Newark-based Kiwi International Airlines reported a 4% gain in traffic on 1% more capacity for December 1998 compared with the same month in 1997, which boosted the load factor 2 percentage points to 61%. Kiwi flew 68.8 million revenue passenger miles and 112.1 million available seat miles. Passengers flown declined 1% to 68,880. Full-year RPMs grew 32% on 14% more ASMs, pushing the load factor up 8 points. Passengers flown rose 13%.
Daniel Mehan will be FAA's first chief information officer, Administrator Jane Garvey announced yesterday. Mehan, most recently international VP-quality and process management at AT&T, will serve as the principal FAA adviser on information technology and will direct strategic planning activities for information technology.
India's left-wing parties have threatened to launch nationwide protests against the Indian government's move to corporatize the country's international airports at Delhi, Mumbai, Calcutta, Chennai, and Bangalore (DAILY, Jan. 22).
America West, telling DOT that it qualifies as a new entrant by holding fewer than 12 slots at Chicago O'Hare, asked DOT to reallocate to America West five exemption slots held by Reno Air for Reno-Chicago service. The carrier said Reno Air is not using two of its seven O'Hare slots, which "have a 'use-it- or-lose it' condition," and asked DOT to transfer the two dormant slots to America West immediately so that it can operate a daily roundtrip of low-fare service during the high-demand, slot-controlled period.
COPA Airlines of Panama has ordered eight 737-700s and will lease two more of the aircraft from Tombo Aviation Services and two from GE Capital Aviation Services, Boeing said last week. Deliveries will begin in April. COPA serves 24 points in 18 nations in the Americas.
Northwest and its International Association of Machinists (IAM) unit reached a tentative contract agreement late Friday, and IAM leaders are confident the rank-and-file will ratify the deal when it comes to a vote. The proposed contract would provide 14% raises over its four-year term and pay 3.5% of wages retroactive to October 1996, when the contract became amendable. The contract affects 18,000 ground workers, ticket agents, reservations personnel, clerks and security guards.
American Airlines Cargo reported that freight ton miles for 1998 were down by 2.8% to just under two billion. For December, FTMs were down 3.5% to 116.8 million. Cargo President Dave Brooks said "international economic conditions have had an adverse effect on the demand for air freight services." AA Cargo expects capacity to increase about 10% this year due to delivery of new aircraft with improved cargo payloads.
UPS has signed an agreement with its China partner, Sinotrans, to expand UPS-branded operations to a total of 21 cities in China. The pact includes additional investments to develop dedicated operations and exchange training and managerial expertise.
The oneworld alliance - American, British Airways, Canadian Airlines, Cathay Pacific and Qantas - will begin operations Feb. 1. The partners will begin phasing in a wide range of initiatives aimed at improving levels of service, value and increased opportunities for frequent flyer participants when flying to any of the 632 destinations served by the carriers.
Continental and Continental Express will increase jet service 25% over last summer from the Cleveland hub in conjunction with the opening of its new regional jet facility there. Continental will boost the number of destinations from 64 to 73, increasing jet-to-jet connection opportunities at Cleveland by 75%. Beginning in the spring, Continental Express will provide service to eight new cities, using 50-seat Embraer ERJ-145s, and add a third ExpressJet to St. Louis.
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.
