Lufthansa and KG Allgemeine Leasing have linked to form a new aircraft leasing subsidiary - German Operating Aircraft Leasing (GOAL). KGAL has financed 220 aircraft and Lufthansa has remarketed more than 300. GOAL will acquire used aircraft from Lufthansa for remarketing on an operating-lease basis.
Delta Connection carrier SkyWest will end its feeder service with Delta in Los Angeles, effective April 4, the carriers said Friday. Delta said both sides arrived at the decision after "lengthy discussions." SkyWest earlier this year signed an agreement with United for a West Coast partnership that includes Los Angeles. "It was a mutual decision based on discussions we have held this year," said Delta spokesman Todd Clay. Delta, a minority stockholder in SkyWest, said its agreement with SkyWest is unchanged. SkyWest could not be reached for comment.
Utah-based SkyWest Airlines, the nation's fifth largest regional carrier, reported a 43.3% jump in traffic on 36% more capacity for November 1998 from the same month last year, boosting the load factor 2.7 percentage points to 52.5%. SkyWest flew 84.2 million revenue passenger miles and 160.4 million available seat miles. Passengers flown were up 65.7% to 420,718. Year-to-date RPMs rose 24.5% on 14.4% more ASMs from the same 11-month period last year, increasing the load factor 4.5 points. Passengers flown grew 51.5%.
TWA and the International Association of Machinists (IAM) have moved forward during their 11-day mediation session that ended Friday, according to airline spokesman Jim Brown. But no contracts were approved for the union, which represents passenger service employees, mechanics and flight attendants. The two sides, squaring off in a lengthy negotiation throughout this year, expect to return to the bargaining table after the holidays.
U.S. Major Carriers Latin Share of Service Third Quarter 1998 Total Revenue Departures Alaska 1,656 America West 882 American 24,846 Continental 11,879 Delta 3,521 United 4,990 US Airways 1,725 Total 49,499 Average Number of
Detroit-based Spirit Airlines saw a 108.6% jump in traffic on a 132.8% gain in capacity for November 1998 over the same month last year, which depressed the load factor 8.2 percentage points to 70.8%. Spirit flew 120.9 million revenue passenger miles and 170.8 million available seat miles. Passengers flown jumped 78.9% to 134,766. Year-to-date, Spirit flew 79.2% more RPMs and 80.6% more ASMs, which pushed the load factor down 0.6 points. Passengers flown grew 78.8%.
US Airways unit of the Air Line Pilots Association has elected Chris Beebe chairman of its Master Executive Council. Craig Skinner was elected vice chair and Philip Osterhus secretary/treasurer.
DOT extended for a fourth - and final - time, through Jan. 4, 1999, the period for taking action on United's complaint against the European Commission and the national authorities of Germany, Denmark, Norway and Sweden. DOT may extend the action deadline up to 180 days from receipt of the complaint, which United filed July 8. DOT rules require the department to "approve, deny, dismiss or set a complaint for hearing, or institute other procedures proposing remedial action" by Jan. 4.
American International Airways asked DOT for a certificate to engage in scheduled foreign cargo service between the U.S. and any points in 124 countries. Not included on the list of countries were Brazil, Colombia, Costa Rica, Belize, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Taiwan and Hong Kong - the carrier noted it holds certificate authority to serve those nations.
Boeing said Friday all final assembly work on its 737s will remain at Renton, Wash., and that it has canceled plans to assemble three to five aircraft per month at Long Beach. Boeing had planned to produce three to five aircraft per month in California, retaining about 600 jobs. Dick Pearson, VP-Long Beach Division, said, "We have increased production rates on the 737 from 14 to 21 airplanes per month at the Renton, Wash., facility, with very satisfactory results.
DOT officials reported that they "made progress" with Argentine aviation representatives in talks held Dec. 8-10 in Washington. Further negotiations are planned in March in Buenos Aires.
AlliedSignal Aerospace obtained a $225 million order from British Airways for products and services for BA's new A319/A320 aircraft. The company said the agreement could bring another $575 million in potential long-term value over the operating life of the aircraft. "This agreement reinforces our confidence that AlliedSignal will grow its aerospace sales by 7% in 1999 and that the longer-term outlook for the business continues to be strong," said Frederic Poses, president and chief operating officer.
