Aviation Sales Co. said third quarter revenues rose 56.8% to $127.5 million from $81.3 million and net income increased to $7.9 million from a loss of $3.7 million. For the first nine months, revenues were up 49.4% to $338.8 million and net income totaled $17.9 million, up from $6 million. Dale Baker, chairman of the spare parts manufacturing, overhaul and distribution company, attributed the performance to a "30% growth in our core business complemented by a 27% growth from companies acquired since last year which were not included in our 1997 financial results."
Air Alps Aviation, a regional carrier due to begin flying next summer in Austria, yesterday became a partner with KLM. Air Alps will serve Amsterdam with three daily roundtrips each from Innsbruck and Salzburg. KLM will code share on the routes. KLM will continue to serve the Austrian market with four daily Amsterdam-Vienna roundtrips that use 737s. Air Alps will begin with two 31-seat Dornier 328 turboprops and will cooperate closely with KLM's Bern, Switzerland-based partner Air Engiadina.
TWA's International Association of Machinists unit (IAM), representing mechanics and related personnel, passenger service employees and flight attendants, will resume intensive negotiations with management and the National Mediation Board (NMB) Dec. 1. IAM, whose contract became amendable in 1997, has asked for release from mediation. NMB this week notified IAM District 142 that super mediation will continue for two weeks. NMB has imposed a news blackout and is committed to concluding an agreement during the talks if possible, an IAM memo said.
After a banner year in 1998, European aviation growth will slow considerably in 1999, leading to some overcapacity, according to Salomon Smith Barney. Long-haul and cargo routes could have too much capacity next year. "We now expect traffic to grow 4.5% in 1999, versus our previous expectation of 5.5%," said London-based Salomon analyst Andrew Light. Yields are expected to decline 3% annually in Europe. But the market could recover in 2000, and airlines adjusting capacity with the slowdown could improve earnings more at the start of the new century.
Susan Kurland, FAA associate administrator for airports, will discuss the agency's management of Year 2000 issues and its plans to allocate fiscal 1999 Airport Improvement Program funds on Aviation News Today, to air Sunday on Washington's NewsChannel 8 at 12:30 a.m. and 1:30 p.m.
Summary of U.S. Major Carriers International Traffic May 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change Alaska 67 11.75 1,114 74,716 19.79
Air Canada is offering fare discounts of up to 30% to more than 160 destinations worldwide through Monday, Nov. 23. Travel for Canada, Florida and Maui destinations begins Nov. 19 and must be completed by March 31. Travel to other U.S. destinations begins Nov. 26 and must be completed by March 31. Travel to international destinations begins Nov. 19 and must be completed by Feb. 28. Sample roundtrip fares include $339 Vancouver- Toronto, $309 Ottawa-Houston and $548 Montreal-London.
Continental Express wants DOT promptly to decide the legal issues concerning Love Field, and opposed a request by the Dallas/Fort Worth Airport Board for DOT to mediate in the dispute surrounding Love Field service. The City of Dallas and Southwest also oppose the airport board's request (DAILY, Nov. 12).
Virgin Express yesterday posted third quarter pre-tax profits of 139 million Belgian francs (US$4 million), down from BEF428 million ($12.3 million) in the third quarter of 1997. Net profit fell 68% to BEF83 million ($2.4 million) as revenue increased 8.6% to BEF3.4 billion ($97 million). Scheduled service revenues jumped 33%, while charter revenues declined 18%, as the airline redeployed French charter market capacity into scheduled services. Unit revenue rose 7.7%, and the load factor was up 2.2 percentage points to 79.1%.
Open skies may be in sight for the U.S. and Italy after three days of talks in Rome that ended Wednesday with a 14-hour marathon session. Negotiators agreed to initial an open-skies agreement that would become effective upon U.S. approval of antitrust immunity for an alliance between Alitalia and Northwest and possibly Continental - a formula similar to the 1994 U.S.- Germany accord, when Germany conditioned open skies on immunity for Lufthansa and United.
Singapore Airlines will add capacity on its China routes, starting next month, by using larger aircraft. Service to Beijing will grow 22% by December 1999 as SIA replaces seven of 14 weekly A310 flights with A340s. Singapore-Shanghai capacity will rise 9%, starting in January, when SIA upgrades two weekly A310 flights to A340s. The market then will have five 777 and two A340 flights weekly.
Grupo TACA is developing programs that will help the citizens of several Central American countries left homeless and without food in the wake of Hurricane Mitch. The group of airlines is operating cargo flights to help Honduras, Nicaragua, El Salvador and Guatemala and running a domestic operation to support emergency operations in Honduras. Because major roads have been washed out, TACA has begun flying passengers from San Pedro Sula to Belize and Tegucigalpa in Honduras with regional aircraft. San Pedro Sula Airport has been closed to jet operations.
