Triumph Group reported net sales for the September quarter grew 32% to $99.5 million and operating income rose 40% to $8 million. For the first six months, net sales rose 30% to $190.6 million and operating income 53% to $15.6 million.
TWA yesterday reported a $5.3 million third quarter loss as it tried and failed to boost third quarter traffic. In the third quarter of 1997, it turned a profit of $6.3 million. The airline posted operating income of $23.7 million, considerably lower than the $63.8 million a year ago. "There can be no denying our disappointment in these results," said Chairman Gerald Gitner, in a conference call with reporters. A third quarter net loss is "not acceptable," he said.
Duane Woerth, a pilot for Northwest, was elected yesterday as president of the Air Line Pilots Association at ALPA's regular board meeting. Woerth served eight years as first VP and was ALPA's director for the International Federation of Air Line Pilots Association. Dennis Dolan of Delta was elected first VP and John Feldvary of US Airways VP-finance treasurer. Jerome Mugerditchian of United was re-elected to a third term as VP-administration/secretary.
Dulles, Va.-based Atlantic Coast Airlines, which flies as United Express, reported a 119% jump in net income to $20.6 million for the third quarter 1998. ACA President and Chief Executive Kerry Skeen attributed the growth to "substantial improvements" in on-time statistics and dispatch reliability despite the challenges inherent in the carrier's rapid growth and sharp rise in passenger traffic. Operating margin for the third quarter, on a year-over-year basis, grew to 21.8% from 16.5% last year, and cost per available seat mile declined 17.2% to 20.2 cents.
Dragonair took delivery of another A320, which joins four others - three leased and one purchased - delivered this year under its fleet renewal program.
American parent AMR Corp. yesterday reported the best quarter in its history, but Chief Financial Officer Gerard Arpey said AMR is reading the tea leaves of economic forecasters and is considering scaling back its 1999 growth by as much as one-third. AMR posted a record net profit of $433 million, up 34.1%, and operating income jumped 20.6% to $732 million.
Detroit-based ProAir will operate out of the international terminal at Detroit Metro Airport Oct. 24-25 while the runway at Detroit City Airport is being resurfaced. ProAir will operate its normal schedule this weekend and resume service from Detroit City Oct. 26. President Craig Belmondo said the resurfacing project, plus nearly $60,000 of previously announced service and terminal improvements will enhance ProAir's operations at the airport.
American is offering passengers flying between Dallas Love Field and Austin an upgrade to first class from an unrestricted $86 coach fare for $1 more. The deal gives American customers a chance to experience the carrier's first-class service at a low price. American offers 14 Love Field-Austin roundtrips daily.
The Be-200 multi-purpose amphibian conducted its first flight at the Irkutsk Aviation Production Association facility, according to AlliedSignal. It said the flight represents a "major milestone in the development and delivery of a state-of-the-art integrated avionics system for the Russian commercial aircraft industry. The Be-200 is equipped with an ARIA-200 (American Russian Integrated Avionics) system and AlliedSignal weather radar. The ARIA-200 is a joint venture between AlliedSignal and the Scientific Research Institute of Aviation Equipment.
American Aircarriers Support, aircraft spare parts supplier, said third quarter revenues jumped 92% to $7.3 million and net income 89% to $1.4 million. Year-to-date, revenues rose 59% to $15.4 million and net income 63% to $2.9 million.
All Nippon Airways likely will announce tomorrow that it is joining the Star Alliance, a source said.The airline with the largest domestic Japanese network will begin its code share with future Star partner United on Sunday.
DOT yesterday tentatively allocated three times the number of additional Chicago-London winter-season frequencies to United as American. Of the 129 roundtrip frequencies available under the U.S.-U.K. bilateral, United received 97 and American 32. American had sought half of the frequencies. American, which had 390, now has 422; United, which had 324, now has 421.
DOT granted Uzbekistan Airways a foreign air carrier permit to engage in scheduled and charter combination service between Uzbekistan and the U.S. The carrier filed an application for a permit in July 1994 and amended that application in March 1998 (DAILY, March 19) after the U.S. and Uzbekistan concluded an open-skies agreement (DAILY, Feb. 20). In April DOT approved an exemption for Uzbekistan Airways to implement rights available to it under open skies (DAILY, April 16). The carrier must request specific DOT authority to operate charters.
