Pilots at Reno Air and American, not surprised by American's acquisition of Reno, view the move as positive but requiring a cautious approach. One consideration is merging pilot groups from two unions - Reno's Air Line Pilots Association unit and American's independent Airline Pilots Association. "Although we need more information before we can provide a definitive response, from what we do know, the outlook appears favorable," said Reno ALPA Master Executive Council Chairman Larry Cox.
Mesa Air Group, which recently moved its headquarters and most activities to Phoenix from Farmington, N.M., and the Dallas area, is selling its real estate holdings in Farmington as well as 15 Beech 1900 aircraft. Chief Executive Jonathan Ornstein told airline analysts Wednesday the company has received offers for both headquarters buildings, with which there is no associated debt, for approximately $5.5 million. The Four Corners Aviation fixed-base operation is under contract for $5 million and Raytheon Aircraft is selling the aircraft for Mesa.
Independent US Airways Express affiliate CCAIR yesterday posted a record $1.1 million net profit for the quarter ending Sept. 30. Revenue increased 7.95% to $18.1 million. CCAIR carried 239,404 passengers, up 16.7%. Expenses rose 4% to $16.8 million. Traffic grew 20.3% on 11.8% more capacity, boosting the load factor 4.0 percentage points to 57.2%. Cost per available seat mile declined 7.1% to 21.0 cents, while the Charlotte-based airline's yield fell 9.9% to 39.1 cents.
Machinist union members from Northwest and Alaska Airlines will conduct joint informational picketing next Wednesday at Seattle Sea-Tac Airport. The first rally will be held at noon and the second at 3 p.m. Members of the International Association of Machinists from both carriers are trying to focus attention on the lack of progress in contract negotiations at Northwest and Alaska, they said.
DOT Office of Inspector General said yesterday that Transnational Aviation Systems of Miami pleaded guilty to a charge of knowingly offering hazardous materials for air transport in violation of federal hazmat regulations. The OIG said the company will be sentenced to probation and a criminal fine of $10,000. The plea agreement also will require the company to repay $90,000 to the Miami-Dade County Fire Department for use in the department's hazardous-materials response program.
Air Transport Association President Carol Hallett said yesterday that average air fares dropped 4.2% in October, including a 5.8% decline in average coach fares, although first-class fares increased 1.9%, compared with the same month last year. ATA's monthly Domestic Airfare Report is compiled from actual prices paid by consumers provided to ATA by airlines, Hallett said. Year-to-date average fares increased $1.64 to $138.79, Hallett said.
Thai Airways International will give priority to the five partners of the Star Alliance for its privatization program next year. An official of Thai's board said the airline would not be able to accommodate bids from a large number of airlines. "As such, the board has decided that only the partners of the program would be given priority. It does not make business sense when your partners in business are left out of your privatization program," the official said. Thai's partners currently are Varig, SAS, Lufthansa, Air Canada and United.
Hawaiian Airlines reported a 12.3% rise in traffic and 14.3% more capacity for October 1998 than in the same month last year, which depressed the load factor 1.4 percentage points to 76.5%. Hawaiian flew 367.3 million revenue passenger miles and 480 million available seat miles. Passengers carried increased 4.8% to 431,184.
Mesa Air Group reversed last year's $44.2 million loss and reported net earnings of $3.3 million for the September quarter, its fiscal fourth. The airline's revenue fell 40.8% to $79.8 million following the cessation of its United Express code-share business. Mesa's operating income was $2.5 million for the period. The profit included a $5.3 million tax benefit from the carryback alternative minimum tax net operating losses, however. Without the tax benefit, the company would have reported a $2 million loss.
Northwest mechanics who are represented by the International Association of Machinists face a close call today when the National Mediation Board counts ballots in a representational election challenge by the Aircraft Mechanics Fraternal Association, Northwest IAM says. IAM representatives think they will win, but not by much, and they admit anything can happen. "I feel like it's close enough to not make a call," said Northwest IAM spokesman Don Mayer. "We're going to win, but it's stupid to have to go through this," added IAM Local 1833 President Vince Bazzachini.
Delta will expand its code share with Swissair and Crossair by including Krakow, Poland, in its sale of flights beyond Zurich. Crossair operates daily Saab 2000 service from Zurich to Krakow. Delta operates nonstop New York-Warsaw and offers code-share nonstops to Zurich from nine U.S. gateways.
