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.
Gulfstream Aerospace and Executive Jet yesterday announced plans for a Gulfstream V Shares fractional ownership program, including the purchase of five GVs with options for 12 more, purchase of 14 GIV-SP aircraft to supplement the current Gulfstream Shares program, and a long-term maintenance agreement for Executive Jet's fleet of Falcon, Hawker and Gulfstream jets. The value of the agreements, announced at the National Business Aviation Association convention in Las Vegas, was estimated at $1.3 billion.
Bombardier said it plans to launch what company Chairman Laurent Beaudoin called an "all-new transcontinental business jet" at the NBAA convention in Las Vegas. The Continental Jet will carry eight passengers and baggage nonstop across North America at Mach 0.82 (541 mph) when it enters service in 2002, he said. "This new aircraft will be Bombardier's product in the emerging and important super midsize business jet segment. It is also the third all-new business jet that Bombardier has introduced in just six years," Beaudoin said.
Midwest Express yesterday reported record third quarter operating profits of $16.9 million, up 43.5% from the year-earlier figures. The airline also posted record revenue of $103.8 million, up 16.1%. "High demand for travel, a stable fare environment and low fuel prices, coupled with our double-digit growth, contributed to our strong results," said Chief Executive Timothy Hoeksema.
Thailand's Department of Aviation (DOA) is drawing up a plan to liberalize the country's aviation industry. A DOA senior official, Abhichata Benshubba, said the department is working on a partial open-skies policy to enable airlines to compete on domestic and international routes. Under the plan, DOA will be privatized. Abhichata said the government would set up an independent regulatory agency similar to the U.S. FAA, while DOA would remain responsible for all airline operations. Abhichata, however, could not say when the plan would be ready and implemented.
Boeing Business Jets President Borge Boeskov announced 11 new orders at the National Business Aviation Association convention in Las Vegas. The aircraft, which made its first flight Sept. 4, is expected to receive certification next month. The 11 new orders include nine purchased for the NetJets fractional ownership program, a joint venture between BBJ and Executive Jet. The other two customers were not identified. Executive Jet was purchased by Berkshire Hathaway in July.
Domestic air fares dropped 1% in September from September 1997, according to the Air Transport Association's monthly domestic Airfare Report. Average coach fares declined 1.9%, while first-class fares rose 3.6%, the report said. Year-to-date average fares rose $2.48 from the same period a year ago, to $138.74.
Rolls-Royce said it won a further order from Virgin Atlantic with the carrier's selection of two more Airbus A340-600 aircraft powered by Trent 500 engines. Rolls valued the engine order at $80 million. Virgin, an original launch customer for the A340-500/600, has 10 firm orders and eight options with a total value of $720 million to Rolls. Virgin will get its first A340-600 in 2002.
The Fedex Pilots Association (FPA) yesterday said the carrier's management has rebuffed its attempts to restart negotiations this week. FPA said it has tried to reach management repeatedly on Sunday and Monday to go back to the bargaining table. The company told FPA yesterday afternoon that it would not re-enter negotiations for at least a week, FPA said. FedEx denied it had suspended talks and plans to meet with FPA this week.
Five U.S. airlines - Delta, Continental, Midwest Express, American Trans Air and Vanguard - have posted record earnings so far in the third quarter cycle, with only AirTran showing a loss.Of the two airlines reporting today, Southwest could break a few records, but Northwest's labor troubles are expected to cost the carrier several hundred million dollars.
Kansas City-based Vanguard Airlines, which began service four years ago this December, posted its best quarter to date - a net third quarter profit of $3.4 million, compared with a loss of $6.6 million a year ago. Revenue grew 66% to $32.2 million, while expenses increased 12% to $28.1 million. Although one-third of the profit came as a result of the Northwest pilots' strike, Vanguard Chief Executive Rocky Spane said the carrier's restructuring is finished. The airline posted substantial improvements in almost every measurable category.
United believes that its global diversification, its structure with built-in fleet flexibility and the industry's tempered expansion in recent years will enable the carrier and others to turn a profit during any future recession. "This industry is resolved to managing a recession and, in fact, turning a profit," said Rono Dutta, United's senior VP-planning. After an intensive study of the U.S.
American Trans Air parent Amtran Inc. yesterday reported record third quarter net income of $12.4 million, its fourth consecutive quarterly record. The result, a marked improvement from the $1.7 million profit in the third quarter of 1997, gave American Trans Air a net margin of 5.1%. Revenue jumped 15% to $242.4 million and expenses increased 6.8% to $219.5 million. Scheduled service revenue rose 32.4% to $135 million, while charter revenue fell 2.8% to $95.6 million. Operating costs increased 2.3% to 5.77 cents per available seat mile.
Dean Borman has been named president and chief operating officer of Sikorsky Aircraft. He will report to Eugene Buckley, who continues as chief executive and becomes chairman with Borgman's appointment to the United Technologies' unit. Buckley plans to retire next year. Borgman retired from Boeing's helicopter unit in June.
For Continental, posting record profits has become like a broken record. The airline yesterday revealed record earnings for the 14th consecutive quarter, dating back to mid-1995. Third quarter revenue grew 12% to $2.1 billion, and its pretax profit of $247 million, excluding a fleet charge, was up 33%. Counting the $122 million in previously announced pre-tax charges to retire four Boeing 747s, 13 727s and 32 Embraer turboprops, the company reported net income of $73 million, down from $110 million.
Britten-Norman is being acquired from Litchfield Continental by Biofarm Inc. Keith Beekmeyer, Biofarm chairman, said the acquisition was consistent with previous announcements that Litchfield would make available to Biofarm additional properties without additional consideration. BN designs and builds BN2 Islander and Defender light twin short-takeoff-and-landing aircraft.
DOT should dismiss the section of American's and Finnair's code-share application that involves service to St. Petersburg, Russia, via Finland because the carriers did not seek allocation of frequencies to operate the service, United told DOT. American and prospective oneworld alliance member Finnair applied for reciprocal code-share authority to implement a marketing agreement, including reciprocal frequent flyer programs and code sharing on some transatlantic flights, and service beyond Helsinki, Finland, to Riga, Latvia; Tallinn, Estonia, and St.
U.S. Major Carriers Change In RPMs, ASMs And Load Factor Second Quarter 1998 Load Factor (%) 1998 1997 Pts. Change Alaska 69.0 68.5 0.6 America West 70.5 70.9 -0.4 American 71.7 70.5 1.1 Continental 74.2 73.2 1.0
DOT - Approved for an indefinite period renewal of an allocation of seven weekly U.S.-Peru frequencies for Continental to provide combination service between Newark and Lima...Approved an amendment to Fine Air's exemption, effective through Aug.
SAS and Singapore Airlines sealed their strategic alliance with the signing of a memorandum of understanding last Friday in Singapore. The MOU calls for the alliance to take effect April 1 next year. The arrangement will cover coordination of scheduling and marketing campaigns, cross-participation in frequent flyer programs, reciprocal use of airport lounges and new code-share flights between Singapore and Copenhagen leading to daily joint services.
American Eagle is offering an introductory roundtrip fare of $158 for new jet service between Northwest Arkansas Regional Airport and Chicago O'Hare and between Arkansas and Dallas/Fort Worth. Introductory fares for travel from Arkansas to the western U.S. are $230 and $198 to all other domestic points. Travel must occur Nov. 1-Dec. 15 and include a Saturday night stay.