Lufthansa Cargo and SAS Cargo, in a step toward cooperation, have agreed to link express freight services and route networks. Starting Nov. 1, Lufthansa Cargo will open its European route network for "priority" shipments, the express product of SAS Cargo. On Feb. 1, 1999, SAS Cargo will carry Lufthansa Cargo's express product on its route network. Planning is under way to accommodate express shipments on the two carriers' entire networks.
Galileo International is offering Galileo Passport, a web-based booking product designed to provide travelers with a fast method to make business and leisure travel arrangements. Galileo Passport takes travelers from the supplier's web site to the customizable Galileo Passport booking engine, where they can reserve and order tickets. The vendor's web site branding is maintained.
DOT denies it is conducting a formal investigation into allegations of unfair practices by major airlines brought by the Interactive Travel Services Association (ITSA). DOT Special Counsel Steve Okun said DOT has talked with ITSA, and some of its concerns will be addressed under DOT's rulemaking on computer reservations systems. ITSA claimed in a July DOT filing that airlines practice "unjustified discrimination," which is "both unfair and exclusionary.
General Electric Capital Aviation Services has placed a firm order for one A319, 15 A320 and 14 A321 aircraft, Airbus said this week. The GE Capital subsidiary announced its purchase plans last month at the Farnborough Air Show. The aircraft, powered by CFM International engines, will be delivered in 2002-2006.
Lufthansa yesterday ordered 10 A340-300s and six A321s, making it Airbus's largest airline customer with 164 aircraft on order, including 80 single-aisle aircraft and 41 A3 40s. Lufthansa, a launch customer for the A340, recently ordered 10 of the higher-capacity A340-600s. Its A340-300s will seat up to 247 passengers in three classes, while the A340-600s will seat as many as 335. Both types have a range of 7,300 nautical miles.
Aer Lingus yesterday announced plans to serve Los Angeles nonstop from Dublin, beginning June 2, 1999. The three weekly A330-200 flights will be the airline's first service to the U.S. West Coast. It intends to raise frequencies to five per week by 2000. LAX is the airline's fifth gateway, and the service raises transatlantic capacity 20%.
Northwest, facing challenges on several fronts, yesterday reported a $224 million net loss for the third quarter, compared with a profit of $290 million last year. The airline's revenue of $1.9 billion was $873 million below the prior year's third quarter. The carrier paid a heavy price for last month's pilots' strike. Northwest was forced to spend $84 million in retroactive pay due to new contracts, $17 million in strike expenses, $30 million in additional maintenance costs and $50 million in other strike- and labor-related expenses.
FAA funding for fiscal 1999 in the omnibus bill ready for passage is $9.563 billion, including $1.95 billion for the Airport Improvement Program. The House was working to vote on the bill yesterday or today, and the Senate is likely to pass it today. Total FAA funding is $461 million more than last year's level, and the record AIP funding is $250 million more than in fiscal 1998. But the amount that ultimately will be spent on AIP in fiscal 1999 still is unknown.
Fairchild Aerospace said it has established Millennium Leasing Co., an "independent aircraft leasing company that will provide operating and finance leases for Fairchild Aerospace customers." Fairchild said Millennium is the "first enterprise of its kind established for a regional aircraft manufacturer....It will also remarket used aircraft taken in trade from Fairchild Aerospace customers." Josef Laakso, VP-worldwide sales finance who joined Fairchild Aerospace in 1996 from Mellon Bank's Leasing Group, was named president of the new leasing company.
Pratt&Whitney said it is creating a unified, worldwide service organization for commercial and military engine customers that will offer spare parts, technical support, full fleet management, and overhaul and repair. The expanded program, Engine Services, was created from the former Pratt&Whitney Eagle Services. "The goal is to make it easier for airlines and air forces to reach new levels of reliability and low-cost ownership," P&W said.
Fairchild Aerospace this week introduced the Envoy 7, the corporate version of its 70-seat 728JET regional jet. Priced for the first 10 customers at $28.5 million, the aircraft can transport 16 to 19 passengers 4,200 nautical miles at an altitude of 41,000 feet and a cruise speed of Mach .8.
Riding on its success in flying passengers stranded by the Northwest strike, Minneapolis/St. Paul-based Sun Country is offering customers the chance to purchase a low-fare ticket and receive a second ticket for a traveling companion free. "We are serious about getting people to know us, which is why we are offering this great opportunity," said Sun Country President and Chief Executive Bill La Macchia, Jr.
