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.
Eagle USA Air Freight reported revenues for its first quarter that ended Dec. 31 jumped 48% to a record $144.9 million, while net income rose by 32% to $7.7 million. International sales, 18% of total revenues, increased 322%. The company repurchased 433,000 shares of its common stock during the quarter.
Amtran posted $209.2 million in revenues in the fourth quarter 1998, up from $185.9 million in the same 1997 period. Net income was $1.45 million, an improvement from last year's $2.6 million deficit. Share earnings on a diluted basis were $0.11, up from $0.23. For the year, revenues reached $919.4 million and net income $40 million, up from $787.2 million and $1.6 million, respectively. Income per diluted share was $3.07, up from $0.13.
Dulles, Va.-based Atlantic Coast Airlines, which operates as United Express, saw a 152% jump in net income to $7.7 million in the fourth quarter 1998, compared with the same 1997 period. Total operating revenues surged 38.7% to $78 million on 38.6% more total operating expenses, or $65.6 million. Operating income grew 36.9% to $12.4 million. Earnings per share increased 112% to 36 cents and cost per available seat mile fell 17.5% to 16 cents.
American's marketing alliance with Alaska Airlines and the Reno Air acquisition will shift $40.8 million per year in revenue to Alaska, according to Salomon Smith Barney.Alaska also stands to gain $16.9 million from American's expected withdrawal of Reno from some of Alaska's markets.
French flag carrier Air France will be listed on the Paris stock exchange beginning Feb. 22 under a schedule unveiled yesterday by France's stock exchange authority. On Tuesday evening, the French government formally launched the initial public offering (IPO) and partial privatization of Air France, which is 94.1% state-owned. "In the long term, the flotation may be extended, particularly after share options already issued have been exercised," Air France said yesterday.
US Airways Shuttle pilots are conducting informational picketing this week in Washington, Boston and New York to protest lack of progress toward pay parity. The pilots, represented by the Air Line Pilots Association, say they are compensated about 28% below their peers who perform similar flying.
Alaska Air Group reported net income of $27 million for the fourth quarter 1998 or $1.02 per diluted share, up 5.9% from $15.1 million, $0.73 per diluted share for the same 1997 period. Operating revenues were $457 million, up 8.1% from $422.8 million. Operating expenses reached $420.6 million, up 6.3% from $395.6 million, while operating income grew to $36.4 million, an 8% increase from $27.2 million in 1997.
Turkish Airlines asked DOT for an exemption for at least one year to engage in scheduled combination service between Miami and points in Turkey, nonstop and via Amsterdam and Brussels as intermediate points. The carrier wants to co-terminalize the requested service with existing flights to New York and Chicago, for which it holds permit authority, via the same intermediate points.
Human factors, including the "pilot's diversion of attention from the operation of the airplane," were the probable cause of the fatal crash of John Denver's amateur-built airplane, the National Transportation Safety Board said this week. The board blamed the Oct.
Taipei-based TransAsia Airways has announced the appointment of Edwin Lee as general manager, effective Monday. Lee replaces Chen Cheh-ming, who resigned to take a position as vice chairman of a company providing security services.
American Chairman and Chief Executive Donald Carty called yesterday for cooperation from his competitors in forwarding the industry's agenda at FAA and on Capitol Hill. Carty, speaking before the International Aviation Club in Washington, D.C., said industry needs to leave its competitive battles in the marketplace and try for unified positions on important issues such as funding aviation infrastructures, modernizing the air traffic control system and reforming FAA, and reaching a consensus for improved air safety.
DOT's Office of Inspector General, voicing misgivings about FAA's past problems with complex software acquisitions, next week will look into the agency's efforts toward establishing a Free Flight regime. The investigation will emphasize cost, schedule, software development and human factors issues of Phase 1 of the program. The OIG said it also will evaluate progress FAA is making in setting up a new Free Flight program office.
American, in an about-face, withdrew its objections to Air France's request for slot exemptions at Chicago O'Hare. A spokesman at American declined to explain the carrier's change of heart on the Air France application. American, which had asked DOT to link approval for Air France with the grant of American's request for slots at Paris Orly, had charged that Air France has influence over slot allocation at Paris airports, where slots are administered by a former Air France employee, who plans to return to a position with the French carrier (DAILY, Dec. 21, 1998).
