LanChile said its third quarter profits fell to US$2.1 million, which, while lower than in the prior-year period, kept the carrier in the black. For the nine months ending Sept. 30, LanChile earned $19.9 million, a sharp drop from the $41 million net profit for the first three quarters of 1997. The carrier attributed the lower results to the slower Asian economy, which pulled down LanChile's regional economy, and increased competition on key international routes. The airline will report consolidated earnings later this month.
Every major figure in congressional aviation politics returns to Washington next year, setting the stage for a resumption of funding, capacity and competition disputes along familiar lines. Aviation leaders, including House Transportation Committee Chairman Bud Shuster (R-Pa.) and his aviation subcommittee chairman, John Duncan (R-Tenn.), have proclaimed 1999 the "year of aviation," potentially raising the visibility of aviation disputes in national politics.
The fiscal 1999 FAA appropriations compromise that produced $1.95 billion for Airport Improvement Program grants provides guidance on seven specific projects (DAILY, Oct. 16). Splitting the difference between the House's $1.8 billion and the Senate's $2.1 billion, the appropriations conferees directed FAA to give "priority consideration" to grant applications for projects listed in the House and Senate appropriations reports and the following:
KLM's operating profits for the first half of fiscal 1998 fell 15% to 638 million guilders (US$341 million), as the carrier felt the effects of weakened Asian markets and a pilots strike at alliance partner Northwest. KLM's operating profits were 50 million Dutch guilders lower as a result of the strike. The results also include 100% of Martinair, which is being integrated into KLM, and the costs of merging the two also had an effect on profits. Revenue rose 2.2% to NLG7.14 billion ($3.82 billion). Net income was cut nearly in half to NLG572 million ($306 million).
Worldspan has entered the Japanese market with the introduction of Worldspan Japan, as part of the company's plans for global expansion, especially into the Asia/Pacific market. To serve the market, Worldspan also announced that a Bank Settlement Plan ticketing procedure has been approved. Worldspan Japan plans to grow its customer base by giving Japanese travel agents connectivity to its global mainframe system, which provides travel distribution information, booking and transaction processing to travel companies in more than 50 countries.
Alaska Airlines will grow capacity 4-5% in 1999 after an 8-9% rise this year.Although the slower rate positions the carrier better for an economic downturn, Chief Executive John Kelly sees a stable market. "With $69 and $79 tickets readily available on the West Coast, flying has become so inexpensive we don't think leisure travelers are going to change their lifestyle," he said in the airline's newspaper.
Canadian Airlines said it will add four 767-300ER aircraft and one A320 to its fleet next year "as a result of exceptional leasing opportunities in the aircraft marketplace." The airline said it signed with GE Capital Aviation Services to lease two new 767s that will arrive in fall 1999, becoming its first new aircraft since 1995. Canadian also signed leases for two 767s returned to their lessor by an Asian carrier. It will receive these aircraft early next year.
Mike Terrett, Rolls-Royce's executive in charge of the RB211 and Trent large turbofans, yesterday was named president and chief executive of the International Aero Engines consortium, succeeding Rolls veteran Barry Eccleston.
Continental this week applied for authority to operate scheduled combination service between points in the U.S., either directly or via intermediate points, and points in France and beyond France to points in third countries.
Airline passengers across Canada stopped paying the nation's air transportation tax Nov. 1, shifting as planned to user fees on airlines and other aircraft operators. Nav Canada, created two years ago as a private, not-for-profit company to run Canada's air navigation services, will focus now on reaching 105% of air traffic controller staffing requirements by mid-2000. Nav Canada President John Crichton, commenting that Nov.
Delta's October traffic increased 5.5% on 2.8% more capacity, pushing the load factor up 1.8 percentage points to 72.2%. Domestic traffic rose 4.3% on 0.6% more capacity, raising the load factor 2.5 points to 70.7%. International traffic grew 9.4% on 10.9% more capacity, forcing the load factor down 1.1 points to 77.3%. The airline carried 8.9 million passengers last month, or an average of 286,764 every day. Oct 98 Oct 97 10 Mths 98 10 Mths 97
General Aviation Manufacturers Association President Ed Bolen reported that general aviation shipments soared 55.7% in the first nine months, while billings rose 21%. Shipments totaled 1,495 units, up from 960, and billings reached $3.9 billion, up from $3.2 billion. Export shipments jumped 21% to 356 from 294, and export billings grew 4% to $369 million from $355 million. For the September quarter, shipments were up 46%.