Reno Air reported a 0.3% increase in traffic on 4.5% less capacity for November 1998 from the same month last year, which pushed the load factor up 3.1 percentage points to 64.1%. Reno flew 228.2 million revenue passenger miles and 356.2 million available seat miles. Passengers flown totaled 426,095, relatively stable compared with last year. Year-to-date RPMs dropped 1.9% and ASMs 0.8% from the first 11 months last year, depressing the load factor 0.8 points. Passengers flown declined 3.4%.
DOT's insistence that Brad Mims, assistant secretary for aviation and international affairs, give an uninvited political speech at a recent Flight Safety Foundation meeting in Capetown, South Africa, is causing worldwide concern. Mims, in effect, ordered attendees to support DOT Secretary Rodney Slater's Safe Skies Africa campaign. Ordinarily, FSF speakers are approved by a panel. Mims's wife Ava, head of aircraft maintenance for Flight Standards Division at FAA, had been invited to the meeting.
ICAO, acting swiftly following endorsement last October of a universal safety oversight audit, has reported positively on an assessment of the U.K. Civil Aviation Authority's (CAA) safety oversight system. The ICAO assessment focused on personnel licensing, flight operations and airworthiness of aircraft. The objective was to assess the implementation of the safety-related Standards an Recommended Practices (SARPS) and associated procedures in those three areas as described in the Chicago Convention.
Bombardier said Robert Brown has been named president and chief executive, effective Feb. 1, succeeding Laurent Baudoin. Baudoin, 60, who has headed Bombardier since 1966, will continue to oversee long-term operations of the corporation as executive chairman and president of the executive committee. Brown, 53, joined the company in 1987 as VP corporate development; he became president of Canadair in 1989, and later was named president and chief operating officer of Bombardier Aerospace.
TWA, which has cut capacity and seen traffic fall 2.4% so far this year, has shrunk since deregulation, while competitors have blossomed. TWA flew 28.3 billion revenue passenger miles in 1978 and only 25.1 billion in 1997. Its market share plunged from 12.1% to 4.1% last year. Since deregulation, United has grown from 41.4 billion RPMs to 121.3 billion; American from 29.4 billion to 107 billion, and Delta, taking advantage of the demise of Pan Am and Eastern, grew from 23.5 billion to 99.7 billion last year.
ATR hopes to launch a family of regional jets of between 60 and 95 seats and is talking with possible partners in the program, including Fairchild Dornier, Casa of Spain and Embraer of Brazil, The DAILY has learned. Under the plan, which could be announced by the end of this year or early next year, ATR - itself a partnership consisting of Aerospatiale of France and Alenia of Italy - would hold 50% of any RJ partnership and the other half would consist of one, or possibly two of the other prospective partners.
United Express affiliate Atlantic Coast Airlines will use Miami Airport-based Pan Am International Flight Academy to train pilots on simulators for the carrier's Canadair RJ 200s under a recently signed contract. The 10-year exclusive contract also calls for PAIFA to develop a 30,000-square-foot training complex near ACA headquarters in Loudoun County, Va., that would be completed during the fourth quarter of next year.
Embraer Chief Executive Mauricio Botelho, commenting this week on the Canada-Brazil dispute before the World Trade Organization over subsidies, said the Canadian case against Embraer was an attempt to restrain access of a developing country with high-technology products into the world marketplace. Canada's subsidies for the Bombardier CRJ range from $5.5 million to $6.5 million per unit, he said, compared with the Brazil ProEx program subsidy of $2.5 million per aircraft. He said the ERJ-145 weighs two tons less than the CRJ and costs less to buy and operate.
Airlines Reporting Corp. said total travel agent sales increased 1% to $5.5 billion in November 1998 from November last year. Domestic fares rose 1% to $3.5 billion, and international fares remained even at $1.5 billion. Domestic commissions declined 3% to $231.8 million, while international commissions rose 12% to $235.1 million. Credit card billings gained 1% to $4.5 billion. Electronic tickets accounted for 30.96% of total ticket sales.
United continues to show a profit on its Taiwan operations despite economic woes besetting much of the Asian region and a sharp downturn in passengers volume on transpacific routes. Although passenger volume between Taiwan and the U.S. has fallen nearly 15% from year-earlier levels, United continues to enjoy a load factor of more than 50% thanks to its 55% market share on the Taipei-San Francisco route. The company's bottom line also is helped by its highly profitable Taipei-Okinawa cargo service.
