Atlas Air reported record fourth quarter net income of $18.1 million, up from $9.1 million in the 1997 period. Operating income was $47.1 million, up from $27.8 million, while revenues rose to $145.5 million from $120.9 million. For the year, net income was $46.2 million, up from $23.4 million; operating income was $135.8 million, up from $83.1 million, and revenues were $422.2 million, up from $401 million.
Eight air traffic organizations have signed bilateral agreements establishing the terms of cooperation in support of the European Geostationary Navigation Overlay Service (EGNOS). European Space Agency (ESA) Director General Antonio Rodota signed bilateral pacts with agencies representing Spain, Portugal, France, Germany, Italy, the U.K., Norway and Switzerland. EGNOS aims to provide Global Positioning System/Glonass satellite-based augmentation services to aviation, maritime and land users in the European region.
Delta gave up yesterday on the $1-per-component fare surcharge it imposed two weeks ago on tickets for U.S. domestic travel purchased through any venue other than its web site. The surcharge, levied Jan. 11, generated an angry outcry among consumer and travel agency groups, and none of Delta's competitors matched it. Withdrawing the surcharge, Delta declined to comment on its reasons for the change in policy, and critics declared a victory for consumers.
Sabena is negotiating the purchase of Uganda Airlines on behalf of Swissair, said Sabena General Manager Paul Reutlinger, according to reports in Swiss daily Tribune de Geneve. Swissair, which owns 49.5% of Sabena, is expected to increase its stake in the Belgian airline, following the air transport agreement struck by Switzerland and the European Union at the end of last year. Other candidates for the purchase of Uganda Airlines include British Airways, Alliance Air, Air Mauritius, Aero Zambia and Kenya Airways, negotiating on behalf of KLM.
American will expand its marketing alliance with TAM-Meridionais of Brazil on Feb. 3 by placing its "AA" code on two daily TAM Sao Paulo-Miami flights.
FAA's "ad hoc, sometimes chaotic nature of software acquisition capabilities" and its "continuing serious problems" in handling its inventory place the agency's financial management program among 26 "high-risk" government programs, according to a General Accounting Office (GAO) report. The 26 programs have greater vulnerabilities to waste, fraud, abuse and mismanagement, GAO said in its report, "Major Management Challenges and Program Risks" (OCG-99-1).
China Airlines (CAL) will add 152 international flights between Feb. 11 and Feb 22 to accommodate an expected increase in traffic during the Chinese New Year holiday period. A CAL official said routes expected to receive the largest number of new flights are Taipei-Tokyo, -Okinawa and -Bali.
U.S. National Carriers Financial Results Third Quarter 1998 Third Quarter 1998 Operating Operating Revenues Expenses (000) (000) AirTran Airlines $ 115,079 120,377 Aloha 58,020 55,551 American Trans Air 232,074 209,021 Frontier 56,853 47,075
ARINC Chairman Jams Pierce said a demonstration last week proved the company will be ready for computer problems associated with the Year 2000 that could affect communications services to the aviation industry and civil aviation authorities. The demonstration was conducted in the ARINC System Test Bed, a multi-computer system that replicates most of the operational systems ARINC uses to provide critical air traffic control and aeronautical operational control communications for FAA and the airlines.
Senate Commerce aviation subcommittee chairman Slade Gorton (R-Wash.) said yesterday he "has not reached a conclusion" on increasing the passenger facility charge (PFC) but strongly hinted that he will seek an increase in the $3 fee. Gorton said he expects to reach a conclusion on the PFC before next Wednesday's Senate Commerce Committee markup of the two-year FAA reauthorization bill Committee Chairman John McCain (R-Ariz.) has introduced. Gorton tipped his hand, however.
The American Society of Travel Agents (ASTA), worried about possible anti-competitive implications of United's bid to buy America West, is asking the Justice Department to investigate the matter. ASTA President and Chief Executive Joe Galloway, noting that the merger could result in higher air fares, said, "America West's strong presence in the West and its transcontinental routes have gone a long way toward suppressing [high] air fares in the markets it serves."
All Nippon Airways has filed with the Japanese Ministry of Transport to code share with Varig on Japan-Brazil service, beginning in late March. The agreement was made possible by a new aviation treaty between the two countries, signed in December. ANA will put its code on five weekly Varig-operated flights. Four flights travel the Tokyo-Los Angeles-Sao Paulo-Rio de Janeiro route using 747-300s, and the fifth flight is routed Nagoya-Los Angeles-Sao Paulo-Rio. ANA intends to begin frequent flyer reciprocity and other cooperative elements as well with Varig.
