Northwest and Malaysia Airlines agreed yesterday to a code-share and marketing alliance covering a variety of destinations. Northwest will become the only U.S. airline to fly to Kuala Lumpur Feb. 25, when it begins three weekly DC-10 flights from Detroit via Osaka. MAS operates Los Angeles-Kuala Lumpur via both Tokyo and Taipei, and it serves the unique Kuala Lumpur-Dubai-Newark routing. The two carriers will merge frequent flyer programs and airport lounges and initiate joint marketing and sales programs.
Atlanta-based Atlantic Southeast Airlines last year earned a record net income of $66.1 million, or $2.22 per share - up 21.3% and 22.7%, respectively, from the comparable 1997 figures of $54.5 million and $1.81 per share. Total revenues for the year rose 6.4% to $409.9 million as traffic improved 12.6% to 1.04 billion revenue passenger miles and yield dropped 5.9% to 38.5 cents per revenue passenger mile. Quarter Quarter 12 Mths 12 Mths
Price of jet fuel in the U.S. has averaged 33 cents per gallon during the past two weeks, according to BT Alex Brown. Although prices rose 5.5% from the beginning of this week, the rates during the past two weeks are down 33% year-over-year.
Stock prices for eight publicly held regional airlines jumped 9.2% to $21.34 per share on Jan. 29 - up from an average of $19.54 per share at the December close. The average hit a high for the month of $22.14 per share on Jan 19 and a low of $19.70 on Jan. 4. The big gainer was United Express Atlantic Coast Airlines with a $6.38 increase, or 25.5%, from $25 to $31.38 per share. The next big gainer was United Express/Delta Connection SkyWest, up 10.3% to $36.06 after a high for the month of $38 Jan. 19. Delta Connection Comair climbed 33.8% to $36.69 per share.
American Eagle Airlines posted a 7.6% increase in systemwide traffic on 0.3% more capacity for January 1999, compared with the same month in 1998, boosting the load factor 3.9 percentage points to 57.7%. American Eagle systemwide flew 211.4 million revenue passenger miles and 366.6 million available seat miles. Passengers boarded grew 3.1% to 968,279.
The Associations of Star Alliance Pilots (ASAP) leadership will meet in Copenhagen in June to vote on establishing a working group that will meet frequently to address pilot and industry concerns in a timely fashion. ASAP, meeting last month in Toronto, agreed to consider creating the group, which would prepare meeting agendas and report on issues important to pilots at the nine ASAP member airlines - United, Lufthansa, SAS, Varig, Thai Airways, Ansett Australia, Air New Zealand, All Nippon and Air Canada.
ALPA is attempting to bridge the gap between pilots at mainline carriers and those of regional affiliates. The union's scope-clause committee concluded that "ALPA pilot groups should approach issues related to scope and affiliation from new perspectives that don't focus narrowly on the major-carrier pilots building a wall around themselves, but instead address ways to maintain flying within an airline system," the February issue of Airline Pilot states.
FAA says Indianapolis-based Chautauqua Airlines failed to follow federal drug testing regulations and proposed to fine the carrier $52,000. The proposed fine stems from FAA's Nov.
Used Regional Aircraft Transactions November 1998 Previous Carrier No. Type Engines Operator AI Cargo Carriers 1 Shorts 330 PT6A-45R Tikal Jets Air Baltic 1 Fokker 50 PW125B Maersk Air Air Europa Express 1 BAe ATP PW126 BAe AMT
KLM passenger traffic for January rose 1% on no capacity increase, which raised the load factor 0.6 percentage points to 73.5%. Cargo traffic rose 2% on 3% more capacity. Traffic to Asia grew 2% on 1% less capacity, pushing up the load factor to 75.3%. North Atlantic traffic fell 3% on 2% less capacity, and Africa's 21% traffic rise nearly matched KLM's 22% capacity increase.
Pilots at American, frustrated by the lack of progress in talks with the company concerning its acquisition of Reno Air, plan to discuss today what action to take next. Greg Overman, spokesman for the Allied Pilots Association (APA), which represents American's cockpit crew, said the union board will mull its options today in a conference call.
Phoenix, Ariz.-based Mesa Air Group this week announced several key appointments in top management, a few days after posting a $2.3 million net profit for its first fiscal quarter ended Dec. 31 - the airline's first profit in more than two years owing in part to a 45.8% plunge in unit costs. The carrier named William Kostel VP-planning; Robert Moye VP-maintenance; Kristen Brookshire director-inflight services; Rodena Turner VP-human resources; Ron Brady director-scheduling; Nancy Brockman director-communications, and Peter Hayes senior director-training.
