Midwest Express is cutting travel agent commissions to 8% with a maximum $50 roundtrip or $25 one way. The changes are effective Feb. 1 and apply to all tickets issued, including miscellaneous charge orders and prepaid ticket advices. Midwest said it acted four years after the rest of the industry to remain competitive in the face of rising distribution costs.
United Airlines Cargo will begin freighter service March 2 between New York Kennedy and the Pacific Rim as part of a seasonal schedule change, which also includes suspending service to San Francisco and Taipei except with 747-400 passenger aircraft. With the change, United will operate from Chicago, New York and Los Angeles to Tokyo, Osaka and Manila through its Anchorage hub.
DeCrane Aircraft Holdings, which manufactures avionics for commercial and corporate aircraft, said it has acquired PATS, which builds and installs auxiliary fuel tanks on commercial and corporate jets. DeCrane said PATS has a new seven-year contract valued at $180 million to build fuel tanks for the Boeing Business Jet.
Fairchild Aerospace, which is looking for a first major U.S. order for the Fairchild Dornier 328JET, may have found one. United Express Atlantic Coast Airlines is said to be close to a deal for up to 50 of the 32-seat regional jets, according to industry sources. ACA is a Bombardier Canadair Regional Jet operator and thus has no ties with Embraer and its 37-seat ERJ-135. The Dulles, Va.-based carrier's fleet also comprises 32 29-seat Jetstream 41s and 28 19-seat Jetstream 32 turboprops, all of which eventually will have to be replaced.
DOT has invited U.S. carriers interested in additional U.S.-France third-country code-share opportunities available in April to apply by Feb. 8. Answers are due Feb. 16 and replies Feb. 19. Under the 1998 U.S.-France bilateral, the U.S. in April may designate a third U.S. carrier to operate code-share service via an intermediate third country; United and Northwest hold such authority. Also effective this April, among the three U.S.
New Regional Aircraft Deliveries, October 1998 Last 12 Months Carrier No. Type Engines Delivery Aeromar 2 AA ATR 42-500 PW127 - Air Georgian 2 Beech 1900D PT6A-67D 7 Air Nostrum 1 Canadair RJ200 CF34-3B1 - American Eagle 2 EMB ERJ-145 AE3007A 14
Citing robust ground-handling competition at Manchester Airport in the U.K., the European Commission said it will not oppose joint ownership by Lufthansa Airport and Ground Services (LAGS) and Menzies Transport Services (MTS) of LAGS's Sigma Aviation subsidiary, which provides passenger and airport handling services at the airport. MTS would acquire 49% of Sigma from the Lufthansa unit, which currently owns all of it, and both would have veto power over budget, business plan and other major decisions.
New Aircraft Orders And Options October 1998 Last 12 Months Firm Orders Options Orders Options Carrier # Type # Type Engines Del. Dates # Type # Type Air Aruba 2 MD-90-30 - V2500 Nov 98 - - Delta 11 757-200 - PW2037 Jul99-Apr00 1 737-800 -
Reflecting on a year in which Saab Aircraft Leasing AB placed 24 Saab 340s and 2000s with customers worldwide, company President Lars Flodman said this week he believes in a promising future for the leasing business even if the economy turns downward (DAILY, Jan. 22). The 24 aircraft leased last year, on an average lease term of five years, were valued at $100 million (net present value).
Indigo Aviation said it purchased from and leased back to British Midland Airways its first Airbus A320 aircraft. The purchase brings Indigo's fleet to 35 aircraft on lease to 23 airlines in 17 countries. Indigo is a Swedish limited liability company that also remarkets and sells jet transports for its own account and for others.
FAA yesterday ordered inspections of the wiring and insulation in the cockpit and cabin of all U.S.-operated MD-11 aircraft. The order follows a recommendation from the National Transportation Safety Board (DAILY, Jan. 12), but FAA said its order was under development before NTSB acted. The agency said its order follows discussions with the Canadian Transportation Safety Board and NTSB, which "resulted in a Dec.
