Sanford, Fla.-based Comair Aviation Academy named regional aviation veteran Michael Yocum its president, the Comair Holdings unit announced yesterday. As president, Yocum will manage daily operations and training for the academy. Gary Green will continue as chief executive of the academy and will be involved with strategic planning and future growth of the unit.
The Sabre Group said its Travelocity.com web site recorded more than 49 million in sales for the week ending Jan. 10. Online revenue in 1998 for Sabre's consumer-direct product totaled $285 million, more than double the 1997 amount.
Irony or just bad luck? Mesa Air Group, dropped last year by United as its Express carrier at Denver and through its WestAir unit on the West Coast, also had difficulties with code-share partner America West. But it patched up those relations, signed a new long-term agreement and is expanding its America West Express operations from Phoenix. Former partner United now is in discussions to acquire America West. Where does that leave Mesa if such an acquisition goes through? It still has US Airways Express.
The average December load factor for 15 domestic regional airlines improved by just over a percentage point from 53.87% in the year-ago period to 55.03%. United Express Air Wisconsin led the group and posted the largest increase as well. Its load factor jumped 8.3 points from 60.3% to 68.6%. Horizon Air was second with a load factor of 65.7%, up marginally from the previous December's 65.6%. Other airlines posting above-60% load factors were American Eagle at 61.4%, up 2.1 points, and Delta Connection Comair at 60.9%, up only 0.01 points.
Engineering managers at Rolls-Royce's Indianapolis-based Allison Engine unit hope to have a handle on a permanent fix for oil leaks on AE 3007 turbofans by the end of the month, following three inflight shutdowns in a week during extremely cold weather in early January (DAILY, Jan. 11,&15).
Labor unions at America West and United, hit with reports of a merger or acquisition, are holding their opinions until they know what form a deal would take. "We don't want to speculate until we've heard something conclusive from America West," said Yvette Freeman, America West Air Line Pilots Association spokeswoman. She said the union will make sure the pilots are "well represented" in acquisition talks.
Rep. Bud Shuster (R-Pa.), chairman of the House Transportation and Infrastructure Committee, will speak Tuesday at a luncheon meeting of the Aero Club of Washington at the Capital Hilton, Washington, D.C. For more information, call 703-327-7082.
The Avions de Transport Regional partnership placed 61 ATR aircraft with 21 operators last year, ATR reported this week. Figures are for the period following July 1, when the former AI(R) consortium, which included British Aerospace as well as ATR, dissolved.
India's Cabinet Committee for Economic Affairs (CCEA) has cleared proposals for corporatizing five major international airports - Delhi, Mumbai, Calcutta, Bangalore and Chennai, and for setting up a regulatory authority for airports separate from the existing Airport Authority of India. The five airports together account for nearly 75% of the country's air passenger traffic, which totaled 46.4 million passengers last year, including 12.7 million foreign nationals.
Continental's profit machine kept chugging through 1998, albeit a little slower, as fourth quarter net profits dropped 9.6% to $66 million and annual earnings 0.5% to $383 million. The company set a record for the fourth straight year for pre-tax profits, at $770 million, and its $1.4 billion cash balance made early-1990s bankruptcy troubles seem distant. The quarterly earnings per share of $1.08 were lower than the year-earlier period but exceeded Wall Street's consensus estimate. Operating margin rose to a record 10.4%.
Sterling, Va.-based Saab Aircraft Leasing during 1998 placed 24 used Saab aircraft, the company said. In its first year as a dedicated leasing company, SAL leased aircraft as follows: Air Ostrava, one 340A; Business Express, two 340As; Cityjet, two 2000s; Kaiken, one 340A; Lithuanian, two 2000s; Macair, two 340Bs; Kendell Airlines, one 340; Regional, six 2000s; Chautauqua, one 340, and unannounced, six 340Bs. Saab during the year also completed previously arranged deliveries to Mesaba with 22 340s, SAS with two 2000s, and Medair with two 2000s.
Used Regional Aircraft Transactions October 1998 Previous Carrier No. Type Engines Operator Aero Cuahonte 1 Metro III TPE331-11U- Berry Aviation 611G Ages Aircraft 1 DHC-7-102 PT6A-50 Paradise Island Int'l
Wexford Management has reduced its orders for Embraer regional jets. The Greenwich, Conn., financial firm that owns US Airways Express Chautauqua Airlines has halved its firm order for 20 ERJ-145s but retained options for 20 additional 50-seaters. It also canceled a letter of intent for 20 37-seat ERJ-135s plus 20 options. It was thought that a number of those airplanes would be put out on lease to other carriers and that a number would be placed with Chautauqua.
