Canada's national airports policy is a "poor example of airport commercialization" since it locks airlines out of any meaningful role in guiding capital improvements while forcing them to pay high charges, according to the International Air Transport Association (IATA). Most of Canada's airports have gained financial and operational independence in exchange for losing federal funding. IATA criticized actions by Greater Toronto Airports Authority (GTAA), operator of Toronto Pearson, which is holding a groundbreaking ceremony today for a new terminal building.
American Trans Air parent Amtran Inc. said it will offer approximately $100 million of a new series of unsecured debt securities. Proceeds from the offering will be used to finance aircraft acquisitions during the next 12 months. American Trans Air has 46 aircraft.
Emirates has signed a financing deal for the acquisition of its ninth 777. The $117.3 million financing package, structured as a 12-year finance lease, is arranged by Emirates Bank International and Deutsche Bank AG with the U.K.'s Export Credit Guarantee Department as guarantor. The 777-200IGW was delivered at the end of November. Emirates expects two more 777s by the end of 1999.
TWA and its International Association of Machinists unit (IAM) have resumed contract talks under the auspices of the National Mediation Board. IAM has asked NMB to release it from mediation so it can enter a 30-day cooling-off period.
Summary of U.S. National Carriers Revenues and Expenses Second Quarter 1998 (In Dollars) Total Operating % Passenger Freight Revenues Change Revenues Revenues AirTran 123,988,021 65.73 114,508,949 -- Aloha 58,409,989 5.12 162,729,059 5,552,386
Middle East Airlines (MEA) is offering passengers who fly from London to Beirut, or on any other MEA service, the chance to recoup the cost of their tickets under a special promotion. The "Golden Seat" promotion, which is taking place on all MEA flights through Dec. 14, awards the cost of the flight to one passenger, whose name is drawn prior to arrival and in front of other passengers. Passengers in all service classes are eligible.
Euralair will add two 737-800s to its fleet, Boeing said. The France-based airline will lease the aircraft from GATX 737-800 Partners in San Francisco and take delivery this month and in January.
France's civil aviation authority reacted angrily to alarmist declarations by Minister of the Economy Dominique Strauss Kahn about the millennium computer problem. French media last week quoted Kahn as saying that "it is more and more probable that there will be no planes on Jan. 1, 2000." A spokesman for the Direction Generale de l'Aviation Civile, calling the minister's comments "excessive gloom mongering," said DGAC has been working on the effects of the date change from Dec. 31, 1999, to Jan. 1, 2000, since last year.
Singapore Airlines will "mothball" its three 747-300s in the Arizona desert when the aircraft are taken out of service this month. A flight operations official said the airline had been trying to either sell or lease the aircraft but have not been successful. "No one seems interested in the aircraft today as it is more expensive to operate than most of the modern-day commercial aircraft," the official said.
Northwest's flight dispatchers and operations planners, represented by the Transport Workers Union, on Monday ratified a new five-year contract by 3-1 margin. The contract became effective yesterday. TWU Local 543 President Daniel Berg called it "the finest contract our local has ever negotiated." The contract includes a 14% salary raise spread over five years and a profit-sharing plan. It also includes a 3.5% retroactive payment and a 32% increase in retirement benefits.
US Airways Air Line Pilots Association Unit has developed a pilot volunteer mentor program to help returning furloughed pilots and new hires make the transition from initial training into line flying.Volunteers are encouraged to contact the union's membership services committee. Approximately 171 of furloughed pilots - all remaining furloughed flyers available - have returned to US Airways.
National Transportation Safety Board, following a rash of incidents, recommends that FAA make mandatory a Boeing service bulletin to "reduce the current potential for inflight separation of the off-wing escape slides" on 757s. The board commended Boeing's efforts to alert 757 operators but said it is "concerned that because these measures are not mandatory, some operators may not perform the actions set forth in the SB." The board said some aircraft were damaged when the slides deployed during flight.
Boullioun Aviation Services yesterday announced an order for three 737-300s for delivery in the second half of next year. The order brings Boullioun's orders and options for Boeing aircraft to 63 and expands its active portfolio to 96. Boullioun has a 35.5% stake in Singapore Aircraft Leasing Enterprise and leases aircraft for both companies.
American yesterday said it will begin daily nonstop Los Angeles-Paris Orly service on June 1, 1999, using 204-seat Boeing 767-300ER aircraft. American won the route authority last month.
Boeing said yesterday it will decrease 747 production from 3.5 units a month to two in late 1999 and to one per month in early 2000 "if market conditions fail to improve." The company said it will reduce other production rates "based upon updated assessments of the Asian economic crisis and its impact on air travel and airplane customers." Boeing plans to slow production of its 757s from five to four a month and its 767s from four to 3.5 per month in early 2000.
Cyprus Airways expects to post profits for 1998, following two years of losses. The state-controlled group, which comprises the Cypriot flag carrier, charter airline Eurocypria and tour operator Cyprair, posted a gross profit of $22.6 million in the first nine months, up from $3.6 million in the same 1997 period. Revenue increased to $230.4 million, up from $210.8 million. and traffic improved 8.5% to 1.36 million passengers. For all of 1997, the group reported a deficit of $3.2 million, following an $8 million loss in 1996.
Boeing's Wichita Modification Center will re-engine two Atlas Air 747-200s. Under the contract, whose value was not disclosed, Boeing will replace the older JT9D-7J engines with more modern CF6-50E-2s engines and install updated engine struts and various related systems to match Atlas's fleet of freighters powered by General Electric engines. Boeing also will obtain a supplemental type certificate for the re-engined airplanes.
Aviation Industry Stock Performance November 1998 Closed Closed Monthly Change Symbol 11/30/98 10/30/98 ($) (%) Majors Alaska Air Group ALK 37.438 35.938 1.500 4.2 America West (Class B) AWA 14.125 15.438 (1.313) (8.5) AMR 1 AMR 65.938 67.016 (1.078) (1.6)
Airlines in the Asia/Pacific region are increasingly distressed that the rash of newly privatized and freshly built airports in several countries are pushing untenable fees onto carriers and, subsequently, onto passengers. Several Asia/Pacific airline chief executives and the head of the Association of Asia Pacific Airlines (AAPA) expressed their frustration at AAPA's 42nd Assembly of Presidents last week in Manila, and called for a reduction of user fees at all airports or a moratorium on new fees.
Fifteen hundred new airline jobs and new routes to Moscow and Shanghai head the list of Virgin's expansion plans, announced by Chairman Richard Branson as he unveiled a new uniform for all staff. The new jobs will be required for two of the airlines in the Virgin group - Virgin Atlantic and new operation Virgin Sun. The new routes depend on securing government permission and acquiring a sufficient number of slots at London's airports to operate them. Virgin lost two route applications last year to old rival British Airways - Las Vegas and Cape Town.
Varig has leased a 737-700 from GE Capital Aviation Services. The delivery came two months after Varig announced an agreement to buy 39 Boeing aircraft valued at $2.7 billion, including four 777s, 10 737-800s, four 737-700s and six 767-300ERs. Varig placed options on four 777-200s and 11 737-700s.
Northwest Cargo and Nippon Cargo Airlines said yesterday they will file for code-share service, effective Jan. 16. The carriers have provided interline service from Osaka to Chicago since 1996. On Wednesdays and Saturdays, Northwest Cargo will put its code on NCA's Flight 316 (NW Flight 9962), which will operate from Osaka to Chicago, continuing to Kennedy. NCA will put its code (Flight 194) on Northwest Cargo's Flight 902 on the Wednesday Tokyo-Chicago route.
