AeroMexico ended service to Lima, effective April 20, with Chief Executive Fernando Flores saying the carrier wants to dedicate its resources to "routes which offer more growth potential." The airline intends to continue service to nine other Latin American and Caribbean destinations.
U.S. Carriers Commission Expense, Fourth Quarter 1998 Major Carriers % Of Total Commission Operating Expenses Alaska 22,524,000 6.53 America West 26,379,829 5.71 American 276,708,000 7.66 Continental 116,382,000 6.88 Delta 208,465,000 6.51
Fedex Pilots Association is preparing to ask members for an increase in dues. "We've been telling you that in order to adequately represent you in dealings with a multi-billion-dollar corporation in implementing this contract, FPA will have to be funded like a major union," VP Wally Huggins told members in a recorded message. He said the rank and file will be able to analyze the budget and approve changes in the dues structure before they are implemented.
Atlas Air said first quarter net income totaled a record $10.2 million, up from $5.3 million in the same period last year. Net income was $2.2 million, including charges of $6.6 million to redeem early 12.25% senior secured notes and $1.4 million due to a change in accounting rules. Operating income was $36.7 million and revenues $137.8 million, also records. Last year, operating income totaled $21.5 million and revenues $79.6 million.
Kaman reported first quarter net earnings of $7.3 million, up from $7 million last year. Revenues were $249.8 million, up from $239.1 million. Aerospace operating profits rose slightly to $10.4 million from $10.2 million on sales of $92.8 million, up from $83.8 million.
So far this year, 3,618 pilots have found jobs, according to Atlanta-based AIR, Inc. There were 1,245 new jobs in March. At the current rate, there will be about 3,300 new jobs at the majors, 4,300 at the nationals and 12,500 overall in 1999. There were 14,143 new pilot jobs in 1998.
Atlantic Coast Airlines has adopted a plan to repurchase up to 5% of its current outstanding shares over the next 12 months, trading on the open market or through private transactions. As of March 31, the company had about 19,509,000 shares outstanding.
Taiwan's First Commercial Bank seized an MD-82 aircraft belonging to financially troubled U-Land Airlines after U-Land failed to make interest payments on outstanding loans. The MD-82, leased to a Philippines-based airline, was in Taiwan to undergo maintenance. U-Land owns two other MD-82s that it uses on domestic routes in Taiwan. In March, the company was threatened with the loss of its operating license by Taiwan's Civil Aeronautics Administration after failing to pay more than NT$25 million (US$750,000) in landing fees and ground service charges.
Thomas Davis, 81, founder and retired chairman of Piedmont Airlines and a charter member of the Aircraft Owners and Pilots Association (106) and the Air Safety Foundation, died April 22.
Tower Air reported an operating profit of $500,000 for the first quarter of 1999, compared with an operating loss of $9.4 million in the first quarter last year. The net loss was $2 million, or 13 cents per share, down from $7.3 million, or 48 cents per share. Operating revenue increased 4.1% to $100.7 million and operating expenses declined 5.6% to $100.1 million. Chairman and Chief Executive Morris Nachtomi said the results reflect continued progress in Tower's operations.
Airbus Industrie "relies on substantial government support" to take business away from Boeing, which "does not enjoy the same protectionist treatment," according to Rep. William Lipinski (Ill.), ranking Democrat on the House Transportation aviation subcommittee. In a House floor speech on Wednesday, Lipinski said, "This is not right" after disclosure that prospective low-fare startup New Air will buy A320 aircraft from Airbus instead of Boeing 737s, as had been expected (DAILY, April 22).
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.
