McDonnell Douglas DC-10 Systemwide Aircraft Utilization Per Day Third Quarter 1998 DC-10-10 American United Total Number of Aircraft Operated 13 21 34 Total Fleet Operations Departures 27 67 94
In a bid to attract more airlines to Kuala Lumpur International Airport (KLIA), the Malaysian government plans to sign open-skies agreements with several countries. According to Minister for Transport Ling Liong Sik, the authorities have finalized details with India, New Zealand and Taiwan. The agreements will be signed in Kuala Lumpur between May and June. Ling said negotiations with several European countries are in progress. He declined to identify the countries, saying the time is not right. Malaysia already
Cimber Air of Denmark has taken delivery of its first ATR 72-500 of two on firm order. The carrier also has two options available. Delivery of the second firm-ordered aircraft will be in March. Cimber Air will use the first -500 on the Copenhagen-Karup route, "where Cimber Air has experienced a steady increase in traffic since it started to operate the route two years ago with its ATR 42s," ATR said.
Sen. Richard Bryan (D-Nev.), a member of the Senate Commerce aviation subcommittee, said yesterday in Las Vegas that he will not run for re-election next year. Bryan's statement came one day after Sen. Frank Lautenberg (N.J.), ranking Democrat on the Senate Appropriations transportation subcommittee, announced his decision to retire rather than seek re-election in 2000.
The European Commission refused to postpone the July 1 entry into force of its ban of duty-free sales to passengers traveling inside the European Union. "The abolition of intra-EU duty free will not have a significant negative impact on employment overall, but...an extension of intra-EU duty free would create uncertainty and disadvantage normal retailers and other means of transport," the commission said yesterday in Brussels. Tax-free sales are not allowed on trains inside the EU.
Continental Express's traffic last month - 119.3 million revenue passenger miles - was 37.6% greater than in January 1998. The Continental subsidiary's capacity rose barely more than half as fast - 19.3% to 217.7 million available seat miles, pushing up the load factor more than seven percentage points to 54.8% from 47.5%.
AeroMexico posted an 8.5% January traffic increase to 927 million revenue passenger kilometers on a 12% rise in capacity. The airline transported 664,466 passengers last month, up 9.3%.
A mere 1% improvement in air traffic control efficiency would produce $200 million in savings in airborne and ground operations for the 10 major U.S. airlines, according to a report issued yesterday by Darryl Jenkins, director of George Washington University's Aviation Institute.
Bombardier and Embraer will both receive slaps on the wrist from the World Trade Organization (WTO), Canada's Financial Post reported this week, quoting an "industry source close to the dispute" over alleged illegal export subsidies. Brazil and Canada were to receive preliminary reports Wednesday, details of which will not be made public until Mid-March. Canada first complained to the WTO that Brazil's ProEx interest-rate equalization program shaves $2.5 million off the price of an ERJ-145. Brazil immediately countered with claims of Canadian CRJ subsidies.
CommutAir, the closely held US Airways Express carrier, told employees recently it had 1998 pre-tax earnings of $6.1 million on revenues of $76.4 million, resulting in a profit-sharing pool of $652,263. That is equivalent to 7.8% of annual pay for each eligible employee, down from 20.6% the previous year and 47.5% in 1996. The company said it plans to renew its code-sharing agreement by mid-year and expand into new routes as well. Decision about a second aircraft type still is in negotiation, as is a long-term Beech 1900 fleet (30) replacement decision.
AB Airlines has changed its mind about ending service from London Gatwick to Berlin Schonefeld next month, and will keep one daily flight after receiving support for the service. The carrier also will begin daily London Luton-Nice service on June 1. AB will code share on the route with Debonair, which flew the route last year.
SkyWest and Delta are not parting ways at Salt Lake City despite a recent news wire report to the contrary. "Unless Delta has plans we are not aware of, we are committed to Salt Lake City," said a SkyWest spokesman. Indeed, SkyWest has replaced Delta at Fresno, Idaho Falls, Jackson Hole, Vancouver and Omaha and will do so at Calgary on April 4. It has acquired an 11th Canadair Regional Jet for that service and will dedicate the first five of 25 new CRJs to Delta Connection when they start arriving in mid-2000 with the remaining 20 going to United Express.
