House Transportation Committee Chairman Bud Shuster's (R-Pa.) Jan. 26 speech to the Aero Club of Washington will be featured this week on Aviation News Today, to be broadcast on Washington's NewsChannel 8 Sunday at 12:30 a.m. and 1:30 p.m.
American's political action committee (PAC) contributed more than any other airline PAC to Senate and House political campaigns in the 1997-98 election cycle, and to Republican and Democratic party organizations as well, data issued by the Federal Election Commission (FEC) and the Center for Responsive Politics show. American's contributions to individual congressional races amounted to $317,708, the FEC said. The largest, $10,000, went to former Sen.
Atlantic Coast Airlines, on the verge of bankruptcy four years ago with a problematic fleet mix and other difficulties, posted its highest operating profit margin ever in 1998 at 18.2%. That compares to a negative 14.7% operating margin in 1994. With its relatively new fleet of BAe Jetstream 32/41s and new Canadair Regional jets (15 and growing), the carrier has seen its operating revenues rocket upward by 237.7% since 1992 while expenses increased only 170.3%. Passenger enplanements jumped 224.3% during the seven years.
DOT this week said it would allow Delta to suspend all Bangor, Maine, service, March 2 in light of service available from Business Express (to Boston and New York LaGuardia with 34-seat Saab 340s), US Airways Express (to Boston with 18-seat Beech 1900s), Continental Express (to Newark with 42-seat ATR 42s), and, effective March 2, Comair, a Delta Connection affiliate, to Cincinnati with 50-passenger Canadair Regional Jets.
Atlantic Southeast Airlines Tuesday announced its board of directors has increased the quarterly cash dividend to 11.5 from 11 cents. The dividend, equivalent to an annual rate of 46 cents per share, is payable March 15 to shareholders of record March 1.
Kiwi International Airlines, citing increased competition, lower fares and unreliable gate access at Midway Airport, is suspending service in Chicago Feb. 1. The carrier will reallocate its aircraft to expanding service on its Puerto Rico-Newark, -Orlando and -Miami routes. Kiwi has been flying out of Chicago Midway since September 1992. The carrier said the airport's growth and recent popularity have made it difficult for small airlines like Kiwi to operate, as major carriers have come in with more frequencies and capacity.
Emirates, fresh from receiving U.K. authority, will add a third daily frequency from London Heathrow to Dubai, starting July 1. For the first three months, the carrier will use an A310-300 and switch to an A330-200 in October. Tim Clark, the carrier's chief director, said, "The U.K. is now our busiest overseas station." The third daily frequency gives passengers the choice of one afternoon and two evening departures from London and one morning and two afternoon departures from Dubai.
Canadian Airlines said yesterday it will levy a C$7.50 (US$4.63) surcharge each way on tickets for domestic travel to cover the escalating charges of NavCanada's Air Naviation System (ANS). The surcharge takes effect for domestic tickets issued as of Feb. 10 for travel starting March 1. It will go into effect immediately for transborder travel. Passengers on international trips will pay a surcharge of C$15 (US$9.26) each way. The international surcharge will be implemented under the same schedule as the domestic surcharge pending government approval.
British Aerospace Asset Management-Turboprops completed 43 leases and 21 sales during 1998 and reduced the idle portion of its fleet to 10%, BAe-AMT said. The company also completed 26 lease extensions in a year when AMT posted total business of $114 million.
Midwest Express is cutting travel agent commissions to 8% with a maximum $50 roundtrip or $25 one way. The changes are effective Feb. 1 and apply to all tickets issued, including miscellaneous charge orders and prepaid ticket advices. Midwest said it acted four years after the rest of the industry to remain competitive in the face of rising distribution costs.
United Airlines Cargo will begin freighter service March 2 between New York Kennedy and the Pacific Rim as part of a seasonal schedule change, which also includes suspending service to San Francisco and Taipei except with 747-400 passenger aircraft. With the change, United will operate from Chicago, New York and Los Angeles to Tokyo, Osaka and Manila through its Anchorage hub.
DeCrane Aircraft Holdings, which manufactures avionics for commercial and corporate aircraft, said it has acquired PATS, which builds and installs auxiliary fuel tanks on commercial and corporate jets. DeCrane said PATS has a new seven-year contract valued at $180 million to build fuel tanks for the Boeing Business Jet.
