Continental reported an 8.1% jump in total jet traffic on 8% more capacity for April 1999 compared to the same 1998 month, pushing the load factor up 0.1 percentage points to 73.3%, the highest April load factor in its history. Continental flew 4.8 billion revenue passenger miles and 6.6 billion available seat miles. Domestic RPMs jumped 4.2% to 3.2 billion on 4.1% more ASMs, 4.3 billion, boosting the load factor 0.1 point to 74.2%. International RPMs gained 16.4%, 1.7 billion and ASMs 15.9%, 2.3 billion, growing the load factor 0.3 points to 71.7%.
Days after a settling a highly public argument with the European Commission on aircraft noise regulations, the U.S. will request World Trade Organization consultations with the European Union over French government aid for new avionics for Airbus Industrie. U.S. Trade Representative Charlene Barshefsky said the U.S. will invoke WTO dispute settlement procedures on European Commission approval of a $22.5 million French government aid package to Sextant Avionique and Smiths Industries for developing a new navigation suite for Airbus.
Delta saw an 0.1% decline in systemwide traffic on an 0.7% rise in capacity for April 1999 compared with the same 1998 month, which depressed load factor 0.6 percentage points to 73.6%. Delta flew 8.6 billion revenue passenger miles on 11.7 billion available seat miles. Domestic RPMs climbed 2.1% to 6.8 billion and ASMs grew 2.7% to 9.3 billion, pushing the load factor down 0.4 points to 73.5%. International RPMs dropped 7.6% to 1.8 billion on 6.3% fewer ASMs, or 2.4 billion, resulting in a load factor gain of 1 point to 74.1%.
The extent of U.S. reliance on the Civil Reserve Air Fleet (CRAF) raises national security concerns about the impact of foreign ownership and control of U.S. carriers, Mary Lou McHugh, Defense deputy undersecretary for transportation policy, said this week at the Eighth International Aviation Symposium in Phoenix. The U.S. continues to restrict foreign investment and control of U.S.-registered carriers, while in Europe, within and beyond the European Union, wholly foreign-owned airlines operate under certificates of the country where they do business.
TACA chief executive Federico Bloch believes Latin American airlines will "consolidate and consolidate quickly."He expects carriers to take minority equity positions in other airlines in the region instead of outright mergers because of bilateral, ownership and labor restrictions. But a Latin American holding company structure could allow regional mergers, he said at the International Airline CEO Conference.
Senate Majority Leader Trent Lott (R-Miss.) said yesterday he sees no way an FAA reauthorization can clear Congress by the end of this month, and another short-term extension will be needed. FAA is operating under a two-
America West asked DOT for an exemption to provide scheduled foreign air service through its code share with Continental. The airline seeks authority between Newark and Birmingham, Glasgow and Manchester, U.K., and between Newark and Dusseldorf and Frankfurt. Continental would operate the flights.
U.S. Major Carriers Unit Revenues and Expenses, By Region, Fourth Quarter 1998 Operating Operating Operating Revenues Expenses Profit (Loss) Yield per ASM per ASM per ASM per RPM (cents) (cents) (cents) (cents) Alaska 9.05 8.21 0.84 11.82 Domestic 9.21 8.37 0.84 12.00 Latin 7.46 6.66 0.80 10.22
Canadian Airlines yesterday reported an operating loss of C$102 million (US$70.2 million) and a net loss of C$107.8 million (US$74.2 million) for the first quarter, compared with an operating loss of C$62.3 million (US$42.9 million) and a net loss of C$85 million (US$58.8 million) in the first quarter last year. The financially strapped carrier has been talking to the Canadian government about lifting its cap on foreign investments so it can seek out foreign investors and possibly increase code-share partner American's financial stake.
