Former American Chairman Bob Crandall has been named chairman of Celestica Inc., a Toronto-based electronics manufacturing company. Since July, he has been a director of the company, the third largest manufacturing company in the world.
Mesa Air Group registered its second consecutive profitable quarter in the December period after being in the red in the previous seven quarters, including losses of $44.2 million and $39.1 million in the September and December 1997 periods. Operating margins in those quarters dipped to minus 48.6% and minus 28.8%, respectively. The Phoenix-based carrier is regrouping under new Chief Executive Jonathan Ornstein after losing its United Express franchises at Denver and on the West Coast last year.
Olympic Airways Chairman Theodoros Tsakiridis will resign today, the Greek transport ministry confirmed in Athens. Greek Transport Minister Tassos Mandelis said in Greek press reports that Tsakiridis's resignation will coincide with the public announcement of the names of foreign operators who responded to the Greek government's tender for a foreign partner.
U.K.-based Brymon Airways has announced plans to launch four new routes with the aim of boosting passenger services between Newcastle and Belfast, and introduce the first through-flight service between Northern Ireland and Denmark and between Aberdeen and Oslo. The carrier, a wholly owned subsidiary of British Airways since 1993, will start operating the new services May 2 with the exception of the Aberdeen-Oslo route, which will start March 28.
Frontier Airlines is looking at regional jets to add to its fleet of 737s, according to Jeff Potter, VP-marketing. "It probably does not make sense, but there may be some applications," he said, noting Denver-Billings as an example. He also cited the high ASM costs of 15 cents. "It will take us a few months yet to decide," he added. The carrier is concentrating on connectivity over Denver with long-haul markets such as Boston and Los Angeles, which account for 33% of the carrier's traffic. Frontier plans to grow its fleet by three to four aircraft per year.
Virgin Atlantic has unveiled new uniforms for its cabin crew and ground staff, created by fashion designer John Rocha. The $5 million revamp took three years. The first new uniforms will appear in April on Virgin's 5,000 staff, from flight attendants to drivers and cargo personnel.
FAA's Aviation Weather Research (AWR) program has a powerful new experimental Web site - www.faa.gov/aua/awr - offering a wide variety of aviation-weather products including detailed pilot reports (PIREPS) concerning current in-flight icing information throughout the nation.
Iowa-based Great Lakes Aviation reported a 38.1% gain in traffic in January to 18.5 million revenue passenger miles as capacity jumped 43.3% to 45 million available seat miles. Comparisons are with January 1998. The load factor dipped 1.6 percentage points to 41.2%. The number of passengers enplaned was up 57.7% to 70,002.
TWA, in an effort to cut overhead expenses, will move its Chicago reservations center July 1 to a state-of-the-art facility in the Chicago Loop, about six blocks from the present location. The Los Angeles reservations office will close June 15 and will not be replaced. All employees at that location will be offered other jobs within TWA. TWA's Aviators Service Desk, which serves members of its frequent flyer program, will be transferred from the St. Louis reservations office to Chicago.
Small jets of under 90 seats will account for 34.4% of all airliner sales from 2000 through 2005, predicts The Boyd Group/ASRC. In its Forecast '99, the Evergreen, Colo., firm said small jets would account for 881 units during those five years, compared with 759, or 29.6%, for airliners with more than 125 seats and 796, or 31.1%, for airplanes in the 90- to 125-seat class. Turboprops will account for 124 units, or 4.8%, the group said. From 2000 to 2015, the percentage of regional jets will grow from 9.9% of the total fleet to 32%; other categories will decline.
British World Airlines (BWA) has based one of its four British Aerospace ATPs in Basel Mulhouse, serving France and Switzerland, to offer airlines and corporate customers in central Europe ready access to back up aircraft and ad hoc charter capability. The carrier has based an ATP flight crew and engineer in Basel so that the aircraft can be fully crewed and available with 45 minutes' notice. BWA has enlisted the support French/Swiss agent RTS to act as its representative in France and Switzerland.
Kitty Hawk will change the names of two of its operating units. American International Airways will become Kitty Hawk International and the American International Freight division will be renamed Kitty Hawk Cargo. The company said it wants to "create a more unified image among its operating units."
