World Trade Organization apparently has targeted both Bombardier of Canada and Embraer of Brazil for citations regarding illegal export subsidies. In confidential preliminary reports to both governments last week, details of which were leaked to the press, WTO faulted Brazil for its ProEx interest-rate equalization program that aids sales of the ERJ family of regional jets. Canada was cited for its Technology Partnerships Canada, a research-and-development fund that helped finance the Canadair Regional Jet.
National Transportation Safety Board investigators yesterday were trying to determine whether flight control anomalies experienced Tuesday by a MetroJet 737-200 are related to two unexplained crashes of 737s. The MetroJet 737 crew declared an emergency and landed at Baltimore/Washington International. No one was injured. The aircraft, en route from Orlando, Fla., to Hartford, Conn., was cruising about 260 knots at 33,000 feet when it experienced an unintended wheel deflection while on autopilot, the safety board said.
The U.S. Navy is using an NKC-135 "Big Crow," a tanker aircraft modified for electronic warfare, to conduct aerial jamming of Global Positioning System signals this week along the East Coast during a joint exercise with NATO.The military is calling the exercise a "navigation warfare demonstration" to establish a "baseline on interference issues" (DAILY, Feb. 22).
Vanguard Airlines, which teetered on the edge of bankruptcy only a year and a half ago, reported its first-ever annual operating profit of $1.5 million for 1998, up from an operating loss of $25.4 million in 1997. In the fourth quarter of 1998, the operating profit was $100,000 and the airline had a net loss of $600,000. Last year's revenue grew 28% to $104.3 million. By crossing the $100 million mark, Vanguard now will be classified as a "national" carrier under DOT guidelines. It began flying in December 1994.
American has opened the annex at the C.R. Smith Aviation Museum. The $1.9 million structure houses the DC-3 Flagship Knoxville operated by American in the 1940s. Apollo astronaut Buzz Aldrin was guest speaker.
DOT denied United's motion that it reallocate Reno Air's five Chicago O'Hare Airport slots but said it will monitor Reno's continuing operations and reconsider the issue if circumstances change. The department agreed with United that American's acquisition of Reno means Reno would not qualify today to obtain the slots as a new entrant, as it did in 1994. But it disagreed that the merger has the effect of transferring the slots to American via trading in exempt slots.
BFGoodrich said it has formed an "independent safety and compliance team to conduct a top-to-bottom review of its Everett facility." The move came after stories appeared in Seattle newspapers that an FAA inspector found conditions were "ripe for setting up a catastrophic air carrier accident" at the aircraft maintenance facility.
DOT approved requests by seven foreign carriers - all that applied - for exemption from slot restrictions at Chicago O'Hare for the summer season. The department issued four orders granting proposals by Japan Airlines and All Nippon Airways; Mexicana and Iberia; Lufthansa and SAS, and Air France. JAL may operate five weekly Chicago-Osaka Kansai roundtrips, which it will begin about May 1, replacing service on the route discontinued last October by United. ANA may operate a daily Chicago-Tokyo Narita roundtrip.
American says its web site at www.AA.com has grown in popularity since its redesign about five months ago. More than one million members of the airline's frequent flyer program have visited the address since it was upgraded. The number represents more than 10% of active AAdvantage members. Traffic on the site currently tops one million visits each week, with numbers in excess of 300,000 on peak days. Year-over-year booked revenue has increased threefold.
Air Canada is offering electronic ticketing to Bermuda. VP-Sales and Product Distribution Marc Rosenberg said the new service continues the airline's expansion of e-ticketing into its international markets.
Horizon Air and Alaska Airlines have reduced fares by up to 48% through June 14 on flights from western Canada to cities in California, Arizona, Washington, Oregon, Idaho and Montana. The reductions apply to flights to Vancouver, Victoria and Kelowna, B.C., and to Calgary and Edmonton, Alberta. Tickets must be purchased by March 5.
