Air Wisconsin and its flight attendants, represented by the Association of Flight Attendants, have reached a tentative contract agreement. The tentative new pact calls for significant wage increases and work rule improvements, AFA said. Ballots will be mailed to attendants Nov. 20 and counted Dec. 15.
Avteam, supplier of aftermarket engines and parts, reported net income of $1.1 million and net sales of $14.8 million for the third quarter, up from $803,000 and $13.3 million, respectively, a year earlier.
Continental Express will take delivery of the 100th Embraer ERJ-145 Dec. 10 in Sao Jose dos Campos, Brazil. The carrier took its first -145 in December 1996, when the manufacturer had only 63 firm orders and 217 options COEx currently has 50 firm orders and 150 options. Today, Embraer has 215 orders and 212 options for the 50-seater. A current production rate of seven aircraft per month, including the 37-seat ERJ-135, gradually will be increased until it reaches 12 aircraft per month, which will put the factory at maximum capacity (see related story below).
Air France is beginning its annual distribution of 1,200 tons of Beaujolais Nouveau wine to countries around the world. The carrier is flying 500 tons to Asia and 350 tons to the Americas.
DOT revoked Maverick Airways' interstate scheduled combination service certificate for reason of dormancy. The carrier, found fit to fly in September 1996, ceased operations Sept. 13, 1997. DOT suspended its certificate authority on Sept. 24, 1997. Maverick has not responded to a letter from DOT reminding it of requirements on filing for a fitness redetermination to resume certificated operations within one year of cessation. It had operated service to points in Colorado using de Havilland Dash 7 aircraft. (Docket OST-96-1400)
Prime Air, d/b/a TransMeridian Airlines, asked DOT to approve a change in the name of Prime Air to TransMeridian Airlines, and reissue Prime Air's certificates in the new name. The company decided "for purposes of simplicity and clarity" to change its name to the name under which it holds out service. Prime Air holds foreign and interstate charter combination service certificates and provides "extensive charter service" within the U.S. and between the U.S. and Mexico and the Caribbean. (Docket OST-98- 4738)
Atlantic Southeast's board of directors has authorized the company to repurchase up to $50 million of the company's common stock on the open market through January 2000, the company announced. ASA President John Beiser said, "We have used virtually all of the $50 million stock repurchase authorization that our Board or Directors approved in February 1998. Therefore, the additional $50 million authorization that was granted today...will enable us to continue our stock repurchase program in a timely manner."
Airborne Express takes delivery today of the first of 12 767s ever to be converted to cargo jets. The used 767s cost $290 million, plus $20-23 million each for the Timco conversion, and will be delivered through 2000. Airborne will operate them on its longest domestic routes.
Summary of U.S. Major Carriers Domestic Traffic May 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change Alaska 1,024 7.70 846 865,608 11.03
AlliedSignal said it was selected by Northwest to supply auxiliary power units for 50 firm and 100 optional A319 aircraft. The contract is valued at more than $50 million over its life.
China Southwestern Airlines could become the fourth Chinese carrier to offer long-range international service. The airline received the first of three Airbus A340s this week and the second will arrive shortly. The aircraft are financed by banks in Europe, the U.S. and Japan.
Fairchild Corp. announced revenues of $148.5 million and net earnings of $1.2 million for its fiscal first quarter ended Sept. 27. Year-earlier revenues were $194.4 million, including $66 million from Banner Hardware Group and PacAero units subsequently divested to AlliedSignal. Net earnings last year were $500,000.
The SAirGroup has become a major investor in the German airline and tour operator LTU Group. The transaction, announced Nov. 12, entails the purchase by SAirGroup of a 49.9% stake in the Dusseldorf-based group, which owns the LTU airline and six tour operators grouped under LTU-Touristik. The six are Tjaereborg, Meier's Weltreisen, THR, Marlboro Reisen, Jahnreisen and Smile&Fly. The shares will be held by a new SAirGroup subsidiary, LTU Holding, which eventually will function as a full-fledged investment vehicle for all LTU Group shares.
Express Airlines I, a wholly owned Northwest subsidiary, is redoing the interiors of its Saab 340s to project a "corporate jet image." A survey of passengers, the majority of whom are business travelers, revealed a desire for the business-jet look. Gray leather seats are being replaced with navy-blue leather seats with a wrap-around, easy-chair effect. Navy-blue carpet with red highlights also is being installed, going a quarter of the way up the sidewall.
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.
