Ten eastern U.S. senators wrote colleague and Commerce Committee Chairman John McCain (R-Ariz.) Monday, asking him to remove slot expansion and perimeter-rule exemptions at Washington Reagan Airport from his proposed FAA reauthorization, S.82. Signers include three senators in Maryland and Virginia whose constituents complain about noise and others who fear the changes will weaken service within the perimeter.
Eight key modernization programs account for 40% of FAA's fiscal 2000 budget request for facilities and equipment. The F&E total is $2.319 billion (DAILY, Feb. 2), up 11% from the fiscal 1999 appropriation.
Frontier Airlines yesterday set a record in its short history with a $2.5 million net profit for the December quarter, its fiscal third, compared with a loss of $11.5 million in the prior-year period. But even more important, the Denver-based airline managed to lower its cost per available seat mile during a traditionally slow period to 7.66 cents from 8.52 cents - putting it closer to Southwest in cost structure. At the same time, Frontier's quarterly yield jumped more than 17% to 14.97 cents from 12.75 cents.
Growth in the regional airline industry is expected to continue relatively unabated for at least four to five years, even if there is a general downturn in the aviation industry, according to airline analysts and executives. Speaking yesterday at the Robinson-Humphrey Annual Regional Airline Conference in New York, regional airline executives across the board said they anticipate more aircraft orders and route expansions, bigger bottom lines and increasing returns to investors.
U.S Major Carriers Productivity, In RPMs And ASMs Per Employee Third Quarter 1998 Revenue Available Passenger Seat Miles Miles Total (000) (000) Employees Alaska 3,199,554 4,639,136 8,237 America West 4,417,739 6,141,986 11,455
Comair is promoting its new jet service to Bangor, Maine, on March 2 by offering double Delta SkyMiles March 2-May 2. Comair will serve Bangor with three daily roundtrips from Cincinnati with 50-seat Canadair Regional Jets.
Tower Air has been delinquent on five separate payrolls during the last 65 days, according to the airline's flight attendant union. As recent as Jan. 25, the airline did not make the appropriate per diem pay to flight attendants, according to Jason Weber, Association of Flight Attendants Master Executive Council chairman for Tower. Other payrolls have been up to five days late. "This is not a paperwork issue, since most flight attendants get paid electronically, and their pay has not been deposited on time," he said.
KLM yesterday reported a net loss for the quarter ended Dec. 31 and received notice that the European Commission is launching a full-fledged inquiry into its planned purchase of the remaining 50% of Dutch carrier Martinair, which specializes in charter and leisure flights. KLM also owns 80% of another Dutch carrier, Transavia, which operates in the same market. KLM currently owns 50% of Martinair, and the EC said in Brussels that there are "grounds for serious doubts" whether the full KLM-Martinair merger would be compatible with EU competition legislation.
DOT granted American, Continental Micronesia and Delta six-month exemptions from dormancy provisions for U.S.-Japan weekly combination frequencies awarded under the 1998 U.S.-Japan bilateral, based on each carrier's original startup date. American, which asked DOT to waive dormancy on its 14 frequencies until slots are available at Tokyo Narita for New York-Tokyo and Boston-Tokyo service, received a waiver through July 30. Continental Micronesia, holding five frequencies but lacking Narita slots for Houston-Tokyo service, received a waiver through Sept. 15.
Senate Commerce Committee Chairman John McCain (R-Ariz.) yesterday faulted the Clinton administration's FAA request for what he called an inadequate operations budget, a cut in the Airport Improvement Program request and an increase in the passenger facility charge (PFC). McCain endorsed in a statement the administration's plan to spend $1 billion for aviation safety.
DOT asked American and United to detail proposed Chicago-London services for the summer season. The department must allocate between the two carriers the 67 additional roundtrip frequencies available under an agreement in Annex 2 of the U.S.-U.K. bilateral, above the minimum entitlements of 886 roundtrip frequencies for American and 488 for United. The two carriers have filed schedules that exceed the frequencies available.
