Milwaukee-based Midwest Express Holdings, parent company of Midwest Express and Skyway Airlines, posted a 5.1% increase in total operating revenue to $96.5 million for the fourth quarter 1998, compared with the same 1997 period. Operating income grew 7% to $12.5 million as total operating expenses rose 4.8% to $84 million. The company reported a 15.1% drop in fuel costs to $10.8 million and a 13.1% drop in travel agent commissions to $6.9 million.
U.S. Major Carriers Advertising Expense Third Quarter 1998 % Of Total Advertising Passenger Revenues Alaska 5,751,000 1.46 Domestic 5,491,000 1.46 Latin 260,000 1.46 America West 4,567,348 1.00 Domestic 4,551,514 1.01
Malaysia Airlines has taken possession of a 737-400 from Pakistani carrier Shaeen Air for non-payment of lease payment since last October. MAS solicitors served the repossession notice to Shaeen two days ago, and the aircraft was immediately flown back to Kuala Lumpur. Twelve MAS pilots who were based in Karachi also have been ordered to return. This is the second aircraft MAS had to recover under similar circumstances, the first being last October from Royal Air Cambodge, in which MAS has a 40% stake.
American Trans Air said its first long-range L-1011-500 has entered service along with a new 757. The trijet will be used in charter business and the 757 primarily for scheduled service. The two aircraft bring American Trans Air's fleet to 48 aircraft. Another 757 is to be delivered in June 2000 and will replace a 727-200. The carrier also expects to get four more L-1011-500s over the next year.
DOT seeks answers to Northwest's complaint against the European Union claiming discrimination against U.S. carriers implicit in the EU's intention to limit use of hushkitted aircraft at airports in its 15 member nations (DAILY, Jan. 20). The aircraft meet International Civil Aviation Organization requirements, the standard prescribed in U.S. bilaterals with EU countries. If the proposed regulation is enacted, likely this spring, U.S. operators' access to Europe would be "unreasonably" restricted, Northwest charged.
Revised* Airport and Airway Trust Fund - Income Statement October 1, 1997 - September 31, 1998 RECEIPTS (Revenues) September 1998 Revenues: Excise Taxes (Transferred from General Fund): Liquid Fuel other than Gas (14,784,000.00) Transportation by Air, Seats, Berths, etc. 150,328,000.00 Use of International Travel Facilities 182,233,000.00
Federal Express has signed a multi-year sponsorship commitment making it the official express delivery service of the National Hockey League and the National Hockey League Players' Association. The agreement will give FedEx the right to all markets, logos and group player rights of the NHL and NHLPA. FedEx will undertake an advertising and promotional campaign to support the sponsorship.
DOT issued foreign air carrier permits to three Canadian carriers. ALLCANADA Express Limited received a permit to engage in charter foreign cargo service between any points in Canada and a point in the U.S. Royal Aviation Express and Voyageur Airways Ltd. were issued permits to engage in scheduled foreign combination service between any points in Canada and any points in the U.S. and between any points in Canada and San Juan, Puerto Rico, and beyond San Juan.
AirTran is extending its Grade "A" fare sale for travel through Feb. 28. Tickets must be purchased by Thursday. Blackout dates are Feb. 12-15. Sample one-way fares include $39 Atlanta-Fort Walton Beach, $49 Boston-Philadelphia and $99 Houston-Orlando.
U.S. airlines are better positioned to handle an economic downturn than previously despite the current weak domestic yield environment, according to a panel at the American Bar Association's Forum on Air&Space Law Friday in Washington. New cost-conscious airline managers "are definitely an issue" in the near-term weaker environment, said Donaldson, Lufkin&Jenrette analyst Jim Higgins. ING Barings analyst Ray Neidl said the next downturn "won't hit the airlines as hard as in the past."
The evolution of airline network systems is "relentless," DOT Assistant Secretary Charles Hunnicutt told the Transportation Research Board of the National Research Council (NRC). Alliances between U.S. and foreign carriers are "very different from domestic alliances," Hunnicutt said, calling international alliances "demand-driven." He told the board such alliances help U.S.
FAA - In Federal Register dated Jan. 15...Issued an airworthiness directive on Airbus A320/A321 aircraft to require modifying the slat and flap control computer in the aft electronics rack...Issued an AD on Airbus A320 aircraft that requires a rubber strip on the avionics compartment access door... Issued an AD on Fokker F28-100 aircraft requiring modifying the aft cabin sidewall...Issued an AD on Lockheed L-1011-385 aircraft requiring modification of the power drive units of the galley lift system.
America West's Air Line Pilots Association unit is considering filing a grievance against the company for canceling 1999 vacations of upgrading and transitioning pilots. The company cited operational needs. The union said pilots have three options - schedule another vacation in 1999, bid the canceled vacation period into the 2000 bid period or receive compensation in lieu of vacation.
FAA said it plans to fine International Total Services (ITS) of Cleveland $157,000 for allegedly violating federal anti-drug and alcohol misuse prevention programs. ITS is a contract security vendor that provides passenger screening services to airlines throughout the U.S. FAA alleges ITS at many locations, and involving many employees, had not received verified negative pre-employment drug test results or return-to-duty drug tests.
American, which is celebrating its 40th anniversary, will unveil plans today for a new $1 billion terminal at New York Kennedy. The project is expected to create at least 1,000 construction jobs.
United's stock price dropped after its announcement of interest in America West, "but not as much as it should have," according to Donaldson, Lufkin&Jenrette analyst Jim Higgins. "The risks outweigh the rewards." If low-fare America West operated with United's higher costs, Higgins estimates the effect would be $200 million negative for United.
Boeing moved to settle for $15 million two nationwide class-action lawsuits that alleged employment discrimination, the company reported Friday. Attorneys for Boeing and the plaintiffs filed a motion in federal court seeking preliminary approval of a consent decree pending notice to the class members and a fairness hearing. For purposes of the consent decree, the court has been asked to certify a nationwide settlement class that in general includes all African-American employees throughout Boeing's U.S.
DOT - Approved an initial two-year exemption for American to provide scheduled combination service between Los Angeles and Nadi, Fiji, which American plans to use under code share with Air Pacific Limited...Approved a one-year exemption renewal for Harlequin Air Corp.
General Accounting Office (GAO) has issued a biting criticism of FAA's management of modernization of air traffic control systems and expressed doubt that the Wide Area Augmentation System (WAAS) "can perform as originally intended" as the sole means of navigation for a given operation or phase of flight.
Pilot hiring broke all records in 1998, according to AIR, Inc., as 14,143 pilots found jobs compared with 11,936 in 1997. Of the 1998 total, 3,646 went to work for major carriers, 4,698 at nationals, 2,573 at jet operators, 2,256 at non-jet carriers and the rest at helicopter, startup and other carriers.
Sen. John Rockefeller IV (W.Va.), the Senate Commerce aviation subcommittee's new ranking Democrat, says the panel may have no choice but to approve a six-month extension of FAA programs as the House Transportation Committee has done.
