The fourth quarter of 1998 capped a five-year run of profitability for the airline business, with U.S. airlines enjoying the longest run of profitability in their history. As Asia's weakness led to capacity shifts to Latin America and the Atlantic, the yields in those markets declined as well. The U.S. market continued to be a haven for the world's airlines, as carriers of all shapes and sizes continued to add capacity to the U.S. from weaker markets such as Japan and Hong Kong.
Clarification: Japan Airlines and Canadian Airlines will increase their code share between Vancouver and Tokyo to two flights per day, or 14 per week, with an expectation of increasing the frequency this summer. The airlines stated the frequencies incorrectly (DAILY, Feb. 25).
America West will launch nonstop service June 6 between Orange County, Calif., and Reno, offering four daily 737 flights with seating for eight first-class and 126 coach passengers. Reno is America West's fourth nonstop destination from Orange County, after Phoenix, Las Vegas and Sacramento. The carrier also is offering two vacation packages to Acapulco. Travelers can fly to Pierre Marques for a four-day, three-night package for $597 per person double occupancy.
Aviaco pilots agreed to lift their warning of strikes throughout March. Spanish union Sindicato Espanol de Pilotos de Lineas Aereas (SEPLA) launched a staggered strike at the beginning of 1999 to press its demand that Iberia's domestic subsidiary hire 43 additional pilots. The pilots went out on strike for six days in January and February, and nine stoppages were planned this month. Iberia's management asserts that the dispute results largely from dissensions between Iberia and Aviaco pilots, and it says SEPLA's hiring demands will be met.
Great Lakes Aviation will discontinue its United Express service at Aberdeen, S.D., on April 4. The airline has been flying three daily Aberdeen-Denver roundtrips, but traffic and revenue on the route have not covered operating expenses, Great Lakes said. The shutdown is Great Lakes' second in the market - it discontinued the United Express flights to Aberdeen in May 1997 and reinstated service the following December in hope of a reasonable return.
American yesterday initiated 737-800 service from Chicago O'Hare to Los Angeles and from Washington Dulles to Los Angeles. Bob Baker, executive VP-operations, said this "new top-of-the-line airplane is an example of our longstanding commitment to providing quality passenger service." He said the next-generation 737-800 flies faster, farther and higher than the older models. "This will allow us to begin using this airplane on long flights, such as from Dulles to Los Angeles," he said.
Qatar Airways has taken delivery of the first of four 144-seat Airbus A320s leased from Singapore Aircraft Leasing Enterprise (SALE). The three additional IAE V2500-powered twinjets will arrive by the end of April.
Correction: Pay increases for flight attendants under the newly ratified Sun Country-Teamsters contract will range from 3% to 17%, not 3%-7% (DAILY, March 2).
United typically ranks among the lowest in the industry in on-time performance, but 74% of its February flights departed within five minutes of schedule, an improvement.The airline has not had an on-time month this good since May 1993. United was satisfied with its winter performance, especially since it faced higher volumes from American's multiple cancellations last month.
European Union Transport Commissioner Neil Kinnock, scheduled to address a luncheon meeting of the International Aviation Club of Washington on March 11, has postponed his visit to Washington. IAC has canceled the luncheon and will announce a new date for Kinnock's appearance.
Several pilot unions denied yesterday that they have endorsed increasing extended-range twin-engine operations (ETOPS) by 15% to 207 minutes for the Boeing 777.
Lufthansa aims to increase its turnover 8%-10% by developing catering, aircraft maintenance, information technology, tourism, ground-handling and other services for other airlines, Lufthansa Chairman Jurgen Weber said in an interview published Monday in Die Welt. Weber told the German daily newspaper he intends to develop services that are less subject to cyclical variations than passenger transport, which accounts for 70% of the group's current consolidated turnover. He wants transport's share to drop to 60%.
Continental asked DOT for a "short extension" of the startup date for its Cleveland-London Gatwick service, which it intends to begin June 30. The carrier received "suitable" Gatwick slots last Thursday (DAILY, Feb. 26) after months of efforts to obtain them, and it told DOT it could not market or sell the service until then.
National Transportation Safety Board said yesterday that U.S. scheduled airlines - Part 121 and Part 135 - had no passenger fatalities in 1998, the first year without deaths since the board began keeping records. "Although there have been previous years in which no Part 121 fatalities were reported, there has never been a year with no Part 135 [aircraft with fewer than 10 seats] scheduled passenger fatalities before 1998." Before March 1997, Part 135 covered aircraft with up to 29 seats.
ATA President Hallett said Carol Carmody, who recently resigned as the U.S. representative to the ICAO, will provide consulting to ATA Air Transport Association President Carol Hallett said yesterday that Carol Carmody, who recently resigned as the U.S. representative to the International Civil Aviation Organization, will provide a variety of consulting services to ATA in areas such as the environment, safety, security and "building effective relationships within the aviation community."
Oneworld alliance has begun a $15 million advertising campaign in more than 90 countries. Messages conveyed include more rewards for frequent flyers, more recognition for top levels of each airline's loyalty program, better lounge access at airports and better customer service worldwide. The campaign will run in nine languages and 159 publications.
Lufthansa will allow its passengers to play CDs on portable audio devices and CD-ROMs on portable computers, beginning March 28. The carrier is aligning its rules with those of Star Alliance partners United, Air Canada, SAS, Varig and Thai Airways. Use of electronic devices still will be prohibited during landing and takeoff.
U.S.-based customers who originate travel in the U.S. can buy tickets to any of Delta's 353 cities in 56 countries through the SkyLinks web site at www.delta-air.com. SkyLinks offers real-time flight schedules, fares and availability, and users can search for fares and schedules to match individual needs. To purchase a domestic or international ticket, customers can click on "Book Online" from the home page.