Philippines government has threatened to renounce its air agreement with South Korea if the country continues to ignore Manila's request for talks aimed at stopping a price war waged by two Korean carriers on the Manila-
FAA will delegate its international safety oversight strategy "in the near term," looking to the International Civil Aviation Organization (ICAO) to take the lead in performing on-site safety visits. "ICAO will be the standard setter and standard monitor," said Nick Lacey, FAA director of flight standards. In the process, FAA will replace Category 3 safety standards with two straightforward designations - Cat 1 for countries that comply with FAA and ICAO standards and Cat 2 for those that do not.
FAA's much publicized Acquisition Management System (AMS) is a "good first step" but apparently not the panacea for modernizing the air traffic control infrastructure that the agency thought, according to a new report by the General Accounting Office. The AMS contains a weakness because it does not incorporate all FAA projects "into a complete strategy investment portfolio," GAO reported to Congress.
DOT made final yesterday its tentative decision awarding Delta authority to operate between Atlanta and Rome, assigning it the seven weekly frequencies made available in a protocol to the U.S.-Italy bilateral initialed last November. The department also confirmed its selection of US Airways for Philadelphia-Milan backup authority. DOT rejected arguments against the award by American, which had proposed Chicago-Rome service, and the City of Chicago.
The Congressional Budget Office has provided Congress with six options for reducing spending or increasing revenue in aviation programs, and all of them are likely to generate controversy. The options would eliminate Airport Improvement Program grants to large and medium-sized hub airports, end the Essential Air Service program, halt NASA's support for commercial transport aircraft technology, establish charges for airport slots, increase user fees for FAA certificates and registrations, and establish cost-based fees for air traffic control services.
Former DOT Assistant Secretary for Aviation and International Affairs Charles Hunnicutt called on the U.S. to scrap its old, outdated agreements adopted under the 1944 Chicago Convention and push for a single global aviation market. Speaking at the International Airline CEO Conference this week in Miami, Hunnicutt said the U.S. and other governments should "replace international regulation with more competition" and eliminate the "thousands of isolated bilateral aviation markets" that have been created over the decades.
Continental will slow its rate of planned growth from 9% to 6% for 2000, Chairman Gordon Bethune told the Society of Airline Analysts yesterday in New York. Chief Financial Officer Larry Kellner said the airline will retire two DC-10s from its fleet early and change aircraft utilization. Continental spokeswoman Sarah Anthony said the airline has a flexible fleet plan that has enabled it to grow at a high or low rate to develop its hubs. "Our hubs are now at the right levels, so there's no need to continue growing at a rapid pace," she said.
US Airways yesterday began MetroJet service at Chicago Midway offering five daily nonstop roundtrips to Washington Dulles and four to Baltimore. The airline is offering low advance-purchase tickets starting at $67 one way to Dulles and $70 to Baltimore.
Air France has leased two new A340-300s, two new A319s and one new 777-200IGW with GE90 engines from International Lease Finance Corp. in a $450 million deal. The A340s are to be delivered in December 2000 and April 2001, the A319s in March and April 2000 and the 777 in April 2001.
Jurgen Weber, chairman and chief executive of Lufthansa, will speak at the monthly luncheon meeting of the International Aviation Club May 20 at the Capital Hilton Hotel in Washington. Cocktails begin at 11:30 a.m., and lunch is served at 12:15 p.m. Reservations should be addressed to Joanne Young, Baker&Hostetler, 1050 Connecticut Ave. N.W., Suite 1100, Washington, D.C. 20036.
US Airways passenger service employees, represented by the Communications Workers of America, have asked the National Mediation Board to step in and help them resolve remaining issues in their first contract negotiations with management. The union represents 10,000 passenger service employees that include airport ticket, baggage and gate agents, reservations personnel, US Airways Club representatives, special assist agents and city ticket office agents. Contract talks have been under way since December 1997.
United and Atlantic Coast Airlines today will introduce hourly all-jet service between New York LaGuardia and Washington Dulles. The new service is part of United's plan to increase its hub operation at Dulles by 60%. Together with ACA, United will offer 16 flight segments per day in the market.