B/E Aerospace said it is selling a 51% interest in its In-Flight Entertainment (IFE) business to Sextant Avionique, a leading supplier of avionics systems. Terms call for an initial cash purchase price of $62 million. The final price, to be determined on the basis of operating results over two years, could range from $47 million to $87 million, B/E Aerospace said. The new company, Sextant In-Flight Systems, will be headquartered in B/E Aerospace's existing facility in Irvine, Calif. B/E said it will use the proceeds to reduce bank borrowings.
Michael Levine, executive VP-marketing and international and a major power at Northwest, is leaving the company as of Feb. 1. Levine will continue as executive VP until his retirement on Feb. 28. Levine previously was president of New York Air under Frank Lorenzo and the dean of Yale University School of Management. He also was general director of the now-defunct Civil Aeronautics Board. Levine, who has been with Northwest since 1992, is credited with the company's decision to overhaul its DC-9 fleet.
DOT, seeking to promote Alaska as a hub of international aviation, plans to include in reciprocal bilateral agreements a waiver of limits on the number of carriers and flights operated via Alaska by carriers of both countries, expanding designation and frequency limitations. DOT included such provisions in recently adopted annexes to the U.S-Russian bilateral. Under the plan, DOT would grant foreign carriers - excluding those of the U.K., but not affecting existing Alaska service by U.K. carriers - holding rights to serve the U.S.
Reno Air is increasing service between Los Angeles and San Francisco to a total of eight daily roundtrips as of March 1. The airline will add five flights in each direction and retime its current three flights to offer service every two hours throughout the business day. Reno spokeswoman Nancy Raymond said the move will increase service to Reno and American customers on one of the most important routes on the West Coast.
Rolls-Royce Trent 8104 turbofan has exceeded 110,000 pounds thrust during initial test runs, Rolls said. The engine is proving new technologies that will benefit all new members of the series, including a "swept" fan blade. The Trent 8104, to be certified at 104,000 pounds thrust, will offer the highest-thrust powerplant for the Boeing 777-200X/300X aircraft, Rolls said.
Crossair's new Internet home page offers direct booking, flight schedules and details on joining the airline's flight or ground crew. The web site address is www. crossair.ch.
American yesterday rolled out a new 757 painted in its 1959 livery to commemorate the 40th anniversary of the first coast-to-coast jet flight it operated with a 707 on Jan. 25, 1959. The 757 yesterday participated in ceremonies in New York and Los Angeles.
Southwest is offering $39 one-way fares for intra-California travel through March 12. Southwest serves nine California cities - Ontario, Los Angeles, Orange County, San Diego, Burbank, Oakland, San Francisco, Sacramento and San Jose.
The new year is ushering in a string of aviation privatization in Europe's Mediterranean countries. Air France, Iberia and Alitalia are scheduled to seek private investors almost simultaneously. The French and the Spanish carriers are set to begin the process immediately while Alitalia seems to be lagging behind.
Senate Commerce Committee Chairman John McCain (R-Ariz.) yesterday rescheduled tomorrow's planned markup of his FAA reauthorization bill, the Air Transport Improvement Act, until Feb. 3.
Spanair, Spain's second-largest airline, will add six MD-80 aircraft to its fleet and four more domestic cities to its growing list of destinations once dominated by Iberia. The carrier expects to sign a code-share agreement this year with a U.S. carrier in an attempt to gain greater international leverage in 2000. After growing its domestic fleet of 12 MD-80s serving 11 Spanish cities, Spanair will add two aircraft Feb. 21 and four more March 28.
ARINC said it has completed deployment of the first phase of the high frequency data link (HFDL) ground station network supporting the GlobaLink/HF data link service. The 10 ground stations provide coverage of most of the earth's surface with the heaviest air traffic routes. ARINC plans to deploy more ground stations this year and add capacity as needed.
Revised* Airport and Airway Trust Fund - Balance Sheet As of September 30, 1998 ASSETS September 1998 Undisbursed Balances: Available for Investment 601,409,674.41 TOTAL UNDISBURSED BALANCE (Cash in Account) Receivables: Interest Receivables 134,127,702.23 TOTAL RECEIVABLES Investments:
