Angola, Cameroon, Cape Verde, Cote d'Ivoire, Kenya, Mali, Tanzania and Zimbabwe will participate in President Clinton's Safe Skies for Africa initiative, DOT Secretary Rodney Slater said Friday.
Hawaiian Airlines is seeking final DOT action on its application for U.S.-Japan service, which involves an exemption for combination service in the Maui-Narita market, beginning about Jan. 1, 2000. The carrier was awarded seven weekly Maui-Tokyo frequencies. DOT, in an order awarding combination service in the U.S.-Japan market, said it would act on Hawaiian's request for Maui-Japan service in a separate order.
All Nippon Airways' net income for the six months ended Sept. 30 increased 68.2% to 10 billion yen despite growth of only 0.3% in operating revenue, to 468.4 billion yen, the Japanese carrier reported last week. On domestic routes, ANA carried 19.8 million passengers, 2.6% more than in the year-earlier period, but the load factor dropped 1.1 percentage points to 63.3% and operating revenue decreased 0.7% to 324.9 billion yen.
British Airways, finding the prospective limitations on its proposed alliance with American too restrictive, is backing off its push for full-fledged antitrust immunity while remaining committed to the partnership. A U.S.-based BA spokeswoman told The DAILY that "the terms put forward by the European Commission are not acceptable to us commercially." The EC wants the carriers to relinquish up to 267 slots without compensation at London Heathrow and Gatwick airports (DAILY, July 9). BA's stance eases pressure on the gridlocked bilateral negotiations between the U.S.
DOT - Approved a one-year renewal for Spanair to engage in scheduled foreign combination service between Madrid and Washington Dulles...Approved a one-year renewal for Linea Aerea Mexicana de Carga to conduct all-cargo charter operations between Mexico and the U.S...Approved an exemption for HeavyLift Volga-Dnepr to operate a one-way emergency cabotage cargo flight between Seattle and Mojave, Calif., using an An-124 to transport an outsized wing assembly for the Joint Strike Fighter for Boeing...Approved an exemption for HeavyLift Volga-Dnepr to operate a one-way emergency
FAA - In Federal Register dated Oct. 26...Revised an airworthiness directive on Pratt&Whitney PW2000 engines concerning life limits on certain high-pressure turbine parts.
Iberia and El Al will coordinate schedules and operate code-share flights on routes between Israel and Spain starting in January 1999, according to a memorandum of understanding signed by the companies last week. The Spanish airline said Madrid Airport will be used as a hub for connections with flights serving South America, Portugal and Morocco. The airlines also intend to "examine further areas of cooperation, including frequent flyer programs," Iberia said.
The Sabre Group's decision to charge airlines a $70,000 fee to set up electronic ticketing capabilities overseas is not sitting well with carriers, and some have said they will simply not use Sabre to offer e-ticketing to passengers booking from foreign countries. Sabre said it would charge per carrier and per country in which it sets up electronic ticketing.
Japan Airlines reported "disappointing" results for the first half of its 1998-99 fiscal year Friday and cut back its full-year profit forecast by more than 25%. Citing Japan's recession, Asia's depression and "impending signs of a downturn in the U.S. economy," the carrier reported a net profit of 18.3 billion yen (US$126 million) for the six months ended Sept. 30. Increasing its estimate of how much money it will lose during the remaining six months, it reduced its 1998-99 net profit estimate from 14 billion yen ($96.6 million) to 10 billion yen ($69 million).
The European Commission formally filed a complaint against eight European Union nations that secured bilateral agreements with the U.S. since aviation in the EU was liberalized in 1993, EU Transport Commissioner Neil Kinnock said Friday in Berlin. The complaint to the Court of Justice of the European Union is the last step of a procedure Kinnock initiated last year. The court must now decide whether bilateral air pacts between EU and third countries create an illegal competitive imbalance in Europe's single aviation market, as Kinnock claims.
