-point spread over a 61.1% increase in capacity. US Airways Express CCAIR had the second highest traffic increase at 54.6%, but capacity was up 60.1% for a negative 5.5-point balance.
Atlanta-based Atlantic Southeast Airlines, which was recently acquired by Delta, flew 81.5 million revenue passenger miles last month, a 19.1% jump from February 1998. Capacity climbed 23.3%, however, to 161.1 million available seat miles, lowering the load factor 1.8 percentage points to 50.6%. Passengers flown grew 15.6% to 311,937. Year-to-date RPMs climbed 18% and ASMs 20.6%, dropping the load factor 1.1 points. Feb. 1999 Feb. 1998 2 Mths 1999 2 Mths 1998
Without even a roll call vote, the House Transportation and Infrastructure Committee yesterday approved by voice vote Chairman Bud Shuster's (R-Pa.) sweeping five-year FAA reauthorization bill aimed at improving safety, increasing competition and boosting service to underserved small and mid-size cities through an infusion of money from taking the aviation trust fund off budget.
Singapore Airlines, Lufthansa and SAS yesterday signed a memorandum of understanding for a feasibility study on integration models in the air cargo business. The study, expected to take about a year, will look at prospects for matching network management, marketing and sales, product harmonization and a common infrastructure for information technology. The study also will examine the type of organizational structure that would best implement the integration plans.
Phoenix, Ariz.-based Mesa Air Group carried 251,523 passengers last month, 45.5% fewer than in February 1998. Other traffic indices dropped as well - revenue passenger miles fell 19.7% to 83.8 million; capacity declined 16.2% to 170.5 million available seat miles; and the load factor dropped 2.2 percentage points to 49.1%. The company's on-time arrival performance was 85.6%, however, Mesa said. February 1999 February 1998 Rev. Passenger Miles 83,763,000 104,322,000
Air Ontario has chosen UAL services to provide airport services - including passenger check-in, ticket sales, departure gate controls, baggage handling, and aircraft receipt and dispatch - for new Dash 8 flights between Toronto Pearson and Syracuse.
