The government of Spain hopes to decide this spring how to privatize the national aerospace manufacturer, Casa. "We hope we will reach a decision before June," said Pedro Ferreras, chairman of Sociedad Espanola de Participaciones Industriales (SEPI), the state holding company that controls Casa. In an interview published by business daily Expansion, Ferreras said Spanish authorities are examining offers by British Aerospace, Aerospatiale of France, DaimlerChrysler Aerospace of Germany and Alenia of Italy.
World Airways lost $3.4 million in the fourth quarter, 15% worse than in the fourth quarter of 1997, when it finished $2.9 million in the red. The 12-aircraft airline lost $11 million in 1998, a reversal of its $11.5 million profit in 1997. The company's revenue dropped as its wet-lease business suffered from weakened Asian customers. Fourth quarter revenue was off 8.7% to $62.8 million, while expenses fell 7.6% to $64.1 million. World expensed $1.1 million in the quarter to bad debts.
American's passenger traffic dropped 13.9% year-over-year in February after a sickout by pilots caused it to cancel thousands of flights. The airline carried 5 million passengers during the month, 870,000 fewer than in February 1998. Capacity fell 11% and the load factor dropped 2.1 percentage points to 63.4%. American experienced significant declines in all areas of its operations. Domestic traffic fell 13.8% on 12.1% less capacity, pushing the load factor down 1.2 points to 64%.
The fourth quarter of 1998 capped a five-year run of profitability for the airline business, with U.S. airlines enjoying the longest run of profitability in their history. As Asia's weakness led to capacity shifts to Latin America and the Atlantic, the yields in those markets declined as well. The U.S. market continued to be a haven for the world's airlines, as carriers of all shapes and sizes continued to add capacity to the U.S. from weaker markets such as Japan and Hong Kong.
Clarification: Japan Airlines and Canadian Airlines will increase their code share between Vancouver and Tokyo to two flights per day, or 14 per week, with an expectation of increasing the frequency this summer. The airlines stated the frequencies incorrectly (DAILY, Feb. 25).
America West will launch nonstop service June 6 between Orange County, Calif., and Reno, offering four daily 737 flights with seating for eight first-class and 126 coach passengers. Reno is America West's fourth nonstop destination from Orange County, after Phoenix, Las Vegas and Sacramento. The carrier also is offering two vacation packages to Acapulco. Travelers can fly to Pierre Marques for a four-day, three-night package for $597 per person double occupancy.
Aviaco pilots agreed to lift their warning of strikes throughout March. Spanish union Sindicato Espanol de Pilotos de Lineas Aereas (SEPLA) launched a staggered strike at the beginning of 1999 to press its demand that Iberia's domestic subsidiary hire 43 additional pilots. The pilots went out on strike for six days in January and February, and nine stoppages were planned this month. Iberia's management asserts that the dispute results largely from dissensions between Iberia and Aviaco pilots, and it says SEPLA's hiring demands will be met.
Great Lakes Aviation will discontinue its United Express service at Aberdeen, S.D., on April 4. The airline has been flying three daily Aberdeen-Denver roundtrips, but traffic and revenue on the route have not covered operating expenses, Great Lakes said. The shutdown is Great Lakes' second in the market - it discontinued the United Express flights to Aberdeen in May 1997 and reinstated service the following December in hope of a reasonable return.
American yesterday initiated 737-800 service from Chicago O'Hare to Los Angeles and from Washington Dulles to Los Angeles. Bob Baker, executive VP-operations, said this "new top-of-the-line airplane is an example of our longstanding commitment to providing quality passenger service." He said the next-generation 737-800 flies faster, farther and higher than the older models. "This will allow us to begin using this airplane on long flights, such as from Dulles to Los Angeles," he said.
Qatar Airways has taken delivery of the first of four 144-seat Airbus A320s leased from Singapore Aircraft Leasing Enterprise (SALE). The three additional IAE V2500-powered twinjets will arrive by the end of April.
Correction: Pay increases for flight attendants under the newly ratified Sun Country-Teamsters contract will range from 3% to 17%, not 3%-7% (DAILY, March 2).
United typically ranks among the lowest in the industry in on-time performance, but 74% of its February flights departed within five minutes of schedule, an improvement.The airline has not had an on-time month this good since May 1993. United was satisfied with its winter performance, especially since it faced higher volumes from American's multiple cancellations last month.
European Union Transport Commissioner Neil Kinnock, scheduled to address a luncheon meeting of the International Aviation Club of Washington on March 11, has postponed his visit to Washington. IAC has canceled the luncheon and will announce a new date for Kinnock's appearance.
Several pilot unions denied yesterday that they have endorsed increasing extended-range twin-engine operations (ETOPS) by 15% to 207 minutes for the Boeing 777.
Lufthansa aims to increase its turnover 8%-10% by developing catering, aircraft maintenance, information technology, tourism, ground-handling and other services for other airlines, Lufthansa Chairman Jurgen Weber said in an interview published Monday in Die Welt. Weber told the German daily newspaper he intends to develop services that are less subject to cyclical variations than passenger transport, which accounts for 70% of the group's current consolidated turnover. He wants transport's share to drop to 60%.
Continental asked DOT for a "short extension" of the startup date for its Cleveland-London Gatwick service, which it intends to begin June 30. The carrier received "suitable" Gatwick slots last Thursday (DAILY, Feb. 26) after months of efforts to obtain them, and it told DOT it could not market or sell the service until then.