Fairchild Aerospace, which is looking for a first major U.S. order for the Fairchild Dornier 328JET, may have found one. United Express Atlantic Coast Airlines is said to be close to a deal for up to 50 of the 32-seat regional jets, according to industry sources. ACA is a Bombardier Canadair Regional Jet operator and thus has no ties with Embraer and its 37-seat ERJ-135. The Dulles, Va.-based carrier's fleet also comprises 32 29-seat Jetstream 41s and 28 19-seat Jetstream 32 turboprops, all of which eventually will have to be replaced.
DOT has invited U.S. carriers interested in additional U.S.-France third-country code-share opportunities available in April to apply by Feb. 8. Answers are due Feb. 16 and replies Feb. 19. Under the 1998 U.S.-France bilateral, the U.S. in April may designate a third U.S. carrier to operate code-share service via an intermediate third country; United and Northwest hold such authority. Also effective this April, among the three U.S.
New Regional Aircraft Deliveries, October 1998 Last 12 Months Carrier No. Type Engines Delivery Aeromar 2 AA ATR 42-500 PW127 - Air Georgian 2 Beech 1900D PT6A-67D 7 Air Nostrum 1 Canadair RJ200 CF34-3B1 - American Eagle 2 EMB ERJ-145 AE3007A 14
Citing robust ground-handling competition at Manchester Airport in the U.K., the European Commission said it will not oppose joint ownership by Lufthansa Airport and Ground Services (LAGS) and Menzies Transport Services (MTS) of LAGS's Sigma Aviation subsidiary, which provides passenger and airport handling services at the airport. MTS would acquire 49% of Sigma from the Lufthansa unit, which currently owns all of it, and both would have veto power over budget, business plan and other major decisions.
New Aircraft Orders And Options October 1998 Last 12 Months Firm Orders Options Orders Options Carrier # Type # Type Engines Del. Dates # Type # Type Air Aruba 2 MD-90-30 - V2500 Nov 98 - - Delta 11 757-200 - PW2037 Jul99-Apr00 1 737-800 -
Reflecting on a year in which Saab Aircraft Leasing AB placed 24 Saab 340s and 2000s with customers worldwide, company President Lars Flodman said this week he believes in a promising future for the leasing business even if the economy turns downward (DAILY, Jan. 22). The 24 aircraft leased last year, on an average lease term of five years, were valued at $100 million (net present value).
Indigo Aviation said it purchased from and leased back to British Midland Airways its first Airbus A320 aircraft. The purchase brings Indigo's fleet to 35 aircraft on lease to 23 airlines in 17 countries. Indigo is a Swedish limited liability company that also remarkets and sells jet transports for its own account and for others.
FAA yesterday ordered inspections of the wiring and insulation in the cockpit and cabin of all U.S.-operated MD-11 aircraft. The order follows a recommendation from the National Transportation Safety Board (DAILY, Jan. 12), but FAA said its order was under development before NTSB acted. The agency said its order follows discussions with the Canadian Transportation Safety Board and NTSB, which "resulted in a Dec.
American Eagle pilots in 1997 agreed to an unprecedented 16-year contract with provisions for no strikes, no lockouts, no scope-clause changes and no interim renewal. The pact, details of which only recently became known, indexes rates-of-pay to industry averages or a minimum of 1% per year, which was the major provision. Pilots won a 3% pay hike, effective this month. Up to five issues can be raised every four years for binding arbitration but cannot exceed regional-airline standards.
Cutting weather-related delays is a prime topic at an FAA workshop in Washington that ends today. The workshop, conducted by FAA's Weather and Flight Services Integrated Product Team, deals with one of FAA's fiscal year 1999 corporate goals - to "demonstrate the capability of new systems to decrease the rate of delays in the National Airspace System due to weather by 10% by the year 2002." Team leader Peter Challan said, "We need to define delays so we can make the right decision about funding."
Kiwi International Airlines is adding 16 flights per week to San Juan and Aguadilla from Newark, New York Kennedy, Orlando and Miami. With the expansion, Kiwi will offer 38 weekly flights to Puerto Rico, where it plans to open a reservations center. It will hire customer service agents, appoint a new station manager in San Juan, obtain new counter space at San Juan Airport, hire additional sales representatives and appoint a manager to oversee sales and airport operations.
