Canadian Airlines and MTU Munich, with assistance of the British Columbia government, yesterday launched MTU Maintenance Canada, which will be responsible for Vancouver-based maintenance and repair of the carrier's aircraft engines. Canadian Airlines holds 30% of the venture, MTU Munich 70%. The government will contribute $19.5 million in loans. The new company will use existing infrastructure at the airline's Vancouver Operations Center and will operate at the outset with more than 200 employees.
China's Wuhan Airlines won a $20.8 million verdict against the Texas-based aircraft leasing company Air Alaska Inc. The leasing firm now is called World Pacific Air Lease Inc. The trial, which lasted two weeks, centered on a 1997 agreement under which Wuhan leased a 737 from Air Alaska. Wuhan paid escrow and other deposits in anticipation of acquiring the leased aircraft. When the contract terms were not honored, Wuhan filed a breach of contract claim. Fraud and compensatory damages were $10.4 million, with the same amount for punitive damages.
America West on Jan. 7 will add a fifth daily Phoenix-New York/Newark nonstop and a fourth Phoenix-Boston nonstop, using A320 aircraft. Mike Smith, senior VP-marketing and sales, said the new service "builds upon America West's position as the No. 1 airline from Phoenix to the Northeast." Also in January, the carrier will add a fourth daily Phoenix-Salt Lake City flight.
Indianapolis-based American Trans Air, principal subsidiary of Amtran, reported an 8.3% increase in systemwide traffic and 12% more capacity in October 1998, compared with the same month last year. The airline flew 724.4 million revenue passenger miles, a record, and 1.08 billion available seat miles. Block hours flown grew 14.1% to 12,710, while charter service RPMs dropped 13.8% to 263.7 million and ASMs were down 0.8% to 428.7 million. Passengers carried fell 5.7% to 119,771 while block ours flown declined 0.6% to 3,522.
Airbus and Fokker Systemwide Aircraft Utilization Per Day Second Quarter 1998 A320-100/200 America West Northwest United Total Number of Aircraft Operated 29 55 51 135 Total Fleet Operations
The cargo divisions of KLM and Alitalia are gearing up to sign a "master cooperation agreement," following their launch last month of joint cargo operations. The companies offer joint cargo services to 16 destinations in Europe, the Middle East, Asia and Latin America. The new partnership does not cover North Atlantic cargo services because of bilateral policy restrictions with KLM's U.S. alliance partner, Northwest.
Malev Hungarian Airlines will acquire Lockheed Martin Aircraft&Logistics Center's 50% interest in Aeroplex of Central Europe. The two companies jointly formed ACE in 1992 as an aircraft maintenance and engineering services facility in Hungary. "Lockheed Martin helped Malev successfully build the capabilities of Hungarian mechanics and engineers to support the company's fleet modernization," said Antal Pongraez, Malev chief executive.
Sabena Technics, Sabena's overhaul and maintenance division, has won a 150 million Belgian franc (US$4.2 million) contract from Lithuanian Airlines, its first from the Baltic carrier. The contract requires Sabena Technics to perform a D-check on the carrier's 737 and maintain its CFM56-3 and JT8D engines.
Boeing said it has developed a "sandwich gasket" for airplanes that eliminates the need for sealants and toxic materials and prevents corrosion. Mickey Williamson, a customer technology specialist for Boeing, said the gasket can be used for antennas and similar equipment. It consists of a double aluminum mesh with a fluorosilicone compound between the two screens. When pressure is applied, a waterproof seal is formed. The new gasket reduces the time to replace an antenna from up to four hours to half an hour, he said.
Economic pressure may force higher-than-expected aircraft retirements next year to comply with noise rules that take effect Dec. 31, 1999."Trijets, both widebodies and narrowbodies, will disappear from the marketplace," said one industry official, citing L-1011s, 727s and DC-10s, and American's decision to phase out the latter two types.
The operations of Taipei Air Cargo, an air cargo terminal located at the Chiang Kai-shek International Airport, will be transferred from Taiwan's Civil Aviation Administration to the private sector through an open tender, the CAA said. Bidding will be open to local and foreign firms or consortiums. To qualify, bidders must have paid-in capital of at least US$15 million.
British Airways yesterday posted a 60.4% jump in net profits to #162 million ($275 million) for the quarter that ended Sept. 30 as operating profits soared 30.3% to #262 million ($445 million). The airline, with a large Europe-Asia flight offering, logged a 1.6-percentage-point-rise in operating margin to 9.2%. Net profits for the first half of BA's fiscal year rose 9.5% to #347 million ($590 million) from #317 million, excluding one-time events. Revenue for the three-month period increased 8.7% to #2.44 billion ($4.15 billion).
LanChile's traffic for September grew 9.9% on 13.4% more capacity, which forced the passenger load factor down 1.9 percentage points to 60.9%. For the first nine months, traffic increased 13% and capacity 15.6%.
Aer Lingus will extend its agreement to wet-lease an MD-11 from World Airways for the peak holiday season this year and from May through October next year. Aer Lingus has used the aircraft since May for New York-Shannon passenger service six times a week, with flights extending to Belfast.
United will stop operating its daily flight between Washington Dulles and San Salvador, El Salvador, on Jan. 16 due to low demand on the route. The airline began service in July. The service is the latest canceled by United and other airlines that had rushed to add capacity to the Latin American market in the spring and summer.
American will scale back next year's growth rate in fear of a slowing global economy and retire 16 aircraft, instead of the six it had planned. It will delay several international route launches, including newly won authority to fly from New York and Boston to Tokyo. The airline foreshadowed the actions when it released its third quarter earnings last month (DAILY, Oct. 22). At the time, Chief Financial Officer Gerard Arpey said the airline was considering a retrenchment from 6% capacity growth in 1999 to 4%.
Southwest, expected to expand into the New York area soon, could choose to surround the city with flights from three cities, according to several sources.The three airports sources say would get Southwest's flights are Islip to the east, Allentown/Bethlehem to the west and Newburgh/Stewart Field to the north. "These would be Southwest's string of pearls around New York," comments George Hamlin, VP with Global Aviation Associates.
McDonnell Douglas DC-10 Systemwide Aircraft Utilization Per Day Second Quarter 1998 DC-10-10 American United Total Number of Aircraft Operated 13 22 35 Total Fleet Operations Departures 27 62 90
China Airlines' board of directors has appointed Sandy Liu acting president of the airline. The 29-year veteran and former VP-commercial was named several months after the former leader resigned. Separately, CAL said it has introduced electronic ticketing, becoming the third airline in Asia and the first in Taiwan to implement the service. A CAL spokesman said e-ticketing for domestic flights between Taipei and Kaohsiung began Nov. 4. The system will be expanded to include CAL's foreign routes within six months.
Defense Secretary William Cohen is trying to slow the pilot exodus from military to commercial aviation. In recent congressional testimony he said he plans to focus on post-entry-level pay increases and retirement benefits, which were cut back in 1986. Cohen said retirement benefits are second only to pay in trying to retain mid-career pilots and other skilled personnel in limited supply.