US Airways appointed Peter Michael George to its board. George is vice chair and chief executive of Ladbroke Group and chairman of Hilton Head International.
CCAIR has elected Richard Magurno as a member of its board of directors. Magurno has more than 25 years' experience in the airline industry and served as general counsel at Eastern and TWA.
European Union airports may be eligible for certain forms of state aid to help deal with the financial consequences of abolishing duty-free sales on intra-EU travel next July 1, the European Commission said in a working document issued yesterday. The 15 EU national governments will have access to EU "structural funds" - used to combat unemployment in economically depressed regions via job creation, training and vocational programs - to help transport industries deal with "regional, local or social difficulties which may arise" from the change.
Bombardier has reached a magic plateau, of sorts. Firm orders, "conditional" orders and options for the Canadair Regional Jet have reached the 800 mark. The first delivery, to launch customer Lufthansa CityLine, occurred in late 1992. That delivery was to have taken place in summer of that year. "Yeah, Indian Summer," a top CityLine executive retorted at the time. Firm orders through early November stand at 502, with 298 conditional orders and options. There have been 158 firm orders since Jan.
UPS pilots honored striking UPS Teamsters union picket lines in August 1997 and did not fly. The DAILY Nov. 16 incorrectly characterized the action as a strike.
FAA will not add the new air traffic controllers it anticipated when it sent its $5.631 billion fiscal 1999 budget request to Congress in February, an FAA spokesman said this week. FAA was funded at $5.563 billion, close to the requested level. The spokesman said none of the projected controllers will be added in fiscal 1999 because the agency reached the 15,000-controller staffing level in fiscal 1998. "We reached agreement with the labor union" that 15,000 controllers were needed, he added.
Billings, Mont., essential air service specialist Big Sky Airlines earned a net profit of $138,340, or 12 cents per diluted share, for its first fiscal quarter ended Sept. 30, on operating revenues of $2.7 million. Operating income totaled $241,818. Results for the previous year's first fiscal quarter included a net income of $29,942, or three cents per diluted share, on an operating loss of $94,888 and revenues of $1.2 million.
Indianapolis-based US Airways Express affiliate Chautauqua Airlines earned a record net income of $2.1 million for the quarter ended Sept. 30, on operating revenues that also hit a record, $22.1 million. The company said its operating profit, a record $3.8 million after employee profit sharing, was a 96% increase from operating profit of $1.9 million for the same 1997 quarter.
Unionized pilots will treat Federal Express packages as struck work if FedEx pilots go on strike, a Fedex Pilots Association (FPA) source said yesterday. If pilots at other carriers hold to their word, few Federal Express packages will move by air aboard unionized carriers during the holidays. The Coalition of Airline Pilots Association (CAPA) pledged its support for FedExp pilots yesterday. Pilots from Continental, American, Southwest and UPS said they would refuse to fly FedEx packages.
The Dallas Love Field dispute took another turn yesterday as niche startup Legend Airlines filed a complaint at FAA, charging the City of Fort Worth with violating federal law and grant assurances agreed to as a condition of receiving federal aviation funds. Legend soon will start interstate flights out of Love Field, but the carrier is trying to undo limits imposed on service there.
Southwest will launch Saturday-only nonstop service between Las Vegas and Baltimore/Washington, Orlando, St. Louis, Cleveland and Tampa, beginning Jan. 14. Fares start at $99 one way. The carrier also is offering a special $99 one-way fare on its upcoming BWI-Phoenix and BWI-San Antonio nonstop services, which begin Dec. 7. The special fare is good for travel through Dec. 17.
Reporting an operating loss of more than $1 million in seven months because of competition in the Baltimore/Washington-New England market, Atlantic Coast Airlines asked DOT for permission to terminate its Dulles-Worcester service Nov. 30. If DOT does not waive the requirement to provide 90 days' notice, the carrier would cease the service Feb. 12, 1999. ACA blamed its losses on increased competition in the Baltimore/Washington-New England market.
U.S. Major Carriers Traffic October, 10 Months 1998 (000) October October % 1998 1997 Change Alaska Revenue Passenger Miles 857,000 769,000 11.4 Available Seat Miles 1,417,000 1,252,000 13.2 Load Factor (%) 60.5 61.4
