US Airways is making changes in its Dividend Miles program that will enhance benefits to the business traveler and make frequent traveler awards more accessible to all program members. The airline will reduce the number of miles needed for off-peak coach travel in the U.S. and Canada and for peak travel to Europe for reservations made after March 31, effective for travel starting Sept. 15. It also will introduce new domestic first-class upgrade awards, making it easier for customers to reach preferred status.
Sabre Group's Travelocity.com web site recorded more than $9 million in sales for the week ended Jan. 10. The amount was reported incorrectly in the Jan. 22 DAILY.
America West Ski Vacations added Telluride to Beaver Creek and Purgatory in its five-nights-for-the-price-of-four Colorado ski vacation packages. The Telluride package is available Feb. 5-28, while the Beaver Creek and Purgatory offers are currently available and good through April 15. In all, ski vacations are available at 19 sites in Colorado, California, Nevada, Utah and British Columbia.
Internal Revenue Service is seeking close to $150 million from US Airways Express carrier CommutAir in excise taxes, interest and penalties, alleging faulty valuation of company stock in the employee stock ownership plan (ESOP). The plan was launched in 1994 with a goal of distributing 30% of the company's equity to employees. In an internal memo to employees, the company said it has contributed more than $50 million since 1994 to acquire shares of stock through internally generated funds.
World Fuel Services Corp., feeling the impact of low prices and the Asian crisis, yesterday reported net income of $4 million for its third quarter, which ended Dec. 31, 1998. Revenue was $187.8 million, down from $208.9 million. For nine months, net income was $11.6 million, down from $12.1 million, and revenue totaled $561.2 million, compared with $601 million in the 1997 period. World Fuel Services Corp. is a leading supplier of aviation fuel.
Although British Aerospace has acquired 35% of Saab AB, it appears the companies will maintain their substantial regional-aircraft-lease portfolios separately. The firms have worked together to establish the best practices and coordinate customer support and leasing, "but neither is particularly interested in investing in the other's portfolio," said Saab Aircraft Leasing AB President Lars Flodman. "It is a stumbling block. We do not want to invest in theirs and we do not want to lose control of our portfolio. It is on our balance sheet and is our risk."
Taiwan's domestic airlines have asked permission to increase fares. Airlines say they are losing money because ticket prices have not increased in five years and are too low. Any increase in ticket prices must be approved by Taiwan's Civil Aeronautics Administration. A CAA official said the body will propose a new pricing system to the ministry of transportation and communications in early March. The new system, he said, will divide domestic routes into three categories - competitive, ordinary and those to offshore islands.
Calgary-based WestJet Airlines, western Canada's low-fare carrier, will add service to Thunder Bay and Prince George on March 11. WestJet will operate nonstop Calgary-Thunder Bay service with connecting service to Victoria, Vancouver, Abbotsford/Fraser Valley, Kelowna, Prince George, Saskatoon, Regina and Edmonton. The new Prince George service will provide two daily flights to Victoria and Calgary.
Show Low, Ariz., has bought a nine-seat, $1.3 million Catpass specially modified King Air 200 to provide scheduled service from the White Mountain resort to Phoenix. The service is operated under the "Sunrise Airlines" name by Phoenix-based Express Air. The city of Show Low leases the aircraft to Express Air for $1 per year. The ski-resort route previously was served by Scenic Airlines and Great Lakes Aviation. The modification includes a unique three-foot nose extension to accommodate skis. With a $75 fare, the FAR Part 135 flights typically are full.
Delta's board declared a cash dividend of two and one-half cents per common share, payable March 1 to shareholders of record at the close of business Feb. 17.
St. George, Utah-based SkyWest posted $8.5 million in net income from continuing operations for the fourth quarter 1998, a 57.2% jump from the same 1997 period. The total included a loss on the disposition of Grand Canyon tour specialist Scenic Airlines, the Las Vegas assets of which SkyWest sold to Las Vegas-based Eagle Canyon Airlines (DAILY, Aug. 28). Operating revenues rose 52.7% to $102.3 million, and operating expenses jumped 48.5% to $87 million. Operating income shot up 81.7% to $15.3 million.
AlliedSignal has formed a European aerospace unit - Environmental Control Systems-Europe - and has named Philippe Ancelle its VP. ECS-Europe comprises manufacturing and repair and overhaul facilities from sites at Normalair-Garrett, which AlliedSignal acquired last year, and Societe d'Etudes et de Constructions Aero-Navales, European supplier of aircraft heat exchangers.
Sen. Bill Frist (R-Tenn.) this week renewed efforts to increase regional jet access to slot-controlled airports with legislation providing exemptions to carriers serving smaller airports. The bill, the Small Communities Air Service Act of 1999, S.304, requires DOT to approve applications for regional jet service between small or non-hub airports and the high-density airports. S.304 also would establish a grant program for small communities and call for a study on ways to increase regional jet service at small communities.
Allegheny Teledyne Chairman R. P. Simmons said the corporation plans a major reorganization this year, including the formation of a new company comprising Electronic Technologies in Los Angeles, Brown Engineering in Huntsville, Ala., Continental Motors in Mobile, Ala., and Cast Parts in Southern California. Robert Mehrabian, executive VP, will be chief executive of the new company, to be headquartered in Los Angeles. The new entity will focus on software and engineering systems, communications and electronics and aircraft engines and components.
Continental continues to defend its tentative award of seven U.S.-Brazil frequencies for Houston-Sao Paulo service against Delta's objections and request, seconded by United, to reopen the record in the proceeding to review load factors for Continental's Newark-Rio de Janeiro service. Delta said Continental did not refute Delta's charges that the Newark-Rio service has "uneconomical load factors averaging in the low 30s," and that Continental is "hoarding" Brazil frequencies to block Delta service from New York.
Cincinnati-based Delta Connection affiliate Comair posted a 30.4% increase in net earnings to $31.7 million in the quarter ended Dec. 31, 1998, the company's fiscal third quarter, compared with the same period in 1997. Total revenues rose 15.5% to $188.5 million, as total operating expenses gained just 11.9% to $140.2 million. Third quarter net earnings equate to 48 cents per diluted share, or a 44% increase in earnings per diluted share compared with third quarter 1997. 3rd Quarter 3rd Quarter 9 Months 9 Months
Talks between US Airways and its Air Line Pilots Association unit over contractual relief for Airbus flying in Philadelphia ended last week without a resolution.Faced with a shortage of pilots who can fly the new A319, management is asking the union to let it pay some pilots more than their maximum monthly hours until enough pilots are trained. The union is concerned that this would short-change reserve pilots who usually pick up excess time that regular line-holding pilots can't fly.
Vice President Gore announced a $400 million "new initiative" to "modernize" the Global Position System, including the addition of two new civil signals to new-generation GPS satellites scheduled for launch in 2003 and 2005. The announcement came as Johns Hopkins Applied Physics Laboratory prepared to give FAA, the Aircraft Owners and Pilots Association and the Air Transport Association its assessment of whether GPS, with augmentations, will be able to serve as a sole means of navigation.
DHL Taiwan has opened a bilingual Internet site providing a full range of information in English and Mandarin Chinese. Clients accessing the web site at http://www.tw.dhl.com/ can see a comprehensive company profile, keep abreast of the latest corporate and product news or track their shipment using DHL's Global On-line Tracking and Tracing System.
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.
