United has set a financial goal of 11.8% pre-tax profit margin this year on a fully distributed basis.The airline, linking pre-tax margin to financial efficiency, calls the goal aggressive. Last year's objective was 12.4%. Some of the money generated by increased margin has helped pay down debt and enhance customer service.
Aloha Airlines has installed automatic external defibrillators on all its aircraft. The carrier said it is the first U.S. scheduled carrier to equip its entire fleet voluntarily. It installed the AEDs on all 18 of its 737s following completion of training for its inflight personnel.
Continental today will put its newest 777-200 into service on the Newark-London route and the aircraft soon will appear on flights from Newark to Paris, Frankfurt and Manchester, U.K.
President Clinton this week authorized expansion of charter passenger flights to Cuba and "an effort to establish direct mail service to Cuba" along with other "authorized measures designed to ease the plight of the Cuban people and help prepare them for a democratic future" while maintaining the 36-year embargo against the Communist Castro regime. James Dobbins, State Department senior director for inter-American affairs, said charter flights, which had been limited to service between Miami and Havana, will be permitted from other points in the U.S.
Sun Country is offering a $99 companion ticket with a roundtrip purchase between Minneapolis and Boston, New York, Washington, D.C., Detroit and Cleveland.
Aviation Industry Stock Performance The Year 1998 12/31/98 11/30/98 10/29/98 9/30/98 Majors Alaska Air Group ALK 48.563 55.063 54.188 56.188 America West (Class B) AWA 21.813 24.875 25.625 30.250 AMR 1 AMR 126.500 126.563 143.188 152.500 Continental (Class B) CAI.B 46.375 50.250 58.813 58.750
US Airways yesterday added new MetroJet nonstop flights from Fort Lauderdale to Hartford and Washington Dulles, operating two daily nonstop roundtrip flights in each market. Lowest advance purchase fares are $69 for Washington Dulles-Fort Lauderdale and $77 for Hartford-Fort Lauderdale. The standard one-way walkup fare on both routes is $161.
British Airways passenger traffic for December increased 10.5% on 9.9% more capacity, boosting the load factor 0.4 percentage points to 64.9%. Premium traffic fell 3.6%, however, after declining 2.9% in November and 2.4% in October. Leisure traffic rose 12.9%, intercontinental traffic 11% and U.K./Europe traffic 8.2%. Cargo traffic gained 2.3%. It is "too early" to comment on booking trends for 1999, BA said, but the current outlook supports its intention to grow very slowly during the next three years.
House aviation leaders yesterday introduced legislation that would place the Airport and Airways Trust Fund off budget, a perennial goal of those seeking higher and more secure funding for aviation projects. The congressmen, House Transportation Committee Chairman Bud Shuster (R-Pa.) and ranking member James Oberstar (D-Minn.), also introduced a bill that would extend spending authority for the Airport Improvement Program (AIP) to Sept. 30. The AIP program is currently set to expire March 31.
Coast Rica's downgrade by FAA to the Category 2 safety standard (DAILY, Jan. 6) will quash expansion plans by the country's flag carrier, LACSA, part of Grupo TACA and an alliance partner of American. "We understand that FAA is actually freezing LACSA's Ops Specs retroactive to August 1998 and will not allow any of the half dozen or so new aircraft placed on the certificate to operate to the United States," said Bob Booth, president of Miami-based Aviation Management Services and a longtime Latin American aviation advocate.
In the U.S., from which many aviation trends emanate, the major airlines have taken a new, more aggressive tone against rival carriers. But, contrary to what DOT would like you to believe, this latest round of aggressive pricing and route expansion has been directed not at low-cost new entrants but at other major airlines. As Asia's economies crumbled and U.S.-U.K. talks stalled, airlines everywhere increasingly turned their attention toward domestic markets. As foreign carriers sort out local economic troubles and newly deregulated aviation bylaws, U.S.
Delta yesterday committed resources to four European destinations for its summer 1999 schedule, including Atlanta's first nonstops to Athens, Barcelona and Istanbul. The airline also will begin shared New York Kennedy service to Shannon and Dublin. The substantial expansion from the carrier's Atlanta hub is part of its "dual gateway strategy" that builds on its major presence from JFK, according to Fred Reid, executive VP and chief marketing officer.
Fairchild Corp. has signed a definitive agreement to acquire Kaynar Technologies, a maker of aerospace and industrial fasteners based in Orange, Calif. Fairchild, Dulles, Va., said the purchase price is about $267 million, or $28.75 per common share, plus assumption of $98 million in debt. Most Kaynar stockholders have voted for the deal, but the transaction is subject to financing and regulatory approval.