Emery Worldwide said it and CTI Holdings have formed a joint venture, Emery Worldwide (Thailand), to provide air freight, ocean freight and customs clearance services in Thailand.
Continental this week began daily nonstop service from Houston to Tokyo, the first Asian nonstop from Houston. The 14.5-hour flight is being flown with 283-seat 777s. Continental launched daily Newark-Tokyo service Nov. 30.
U.S Major Carriers Productivity, In Revenues and Expenses Per Employee Third Quarter 1998, In Dollars Total Total Operating Operating Revenues Expenses Total (000) (000) Employees Alaska 448,964 369,567 8,237 America West 489,308 447,861 11,455
Virgin Express will add destinations to its European network during the next few weeks.Chief Executive Jim Swigart says Rome is at the top of its list of expansion possibilities.
Sundstrand Corp. yesterday reported net earnings of $62 million in the fourth quarter of 1998, up 13% over the year-earlier quarter excluding extraordinary items, and $227 million for the year, up 34%. Sales totaled $532 million for the quarter, up 9%, and $2 billion for the year, up 14%.
As it launched its first regional jet service yesterday, United Express carrier Air Wisconsin placed orders for five more 50-seat Canadair RJs, for use primarily at Denver. The aircraft, valued by Bombardier at $108 million (C$165 million), will be delivered between January 2000 and October 2001. The carrier acquired five options as well that can be converted for deliveries in 2002.
American's traffic grew last month on the strength of U.S. traffic, while international load factors fell in all sectors. Traffic increased 0.6% in January on 0.2% less capacity, which boosted the load factor 0.5 percentage points to 66.2%. Domestic traffic was unchanged, while capacity declined 3.7%. Last year, domestic capacity declined 1.4% and international grew 6.4%. In January, international traffic rose 1.9% and capacity grew 8%. Atlantic traffic fell 1.3% on 9.3% more capacity, forcing the load factor down 6.7 points to 62.5%.
Transavia said it will develop a base at Rotterdam Airport and begin operations there March 28, the start of summer service. Based on research among passengers and tour operators, the airline will fly scheduled service to Alicante, Faro, Las Palmas and Malaga and charter service to destinations in Greece, Morocco, Spain, Tunisia and Turkey. It will base one new-generation 737-800 aircraft at Rotterdam for the summer.
Sikorsky Aircraft Corp. said yesterday it has reached agreement to acquire a charter helicopter company, Associated Aircraft Group, as a means of exploring "the introduction of helicopters for fractional ownership." AAG, headquartered in Danbury, Conn., and based at Wappingers Falls, N.Y., operates charters using six owned, leased and managed helicopters.
Aviation Industry Stock Performance January 1999 Closed Closed Monthly Change Symbol 1/29/99 12/31/98 ($) (%) Alaska Air Group ALK 50.375 44.250 6.125 13.8 America West (Class B) AWA 21.500 17.000 4.500 26.5 AMR 1 AMR 58.750 60.250 (1.500) (2.5)
The Clinton administration's fiscal 2000 DOT budget request would fund FAA at $10.1 billion - a $477.7 million increase over the $9.8 billion fiscal 1999 appropriation - entirely through Airport and Airway Trust Fund revenues from excise taxes and cost-based user fees. The FAA proposal includes just over $6 billion for operations, $1.6 billion for airport grants, $2.3 billion for facilities and equipment and $173 million for research, engineering and equipment.
American Aircarriers Support, the spare parts overhaul and redistribution company that went public last spring and completed the acquisition of Global Turbine Service, Condor Flight Spares and AMJET during the fourth quarter, reported yesterday that its revenues tripled year-over-year for the quarter, to $10.8 million, and increased 98% for the year, to $26.3 million. Pro forma net income totaled $1.2 million for the quarter, up 92%, and $4.2 million for the year, up 72%.
