U.S. airlines, faced with the loss of tens of millions of dollars in technology costs, say they want to continue the Global Positioning System- Wide Area Augmentation System program even if it will not provide a sole means of navigation. The airlines fear that Congress will cut funding for the program if it cannot provide sole-means capability, and the Air Transport Association says a GPS-WAAS "capable of even primary-means services provides significant operation benefit."
Spurred by the market as a whole, eight regional airline stocks tumbled 21.8% in the second half of August, down from an average price per share of $20.91 at the July close to $16.35 Monday. Every stock declined. Biggest loser was Delta Connection Atlantic Southeast Airlines, down 19.4% from $42.50 per share - the industry leader - to $34.25, an $8.25 loss, maintaining its industry edge. Several other carriers have had recent stock splits, however. Northwest Airlink Mesaba, shut down due to the Northwest pilots' strike, was off $7.69, or 32.7%, to $15.81 per share.
British Aerospace Asset Management Jets (AMJ) is to remarket exclusively three BAe 146-200s from the fleet of Air Atlantic of Halifax, Nova Scotia. This follows an announcement that Air Atlantic is to cease scheduled air services as a Canadian Airlines Partner, beginning Oct. 24. This is the second remarketing exercise for AMJ this year. The first occasion was the remarketing of the Thai Airways BAe 146-300 fleet which ended in a speedy placing.
Grand Prairie, Texas-based Aspen Mountain Air will continue to serve five routes in addition to its essential air service routes with a reduced fleet of aircraft while operating under Chapter 11 bankruptcy protection, the carrier announced yesterday. Aspen last month announced it would voluntarily reorganize under Chapter 11 (DAILY Aug. 11). Retained routes are Dallas/Fort Worth-Aspen, Colo.; DFW-Chihuahua, Mexico; DFW-Branson, Mo.; Denver-Aspen, Colo., and Denver-Bozeman, Mont.
Airlines Reporting Corporation is advising travel agents that it will no longer return credit card charge forms submitted in error. ARC discontinued credit card charge form reporting requirements more than four months ago but still is receiving many forms in weekly agent sales reports.
Itapemirim Transportes Aereos (ITA), a Brazilian all-cargo carrier, applied at DOT for an indefinite-duration foreign air carrier permit and a one-year exemption for U.S.-Brazil service while its permit application is pending. Both applications request authority to engage in scheduled cargo service between points in Brazil and the co-terminal points Los Angeles, New York Kennedy, Atlanta and Miami, via intermediate points, as well as U.S.-Brazil charter cargo flights via intermediate points. ITA plans to begin service to the U.S. Nov. 1.
Department of Justice has waived its right to file a response in the Supreme Court appeal of TPI International Airways, which is seeking $28 million plus interest from the Air Force for breach of a cargo contract in August 1989. The case being appealed was recently reopened by the Armed Services Board of Contract Appeals based on new evidence that there was conspiracy between the Air Force and the FAA in shutting down TPI at virtually the same time. The FAA, meanwhile, recently withdrew the violations used to force TPI to "voluntarily" surrender its certificate.
America West mechanics, represented by the Teamsters, will rally today outside Columbus Airport, in the wake of what the carrier called "protracted and difficult" negotiations. Mechanics say they are voicing concern for passenger safety. Last month, the airline paid $2.5 million of a $5 million FAA fine for problems with maintenance, some of which is handled by an outside company.
...Fairchild Dornier production of the 728JET family will focus on the 70- passenger-plus version of the airplane. Of provisional orders by Crossair and CityLine, about 80 units will be 728s. The remaining 40 will be split between the 50-passenger-plus 528 and the 90-seat 928. There are letters of intent for 30 728s, split between Eurowings of Germany and Proteus of France. With 120 provisional orders plus 120 options, however, the company will not have any delivery positions until early 2004 for new customers, although some positions are being reserved.
Cathal Flynn, FAA associate administrator for civil aviation security, discusses heightened airport security, the rewrite of FAR Part 107 and the deployment of explosives detection equipment on this week's Aviation News Today, to be broadcast Sunday on Washington's NewsChannel 8 at 12:30 a.m. and 1:30 p.m.
Although Continental agreed last year to a one-year period for its code share with Virgin Atlantic in order to expedite approval of its application (DAILY, Oct. 9, 1997), the carrier "does not acquiesce in American's request that renewal be limited to 179 days." American told DOT the extrabilateral code share for U.S.-U.K. services should be limited if granted, and further renewal should be denied in the absence of an open-skies agreement (DAILY, Aug. 20).