Fine Air said yesterday it is purchasing Arrow Air for $115 million cash and other considerations from International Air Leases of PR Inc. The deal includes 13 DC-8s, four L-1011s, and 130 JT3, JT8 and RB211 engines, new and used airframe parts, an engine overhaul shop and a wheel and brake shop.
Embraer Thursday jumped into the large-regional-jet market with a pre-launch announcement of a 70-seat ERJ-170 to deliver in mid-2002 and a 90-seat ERJ-190 to deliver in mid-2004. Unlike offerings from competitors Fairchild Aerospace and Bombardier, the aircraft will have four rather than five seats abreast. A final launch decision will be made by the end of the second quarter, but it appears a foregone conclusion. Together with the likely entry by ATR into the large-regional-jet market, the Embraer entry will make it a crowded marketplace (story below).
The European Parliament's approval this week of a measuring banning hushkitted and re-engined aircraft (DAILY, Feb. 11) could encourage "those who wish to employ U.S. protectionist measures," Aerospace Industries Association President John Douglass said yesterday. The legislation is scheduled for formal adoption by European Union transport ministers March 29 at the latest. Proponents of the ban say it is a response to environmental pressures, termed by Douglass "a flimsy excuse to prevent U.S.
Hudson General Corp. said it has received a buyout offer of $67 per share in cash from Lufthansa subsidiary GlobeGround, formerly Lufthansa Airport and Ground Services. Hudson General said it also received a buyout proposal from Ogden Corp. of $65 per share in cash or Ogden shares. Hudson General said its existing merger agreement with a management-led buyout group increases the per-share cash price to $61 from $57.25. The buyout group is headed by Jay Langner, Hudson General chairman, and Richard Segal, vice chairman.
Brazilian manufacturer Embraer Thursday jumped with both feet into the large-regional-jet market with a pre-launch announcement for both a 70-seater and a 90-seater - the ERJ-170 and ERJ-190. The $750 million program will be made official by the end of June following active discussions with suppliers and partners, none of which have been disclosed. The 170 would hit the market in the third quarter 2002, followed by the 90-seater two years later.
WestJet Airlines Chairman Clive Beddoe yesterday handed his president and chief executive titles over to Stephen Smith, former president of Air Ontario. Beddoe, one of the founders, will remain as chairman.
Rockwell Collins said it has exercised its option to acquire 100% ownership of Flight Dynamics. Clay Jones, Rockwell Collins president, said that Flight Dynamics, a market leader in head-up guidance systems, "brings important technology to the core of Rockwell Collins' businesses." Flight Dynamics formerly was operated as a joint venture of Rockwell and Kaiser Aerospace Electronics.
U.S. and U.K. aviation negotiators will meet Feb. 18-19 in London for informal consultations, at the U.K.'s request.Lack of success in US Airways' and Continental's continuing attempts to get viable slots at London Gatwick Airport is "clouding our ability to talk about larger issues," a U.S. official told The DAILY. He said U.S. expectations are low based on last October's formal talks, which ended when U.S. negotiators walked out in frustration over lack of progress.
Charles Hunnicutt, DOT assistant secretary for aviation and international affairs, will leave the department March 22 to rejoin the law firm of Robins, Kaplan, Miller&Ceresi as a partner in its government affairs department in Washington, D.C. Hunnicutt, who became assistant secretary in January 1996, helped spearhead initiatives including the development of domestic competition guidelines and the signing of open-skies agreements in Asia, Europe and Latin America.
Valencia, Spain-based Air Nostrum, which is affiliated with Iberia Airlines, has signed a contract with ATR for five ATR 72-500 aircraft, the manufacturer announced. Deliveries are scheduled to begin in March and will be completed by early next year. To date, ATR has fielded 588 firm orders for ATR aircraft - 345 model 42s and 243 model 72s.
The Senate Commerce Committee yesterday approved by voice vote Chairman John McCain's bill to reauthorize FAA programs for two years and create additional slots at the four slot-controlled airports, many of them for service for underserved communities. The bill also would impose restrictions on commercial air tour flights over national parks. The measure now goes to the Senate, which will be in recess next week. Although no timetable has been set for taking it up, Senate Majority Leader Trent Lott (R-Miss.) has called it a priority measure.
