Air Canada and Star Alliance partner SAS have launched nonstop Toronto- Copenhagen service. The five-times-weekly service cuts existing air travel time on the route by as much as three hours and offers connections to and from points throughout eastern Canada, Scandinavia and Eastern Europe. Members of Air Canada's and SAS's frequent flyer programs traveling the route until June 15 will receive double bonus miles.
Midway Airlines Corp. yesterday reported record first quarter results and its 10th consecutive quarterly profit. Excluding a $575,000 after-tax charge related to retiring three aircraft, Midway had operating income of $8.2 million, up 25% from the year-earlier quarter, and net income of $4.6 million, up 19%. Revenue was up by a lower percentage - 9%, to $55 million - so the operating margin grew to 15% from 13%. Revenue per available seat mile grew 8.6% to 14.3 cents, yield 6.6% to 22.5 cents and cost per ASM 7.6% to 12.7 cents.
Worldspan extended for two years, with an option for a third year, the agreement by which StaffMark provides temporary staffing in administrative, light industrial, technical and other support areas. StaffMark has provided more than 800 temporary employees for Worldspan during the past three years.
US Airways said yesterday it has reached a deal with Indianapolis-based Chautauqua Airlines, one of its nine US Airways Express carriers, to operate 10 Embraer 145 LR 50-passenger regional jets under the US Airways Express banner. The first two aircraft are scheduled to be placed into service in July, and the remaining eight will be placed into service every other month between September 1999 and the end of 2000.
Midwest Express said travel agencies using the Amadeus computer reservations system can now offer electronic ticketing for Midwest Express and its subsidiary, Skyway Airlines. The carrier said it will begin phasing in e-ticketing this month for agencies using the Galileo CRS.
Relaxing U.S. foreign ownership restrictions would require "almost global" reciprocity, Will Ris, American VP government affairs, said yesterday at the 8th annual international aviation symposium at Phoenix.This would entail an agreement with a market "at least as big as the EC [European Commission]," he said, and "the EC has closed that door."
The devaluation of the Brazilian real, which led to a massive drop in the currency and a 40% decline in international travel, has affected aircraft manufacturers in varying degrees. Boeing, which last year recorded a large order from now-struggling Varig, has been hit the worst, as the carrier asked Boeing for changes in delivery dates of several new aircraft. "Boeing has made a long-term cooperation agreement with Brazilian carriers, and that's the type of action we need to support our customers," said John Ferren, Boeing VP-sales for the Americas.
Aviation Industry Stock Performance, April 1999 Closed Closed Monthly Change Symbol 4/30/99 3/31/99 ($) (%) Alaska Air Group ALK 44.063 47.500 (3.437) (7.2) America West (Class B) AWA 20.875 19.063 1.812 9.5 AMR 1 AMR 69.813 58.563 11.250 19.2 Continental (Class B) CAI.B 43.188 38.000 5.188 13.7
Alaska Airlines said yesterday it is restoring a relatively normal schedule after canceling roughly 200 flights last week because of a work slowdown by its mechanics, who are represented by the Aircraft Mechanics Fraternal Association (AMFA). Although the airline was not experiencing significantly more mechanical problems, repairs were taking an unusually long time to be completed, the airline said (DAILY, April 30). The mechanics' contract became amendable in August 1997. Mechanics elected AMFA representation last summer.
Continental will change its stock symbol today for its class B common stock from CAI.B to CAL, and will change its symbol for its class A common stock from CAI.A to CAL.A.
Mexicana seeks a DOT exemption of at least two years to engage in scheduled combination service between Acapulco and Miami, to be operated with 727-200 aircraft configured for 150 passengers. (Docket OST-99-5585)
Rockwell Collins Flight Dynamics said FAA granted certification for its head-up guidance system for the Boeing 737-800 and the Boeing Business Jet. For the latest approvals, Flight Dynamics completed validation of the HGS with sensors for instrument and microwave landing systems and the Global Positioning System
TNT, which provides mail, express and logistics services, said it will start a cargo airline, to be called TNT Airways. TNT said the move will increase the speed, flexibility and efficiency of its express network. All existing airline activities will be brought under one umbrella in Liege, Belgium, site of TNT's European Express Center hub. TNT, which operates 33 aircraft, said TNT Airways will begin operations in the fourth quarter and become fully operational by 2002. The company plans to acquire 14 A300s over the next three years to replace 727s.
New Air projects an operating loss of $5.6 million in its first year of operations but expects to be in the black during its last five months, according to pro forma operating and income statements in the certificate application the carrier submitted Friday to DOT (DAILY, May 3). With investments totaling $128.2 million committed by Dec. 31 - nearly $32 million has been paid in so far - New Air estimates $14.8 million in pre-
Mesa Air flight attendants, represented by the Association of Flight Attendants, have reached a tentative agreement on their first contract with the airline. Flight attendants failed to ratify a tentative deal six months ago. Mesa AFA said the current contract is stronger and offers better wages. Ratification ballots will be counted in June.
Reno Air has begun to expand its service on the West Coast by introducing five nonstop daily Orange County-San Francisco roundtrips. It also added one roundtrip each in Los Angeles-San Jose roundtrip and Los Angeles-San Francisco markets, increasing total daily nonstop roundtrips in both city-
Delta Express began Allentown, Pa.-Orlando service over the weekend with a daily nonstop roundtrip. The carrier operates a dedicated fleet of 737- 200s.
Hawaiian reported a profitable first quarter yesterday, citing $9.8 million revenue growth in the first three months of 1999 and predicting more for the full year as it increases capacity 20%. Hawaiian earned $1.5 million from operations and $780,000 net during the quarter, up from losses of $1.9 million and $1.1 million in the year-earlier quarter, as revenue increased 9.7% to $110 million.
Chief executive officers of the Star Alliance carriers, meeting yesterday in Sydney for the second anniversary of the partnership and the formal admission of Ansett Australia and Air New Zealand to it, said Star airlines will be ready for Year 2000 operations that they control and will not compromise safety if organizations outside their control fall short.
Eagle USA Airfreight said net income for its second quarter ended March 31 jumped 39% to $5.5 million. Revenues rose 48% to $133.7 million, and operating income increased 38% to $8.4 million. Shipments were up 35% to 324,399, while the average weight gained 14% to 634 pounds.
Senate Commerce Committee Chairman John McCain (R-Ariz.) and Sen. John Warner (R-Va.) have not been able to resolve their differences over adding flights at Washington Reagan Airport and, in the words of one source, "have agreed to disagree" when the committee's two-year FAA reauthorization bill reaches the Senate floor this month. Prospects for the House-Senate reauthorization conference late this month, as the May 31 expiration of the current authorization approaches, are equally uncertain.
AirTran is offering its Grade "A" fares for travel May 10-Sept. 30. A seven day advance purchase is required, and tickets must be purchased by May 20. Some blackout dates apply. Sample one-way fares include $39 Atlanta-Savannah/Hilton Head; $99 Houston-Orlando and $59 Greensboro-Tampa.
FlightSafety said it is building a major aviation training facility at Dallas/Fort Worth Airport. The two-story building will enclose more than 110,000 square feet on a 6.8-acre site, halfway between Dallas and Fort Worth.