Cross section of the new Fairchild Dornier 728JET family of regional jets has been reduced from 134 to 128 inches. The change still permits five- abreast seating and compares with an MD-80 cross section of 123 inches. Proposed launch customer Lufthansa CityLine sought the change to reduce weight - about 1,000 pounds - while improving fuel burn and aerodynamics. In addition, the original 134 inches would have made it a marginal six- abreast airplane and European regionals do not want to compete against low-
Delta's inability to operate U.S.-Russia frequencies allocated to it does not justify reallocating them, Delta told DOT in response to American's request for seven frequencies in order to operate daily Chicago-Moscow nonstops (DAILY, Aug. 17). "At the present time, all 54 U.S.-Russia frequencies are allocated," Delta said.
Northwest's strike, in its seventh day, already has given a substantial sales boost to the competition.Through this weekend, United will receive $47.6 million in extra net income, Delta $27.1 million and American $26.7 million, according to PaineWebber Research.
In light of the Air Canada pilots strike, United is rebooking the Air Canada flight portion of its customers' itineraries on United flights and other carriers, as needed. United and Air Canada are code-share partners and members of the global Star Alliance partnership.
New Regional Aircraft Deliveries, June 1998 Last 12 Months Carrier No. Type Engines Delivery Air Dolomiti 1 AA ATR 72-500 PW124E 2 Air North Pty 1 Cessna 208B PT6A-114A - American Eagle 2 EMB RJ145 AE3007A 6 Atlantic Southeast 2 Canadair RJ200 CF34-3B1 10
America West posted a 0.6% increase in August traffic on 3.2% more capacity, which caused the load factor to drop 1.9 percentage points to 72.8%. The airline carried 1.6 million passengers, 3.4% fewer than in August 1997. President Richard Goodmanson said operational and financial performance in July was negatively affected by "the protracted and difficult negotiations the airline has had with the International Brotherhood of Teamsters," which represents its 450 line mechanics.
American' pilots may join striking Northwest pilots on the picket line today at Dallas-Fort Worth Airport. Northwest's Air Line Pilots Association unit expanded to DFW and will picket there today through Monday. Northwest flight attendants, represented by the Teamsters, will hold rallies today at 13 locations nationwide to send a "wake-up call" to management. They have been in contract negotiations for two years.
Northwest Airlink commuter Mesaba Airlines late yesterday was nearing a decision to defy DOT Secretary Rodney Slater's notice that the carrier-and Express Airlines I-must resume flying (DAILY, Sept. 3). A Mesaba spokesman told the DAILY late yesterday his airline had fulfilled its legal obligations by notifying DOT on Aug. 28 of its plan to suspend service in the event of a strike against Northwest. Mesaba is not bound by Slater's instruction that Mesaba must resume service to Essential Air Service points because of escape provisions in the EAS agreement, he said.
FAA has selected and expects to announce soon the winner of a contract to provide its new Weather System Processor (WSP). The competitors are Northrop-Grumman, Raytheon and a team led by Ion Inc. of Minneapolis. FAA plans to install WSP at 35 sites for about $44 million. WSP will serve airports not equipped with terminal Doppler weather radar systems.
Japan Airlines' winter schedule sets in motion a plan to use its additional Tokyo Narita slots and route authorities to launch a significant number of new frequencies across the Pacific, to Europe and on regional routes. The move adds capacity on some routes where other airlines have withdrawn service for lack of traffic and revenue. JAL will expand capacity on "high-demand routes," cut others and reorganize European and Asian service. It will use its first increase in Narita slots since 1991 to add 15 weekly frequencies.
The average airline fare has increased 2% during the past 12 months, the same rate as consumer inflation, according to the Air Transport Association. But analysts cautioned this week that an average may have little meaning in the real world when a passenger is paying a business fare or flying out of an airport with no low-cost competitors.
Continental posted a 13% gain in August traffic on 11% more capacity, boosting the load factor 1.3 percentage points to 78.1%, the highest load factor for any month in the airline's history. Domestic traffic rose 8.6% on 7.5% more capacity, pushing the load factor up 0.8 points to 78%. International traffic jumped 22.5% on 18.4%, raising the load factor 2.6 points to 78.5%. Continental Express traffic was up 20.7% on 19.2% more capacity, producing its highest August load factor, 63.5%, up 0.8 points.
