Roberts Roach/Cap Gemini's "Scorecard" study shows that U.S. domestic yields have been declining consistently since 1929. The report on unit-cost structures for 10 major airlines and five nationals shows costs have been flat for 20 years. Declining yields have been offset by rising load factors.
Dobbs International Services named Keith Drachler regional VP-western regional office; promoted Joe Golio to VP and managing director for Dobbs' United Airlines account; appointed Scott Bergner northwest regional VP, and named Bill Webb northeast regional VP and John Gill assistant VP and general manager at Chicago.
President Clinton's summit conference with Russian President Boris Yeltsin last week produced two aviation-related agreements. Secretary of State Madeleine Albright and Russian Foreign Minister Yevgeny Primakov on Sept. 2 signed a bilateral aviation safety agreement and a memorandum on accident/incident investigation and prevention. The next step is to conclude an implementation procedures document among the FAA, the Federal Aviation Authority of Russia and the Interstate Aviation Committee and its Aviation Register.
Northwest-ALPA update - Aviation DAILY will summarize the weekend's developments in the Northwest-Air Line Pilots Association strike today at 9 a.m. EDT on its web site, http://www.awgnews.com. Readers may access the summary by clicking on "Latest Northwest-ALPA News." E-mail subscribers will receive the summary automatically.
US Airways' August traffic fell 4% on 4.7% less capacity, but the result produced a load factor of 77.6%, a record for the month. Domestic traffic was down 5.4% on 5.9% less capacity, while international traffic rose 7.8% on 5.6% more capacity. So far this year, US Airways' domestic system has shrunk 6.3%, while international capacity grew 8.4%. The airline flew 5.2 million passengers last month, 189,000 fewer than August 1997. Despite the international expansion, the average passenger trip fell to 730 miles from 734.
Air Jamaica leased two used Airbus A320s from International Lease Finance Corp., with deliveries scheduled in October and April. The aircraft are now on lease to Onur Air and Monarch Airlines.
Southwest, which carried more than 4.7 million passengers in August, is on a pace to carry more than 54 million this year. This level would push Southwest past Northwest and make it the fifth-largest airline in the world in terms of passengers carried, behind Delta, United, American and US Airways.
Northwest's replacement of Chief Financial Officer Jim Lawrence with former CFO Mickey Foret is viewed on Wall Street as the first of several changes in Northwest's top-tier management.Sources expect Chief Executive John Dasburg to be the next casualty of the pilots strike, and they cite Continental President Greg Brenneman among potential successors.
DOT extended the period for taking action on United's complaint against prospective EC conditions on its alliance with Lufthansa and SAS DOT extended through Oct. 6 the period for taking action on United's complaint against prospective European Commission conditions on its alliance with Lufthansa and SAS. (Docket OST-98-4030)
DOT extended the deadline for comments on its Love Field proceeding to Sept. 22 from Sept. 8, with replies to comments due Oct. 2. Parties are invited to respond during the initial period to Fort Worth's motion to dismiss the proceeding, but DOT will not at this time grant the city's motion for disclosure of materials related to the proceeding.
U.K. low-fare carrier Debonair Airways said its July traffic jumped 26% from last year. Chief Financial Officer Richard Clapson said the trend continued in August and, if it carries through this month, "will result in an excellent second financial quarter." Debonair took delivery of its eighth BAe 146 last month and has confirmed plans to add four more by spring 1999.
United traffic for August rose 3.2% on 4.3% more capacity, which lowered the load factor 0.8 percentage points to 77.7%. But the airline posted record passenger figures for the month, carrying 8.3 million. The traffic and passenger data include the effects of only the first three days of the Northwest strike. United's North American traffic increased 6.5% on 7.1% more capacity, while Pacific traffic fell 8.6% on 9.6% less capacity. The airline's Pacific restructuring led to a load factor of 80.1%, up 0.9 points.
TransAsia Airways reports 51 of the 67 ATR pilots who resigned earlier have agreed to go back to their jobs TransAsia Airways reported that 51 of the 67 ATR pilots who resigned earlier have agreed to go back to their jobs. Their return means the carrier has enough pilots to resume service on nearly all routes affected by the walkout. A spokesman for Taiwan's Civil Aeronautics Administration said, however, that the CAA will not revoke its decision to give 78 of TransAsia's 122 scheduled daily flights to three other carriers for the next two months.
Northwest's pilots union, "perplexed" that management will not offer stock options that match American's and Delta's, is convinced that options "are a no-cost item" to Northwest. Buckingham Research analyst Helane Becker calls the assertion "patently ridiculous," since exercised options either dilute earnings per share or force Northwest to buy back an equal number of shares to keep EPS constant.
Northwest is extending the expiration date of its WorldPerks banked miles because of its pilots strike. All miles set to expire on Dec. 31 will now be valid through Dec. 31, 1999. Spokesman Jon Austin said this is the carrier's way of thanking its customers for their patience during the strike.
Airport and Airway Trust Fund - Income Statement October 1, 1997 - July 31, 1998 RECEIPTS (Revenues) July 1998 Revenues: Excise Taxes (Transferred from General Fund): Liquid Fuel other than Gas 85,858,437.00 Transportation by Air, Seats, Berths, etc. 502,771,000.00 Use of International Travel Facilities 76,401,000.00
Bombardier is expected to place great emphasis on the turboprop market at next week's Farnborough Air Show in England. The manufacturer is taking Dash 8-Q200, -Q300 and -Q400 aircraft to the show and they will participate in the flying display for the first time in many years. The manufacturer will highlight its Noise and Vibration Suppression (NVS) system, which was introduced on the Dash 8 last year after development by Bombardier and Ultra Electronics of the U.K., delivering the "quietest and most vibration-free passenger cabin of any propeller-driven airplane."
Legend Airlines and Continental Express wholly support DOT's Love Field proceeding, seeing no need to alter its scope or change its schedule, and Southwest would grant only a slight extension to the Sept. 8 deadline imposed by the department. Parties including the City of Fort Worth, Dallas/Fort Worth Airport and American told DOT their attorneys cannot simultaneously meet their obligations as litigators and address the issues in the DOT proceeding, but Southwest said the parties already have developed their positions and require little additional preparation.
