Boeing may be ramping up production just as aircraft orders and deliveries begin to decline, according to Prudential Securities. "Currently anticipated large commercial aircraft output of 800-850 planes in the 2000-2002 time period is likely to prove far more than the 625-675 planes that will actually be required to meet the global airline industry's replacement and growth needs at the end of the decade," Prudential says, reducing its 1998 estimated per-share earnings of Boeing to 95 cents from $1.10.
Rolls-Royce said yesterday that British Airways selected its Trent 895 engines to power its new fleet of Boeing 777s (DAILY, Aug. 26). The engine order is valued at up to $930 million for 16 firm and 16 option aircraft. It was a blow to General Electric because BA had selected its GE90 to power an earlier order for 777s. Rolls will be responsible for the life-cycle support and maintenance of the engines.
Fifteen airlines operating on the Singapore-Jakarta route are creating a storm of competition. The situation is heightened by certain airlines that are undercutting fares, which is causing Garuda Indonesia concern. Garuda President Robby Djohan told The DAILY that with the downturn of the economy, the number of seats available far outstrips demand. Djohan noted that on certain days, there are more than 25 flights to Jakarta. "Most of these flights are operated by widebody aircraft coming from Europe," Djohan said.
Number of Taiwanese arrivals during the first seven months of this year reached 1.04 million, a 1.4% increase from the corresponding period last year, the Hong Kong Tourism Association (HKTA) said. Taiwanese accounted for 1.5% of all overseas visitors to Hong Kong during the period. Among Taiwanese traveling to Hong Kong, 56% arrived by air, 32.3% came by train from China and the remainder by boat from Macau.
Dublin Airport handled record-breaking passenger volume in August - more than 1.33 million, up 12% from August 1997, Aer Rianta reported. August was the fourth consecutive month passenger throughput exceeded 1 million. Dublin's transatlantic traffic increased most, 20%. Charter traffic gained 16% and U.K. volume, which normally accounts for half of Dublin's total, was up 9%. Passenger volume at Cork Airport rose to 158,000 in August, 6% higher than in the same month of 1997. U.K.
U.S. Carriers Landing Fees Second Quarter 1998 Major Carriers Cost Landing Fees Per Landing Alaska 6,321,000 151.60 America West 7,870,142 152.22 American 58,918,000 296.97 Continental 28,645,000 249.34 Delta 58,228,000 240.61
British Aerospace plc said yesterday it has established a sponsored American Depositary Receipt (ADR) program through J.P. Morgan. The ADRs began trading yesterday in the over-the-counter market under the symbol BTASY. Each ADR represents four ordinary shares traded on the London Stock Exchange. George Rose, finance director, said that "for some time we have recognized the interest in the company from the U.S. investor community, which has been alert to the globalizing trends within the aerospace and defense industry.
Deregulation has fallen short of its goal to create more competition, airline executives said last week at the Deregulation 20 Summit in Washington. Speaking on a panel of chief executives, ProAir President and Chief Executive Kevin Stamper said deregulation's impact has been felt unevenly around the country. He noted that ProAir is the only new entrant of the last few years still in business.
A consortium led by German construction company Hochtief is expected to be confirmed as "preferred bidder" next month, said Wolfhard Leichnitz, a member of Hochtief's board, in a recent interview with Handelsblatt, the German business daily newspaper. If the deal is concluded, Hochtief would develop its position considerably on the airport management market. The company already is leading the consortium, which is building Athens's new airport and is involved in rebuilding Dusseldorf Airport in Germany.
Plans to boost by 20,000 the number of aircraft movements at Amsterdam Schiphol Airport next year are in abeyance due to a dispute about the number of households near the airport that will be affected by noise from the higher traffic levels. Dutch Transport Minister Tineke Netelenbos will address Parliament today and tomorrow in an attempt to sort out the controversy, which threatens to delay plans to build a fifth runway at the airport.