The China Aviation Development Foundation (CADF), a Taiwanese government-run board that controls China Airlines (CAL), said it will sell at least 50% of its stake in the airline, placing the carrier in private hands for the first time. CAL told The DAILY yesterday that Singapore Airlines will take a 5-10% stake. "This is the plan," said CAL's Sonia Hua.
EVA Airways has applied to Taiwan's Over The Counter Authority to list its stock on the market for public trading. The airline expects approval by yearend and first listing in early 1999. The Taiwanese carrier forecasts 1998 revenue of NTD42.5 billion (US$1.3 billion) and a net loss of NTD60.65 million ($1.8 million). EVA predicts revenues will rise 10.3% in 1999, and it will turn a profit of NTD400 million ($12 million). "Many Asian carriers are shrinking their operations," said Deputy Senior VP K.W. Nieh.
Sen. Harry Reid (D-Nev.), a member of the Senate Appropriations transportation subcommittee, was declared a 459-vote winner yesterday in the Nevada Senate race against two-term Republican Rep. John Ensign (R-Nev.). Reid's office claimed victory and news organizations reported him as the winner. An Ensign spokesman could not be reached on whether Ensign will seek a recount of the more than 435,000 votes cast. Sen.
The FAA appropriations conference has directed the FAA administrator to submit a report by April 1 proposing a plan to minimize pay disparity between controllers serving the three major towers in the New York/New Jersey metropolitan region - Newark, Kennedy and LaGuardia - and the New York Tracon and en route center.
For the second straight month, Alaska Airlines reported higher capacity increases than traffic gains. The airline posted an 11.5% rise in October traffic on 13.2% more capacity, which lowered the load factor 0.9 percentage points to 60.5%. In September, traffic grew 13.9% on 15% more capacity. Traffic for the first 10 months of 1998 gained 8.4% on 9.2% more capacity. Oct 98 Oct 97 10 Mths 98 10 Mths 97 RPMs 857,000,000 769,000,000 9,392,000,000 8,665,000,000
Congress's final action on FAA appropriations provides $5.563 billion in fiscal 1999 operating expenses, more than the $5.533 billion approved earlier by the House and the Senate's $5.538 billion, but it falls short of the Clinton administration's $5.588 billion request. FAA funding was part of the omnibus appropriations bill that cleared Congress Oct. 21 and was signed into law that afternoon by President Clinton.
British Airways passenger traffic for October increased 11.7% on 11.2% more capacity, raising the load factor 0.3 percentage points to 72.6%. The growth was fueled by a 14.5% rise in non-premium traffic as business traffic declined 2.4%. "The weaker premium travel market combined with the faster growth in long-haul versus short-haul traffic will lead to overall yield reduction," BA said. "This change currently looks likely to continue." Intercontinental traffic grew 12.6%, while U.K./Europe traffic rose 7.9%.
The Greek government intends to sell a 15% to 20% stake of troubled state-owned Greek airline Olympic Airways, Transport Minister Anastassios Mandelis said this week in Athens while addressing the Greek Parliament. He said an international consulting firm was designated to seek a partner for Olympic but gave no further details. The Greek government launched a vast privatization plan this year in an attempt to reduce its budget deficit and join the single European currency in 2001.
Following are returns from Tuesday's congressional elections involving members of the subcommittees that handle the FAA reauthorization and DOT appropriations bills. Except for committee leadership, the order is by subcommittee, political party and subcommittee seniority. The * symbol denotes an incumbent. Senate Appropriations Committee Transportation Subcommittee * Richard Shelby (R-Ala.), chairman 63% Clayton Suddith (D) 37%
Stephen Wolf, US Airways chief executive, will speak at the International Aviation Club's monthly luncheon, Nov. 17 at the Capital Hilton Hotel in Washington. For more information, call Jon Ash at Global Aviation Associates, 202-457-0212.
DOT granted TWA an initial two-year exemption to serve Marrakech and Tangier, Morocco, and Abidjan, Cote D'Ivoire, from New York via Casablanca. Cote d'Ivoire is one of eight countries participating in DOT's Safe Skies for Africa Initiative (DAILY, Nov. 2). TWA will operate the service under its code share with Royal Air Maroc (RAM), which received an exemption to serve eight U.S. points from New York. RAM has operated scheduled service between Casablanca and New York since 1975.
Boeing 767 Systemwide Aircraft Utilization Per Day Second Quarter 1998 B767-200 American Delta TWA Number of Aircraft Operated 30 15 12 Total Fleet Operations Departures 53 59 24 Block Hours 344 155 168