American Eagle pilots in 1997 agreed to an unprecedented 16-year contract with provisions for no strikes, no lockouts, no scope-clause changes and no interim renewal. The pact, details of which only recently became known, indexes rates-of-pay to industry averages or a minimum of 1% per year, which was the major provision. Pilots won a 3% pay hike, effective this month. Up to five issues can be raised every four years for binding arbitration but cannot exceed regional-airline standards.
Cutting weather-related delays is a prime topic at an FAA workshop in Washington that ends today. The workshop, conducted by FAA's Weather and Flight Services Integrated Product Team, deals with one of FAA's fiscal year 1999 corporate goals - to "demonstrate the capability of new systems to decrease the rate of delays in the National Airspace System due to weather by 10% by the year 2002." Team leader Peter Challan said, "We need to define delays so we can make the right decision about funding."
Kiwi International Airlines is adding 16 flights per week to San Juan and Aguadilla from Newark, New York Kennedy, Orlando and Miami. With the expansion, Kiwi will offer 38 weekly flights to Puerto Rico, where it plans to open a reservations center. It will hire customer service agents, appoint a new station manager in San Juan, obtain new counter space at San Juan Airport, hire additional sales representatives and appoint a manager to oversee sales and airport operations.
Eagle USA Air Freight reported revenues for its first quarter that ended Dec. 31 jumped 48% to a record $144.9 million, while net income rose by 32% to $7.7 million. International sales, 18% of total revenues, increased 322%. The company repurchased 433,000 shares of its common stock during the quarter.
Amtran posted $209.2 million in revenues in the fourth quarter 1998, up from $185.9 million in the same 1997 period. Net income was $1.45 million, an improvement from last year's $2.6 million deficit. Share earnings on a diluted basis were $0.11, up from $0.23. For the year, revenues reached $919.4 million and net income $40 million, up from $787.2 million and $1.6 million, respectively. Income per diluted share was $3.07, up from $0.13.
Dulles, Va.-based Atlantic Coast Airlines, which operates as United Express, saw a 152% jump in net income to $7.7 million in the fourth quarter 1998, compared with the same 1997 period. Total operating revenues surged 38.7% to $78 million on 38.6% more total operating expenses, or $65.6 million. Operating income grew 36.9% to $12.4 million. Earnings per share increased 112% to 36 cents and cost per available seat mile fell 17.5% to 16 cents.
American's marketing alliance with Alaska Airlines and the Reno Air acquisition will shift $40.8 million per year in revenue to Alaska, according to Salomon Smith Barney.Alaska also stands to gain $16.9 million from American's expected withdrawal of Reno from some of Alaska's markets.
French flag carrier Air France will be listed on the Paris stock exchange beginning Feb. 22 under a schedule unveiled yesterday by France's stock exchange authority. On Tuesday evening, the French government formally launched the initial public offering (IPO) and partial privatization of Air France, which is 94.1% state-owned. "In the long term, the flotation may be extended, particularly after share options already issued have been exercised," Air France said yesterday.
US Airways Shuttle pilots are conducting informational picketing this week in Washington, Boston and New York to protest lack of progress toward pay parity. The pilots, represented by the Air Line Pilots Association, say they are compensated about 28% below their peers who perform similar flying.
Alaska Air Group reported net income of $27 million for the fourth quarter 1998 or $1.02 per diluted share, up 5.9% from $15.1 million, $0.73 per diluted share for the same 1997 period. Operating revenues were $457 million, up 8.1% from $422.8 million. Operating expenses reached $420.6 million, up 6.3% from $395.6 million, while operating income grew to $36.4 million, an 8% increase from $27.2 million in 1997.
Turkish Airlines asked DOT for an exemption for at least one year to engage in scheduled combination service between Miami and points in Turkey, nonstop and via Amsterdam and Brussels as intermediate points. The carrier wants to co-terminalize the requested service with existing flights to New York and Chicago, for which it holds permit authority, via the same intermediate points.
Human factors, including the "pilot's diversion of attention from the operation of the airplane," were the probable cause of the fatal crash of John Denver's amateur-built airplane, the National Transportation Safety Board said this week. The board blamed the Oct.