U.S. Carriers Food Expense Second Quarter 1998 Major Carriers Cost Food Per Passenger Alaska 12,184,000 3.67 America West 6,404,937 1.38 American 162,729,000 7.78 Continental 44,974,000 4.17 Delta 110,020,000 3.99
Martinair Chairman Martin Schroder will retire in December from the airline he built. In the 40 years Schroder has managed the Dutch carrier, Martinair has posted a profit 39 times. Martinair is 100% owned by KLM.
Standard&Poor's has affirmed its ratings of America West Airlines and America West Holdings Corp., and removed them from CreditWatch, where it placed them April 21. It also changed the outlook to positive. The ratings affect approximately $388 million of debt.
Tom McSweeny was appointed FAA associate administrator for regulation and certification yesterday by FAA Administrator Jane Garvey. McSweeny has been director-aircraft certification service. He will oversee a work force of about 4,300 people.
The Texas Supreme Court last week upheld a lower court ruling that allowed the state lawsuit over expansion of Dallas Love Field to remain in the Fort Worth court of District Judge Bob McCoy. The City of Dallas, Legend and Continental argued earlier that the case should be tried in a Dallas court because Love Field is in Dallas. But Justice Raul Gonzalez wrote in an eight-page opinion that the court could not base its ruling on "suspicions" that McCoy would be partial to Fort Worth's interests.
United will launch nonstop London Heathrow-Boston Logan service on April 4, 1999, using three-class 767-300 aircraft. Sean Donohue, United's city manager for Boston, said Boston-London is the third-largest U.S.-Europe market. The new service is part of United's planned expansion in Boston, where the carrier began work this year on a $33 million renovation and expansion of its current facility.
SAS and Singapore Airlines have agreed to form a code-sharing partnership, which may lead the Asian airline to join the five-carrier Star alliance, according to Jan Stenberg, SAS chief executive. Stenberg said the alliance could operate effectively with as many as 10 carriers.
Citing the value of Chicago-Madrid daily nonstops, the City of Chicago asked DOT to grant Iberia's request for an exemption from high-density slot restrictions at Chicago O'Hare to continue operating the service (DAILY, Sept. 11). "Such service is among the highest and best uses of O'Hare's available capacity, and brings in significant jobs, trade, and tourism," the airport's owner/operator said. The Spanish carrier began the flights Sept. 1 with A340-300 aircraft using two 1998 summer-season slot exemptions granted by DOT (DAILY, June 10).
National Association of State Aviation Officials elected Demetrius Glass, director of the Pennsylvania Bureau of Aviation, to the board and named Gordon Hoff, manager of aviation education, Minnesota DOT, the recipient of its State Aviation Distinguished Service Award.
British Airways' Go operation, initially thought to compete with other low-fare European airlines, has attracted competition mostly from major carriers. Eight airlines - Lufthansa, Sabena, SAS, Alitalia, Swissair, Virgin Express, Braathens and Eurowings - have begun service into London Stansted Airport since Go began operations there four months ago, and KLM is considering service as well, a Go official said. (See story to follow.)
Efficiency problems in Hawker Pacific Aerospace's newly acquired U.K. operation will hold down profits for the rest of 1998, the company reported. The landing gear maintenance provider projected third quarter revenues of $16-$16.2 million, an operating profit of $800,000-$900,000 and a net profit at breakeven, and fourth quarter revenues of $18-$19 million. David Lokken, president and chief executive officer, said it is taking longer than expected to increase efficiency in the U.K., but the company expects to reach its targets in the first quarter of 1999.
Lufthansa Cargo's order of six MD-11 freighters (DAILY, Sept. 18) comprises the exercise of three options and a new firm order for three aircraft, Boeing said Friday. Deliveries are scheduled during 2000 and 2001. The new order brings Lufthansa Cargo's on-order and delivered MD-11 total to 14 aircraft.
British Aerospace Asset Management appointed David Singleton managing director, succeeding Tony Rice, who was named group managing director-commercial aircraft.