San Francisco Airport notified FAA it was withdrawing a proposed restriction on operation of Stage 2 aircraft. The airport said in the Sept. 28 Federal Register it would amend its noise abatement regulation, which currently restricts Stage 2 operations between 11 p.m. and 7 a.m. and requires them to follow preferential runway rules. The proposed rule would have started the restricted period at 7 p.m. and imposed other limits.
U.S. administration officials, reacting to a report in The DAILY that the European Union Council of Ministers will approve draft regulations banning hushkitted aircraft, said yesterday such a move would be a "regrettable mistake" (DAILY, Feb. 18). The EU ministers had not been expected to act on the measure until the end of March, said David Aaron, Commerce Department under secretary for international trade.
Delta had little choice but to acquire Connection carrier Atlantic Southeast. "They had to do something fast," said one analyst. "It was not fixing itself." ASA has been plagued by reliability problems, with the cancellation rate at Chattanooga, for example, recently reported as up to 20%. "It pleased Wall Street but could not please the customer. Great news for communities in the South," the analyst added.
Kellstrom Industries reported that fourth quarter revenues jumped 144% to $60.1 million from $24.7 million and net income rose 158% to $6.6 million from $2.6 million. For the year, revenues were up l27% to $180 million from $79.4 million, while net income rose 129% to $19.l6 million from $8.5 million. Kellstrom's principal business is purchasing, overhauling (via subcontractors), reselling and leasing aircraft, avionics and rotables, engines and engine parts.
Virgin Express traffic for January increased 21.8% on 19.7% more capacity, which forced the load factor up 1.1 percentage points to 64.6%. Charter block hours jumped 72%. The figures include the airline's new Ireland unit, which this week opened a call center in Shannon.
LanChile sold 30% of its stake in international data network provider Equant N.V. for $14.5 million. The sale occurred Monday in a secondary offering. In addition, Air Canada sold 35% of its interest in Equant, for a pre-tax gain of C$42.1 million (US$28.1 million). Air Canada still holds shares in Equant valued at $53 million. Equant, previously known as SITA Telecommunications Holdings N.V. based in The Netherlands, had its initial public offering in July 1998. The company provides managed data network services, network design and software development.
Big Sky Airlines posted net income of $91,013, or eight cents per diluted share, for its fiscal quarter ended Dec. 31, compared with $130,503, or 12 cents per diluted share, for the comparable prior-year quarter. Operating income for the recent quarter was $175,901 on total operating revenues of $3.8 million, compared with operating income of $233,074 and revenues of $2.2 million in the same period a year ago.
American yesterday began code sharing with new partner Air Pacific on flights between Los Angeles and Nadi, Fiji. Air Pacific, operating since 1951, flies the route nonstop four times a week with 747s and plans to increase service to five per week in June.
SAS traffic for January grew 4% to 1.5 billion revenue passenger kilometers and the load factor was 54.4%. Freight volume fell 7% to 51 million ton kilometers. The airline carried 1.57 million passengers, up 4%.
DOT's antitrust immunity application procedure is "all process, no discussion," Tony Fortnam, British Airways VP-government and industry affairs, said yesterday in a presentation on American-BA alliance efforts at the Commercial Aviation - Defining Global Networks conference in Washington. To illustrate DOT's lack of dialogue, he flashed up a slide of the Sphinx at Giza.
Airlines are systematically cutting travel agents out of the distribution channel using unfair competitive practices, and the fact that United States Travel Agent Registry (USTAR) is not a travel agency does not invalidate its charge of unfair and deceptive practices against major carriers, USTAR told DOT this week. USTAR asked DOT to order the carriers to restore immediately their international commissions to levels before they were capped.
Fortis Aviation, acting for TWA, announced the sale of two 747-100s and one 747-200 to American Air Carrier Support, which will dismantle them for parts. Fortis said a number of TWA L-1011s and four 727s will be offered for sale this year.
House and Senate leaders "aren't even dialing [each other's] phones right now" to talk about renewing FAA's authorization, Norman Mineta, former congressman and chairman of the National Civil Aviation Review Commission, said yesterday.Speaking at a George Washington University Aviation Institute seminar, Mineta said backers of the House's six-month extension and the Senate's two-year bill are so far apart, Airport Improvement Program funds are once again in jeopardy of being suspended when the current bill expires March 31.