Mercury Air Group reported that net income for its second quarter ended Dec. 31 totaled $1.8 million, down from $2 million in the same 1997 quarter. Revenues were $66.6 million, down from $68.7 million. Mercury also announced it had been comprising by a company concerning the possible acquisition of Mercury and that discussions are continuing.
New Regional Aircraft Orders And Options November 1998 Firm Orders Options Carrier No. Type No. Type Engines Air Georgian 1 Beech 1900 - - PT6A-67D Amakusa Airlines 1 DHC-8Q-100 - - PW123 American Eagle 8 EMB ERJ-145 - - AE2100A
Senate Commerce Committee Chairman John McCain (R-Ariz.) and Sen. Ron Wyden (D-Ore.), a member of Commerce's aviation subcommittee, plan to hold a Capitol Hill news conference today on a bill they have written that would give air travelers the right to know when a flight is overbooked, obtain information on all fares available on a flight, get a refund if they cancel within 48 hours of making a reservation, and have their baggage checked through to their final destination.
Amadeus says its first month of issuing Year 2000 bookings was a success. The computer reservations system processed more than 500,000 bookings for Year 2000 on nearly 300 airlines worldwide. It issued the first Y2K ticket Jan. 5.
America West's January traffic rose 11.8% to a record 11.8 billion revenue passenger miles, as capacity grew 6.7% and the load factor went up 2.8 percentage points to 59.2%. America West Chief Executive William Franke said yesterday that the company's major shareholder would support an acquisition by a third party if all shares were bought.
United traffic for January rose 1.9% on 0.3% less capacity, forcing the load factor up 1.5 percentage points to 67.2%. "Traffic continues to look good overall," said President Jim Goodwin in a statement. Domestic traffic increased 5.4% on 1.8% more capacity, which raised the domestic load factor 2.3 points to 66.4%. United's domestic capacity was 62.6% of systemwide capacity in January, compared with 61.3% a year ago. Pacific traffic fell 8.6% on 12.7% less capacity, raising the load factor 3.2 points to 71.5%.
Comair, a Delta Connection carrier, is expanding nonstop jet service from its Cincinnati hub to 10 cities and will upgrade jet service to three. Comair also will begin weekend jet service between Boston and Myrtle Beach, S.C., with one nonstop flight. From Cincinnati, Comair will increase jet service by adding daily roundtrip jet flights to cities in its network: four to Allentown/Bethlehem/Easton, Pa., March 2; four to Harrisburg, Pa., March 2; seven to Toronto March 2; four to Wichita, Kan., March 2; one to Newark April 1; eight to St.
FAA and its industry-based Ice Protection Harmonization Working Group are crafting a new rule that would require ice-detection systems on all Part 25 aircraft operating under Part 121 of the FARs. Aircraft operating under Part 91 and other categories likely would follow. Included would be a warning system to "turn on" ice protection systems. "We cannot have another icing accident," said Eugene Hill, FAA inflight icing specialist, this week. "We are very concerned what it does to lower the public view, not only of propellers, but small regional jets as well."
Washington Dulles-based Atlantic Coast Airlines reported a 60.9% surge in traffic on 39.2% more capacity for January 1999, compared with the same month last year, boosting the load factor 6.5 percentage points to 48%. ACA flew 61.4 million revenue passenger miles and 128 million available seat miles. Passenger boardings rose 45% to 193,139. January 1999 January 1998 Rev. Passenger Miles 61,432,000 38,186,000 Available Seat Miles 127,991,000 91,953,000
Relatively small aviation infrastructure enhancements can produce major improvements in the U.S. aviation system, according to a George Washington University Aviation Institute report to be published next week. Terming infrastructure problems "the biggest issues in aviation today," institute director Darryl Jenkins estimated that a 1% improvement in air traffic control efficiency would lead to at least $200 million in annual savings for the 10 major U.S. airlines. The institute will issue the report Feb.
Southwest traffic for January soared 19.3% to 2.47 billion revenue passenger miles on just 8.7% more capacity, resulting in a load factor jump of 5.2 percentage points to 59.2%. The airline carried 3.95 million passengers last month, up 340,000 or 9.4%. Southwest's average length of haul increased 9.1% to 625 miles from 573 miles, and it flew an average of 2,200 daily flights.
