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.
FDX Corp. announced that Rodger Marticke was promoted to executive VP at RPS, effective Nov. 9. Douglas Duncan will become president at Viking Freight, succeeding Marticke.
Malaysia Airlines has postponed delivery of 12 Boeing aircraft - three 777-200s and three 777-300s and six 747-400s - until the end of 1999 and beyond to 2002. The aircraft were part of an order for 15 777s (10 -200s and five -300s) and 10 747-400s placed in December 1995 for US$4 billion. Delivery started in May 1997 and was due to continue over a five-year period on a staggered basis through June 2001. Malaysia has stopped all deliveries until December 1999.
Southwest yesterday posted a 40.1% increase in third quarter profits as it benefited from a strong domestic economy and rock-bottom jet fuel prices that averaged 44.2 cents per gallon. The $129.6 million net profit set a record for the third quarter and was second only to this year's second quarter. The airline experienced a 24.4% drop in the price of jet fuel, but even without this bonus, profits would have risen 25%. "The earnings momentum has not just come from fuel prices," said Gary Kelly, VP-finance and chief financial officer.
American is offering passengers flying between Dallas Love Field and Austin a chance to upgrade from an unrestricted $86 coach fare to first class for $1 more. The deal enables American customers to experience the carrier's first-class service at a low price. American offers 14 Love Field-Austin roundtrips daily.
Canadian Airlines, beginning Dec. 7, will offer three weekly Auckland-Honolulu flights in partnership with Air Pacific, Fiji's international airline. Canadian this winter will offer daily nonstop Toronto-Honolulu service and 13 Vancouver-Honolulu flights. Customers will connect with Air Pacific in Honolulu for nonstop service to Auckland. Air Pacific's flights will use 767-300 aircraft.
Sen. Richard Shelby (R-Ala.) managed to attach an amendment to the omnibus spending bill overturning DOT's effort directing carriers to establish "peanut-free" zones in aircraft when requested by passengers fearful of severe allergic reactions.Shelby said there was "little, if any, evidence" showing dangerous reactions could be caused without consuming peanuts, and called DOT's action "absolutely ludicrous....These guidelines represent why so many people have come to resent and distrust government."
United, which recently announced plans to install plastic templates at security checkpoints to clamp down on oversized carry-ons, is testing modified overhead storage bins on two of its Shuttle aircraft, starting this week. The modified bins are four inches deeper than standard bins and have a lighter weight door that is bowed for more usable stowage space. The bins are angled upward to keep bags snug against the fuselage, reducing the chance that stowed articles will fall out when the doors are opened.
DOT made final its tentative decision restoring Cleveland as a U.S. gateway to London and renewing Continental's five-year experimental certificate for authority to serve Cleveland-London Gatwick (DAILY, Aug. 3). Continental is required to start service within 90 days of its proposed startup date, Feb. 19, 1999. The department also affirmed its selection of American's San Jose-Gatwick proposal as a backup, for one year. DOT noted San Jose's objection that Continental's service would not increase competition in the midwestern U.S.
Delta will code share on Sabena's three weekly Airbus A330 flights to Brussels and Cotonou, Benin, beginning Nov. 4. Benin is the eighth country in Africa Delta has added to its Sabena code share, and Delta has applied to serve Johannesburg with partner Air France.
AirTran Airways flight attendants, represented by the Association of Flight Attendants, have ratified their tentative contract agreement. The four-year deal is their first and includes a pay increase of 10%, effective Oct. 31, 4% annual raises, longevity increases, minimum daily guarantees, vacation and sick pay, merger protection and grievance procedures.
U.S. National and Regional Carriers Traffic September, 9 Months 1998 September September % 1998 1997 Change Air Wisconsin Revenue Passenger Miles (000) 88,479 50,117 76.5 Available Seat Miles (000) 116,973 78,354 49.3 Load Factor (%) 75.6 64.0
Justice Department, while declining to provide details on its discussions with Northwest on antitrust concerns over the carrier's proposed alliance with Continental and its plans to take a controlling interest in Continental, yesterday told The DAILY it likely will have something to say on the matter tomorrow.
Standard&Poor's yesterday raised its corporate credit ratings for Continental and removed them from CreditWatch, where they were placed Jan. 27 after the Northwest-Continental alliance was announced. The ratings improvements affect $5.6 billion in debt. The corporate rating was boosted to "BB" from "BB-" and several others pertaining to company and aircraft debt were raised.
Pratt&Whitney Canada said yesterday in Las Vegas that it has launched a series of concept studies for an all-new engine family for the general aviation and small business aircraft markets. The company, at the National Business Aviation Association convention, also announced launch of the PW306C, selected to power the new Cessna Citation Sovereign business jet. P&WC also announced the PW535A, selected to power the new Citation Ultra Encore corporate jet.
Larry Clarkson, head of Boeing Enterprises, said yesterday that the new Boeing Modification and Engineering Services, now in the formation stage, will be operational Jan. 1. The new enterprise will take all the modification and engineering services performed by Boeing and Douglas and "form one unit which will become more competitive," Clarkson said.
Continental told DOT it "unequivocally denies" charges by paralyzed veteran Gerald Kelly, deputy executive director of the Eastern Paralyzed Veterans Association, that the carrier has a practice of discriminating against passengers with disabilities. Kelly filed a complaint against Continental, charging the carrier with discrimination under the Air Carrier Access Act for refusal by a flight attendant to stow Kelly's folding wheelchair in a designated cabin storage area (DAILY, Oct. 1).
FAA said it plans a fine of $75,000 against Gemini Air Cargo, based at Washington Dulles Airport. FAA alleged the company violated regulations governing methods, techniques and practices concerning maintenance of a DC-10-30F. "The violations include failing to perform maintenance on the aircraft in a manner as to return the aircraft to its original or properly altered condition and [failure] to use materials of such a quality as to return the aircraft to its original or properly altered condition," FAA alleged.
Gulfstream Aerospace yesterday reported record operating earnings of $103.7 million for the September quarter, compared to $60.7 million the same quarter last year. Net income suffered from income tax provisions of $34 million and declined to $64.7 million from $119.1 million last year. Revenues were up 35% to a record $626.2 million from $464 million.
The Metropolitan Washington Airports Authority told DOT that Spanair, which operates the only nonstops between Spain and the Washington region, provides on-line service to points in Spain and beyond that is "simply not available from Washington except through Spanair." The Spanish carrier applied to renew its exemption for the service, which it began operating in November 1997 with four weekly flights.