United said yesterday that under its effort to reduce costs and prepare for a possible economic recession it will cap the travel agency commission rate on international tickets purchased in the U.S., Puerto Rico, U.S. Virgin Islands and Canada. Tickets bought elsewhere from these points will earn an 8% base commission with a $100 cap on each roundtrip and a $50 cap on each one-way flight.
Midway Airlines is offering Thanksgiving Holiday fares for travel originating Nov. 23 or 26 and returning Nov. 26-28. Sample roundtrip fares include $138 Raleigh/Durham-Washington, Columbus or Atlanta and $158 Raleigh/Durham-Boston.
Air Transport Association has named Robert Frenzel its new senior VP- aviation safety and operations. Frenzel, currently a VP at United Parcel Service, was a member of the National Civil Aviation Review Commission and vice chair of the U.S. Chamber of Commerce Transportation Committee. He was selected based on a recommendation from ATA's search committee. ATA President Carol Hallett said he will hold "an extremely important position for the airline industry."
DHL Worldwide Express and UPS are preparing to expand their delivery network to accommodate increased shipments for the holidays and the possibility of a Federal Express pilots strike. FedEx pilots, in contentious talks with the company, will count strike ballots Dec. 3. DHL said it is acquiring supplemental temporary aircraft, increasing flights of existing aircraft and securing additional capacity from cargo carrying airlines. It is hiring temporary employees and moving some part-time employees temporarily to full-time status.
Airbus and Boeing are said to be in a real dog fight in the marketplace over the A318 and 717 Airbus and Boeing are said to be in a real dog fight in the marketplace over the A318 and 717, with prices being quoted as "under" $18 million for the 100-seaters. That being the case, they could have a major impact on the new 90-seat offerings by Bombardier, Fairchild Aerospace and potentially ATR - which are expected to come to market in the $22-$25 million range.
Atlas Air requested an initial two-year exemption to operate scheduled cargo service from points in the U.S. via intermediate points topoints in The Netherlands and beyond. It plans to operate three weekly roundtrip flights between Chicago, Miami and New York and Amsterdam, using 747 aircraft. The carrier told DOT it "is prepared to institute service as soon as it receives the necessary regulatory approvals." Atlas said that while it "initially intends to serve three U.S. points, it is requesting broad authority to serve any U.S.
Varig leased two Boeing 777-200IGW aircraft from International Lease Finance Corp. The GE90-powered aircraft are scheduled for delivery in March and April 2000 on 10-year leases.
FAA yesterday ordered MD-11 operators to inspect and possibly replace two cockpit dimmer switches, saying they sometimes overheat and emit a burning odor and smoke. The agency said there is no evidence that the overheated switches have caused damage to any other parts, but it is acting because smoke in the cockpit can distract the crew. "There also is nothing to indicate that these switches are related to the Swissair crash" - an MD-11 on Sept. 2 in Canada - the agency said.
Raleigh/Durham, N.C.-based Midway Airlines reported a 13.2% increase in traffic on 13.6% more capacity for October over the same month last year, which pushed the load factor down 0.2 percentage points to 65.7%.
Delta Connection affiliate Comair has painted its 70th, and most recently delivered, Canadair Regional jet with a design based on the skyline of the carrier's headquarters city, Cincinnati. A Comair pilot, Rob Damato, developed the design, winning a company-wide contest that included more than 70 entries. Comair claims to be the largest independently owned regional airline in the U.S.
Atlas Air has entered a standard wet-lease agreement with Federal Express Corp. for two Atlas 747-400 and one 747-200 freighters, with service to begin in the fourth quarter. FedEx, which is embroiled in a bitter contract dispute with its pilots' union, has set down a contingency plan in the event of a pilot strike that includes contracting for airlift. Atlas Chairman, Chief Executive and President Michael Chowdry said, however, that Atlas and FedEx have been discussing the deal for some time.
Royal Jordanian Airlines is offering passengers a mobile phone free while in Jordan. Business-class passengers can have a phone for up to 21 days, while those traveling in economy can have up to seven days free. The rental is free - passengers must pay for their calls, insurance and taxes.
Regional airline revenue passenger miles increased by an average of 32.4% in October among 14 of the nation's largest carriers. The average increase in available seat miles was 5.8 percentage points behind at 25.5%. Results for Mesa Air Group and United/Delta affiliate SkyWest were not available. United Express Atlantic Coast Airlines led all gainers with a 94.4% increase in traffic, 14.4 points more than its near 80% gain in capacity as more Canadair Regional Jets joined the fleet. United Express Air Wisconsin had the highest point spread of the group.