National Air Carrier Association Chairman Ed Driscoll said NACA has opened its membership to associate members and AAR Corp. has become the first member in the new category. NACA's membership comprises American International Airways, American Trans Air, Evergreen International, Miami Air, Omni Air, Tower and World Airways.
Delta is expanding electronic ticketing to European destinations over the next few months, beginning Monday with Amsterdam. E-ticketing will be available to Milan, Rome and Athens Feb. 15 and to Barcelona, Madrid and Moscow Feb. 22. It will be available to Istanbul March 1, to London and Manchester March 22, Stockholm and Vienna March 29 and Frankfurt, Hamburg, Munich and Stuttgart April 5. Delta will introduce e-ticketing to other destinations in Europe and to Latin America and Asia later this year.
Moody's Investors Service cited Bombardier Inc.'s diversification and strong market positions yesterday as it assigned an A3 issuer rating to the company and an A3 rating to its proposed $500 million notes due 2002. Even though some of Bombardier's businesses are cyclical and the rapid growth of the Bombardier Capital Group finance unit in new markets creates uncertainties, the company's diversification and a "huge backlog" in aerospace and transportation create a favorable outlook, Moody's said.
Boeing said yesterday that its 757-300 has been awarded a type certificate and production certification by FAA and that the Joint Aviation Authorities of Europe recommended type validation. JAA's 29 members will award the actual type certificates. Condor will receive the first airplane in March. Donald Riggin, manager of the FAA Seattle Aircraft Certification Office, said the 757-300 is the "first Boeing model worked under a formal agreement known as a Project-Specific Certification Plan.
Delta has garnered support from eight governors and public and private groups in 13 states - mostly in the Southeast, but also Utah and Oregon - in its bid for seven newly available U.S.-Italy frequencies. Delta proposed Orlando-Atlanta-Rome service.
Spanair is close to a decision to acquire 45 aircraft - double the size of its current fleet - in an attempt to increase its competitive edge in southern Europe. The airline will negotiate a deal in time for its March 19 board meeting, and Director General Carlos Bravo told reporters that despite heavy campaigning from both Boeing and Airbus, the decision has not been made. Bravo, who had dinner Monday night in Madrid with Boeing, hosted Airbus representatives Tuesday at Spanair's Palma headquarters before talking with reporters.
House Transportation Committee Chairman Bud Shuster (R-Pa.) late next month may introduce a multi-year aviation bill that will go into funding levels and other issues, congressional sources said yesterday. A committee aide said the bill - its duration has not been settled - would deal with a number of subjects, including safety initiatives, collision avoidance systems on cargo airlines, whistleblower protection for FAA and airline employees, national park overflights and bogus parts.
Augsburg Airways of Germany reported its first profit ever for the year 1998, when it achieved passenger growth of 86% for a total of 574,292 passengers carried. The airline more than doubled its revenues to 146 million Deutschmarks (US$87.6 million) from DM70 million ($42 million) and predicts revenues of about DM160 million ($96 million) for the current year. Olaf Dlugi, managing director, sees 1999 as a year for consolidation and modernization.
Used Jet Aircraft Deliveries October 1998 Carrier # Type Engines Previous Operator Aero Control 2 727-200 JT8D-9A Olympic Air Afrique 1 A310-300 PW4152 Air Charter Air Afrique 1 737-300 CFM56-3C1 EasyJet Air Aruba 1 DC-9-30 JT8D-9A Continental Airbus Industrie 1 A300B4-200 CF6-50C2 Thai Airways
FAA will sponsor an international conference Feb. 2-4 to discuss inflight operations in icing conditions. The conference will be an open forum to exchange information and address National Transportation Safety Board recommendations on inflight icing and the status of FAA's Inflight Icing Plan. Participants will include representatives of the NTSB, European Joint Aviation Authorities, civil aviation authorities, International Civil Aviation Organization, NASA, manufacturers, airlines and weather experts.