Flights passing through French and Swiss airspace are expected to experience delays when restructuring of high-altitude flight routing begins today. French and Swiss air traffic control authorities said that while the restructuring will result in "substantial and permanent expansion of capacity," the changeover to the new routing system will involve a temporary reduction of capacity that may delay flights. Full capacity is expected to be restored "within four weeks," authorities said.
Despite more than $2.3 billion in airline investment, some elements of the aviation infrastructure will not be able to handle Year 2000 computer system changeover issues, according to IATA Director General Pierre Jeanniot. Some major systems will have completed upgrades and testing as early as next month, and Jeanniot is "quite confident" that most major air routes will have no Y2K disruptions. "But airline action alone cannot ensure business continuity," he said yesterday at an International Aviation Club luncheon in Washington.
DOT approved for one year a joint request by Air Canada and Mexicana for authority to code share between Chicago and named points in each carrier's homeland. Air Canada may display Mexicana's code on flights between Chicago and coterminal points Toronto, Montreal, Ottawa and Winnipeg, and Mexicana may carry Air Canada's code on flights between Chicago and Mexico City. In each case, authority is limited to traffic moving between Canada and Mexico. United supported the application.
Boeing executives told financial analysts and reporters yesterday that each of the company's programs will undergo scrutiny on a continuing basis and that any program that does not add value will be turned around, sold or dropped. Phil Condit, chairman, and Deborah Hopkins, chief financial officer, said Boeing will adopt three principles in an attempt to prop up the sagging value of its shares.
Air Transport Association said air fares fell for the fifth consecutive month in January. The average one-way fare dropped 3% and coach-class fares were down 4.9%. First-class fares rose 4.4%. ATA Chief Economist David Swierenga said, "The airline market continues to be highly charged and extremely competitive," causing air fares to decline.
International aviation organizations and foreign airlines told FAA yesterday its planned implementation of a new security rule will cost millions of dollars without increasing protection against terrorists. FAA is adopting a rule to enforce the 1996 Hatch Amendment, requiring foreign airlines operating into the U.S. to apply U.S. security standards at their home gateway airports when U.S. carriers operate on the same route. Critics say the rule violates sovereignty, bilateral agreements and Annex 17 of the Chicago Convention requiring consultation.
European Union competition authorities' apparent "discomfort" with hub-and-spoke networks threatens the next steps toward worldwide aviation deregulation as well as current transatlantic alliances, Michael Whitaker, United VP international and regulatory affairs, said Tuesday at the European Aviation Club in Brussels. Europe and the U.S. must "come to a more common appreciation" of hubs and alliances if they are to replace bilateral agreements with a U.S.-Europe pact, he said.
Passenger-protection legislation before Congress would be "direct intrusion between the airlines and their passengers" and could have "unintended consequences," Delta Chief Executive Leo Mullin said last week. If the government forces airlines to be less efficient, "we're all going to have to seek different ways to keep [profits] up." One possibility would be higher fares.
Atlas Air posted record fourth quarter net income of $18.1 million, up from $9.1 million the same quarter in 1997. Operating income was $47.1 million, up from $27.8 million. Revenue totaled $145.5 million, up from $120.9 million. For the year, operating income was $135.8 million, compared with $83.1 million in 1997, and net income was $46.2 million, up from $23.4 million. Operating revenue amounted to $422.22 million, versus $401 million.
El Al, responding to increasing demands for flights to Great Jubilee celebrations in Rome and Jerusalem, is offering bi-weekly service between New York Kennedy and Rome with flights every Monday and Thursday. Passengers can stop in Rome on their way to or from Jerusalem at no extra charge. El Al also offers daily flights between Rome and Tel Aviv except Fridays, when the airline does not fly because of the Jewish sabbath.
International Civil Aviation Organization (ICAO), sometimes described as deliberate yet ponderous, has come a long way in the past several years and has "become more assertive," said ICAO's U.S. representative Carol Carmody, who is leaving the organization this week after five years of service (DAILY, Feb. 24). She cited ICAO's adoption of a safety oversight program and its speaking out on Europe's push to set up separate engine emission standards.