FAA Administrator Jane Garvey is promising to name a permanent director of flight standards by Thanksgiving. The position has been vacant for 19 months. She is making no such promises concerning a permanent deputy administrator.
Three of this year's few tight Senate races involve incumbents with aviation connections - Lauch Faircloth (R-N.C.) and Harry Reid (D-Nev.) of the Appropriations Committee's transportation subcommittee, and Ernest Hollings (D-S.C.) of the Commerce Committee's aviation subcommittee.Reid's challenger is two-term Rep. John Ensign (R), a member of the Congressional Travel and Tourism Caucus.
Raleigh/Durham, N.C.-based Midway Airlines Corp. reported Friday a net income for the third quarter 1998 of $5.7 million, up from $1.7 million for the third quarter last year. The results include a $3.7 million income tax benefit resulting from a change in the company's effective tax rate. Excluding the tax benefit, net income was $2 million, up 16% from the third quarter 1997. The results, with or without the tax benefit, were a record for the period, the company's eighth consecutive profitable quarter.
Delta told DOT it is "disappointed with the department's interim decision not to grant Delta any U.S.-France frequencies" of the 21 allocated recently - seven each to American, United and US Airways (DAILY, Oct. 22) - to be effective until a final decision is made in Docket OST-98-4614 for the 1999 U.S.-France combination service frequency allocation proceeding. Delta requested 14 frequencies - to operate a second daily Atlanta-Paris nonstop and institute daily New York-Lyon service.
Delta named Mark Drusch senior VP-network management, Doug Blissit VP-network analysis, Mike Bell VP-schedule development, Greg Riggs VP-deputy general counsel and Joe Licitra VP-airport customer service.
InVision Technologies said revenues for the third quarter increased to $16.5 million from $15.5 million, while net profit rose 6.6% to $2.1 million. For the first nine months, revenues increased 24.9% to $47.8 million and net income rose by 70.5% to $6 million from $3.5 million. New orders in the third quarter included a seven-unit, $6.3 million contract from FAA and a $3.8 million order to upgrade FAA's 59 previously purchased CTX 5000 explosives detection systems to the second-generation CTX 5500 product.
Delta President and Chief Executive Leo Mullin said yesterday he could not endorse full renunciation of the Bermuda 2 agreement called for by US Airways Chairman Stephen Wolf (DAILY, Oct. 23). But he said he could "join the bandwagon" if there is no progress in balancing market share between the U.S. and the U.K. Mullin, speaking at the International Aviation Club in Washington, praised the Clinton administration for its success with open-skies agreements, noting, "We would encourage a similar commitment to allowing the market to function in the U.S.
Air Express International Corp. yesterday reported below-expectations financial results for the third quarter, attributing them to economic problems in Asia and softness in the computer industry. Net income for the quarter was $13 million on net revenue of $123.9 million, down from $13.4 million and $125 million, respectively, a year earlier. For the first nine months, net income was $36.4 million, up from $34.9 million a year earlier, and net revenue was $364.8 million, up from $359.7 million.
United Express Great Lakes posted a double-digit operating margin in the quarter ended Sept. 30, its second consecutive profitable quarter since assuming the United Express routes out of Denver formerly served by Mesa Air Group. Although not the highest in its history as a publicly held company, its near 16% operating margin during the quarter was close (DAILY, Oct. 29). Also reflecting the new routes, many of which are Essential Air Service markets, Great Lakes' public service revenues were up 158.8% to $4.2 million, or 11.6% of its $36.2 million in total revenues.
Bombardier has selected B/E Aerospace as its preferred seating supplier for all regional aircraft programs in a deal worth an estimated $87 million for the four aircraft model families involved. The arrangement covers the new 70-passenger CRJ 700 and 50-passenger CRJ-200, the de Havilland Dash 8-100, 200 and 300 turboprops and the recently launched Dash 8-400 large turboprop. Deliveries for the new programs will begin next year and continue for several years.