United yesterday posted fourth quarter earnings of $156 million, down from $222 million a year earlier, as weak yields took a bite out of profits throughout the quarter and during the December holiday rush. "In the second half of December the yield picture was very gloomy," as fare sales hurt pricing, said Senior VP Planning Rono Dutta. Yield declined 3% in the quarter and 2% for the year, and Dutta said "yield is the question" - not bookings or load factor - for early 1999. After a 12.2% pre-tax margin in 1998, United is targeting 11.8% this year.
Atlantic Southeast pilots long have yearned for a "flow-through" agreement with Delta, whereby they would move up to the mainline to fill vacancies - an advantage recently gained by Continental Express pilots (although COEx is wholly owned). Delta traditionally has turned a deaf ear to such an arrangement but apparently has changed its tune. Some pilots now think that the change in attitude may amount to a "flow-back" policy - if an economic downturn leads to a down-gauge trend to regional jets on mainline routes, Delta pilots could take ASA jobs.
Colgan Air, requesting eight slot exemptions at New York LaGuardia, told DOT that access to LaGuardia is "especially critical to Colgan's ability to continue to provide service to Charlottesville [Va.] and Nantucket [Mass.]." The carrier said it "would consider expansion of service to other small/medium communities, including Roanoke, Va., and would explore the use of regional jets." The carrier, turned down for LaGuardia slots under this docket (DAILY, April 22, 1998), said "all of Colgan's markets will be jeopardized" if it cannot obtain assured access, through per
Canadian Airlines reported a 2.4% increase in traffic on 2% more capacity systemwide for December, pushing the load factor up 0.2 percentage points to 66%. The carrier flew 1.3 billion revenue passenger miles on 2 billion available seat miles. Domestic RPMs dropped 7.7% to 394 million on 2.3% fewer ASMs, 605 million, which reduced the load factor 3.9 points to 65.1%. International RPMs grew 1.8% to 851 million and ASMs 3.9% to 1.3 billion, boosting the load factor 1.9 points to 67.2%.
America West Holdings yesterday reported the best fourth quarter and annual profits in its history, and it managed to raise yields as well just as yields are falling at other airlines. Fourth quarter net income reached $20.2 million, up 0.3%, and annual profits were $108.6 million, up 45%. "This was a very good quarter in a really fantastic year," said Doug Parker, chief financial officer. For the first time, America West's annual revenue topped $2 billion, growing 5%.
FedEx pilots have voted down a dues assessment extension their union said it needed to keep the special contract information office open and make up a negotiations committee shortfall. The assessment, for one hour of pay per month, runs out at the end of January. Pilots voted 1,082 for and 1,318 against the extension. The union has formed a subcommittee to look at alternative funding plans and offer recommendations.
Don Carty, chief executive of AMR Corp. and American, will speak Jan. 27 at an International Aviation Club luncheon at the Marriott Metro Center, Washington. For information and reservations, call John Ash, 202-457-0212.
DOT needs to determine whether there is a "sufficient basis" to meet next month on even an informal basis with U.K. aviation representatives, DOT Deputy Assistant Secretary Patrick Murphy said yesterday at a Senate Commerce Committee hearing. Casting uncertainty on informal U.S.-U.K. talks scheduled Feb. 17-19 in Washington (DAILY, Jan. 12), Murphy said lack of viable slot access to London Gatwick Airport for US Airways and Continental service from Charlotte and Cleveland, respectively, poses "hurdles" for the first U.K. negotiations since the U.S.
FAA is considering a number of increases in passenger facility charges (PFCs) for the fiscal 2000 budget but has not received Clinton administration endorsement yet, an FAA executive testified yesterday. David Traynham, assistant administrator for policy, planning and international aviation, told the Senate Commerce Committee that FAA is "considering a variety of PFC increase proposals." Traynham hedged on whether any of the PFC proposals will make it into the administration's budget, which is scheduled to go to Congress in less than two weeks.
U.S. National and Regional Carriers Traffic December, 12 Months 1998 December December % 1998 1997 Change Air Wisconsin Revenue Passenger Miles (000) 87,661 51,168 71.3 Available Seat Miles (000) 127,807 84,875 50.6 Load Factor (%) 68.6 60.3
PEAR Industries said yesterday it has developed an aircraft insulation material that exceeds FAA standards by a two-to-one margin. The company, anticipating an FAA rule requiring insulation retrofits, sees "a potential $2.4 billion marketplace." Under proposals expected from FAA, newly manufactured aircraft "will also be required to use these materials, representing significant additional market potential."