United will announce today that is increasing by 60% the number of daily departures from its Washington Dulles hub starting April 4, including a significant increase in transcontinental service to four West Coast points and to Boston, The DAILY has learned. The move will elevate Dulles to a full-fledged hub for the airline, which to date has just 73 daily flights at the facility. In the first phase, United will add service to 13 U.S. cities, increasing departures to 117, but it is contemplating more international service.
House Transportation Committee will hold an organizational meeting today to nail down subcommittee assignments and confirm a subcommittee reorganization that does not involve aviation. The aviation panel has four vacancies, three Democratic and one Republican, if its size is not changed.
Alaska Airlines' December traffic rose 6.8% on 6.8% more capacity, leaving the load factor unchanged at 68.4%. For the year, Alaska's traffic grew 8.6% on 8.9% more capacity, resulting in a load factor of 67.15, down 0.2 percentage points. The airline carried more than 13 million passengers last year. Subsidiary Horizon Air posted a 28.7% traffic rise in December on 29.1% more capacity, leading to a slightly lower load factor of 65.6%. For 1998, Horizon's traffic was up 28.6% on 25.5% more capacity, pushing the load factor up 1.5 points to 63%.
International air express shipments grew by 12.3% between mid-1997 and mid-1998, the lowest annual rate in the six years the Air Cargo Management Group has been tracking the market.The rate slipped from the average 18% mainly due to weakness in Asia.FedEx international growth dipped below 10% in the first half of fiscal 1999, said ACMG.
Canada Transport Minister David Collenette said Air Canada may fly Canada-Taipei to accommodate increased demand for travel to the region. Air Canada was granted the right to offer three weekly roundtrip flights under Canada's international air transportation policy, which allows a second Canadian carrier into a market when it reaches 300,000 one-way scheduled passengers per year. Collenette said in June that Transport Canada would assess the Canada-Taipei market by the end of 1998 and this week said it has reached the 300,000-passenger threshold.
Aviation Sales said it is building a new corporate headquarters in Miami that will be the largest aircraft parts distribution center in the area. The new facility will consolidate Aviation Sales' Miami headquarters and the offices of several subsidiaries, including Caribe Aviation, Aviation Sales Leasing and Aviation Sales Distribution. Aviation Sales said the new building will enable it to provide maintenance, repair and overhaul and spare parts services from a single location by yearend.
U.S. Carriers Food Expense Third Quarter 1998 Major Carriers Cost Food Per Passenger Alaska 13,467,000 3.68 America West 6,565,249 1.41 American 169,167,000 7.88 Continental 48,257,000 4.36 Delta 120,349,000 4.36
American's traffic increased 0.5% in December on 0.4% more capacity, keeping the load factor constant at 68%. Domestic traffic fell 1.1% on 2.7% less capacity. Atlantic traffic grew 5.7% on 7.8% more capacity, while Latin American traffic dropped 1.1% on 0.4% more capacity. In the Pacific, where American added significantly to its flight schedule, traffic rose 40.2% on 61.9% more capacity. The Pacific load factor was 66%, down 10.3 points. For the year, the airline's traffic rose 1.8% on 0.9% more capacity, raising its load factor 0.6 percentage points to 70.2%.
Boeing Co. said yesterday that the record 559 commercial jetliners it delivered last year included 191 in the fourth quarter (DAILY, Jan. 4). For the quarter and the year Boeing delivered 24 and 116 737s, 74 and 165 next-generation 737s, 21 and 53 747s, 15 and 50 757s, 12 and 47 767s, 22 and 74 777s, three and eight MD-80s, 16 and 34 MD-90s and four and 12 MD-11s.
FAA is delaying the commissioning date for the Wide Area Augmentation System (WAAS) from July 1999 until September 2000 because a critical software module will not be ready, Administrator Jane Garvey said yesterday. The program, estimated to cost $3 billion through its life cycle, had been running smoothly after a difficult beginning, with contractor Raytheon hitting all seven milestones to date since taking over the contract in May 1996.
Air London, which describes itself as "the world's largest corporate aircraft broker," has changed its name to Air Partner to reflect its global expansion and company philosophy. Air Partner plans to complement its existing European and U.S. operations by opening offices in key centers around the world. Its growing global success resulted in 30% higher sales for the last financial year, boosting turnover to #52 million (US$83 million).
Continental mechanics, represented by the Teamsters, yesterday ratified their first three-year contract. The deal is effective immediately upon signing and will improve pay and working conditions for the roughly 3,000 employees in technical operations. The contract will become amendable in January 2002.
